Weilong Grape Co’s Decision
Weilong Grape Co, one of China’s big players in the wine industry, has decided to offload most of its Australian vineyards under Weilong Wines. This move comes as a response to the hefty tariffs China slapped on Aussie wine, putting a strain on business. Weilong aims to ease financial pressure and cut debts by selling its Coomealla and Nyah vineyards in the Murray-Darling region, as announced to the Shanghai Stock Exchange.
Impact of China’s Tariffs
The company initially jumped into Australia’s wine scene when China was a booming market for Aussie exports. However, things took a sharp turn in 2020 when China hit Australian winemakers with sky-high import duties, causing a massive drop in sales by a whopping 97%.
Weilong’s Entry into the Aussie Wine Market
Weilong started its Aussie wine journey by sourcing bulk wine from regions like Riverina, Murray-Darling, and Riverland. This wine was then marketed under Weilong labels back in China. The company’s confidence in the wine’s quality led them to buy vineyards in Murray-Darling and Swan Hill in 2016. They even built a swanky winery near Mildura, with the first phase completed in 2019.
Weilong’s Future Plans
While Weilong plans to keep some assets in Australia, they’ve got enough stock to meet demand for the next two years if relations between China and Australia improve. Interestingly, the Littore winemaking family, who’ve been in the game since the 1950s, is eyeing two Weilong vineyards for a cool $14 million. The Littore family’s wine biz, born out of Italian migration to Oz, has a rich heritage Down Under.
