Fosun Group has bought a 20% stake in Spanish wine and food producer Osborne Group, in order to secure more supplies for China’s growing ‘middle class’.
The Chinese investment group did not disclose a fee for the deal, which it said was part of its strategy to ‘combine China's growth momentum with global resources’.
In recent years, Chinese investments in wine estates have increasingly extended beyond Bordeaux to other regions.
‘The wine and gourmet food market has developed rapidly, led by the changing of the country’s middle-class lifestyle, accelerating the consumption needs for these products,’ said Fosun Group.
Osborne, founded in 1772, said it was keen to leverage Fosun’s knowledge about the Chinese market.
‘Fosun knows the Chinese market and has broad experience in the consumer goods and retail industry,’ Julio Lopez Castano, General Manager of the Spanish producer told DecanterChina.com. ‘[This] will definitely help Osborne understand the Chinese consumers' behaviour, the trends in the Chinese market and the best distribution channels to reach those consumers.’
The Spanish producer, who is best known for its premium ‘Osborne’ Sherry range, believes the Chinese government austerity policies actually give Spanish wines an edge over French and Italian wines.
‘High quality standards along with competitive pricing are making the Spanish wines an increasingly preferred option for the Chinese consumers,’ said the Spanish producer, which has wine from well-known regions including Rioja and Jerez.
Osborne also said it plans to use Fosun’s investment to pursue more acquisitions.
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