The very dynamic expansion of French wines with CASTEL in Asia

On the 27th, 28th and 29th May next Vinexpo Asia-Pacific will be held in Hong Kong. With more than 6,880 visitors in 2006, this major wine and spirits event is a unique opportunity for CASTEL to consolidate its position as leader on the main Asian markets (Japan, China, Korea and Taiwan) but also to strengthen its seduction and development policy at international level.

Within just a few years, Asia has become a key market with very strong potential.

With this main axis of international development, CASTEL has won its bet: to become an undisputed leader of French wines on the Asiatic continent thanks to creative development strategies suited to local markets.

Castel's strength: its unparalleled expertise
With its productions, brands and Châteaux firmly established in mass marketing and catering throughout France and Europe, CASTEL has chosen to open subsidiaries within emerging Asian markets and to adapt as closely as possible to the tastes, requirements and culture of local consumers.

The first office in Asia was opened by CASTEL in Japan in 1999, followed by one in Korea and two others in China (in Shenzhen and Canton); a real success for the group, which has once again shown its ability to strengthen its presence on these new emerging markets and develop real opportunities there.

On site, a team of 60 people is working to develop Castel brands: Baron de Lestac, Malesan, Virginie, Famille Castel, Grain d'Oc, as well as Castel's Estates & Vineyards.

Such success can be explained by an appropriate development strategy. Bearing in mind that Asians do not have the same taste requirements as the French, CASTEL has put all its experience and know-how into developing a new approach to French wines in Asia.

In order to do so, each market was scrutinised to determine the strengths and weaknesses of existing offers as well as consumer trends, the objective being to meet their requirements in terms of packaging and to define and optimise wine qualities.

Castel brands are currently present and sold throughout 14 Asian countries. That's what you call being successful!

Castel: historical establishment in China
With nearly ten years' presence on the Chinese market, CASTEL enjoys a privileged partnership with the leading wine manufacturer Changyu.

Together they own a bottling centre and Château Changyu-Castel, with 125 hectares (310 acres) of vineyards in Yantai. By entering into this partnership, Castel has proved its know-how in producing and bottling Chinese wines and now boasts a positive image.

In order to meet the requirements of local customers, in 2007 Castel opened a trading office in Shenzhen and a warehouse in Canton. The latter covers 1,500 m2 and has storage capacity for 350,000 bottles.

Still with the objective of meeting the requirements of Chinese customers, CASTEL offers wines that are suited to their tastes, that is to say less pungent and very fruity. The group has done a great job adapting French varietal wines to local markets and specificities.

CASTEL also has a total of 16 brands in the range of AOC Bordeaux wines, headed by French leader Baron de Lestac. China appreciates Castel in particular, having bought 250,000 bottles from its new range early in 2008.

So many factors that explain that CASTEL sales rose to 23.5% in volume in Asia in 2007.