How to Invest in the Booming Chinese Wine Industry

With a population of 1.3 billion, China is the largest potential market for wine in the world. At the moment, the Chinese don't drink a lot of wine—about.5 liters annually per capita, as opposed to 55 liters in France. But that's changing fast: the yearly growth rate of Chinese wine consumption is about 15 percent. Worldwide, it's roughly 1 percent.



For a foreigner, taking the plunge and investing in a winery in China is not easy. Here are 12 tips from those who have done it.
Have Deep Pockets



Don’t expect cash flow from your new winery for at least six years. After planting the vines, it takes four years to get the first decent harvest, then a minimum of another year or two to produce the wine. During that time you are also building a winery. Investing in an existing operation—including updating equipment, refining the wine-making process or expanding production—is likely to be more limited in scope and cost.
Know the Wine-Making Process


If all you know about wine is how to drink it, start reading books, Google “enology” and “viticulture,” get familiar with details like trellising methods and fermenting techniques.


Then visit with winery owners to understand the big picture of vineyards and wine-making. You don’t have to know as much as your winemaker, but you have to know the fundamentals.