Chinese wine aims to win over Europe

Seeding growth in Bordeaux

Changyu's expansion into France reflects a broader trend among some Chinese companies seeking to deepen ties with established European industries through acquisitions and partnerships.

For Changyu, Bordeaux offered not only prestigious wine assets but also access to centuries of winemaking expertise, global distribution networks and international branding experience.

"At Changyu, working alongside giants allows us to learn much more," Sun said.

The company's presence in Bordeaux has developed gradually over the past decade. In 2015, the company acquired a 90 percent stake in Chateau Mirefleurs from the Castel Group, marking one of its early moves into the French wine industry.

In 2019, Changyu and French wine company Advini jointly established L&M Holdings, a venture responsible for managing Chateau Mirefleurs and another Changyu-owned Bordeaux estate, Chateau Liversan.

Under the arrangement, operations in France are jointly managed by the two sides, while branding and market operations in China are handled by Changyu Pioneer Wine Company, a wholly owned subsidiary of Changyu.

The structure reflects Changyu's evolving approach to operating in Europe. Rather than relying primarily on direct management from China, the company has increasingly emphasized localized cooperation and shared management with experienced French partners.

But operating in Europe also brought challenges beyond winemaking itself.

Sun said the company initially faced issues including cultural differences, management structures and integrating local operations after acquiring French wineries.

"At first, we sent management teams from China," he said. "Later we realized this approach did not adapt well to local conditions."

Changyu then moved toward hiring local managers, but the company eventually concluded that long-term cooperation required a more balanced structure.

"A better solution was to work with management teams or partners who shared our values and management standards," Sun said.

The company also adjusted its ownership model to align long-term interests between Chinese and French partners. One example is Changyu's partnership with Advini, France's only publicly listed wine company. Under the arrangement, Changyu holds a 55 percent stake while Advini owns 45 percent.

Robin Jeudy, winemaker at Chateau Mirefleurs, said the partnership allows both sides to contribute different strengths.

"Advini has the knowledge in the wine industry for a long time, so they can bring the expertise of winemaking here," Jeudy said. "Changyu also is a very old company in wine producing. They have very good knowledge about winemaking, and they know the market in China very well."

Jeudy said cultural differences between Chinese and French teams are evident in day-to-day operations, but can also complement each other.

"Chinese people always have a lot of ideas, and they want to go fast," he said. "French people take time to make decisions. Combining both parts, we go further together."

Industry analysts say this balancing act between localization and maintaining Chinese ownership objectives is a common challenge for Chinese companies operating overseas, particularly in industries closely linked to culture and tradition, such as wine.