VATS to promote well-known Napa Valley wines

A key reason for the agreement is VATS Liquor’s deep understanding of Chinese consumer and its professional brand building capacities, Wu said.

Considered by many as the “father of American wines”, Robert Mondavi was a pioneer of the modern California wine industry. The Robert Mondavi Winery produces superior wines from vineyards in the Napa Valley.

Apart from the Robert Mondavi label, the companies will also introduce Woodbridge by Robert Mondavi, and the Robert Mondavi Private Selection.

Jay Wright, president of the Wine and Spirits Division of Constellation Brands, said he understands most American wines have little brand recognition in China.

"However the Robert Mondavi name is recognized as a synonym for quality, craftsmanship and taste," he said. "We intend to increase exports of California wine and build brands through the Robert Mondavi name."

VATS Liquor was established in 2005 by Wu, founder of VATS Group, a top wine and spirits producer and distributor with assets of more than 10 billion yuan. VATS Liquor has built more than 500 chain stores, and 200 trial outlets in 28 provinces, cities and autonomous regions in China, and has annual revenue of around 2.1 billion yuan ($339 million).

Wu believes wine and China’s baijiu clear liquor are not in competition with each other.

"Like myself, many Chinese people cannot drink much baijiu, and stopped drinking any alcohol anymore," he said. “But now we know if one drinks a little wine or beer first and gets used to alcohol, he can then go on to try baijiu.”

Wu said many Chinese people drink wine when they become middle-aged, because they consider it to be healthy.

At the same time, the Chinese government’s ban on extravagant spending of public funds has greatly affected sales of baijiu clear liquor in the country. Wu said this is another reason VATS is promoting Napa Valley wine.

"Robert Mondavi is not as known as Lafite in China. But a reputation can be built," Wu said. "The wine has a big production, good value for money and guaranteed quality. That’s why we choose to cooperate with the brand."