China's oldest wine maker fuels new growth in Yantai

China's oldest and largest wine maker, Yantai Changyu Pioneer Wine, is helping generate new momentum for economic growth in its home city of Yantai in East China's Shandong province.

Changyu has invested deeply to turn itself into a cutting-edge global brand in recent years. The heart of this drive is Wine City, a sprawling complex in Yantai that functions as both a modern production facility and tourist resort.

The company invested 6 billion yuan ($890 million) to build the project in 2011. The 6,200-mu (413-hectare) complex houses a wine research institute, a wine production center, chateaus, vineyards, a European-style wine village and a wine trading center.

The first phase of the project, the wine production center, went into full operation almost one year ago to the day, on Aug 27, 2016. The facility is one of the most advanced in China, with a high level of automation and information management.

Changyu's state-of-the-art bottle filling unit is helping Changyu expand its global presence. [Photo by Wang Qian/China Daily]

The center boasts the world's most efficient wine production line, which was imported from Germany and can produce 250,000 tons of wine and 150,000 tons of brandy annually.

The production line can fill up to 25,000 bottles of wine per hour, while a traditional system can typically handle just 6,000 to 7,000 bottles per hour, according to Zhou Hongjiang, general manager of the Yantai-based winery.

Changyu also plans to use the latest IT technology to give itself a competitive advantage in the traditional world of wine making and selling.

The company intends to build smart production plants that can provide customized services. It is also revamping its online sales operations — despite already being among the top ten wine brands in China in terms of online sales volumes — allowing customers to place orders via mobile devices and improving product quality and packaging.

A reporter photographs a warehouse at Changyu International Wine City. [Photo/China Daily]

Modernizing its management practices is also another key focus of the company's reform drive. Changyu has invested 100 million yuan in this area.

The winemaker also has its eyes on the global wine market, completing a series of overseas mergers and acquisitions since 2013. In a recent move, Changyu signed an agreement with Chile's Bethia Group to buy three vineyards in the South American country for over $50 million.

The move is part of the company's efforts to make overseas sales account for 30 percent of its total sales volume within five years.

With its integration of industry and tourism, Changyu Wine City aims to grow into a comprehensive industrial park specializing in wine making, trading and tourism.

Changyu also plans to build more tourism facilities and promote wine culture and tourism.

"Over the last hundred years, Changyu has grown into a renowned brand in China and worldwide," said Zhou. "Over the next century, we will focus on boosting the profile of Wine City and making an even greater contribution to the economic development of Yantai."

Visitors show interest in products from Yantai Changyu Pioneer Wine Co Ltd at an expo in Yantai, Shandong province. Changyu plans more acquisitions in wine-producing countries such as Australia and Chile next year. [Photo/China Daily]