Acquisition paves way for Woolworths expansion

Woolworths Liquor Group, a leading global drinks retailer and the top seller of alcoholic beverages in Australia, on Wednesday announced the $25 million acquisition of Summergate Fine Wines & Spirits and Pudao Wines as it seeks to expand in the Chinese market.

According to The Sydney Morning Herald, Woolworths Managing Director Brad Banducci said that Summergate, a major alcoholic drinks distributor in China, increased sales in the past three months despite a tough market.

The acquisition comes amid a new era of consumer-driven demand. The government's austerity campaign and a slowdown in consumption have left China's wine market in weak shape, according to Jin Peng, a veteran wine distributor based in Beijing.