Changyu Pioneer is now the majority shareholder in Kilikanoon Wine in Australia.
Is it a consequence of the Free Trade Agreement between China and Australia or growth in the popularity of Australian wine?China’s oldest winery, Changyu Pioneer, has bought 80 per cent of Kilikanoon Wines, a winery based in the Clare Valley region, for AU$ 20.6 million.
According to the local newspaper, Times of the Coast, Kevin Mitchell, chief winemaker, and Warrick Duthy, managing director, are to remain in their posts.
A Chinese newspaper, The Economic Observer, reported an analyst as saying, “After the acquisition, its products will be incorporated and sold through Changyu’s channels in the Chinese market, which will help it to gain a sound sales network in a short time.”
Kilikanoon was founded in 1997 when winemaker and proprietor Kevin Mitchell purchased the property of the same name in the hamlet of Penwortham in South Australia’s picturesque Clare Valley.
Earlier this year, Changyu acquired 85 per cent ownership of Chile’s Bethwines for US$ 50 million.