Legacy Wine and Spirits International reports that the company is in negotiations with three existing wine and spirit stores in China. These stores are located in and around the company’s flagship store in TEDA (Tianjin Economic Development Area).
The location of these stores were strategically chosen for logistic reasons since this will enable the current Legacy staff to move between each store implementing the protocol and standards that Legacy Stores will be known for in China. A Legacy Wine and Spirits store should signify a reliable place for locals or foreigners to purchase their alcohol of choice whether it be for gift giving or personal consumption.
With limited capital investment necessary and the company’s stock as a negotiable tool, Legacy’s management feels that it will be advantageous to integrate these existing operating entities into a chain of Legacy retail outlets thus solidifying the company’s corporate branding. This move will greatly expedite the company’s ability to distribute its inventory and increase its brand awareness in China.
The proposed acquisition will enable Legacy to have the economy of scale working in their favour in terms of sales multiples and purchasing capabilities with wine and spirit suppliers and vendors.
According to the International Wine and Spirit Record, Chinese wine sales could grow by more than 80 percent by 2011. China, currently the leading wine market in Asia and 10th in global consumption (soon to be 9th), is one of the fastest growing markets on the planet.
"The capacity to market wine to 1.3 billion people in China is especially appealing to wine producers with great potential for profit," states company President Christopher Scheive.
(Source: Legacy Wine and Spirits International)