Hoping that sparkling wines will attract aspiring younger consumers, Moet Hennessy, the fine wine and spirits brand owned by LVMH group, has announced its plans to open its first production facility dedicated to sparkling wines, says China Daily. The 6,300-square-meter plant will be located in Ningxia Hui autonomous region.
Of the endeavor Moet Hennessy’s CEO, Christophe Navarre, said, “The winery not only helps support our group’s total business in China in the future. It also indicates our long-term vision in this fantastic market. No matter if the Chinese market goes up or down, we will always be here, and we want to be part of China’s future.”
The International Wine and Spirit Research institute projects that by 2016, 3.68 billion cases of wine will be consumed around the world each year. Currently, the world is imbibing an estimated 3.39 billion cases annually. Seventy-five percent of the increase will come from China.
Mark Bedingham, the managing director of Moet Hennessy Asia Pacific, told China Daily that the sparkling wine produced in Ningxia will satisfy local demand, but that it may become an export commodity in the future.
Moet Hennessy is not a newcomer to China. The brand acquired Wenjun, a Chinese white spirits producer in Sichuan province, six years ago. Navarre said the brand is moving quickly to market Wenjun in luxury markets.
This past May, the company opened a Shangi-La winery in Dequin county, Yunnan province. Bedingham reports that the sparkling wine produced in Ningxia will be sold at a lower price point than that of the wine from Yunnan. The output from Ningxia will also be larger.
Ningxia’s climate and soil conditions make it the perfect environment to grow Chardonnay and Pinot Noir grapes in, officials say. “Moet Hennessy has always been committed to providing high-standard winemaking expertise to make the finest quality wine,” said Navarre, “With the company’s international resources, we believe this new operation will provide Chinese consumers a great sparkling wine.”