Issue link: http://winesandvines.uberflip.com/i/437909
112 Wines&Vines January 2015 sales & marketing the early 1990s with a proposal to sell Beringer wines in China. Klenz said they did a great job introducing the brand when the Chinese mar- ket was starting to grow. Klenz observed, "I don't think anybody in the world knows more about the wine market in China than Don." ASC background In the mid-1980s Don St. Pierre Sr. was an auto industry executive in China, where he saw opportunities as the country's economy ex- panded. St. Pierre Jr. and his father founded ASC Fine Wines in 1996. Today, ASC is the largest premium wine importer and distributor in China and the exclusive importer of more than 100 wine brands from Argentina, Austria, Australia, Canada, Chile, France, Germany, Hungary, Italy, New Zealand, Portugal, South Africa, Spain and the United States. ASC rep- resents U.S. wine brands including Beringer, Cakebread, Chateau St. Michelle, The Hess Collection, Joseph Phelps and St. Francis Win- ery & Vineyards. In 2010, global beverage company Suntory Wine International acquired a majority interest in ASC. St. Pierre served as CEO of ASC until 2012, when he assumed the position of execu- tive chairman of the board. In May 2014 he was named senior advisor to Suntory and con- tinues as a member of the ASC Board. China's wine market history Chinese residents' interest in wine began in- creasing in the 1980s, when government poli- cies supported domestic grapegrowing and wine production in an effort to shift alcohol consumption away from domestically pro- duced high-alcohol spirits made from Chinese grain. Wine was viewed as a healthier beverage alternative, and the grain used for alcohol pro- duction was needed for food. China's domestic wine production and sales expanded. But as St. Pierre explained, "The prices of domestic premium wines kept going up. The quality of the wine was not getting better, but the packag- ing was." He further explained, "Chinese con- sumers started to understand that domestic wines were not so good, and they were not offering the same quality and value as imported wines." An important driver in sales during China's economic expansion was that wine purchases were strongly tied to entertaining and gift- giving by government and business officials looking to build relationships. Bordeaux wines dominated the import market, totaling nearly 50% of all Chinese wine imports. "An important part of our success is that we didn't know a lot about the Chinese wine in- dustry, so we began with no preconceptions," St. Pierre said. "We developed a 'China first' strategy (focused on the Chinese consumer and culture) and a wine strategy second," he added. He listed four challenges ASC encountered in the Chinese market and how the company successfully addressed them. Don St. Pierre Jr. speaks at the University of Cali- fornia, Davis. SCREW Making the move to screw cap? Want to run roll-on and torque-on with the same machine? Arol's flexible capping technology applies everything from corks, to torque-on aluminum closures. With over thirty years' experience and 15,000 machines to-date, we have a perfect solution for your application. We custom design your machine for your specific application. Contact us at: AROL North America 450 Satellite Blvd NE | Suite A Suwanee, GA 30024 | Tel: 678.318.1290 www.arol.com WV201111_arol_island.indd 1 11/4/2011 9:05:39 AM