Constellation Brands, the American drinks giant, has signed a new distribution deal in mainland China for its Robert Mondavi Private Selection, a range of wines aged in bourbon barrels, injecting a dose of confidence in the embattled Chinese market amid escalating China-US trade war.
The news was announced in Guangzhou of southern China at a signing ceremony, where the American wine group has appointed American wine specialist, 16 Area Wine, as its exclusive distributor.
The signing ceremony attracted both company executives from Constellation Brands and 16 Area Wine. The move is seen as a vote of confidence for continued investment on American wines despite the fact that taxes on American wine imports are now subject to 93%, double that or regular taxes with increased tariffs.
Since the start of trade war last year, most major wine importers in China have slashed American wine portfolios.
The wine range consists of wines aged in bourbon barrels from Kentucky including a Cabernet Sauvignon and a Chardonnay in addition to a rum barrel-aged Merlot.
The spirits barrels, according to the company, impart the wines with complexity and a richer character.
Constellations Brands owns a range of flagship American wines including Robert Mondavi, Kim Crawford, The Prisoner, and Schrader.
Earlier this year, it was announced the drinks giant would discontinue 40% of its wine and spirits brands to focus on its so called power brands that retail for US$11 and above.