The Founder of iBarrel, China’s Popular Wine Bar, Passed Away

Peng Yong, the founder and legal representative of iBarrel, a well-known wine bar in China credited for popularizing affordable wines to young generations, has passed away early last month. The news came as iBarrel is grappling with mounting legal troubles including being listed as a debtor in a labor dispute the same month.

Founded and owned by a Shanghai-based internet technology company in 2021, iBarrel gained popularity during China’s nightlife downturn. It is renowned for its three-hour free-flow wine priced at just RMB 99 (US$13.60), which has attracted a significant number of customers. 

The wine bar has not publicly acknowledged the death of Peng. Vino Joy News confirmed his passing with a long-time wine supplier who wished to remain anonymous.

“This happened several weeks ago. I don’t know the exact cause of his death. Peng was only around 60 years old, so I felt it was quite sudden when I heard about his passing,” the supplier said. Both the supplier and Peng were members of the Shanghai Alcohol Circulation Trade Association, and they shared a good personal relationship outside of work. 

The supplier described iBarrel as a unique player in China’s wine industry, one that received significant support from the trade community. “We strongly support him by supplying our products at very low prices, as his store enjoys high foot traffic, and we hope to achieve our promotional goals through this partnership. Additionally, we recognize that maintaining a physical store requires a higher gross profit margin.”

“Not only do we support him, but the trade association also backs him because iBarrel is one of the few places in China fostering a wine consumption scene that appeals to the general public—something that is lacking in the Chinese wine industry,” the supplier continued, saddened by Peng’s passing. 

In 2017, Peng was honored for his contributions to Bordeaux and wine culture by being inducted into the Commanderie du Bontemps de Médoc, des Graves, de Sauternes et de Barsac. He also owns a Bordeaux brand, Jardin des Sens, in collaboration with an unnamed by established Bordeaux winery, according to the wine introduction. Apparently, Peng’s admission to the esteemed association came at the recommendation of Château Lynch-Bages’ owner Jean-Charles Cazes. During the induction ceremony, the president of the Commanderie commended Peng’s significant contributions to the Bordeaux wine industry, particularly his unwavering commitment to the philosophy of “staying true to authenticity” and his impactful efforts in promoting wine culture.

The Story of Peng Yong and IBarrel

Peng was born in Fushun, a city in Liaoning province in Northeastern China. He obtained a master’s degree from the PBC School of Finance at Tsinghua University (清华大学五道口金融学院), a finance-focused institution co-founded by the People’s Bank of China, the central bank, and Tsinghua University, one of the top two universities in China, alongside Peking University.

In 2006, Peng started his business in financial technology services for banks. Observing that wine was widely favored in the U.S., he believed that China could be the next significant market for wine. As a result, wine became the primary product of his company in 2009.

In 2013, during a visit to European wineries, Peng noticed that many restaurants and hotels had wine preservation and dispensing machines. Upon returning to China, he decisively invested RMB 16 million (US$ 2.2 million) in a project to develop such machines and established Shanghai Ibarrel Network & Technology Co. Ltd. in 2016. Following the product launch, the company collaborated with supermarket chain Freshippo, Marriott International, and China’s largest hospitality group, Jinjiang International (锦江国际集团).

Rather than pursuing professionalism, Peng, a wine enthusiast, focused on making wine more accessible to the general public in China. By the end of 2021, during the COVID-19 pandemic, iBarrel emerged as a popular wine bar in Shanghai, offering unlimited consumption of over 30 wines for three hours at RMB 99, effectively catering to the trend of consumer downgrading. Even during the strictest pandemic control period in 2022, some iBarrel branches in Shanghai remained bustling. 

In September of this year, during an episode of Bistro Insider (小酒馆局中局), a talk show hosted by Catering Boss Neican (餐企老板内参), a social media account, Peng stated, “Wine can seem very professional, and ordinary consumers may find it daunting, but the RMB 99 free-flow consumption model effectively lowers the sales threshold.”

Currently, iBarrel has expanded its wine bars to cities in southern China, including Suzhou, Wuxi, Xiamen, Shenzhen, Chengdu, and Kunming, with a total of 18 locations. According to a source familiar with the wine bar, in 2023, an iBarrel store in Shanghai could generate over RMB 20,000 (US$ 2752.47) in sales revenue per day.

However, in November, four legal disputes cast a shadow over the otherwise successful journey of iBarrel. According to Qichacha, China’s corporate information database, Shanghai iBarrel Network Technology Co., Ltd. was listed as a judgment debtor by the Pudong New Area People’s Court in Shanghai due to a labor dispute involving an amount of RMB 237,700.

As of the time of publication, the company had not made any public statements regarding the labor disputes.

In terms of operations, the iBarrel supplier we spoke with acknowledged that he had noticed issues within the wine bar. “I have inspected many iBarrel locations, and while the brand remains popular in first-tier cities like Shanghai, its performance in second-tier cities is less satisfactory. In these areas, the demand for Western cuisine is not strong, making it even more challenging to sell wine,” he said.

However, he remained confident in the wine bar’s business model: “iBarrel’s model is sound and has made significant contributions to the industry. The current issues arise more from the economic environment.” He also noted that Peng’s ambition to expand rapidly has created uncertainties and considerable pressure.

As observed from social media, promotions for iBarrel’s branches are still ongoing. Nevertheless, the supplier revealed that there have been delays in payments for goods since Peng’s passing. “iBarrel’s stores are still operating normally, but the management team is discussing how to continue the company’s operations,” he stated.