Legacy Shifts Gears and Will Begin to Bottle Wine in China to Partake in the Multi-Million Dollar Emerging Asian Wine Market
23 February 2011 - 11:30PM
Legacy Wine and Spirits International Ltd. (Pink Sheets:LWSP), an
importer, wholesaler and retailer of fine wines in China, announced
today that the Company, led by recently appointed President Jaclyn
Cruz, has started the process of changing the business strategy
from not just importing bottled wine to also bottling the wine in
China.
www.legacywineandspirits.com
Within the last two years importing and blending domestic and
imported wines has risen over 15%; whereas imports have risen by
58.3%, an equivalent of $377.11 million dollars. These trends show
no signs of slowing and experts agree that China is the fastest
growing market for wine production, wine consumption and
cultivating grapes. Overall, consumption of wine in China had now
reached one bottle per year per person - which might not sound like
much until you realize it accounted for 1.34 billion bottles. And
that's double what it was five years ago.
According to international wine experts, starting from 2010,
mainland China and Hong Kong will be entering the era of the
"golden decade" for its wine market. China will rank first in the
world for its wine consumption by 2020. The current situation in
China is that domestic wine production doesn't meet its market's
need, which has resulted in a surge growth of imported wine.
Statistics show that imported bottled wine to China has increased
2368% since 2002 to 2009.
By importing bulk wine from countries like Spain, Chile and the
U.S. while bottling the wine in China, the Company can improve
profit margins while honoring prior import contracts. In short, the
Company can still state on the final bottled wine that it is a
product of where the bulk wine is imported from,( e.g. Product of
Chile). Bottling imported bulk wine in China will allow Legacy to
be more price competitive while taking advantage of the lower labor
costs, lower taxes for an incomplete product and the option to
blend the imported wines with Chinese local wines. This blend makes
up the majority of wine consumed in China.
"This new business model will allow Legacy to be more price
competitive with local wines as well as the lower priced imported
wines. The Company will continue its wholesale and retail business
while building upon it," states Jaclyn Cruz, President of Legacy.
"China currently enjoys the highest wine consumption growth rate in
the world. Now we are seeing a new opportunity for growth while
traditional wine markets have been stagnant," added Cruz.
About Legacy Wine and Spirits International
Ltd:
Legacy Wine and Spirits International Ltd. (Legacy) is a
publicly listed fully reporting company trading in the United
States (Pink Sheets:LWSP). The Company is in the business of
importing bottled wines from around the world for the purpose of
wholesale and retail distribution throughout China, in particular
through the Company's corporately owned stylish outlet showroom and
wine tasting facility.
Visit our site: www.legacywineandspirits.com
The Legacy Wine and Spirits International Ltd. logo is available
at http://www.globenewswire.com/newsroom/prs/?pkgid=8328
/s/: Jaclyn Cruz
Jaclyn Cruz, President
For further information contact: 1-888-488-6882
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995: The statements contained herein which are not
historical fact are forward-looking statements that are subject to
risks and uncertainties that could cause actual results to differ
materially from those expressed in the forward-looking statements,
including, but not limited to, certain delays in testing and
evaluation of products and other risks detailed from time to time
in Legacy's filings with the Securities & Exchange
Commission.
Legacy Wine and Spirits International Ltd.
1-888-488-6882 info@legacywineandspirits.com
www.legacywineandspirits.com
CONTACT: Legacy Wine and Spirits International Ltd.
1-888-488-6882
info@legacywineandspirits.com
www.legacywineandspirits.com
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