China’s Weilong starts crushing at Australian winery

China’s third largest winery, Weilong Grape Wine Company, has started crushing at its winery in Australia to make wines that are bound exclusively for consumers in China, as interest in Australian wines continues to grow.

Weilong’s general manager in Australia Bruno Zappia and president of Wei Long Grape Wine Company Wang Zhen Hai (photo source: Mildura Independent)

The wines made at the winery’s new AU$75 million facility are expected to be bottled at the end of this year and sold back to China in time for the 2020 Chinese New Year in January, according to the winery’s general manager Bruno Zappia.

Located in Yatpool near Mildura in north-west Victoria, the winery’s initial crush is around 25,000 tonnes and it’s planning to expand its production volume to 170,000 tonnes in the coming years.

Based in Shandong province in eastern China, Weilong is China’s third biggest winery after Changyu Pioneer Wine Company and GreatWall Winery. It has wineries in its home base, northwestern Gansu province as well as Xinjiang. Its Chinese website has yet to add in information about its Australian winery but said it’s going to be organic.

But Weilong’s project in Australia initially faced setbacks and delays due to concerns over environmental impacts, as dbHK previously reported.

Speaking of the investment in Murray Valley, executive officer of Murray Valley Wine Growers, Mike Stone, told ABC news: “It’s extremely significant for Australia, there hasn’t been a winery development of this magnitude for many years.

“It speaks volumes for their confidence in our ability to produce the quality fruit for the wine they want to deliver to their customers back home,” he added.

Weilong is among a number of Chinese investors, including Changyu Pioneer Wine Company, that have purchased vineyards and wineries in Australia.

Australia remains China’s second biggest imported wine source, just trailing behind France. China imported US$723.25 million worth of bottled wines from Australia in 2018, a year-on-year increase of 5.41%, according to China Association of Imports and Export of Wine & Spirits.

Momentum for growth is expected to continue for Australian wines but blistering speed seen in the past becomes less unlikely, with China’s slowing economy, the US-China trade war and depreciated currency.