Grace Vineyard Pivots Hard to Baijiu After Takeover

Grace Vineyard, long seen as a standard-bearer for China’s fine wine ambitions, is now making a sharp turn toward baijiu and beyond, in a sweeping overhaul that could redefine its identity following its ownership change. 

At this year’s China Food & Drinks Fair in Chengdu, Yang Lingjiang, the founder of 1919.com and majority shareholder of Grace Vineyard, signed a strategic agreement with Renhuai city in Guizhou province, the powerhouse region behind sauce-aroma baijiu. The deal spans product development, branding and supply chain collaboration, marking Grace Vineyard’s most concrete step yet into China’s dominant spirits category.

Yang also revealed that within three years, non-wine businesses including baijiu, whisky, sake, craft beer and ready-to-drink (RTD) are expected to account for more than 80% of the company’s sales, as reported by local media. The message is clear: it’s no longer just about wine. 

China’s first listed fine wine estate

Its pivot away from wine is closely tied to the arrival of its new controlling shareholder, Yang Lingjiang, founder of leading alcohol retailer 1919 Group.

Founded in 1997 by Hong Kong businessman Chun-keung Chan, Grace Vineyard listed in Hong Kong in 2018 and was named among the World’s Best Vineyards in 2023. Prior to the ownership change, it was controlled by second-generation family member Judy Chan. 

In December 2025, Yang acquired approximately 589 million shares for around HKD 156 million, raising his stake to 73.63% and becoming the company’s controlling shareholder, as we have reported. 

Yang, currently chairman and general manager of 1919 Group, has built one of China’s largest alcohol retail chains and was an early mover in instant retail, launching a “19-minute delivery” model as early as 2015.

With this acquisition, Yang has effectively entered the capital markets via a listed company.

Moving away from a fine wine identity?

Following the ownership change, Grace Vineyard’s strategy has shifted dramatically.

In early 2026, Yang unveiled a “four three-year plans” strategy, outlining a transition from a boutique winery to a comprehensive alcohol platform. Under this framework, the company will expand beyond wine into categories including Chinese baijiu, whisky, Japanese sake, craft beer and ready-to-drink cocktails.

The plan targets non-wine products accounting for 80% of revenue and 90% of profits within three years, effectively ending reliance on a single category.

The company also plans to overhaul its distribution and retail systems, focusing heavily on instant retail and private traffic channels, with a goal of generating 90% of sales from new channels within three years.

Under Yang’s direction, Grace Vineyard appears to be moving further away from its traditional identity as a fine wine estate, with its operating model increasingly resembling that of the 1919 ecosystem.

In fact, across wine, beer, RTDs and baijiu, 1919 has in recent years been building its own brands, raising the possibility that Grace Vineyard could evolve into an upstream production platform within this system.

What about the wine business?

On the wine side, Grace Vineyard said it will retain its boutique positioning while focusing more on premium and super-premium branding, with a goal of becoming China’s top fine wine estate brand within three years.

At the same time, the company plans to expand through acquisitions and agency partnerships to integrate global resources, aiming to become China’s third-largest wine group and the country’s largest wine trading platform.

This suggests Grace Vineyard may increasingly act not only as a producer, but also as a distributor of third-party wine brands.

What comes next?

In February 2026, the company also underwent a significant management reshuffle, with several executives from the 1919 system joining the core leadership team.

Following these changes, former chairwoman Judy Chan remains an executive director, though her role within the new structure remains unclear. 

It is worth noting that Grace Vineyard’s financial performance has struggled since listing. Public data shows the company once generated annual net profits of RMB 30–40 million prior to listing, but has faced sustained pressure since 2016. It recorded losses in 2020, 2022 and 2024, with losses exceeding RMB 40 million in 2024. The company had previously attempted to diversify into whisky, but with limited market response.

For a company once seen as a benchmark for China’s fine wine estates, new capital and a new business model are now reshaping its trajectory. Yet with China’s broader alcohol market under pressure and baijiu inventories running high, whether baijiu can become a lifeline remains an open question.