THE DRINKS BUSINESS | Does the Asia market spell trouble for Moët?
Moët & Chandon faces competition from Chinese rival Changyu, which has seen a growth spurt while Moët’s sales have dipped, db discovers.
Although Moët & Chandon and Changyu are not direct competitors within the same category (sparkling wine), they are both fighting for share within the Asian fine wine market, and while Moët has historically held a bigger slice of the pie in value terms, things might be changing.
The trajectory of Changyu Pioneer Wine Company is rocketing, with the company’s value increasing by a third in just 12 months (2022-2023). The Chinese drinks firm is now valued at £946 million, just shy of the LVMH-owned Moët & Chandon, which is worth £1 billion following a 10% slide in sales this year.
Moët & Chandon’s falling sales saw its Dom Perignon brand plummet from 6th position to 48th in this year’s Power 100 Fine List, just released by global marketplace Liv-ex.
Meanwhile, Changyu has been quietly amassing vineyard space and now owns 20,000ha of land in China compared with Moët & Chandon’s 1,190ha in Champagne.
Founded by Zhang Bishi in 1892, Changyu is thought to be China’s oldest wine producer, with Bishi having imported more than 500,000 vines from Europe and the US to begin the business. It is also China’s largest wine company, and growing.
The Chinese producer’s bread and butter is its Changyu Moser XV red, developed with Austrian winemaker Lenz Moser, which one critic described as “a tannic beast of a wine that hits you round the chops”. The Cabernet/Merlot blend is made from vines grown in Ningxia (Yinchuan province) and sits alongside a white and a Gran Vin in the range. Changyu also produces a Golden Ice Wine.
