CHINA: Competition hits Dynasty Fine Wines - report

By just-drinks.com editorial team | 18 September 2006

China's Dynasty Fine Wines has reportedly seen first-half profits plunge 30% due to fierce competition in the sector.

The company posted net profit of HK$82.3m (US$10.6m), a fall of 29.6%, for the six months to 30 June, according to the SinoCast news agency. Sales rose 12.5% to HK$575.5m, the report said.

More domestic businesses have got into wine production in the past two years, the report added, to tap into a category that is growing at 30% a year.

Wine imports are also flooding the Chinese market after the Chinese government lowered tariffs on wine, the report said. In the first seven months of the year, wine imports are said to have surged 88.8% to hit 60.6m litres.

Sectors: Wine