ASC China

ASC Fine Wines (ASC China) is the leading importer of fine wines in China. With more than 1200 products, they cover a wide range, always focusing on high-end wines and signing exclusive distribution agreements.

The story of ASC China: From bulk wine to fine wine in China

In December 2009, Suntory bought a majority stake in ASC Fine Wine, China’s leading premium wine importer, from a company owned by Gernot Langes Swarovski, of Swarovski Crystal. The company has developed considerably since its creation in 1996. Early comer, ASC China is now facing a wide competition together with a rapid development of the market and of its business.

Don St Pierre arrived in China in 1985 thanks to a position with American Jeep. After making business in different areas such as scrap metal, lingerie and ammunitions, he created a wine importing business: ASC China. But he did not start by importing fine wines right away. When the St Pierres began importing wine in China, they created a product of their own: Château St Pierre, which was California bulk red wine, bottled at a factory in Beijing.

In 1998, after only two years running the business, Gernot Langes Swarovski acquired a stake in the business. As the Chinese economy was exploding, it became more interesting for ASC to focus on importing high-end wines. ASC China became ASC Fine Wines. And they quickly signed exclusive distribution agreements with the most famous wine domains, the exclusive agreement between DBR Lafite and ASC being the latest example.

Moving to stay ahead in the wine importing business in China

As the business is growing, ASC is now facing new competitors but has to move forward as well to second and third-tier cities to keep this early-comer advantage. They have now 7 offices: Shanghai, Shenzhen, Xiamen, Guangzhou, Chengdu, Macao and Beijing being the headquarter.

Their strategy is to focus on high end wines. As they are adding less and less wines to their portfolio, because they already have a wide selection, they are developing the business in other ways. For example, they also distribute San Pellegrino, Acqua Panna and Riedel glasses, complementary products to their wine business but which first and foremost is geared towards the same consumers: wealthy individuals who might spend time in 5 star hotels and restaurants and upscale retail stores.

ASC was the first WSET (UK Wine and Spirit Education Trust) approved for professional wine education in China to provide services. ASC has been dedicated to consumers and food industry to provide high quality wine education courses. ASC operations the “Wine Residence” in the same building as Napa Wine Bar and Kitchen in Shanghai, where they provide wine education classes.

The Wine Residence also provides private cellars for members only, where you can buy wine at a preferential price.

The big challenge for ASC now is to keep a significant market share either in on Trade or in off Trade in booming cities like Shanghai where competition is fierce and to develop in other cities as well. It is a bit easier when you have Suntory group financing the business growth. Time will tell.

Arnaud Delacour for Zhongguo Wine – Wine in China