Auswan Creek and Bel Eden Merge Distribution Channels in China

Australian winery Auswan Creek and French wine producer Bel Eden are joining forces in China through a strategic merger of their domestic distribution channels — a rare show of expansion in an otherwise sluggish market.

The two companies plan to establish a new wine venture in Shanghai, jointly funded by their parent firms. Auswan Creek owner Li Wei will serve as chairman, while Ding Youzhen, Bel Eden’s China sales general manager, will take the role of general manager.

According to both companies, the new entity has completed negotiations on shareholding ratios, board structure, and integration plans, and is currently undergoing registration. The official launch is expected soon.

“Core Regional Merger, Nationwide Strategic Cooperation”

When reached by Vino Joy News, Ding confirmed the merger, describing it as a phased integration plan combining “core regional consolidation with nationwide cooperation.”

“In some regions, where both brands operate directly under the parent companies, we will merge distribution immediately,” Ding said. “In other areas that involve local shareholders, we’ll start with strategic cooperation before moving toward full integration. The long-term goal is complete unification.”

He added that the merger covers only domestic sales and excludes production or overseas operations.

Li Wei noted that the two companies’ sales networks are “almost entirely non-overlapping,” offering strong complementarity at the distributor level.

“Both brands will remain independent — Auswan Creek from Australia and Bel Eden from France,” he said. “We’ll collaborate on marketing, events, and resource sharing. If an existing distributor is interested in carrying the partner’s products and that region has no agent, we’ll prioritise them.”

Two Chinese-Led Wineries Behind the Brands

Although one is Australian and the other French, Auswan Creek and Bel Eden share much in common — both are Chinese-owned and operate their own estates abroad.

Founded by Chinese-Australian entrepreneur Li Wei, Auswan Creek entered the Chinese market in 2012 with a lineup that ranged from the entry-level Auswan Creek ONE to the premium Ambassador label. Its Zodiac Series became a blockbuster hit in the gift market.

Bel Eden, founded by Jiangsu businessman Li Changyin, owns two Cru Bourgeois châteaux in Bordeaux — Château Barateau and Château Lafon — acquired in 2011. The company brought a modern brand-building approach to the Chinese market, packaging Médoc wines for the growing mid-tier consumer segment.

Before the pandemic, both brands were strong performers. Auswan Creek’s 1.5L Zodiac Series sold more than 2.35 million bottles over 11 years, generating over RMB 1 billion (US$137 million) in revenue. The brand became a household name through celebrity collaborations, including partnerships with renowned Chinese dancer Yang Liping, TV host Xu Gehui, and former Australian ambassador to China Geoff Raby.

Bel Eden, meanwhile, was among the first to successfully brand Médoc’s Cru Bourgeois category in China. It invested in soft advertising, customised gift boxes, and regional partnerships — including a notable alliance with Wuliangye’s key distributor Anhui Baichuan. By 2014, Bel Eden ranked among the top five French wine brands by sales in China, and its Cru Bourgeois line remains a category leader.

The pandemic and subsequent market slowdown hit both companies hard. Auswan Creek was further affected by China’s punitive tariffs on Australian wine, which effectively shut it out of the market. During that time, Li Wei pivoted toward Chilean wines and even launched a Chinese baijiu project.

The Silver Decade of Wine 

The merger marks a calculated move in an industry still searching for recovery. Explaining the motivation, Ding used a vivid metaphor:

“Right now, the Chinese wine market is quiet — like a big room where hundreds of people sit in silence. If someone moves their glass, everyone hears it. But back in the noisy days, even if you shouted, only two or three people would listen.”

He believes that this calm phase offers a rare window for brands to reposition and rebuild trust. “By pooling resources, strengthening branding, and improving visibility, we can prepare for the next cycle,” he said. “After the golden age of Chinese wine, I still believe we’re entering a silver decade.”

Ding added that the key challenge now is to restore consumer confidence. “Some players damaged the market by overpricing or passing off low-quality products. That pushed consumers away from wine altogether. But any brand that rebuilds trust will grow quickly — and that’s where both Auswan Creek and Bel Eden have an edge.”