Funds pour in as Yao Ming turns to crowdfunding for winery

Former National Basketball Association star Yao Ming is within reach of his goal to get $3 million from crowdfunding to expand his wine business.

Yao Family Wines started the financing campaign on March 2. The proceeds will go to build a visitor center in Napa Valley, California and a tasting room in Yao's hometown of Shanghai.

As of Wednesday, Yao had commitments for more than $2.77 million, or 93 percent of his goal, according to Crowdfunder, the website used by entrepreneurs to raise public funding.

"Yao has a good chance of achieving his crowdfunding goal of $3 million," said Dong Guanghua, group account director of New York-based global market research firm Millward Brown.

"The chances are as good as his impressive free-throw percentage," Dong said. Among the players with at least 1,000 free throws made, Yao ranked second among 7-footers at 83.3 percent.

Jay Behmke, managing director at Yao Family Wines, was quoted by The Wall Street Journal as saying the company would increase the offering to $5 million if investors showed strong interest.

Yao Family Wines said that only citizens and permanent residents of the United States can take part in the funding drive. Investors can pledge anywhere from $5,000 to $25,000, in return for which they will be invited to exclusive events and private dinners.

The winery was co-founded by Yao in 2011.

Dong said that China's anti-corruption campaign and its cooling luxury wine market prompted Yao Family Wines, the biggest seller of high-end California wine in China, to shift its attention to the US market.

"The anti-corruption campaign has sapped demand for expensive wines," Dong said, especially for those priced at more than 1,000 yuan ($161) per bottle.

According to Yao Family Wines, 15 percent of its revenue now comes from the US, compared with almost zero when it was established.

Yao Family Wines' previous offerings, all reds, cost from about 1,500 yuan a bottle for Yao Ming Napa Valley to 6,000 yuan for its premium Yao Ming Family Reserve.

Napa Crest, the company's cheaper wine introduced in 2013, sells for 535 yuan, but that is still out of reach for ordinary Chinese consumers, the company said.

Dong warned that the luxury wine market in China will not rebound in the near future.

Yao is just one of many Chinese celebrities to have invested in vineyards. Another famous name in the sector is actress Zhao Wei, who in 2011 acquired a Bordeaux chateau and functioning winery in France.

"Many celebrities choose to get involved with a business or an investment after rising to fame, and the wine industry is one of the popular fields because it's profitable," said Dong. "Not many celebrities succeed in the shift from being a public figure to an entrepreneur, but Yao made it."

Small California wineries are usually owned by wealthy people who do not worry about losses, but the retired Chinese basketball star, who studied economics at Shanghai Jiaotong University after leaving sports, sees the wine business as more than a vanity investment, said Dong.

"He wants his business to be successful and investors in his venture to expect a satisfactory return, and he knows how to do it," he said. "Being in the NBA has given Yao a more international perspective, while his fame has also gained him publicity for his wine products. For Yao, opening a winery is more than a passion project."

Yao's fame is not the only factor supporting the business. The winery has also received good reviews, with ratings between 90 and 98 points from top wine critic Robert Parker and from industry publications such as Wine Spectator and Wine Enthusiast, said the company.

zhengxin@chinadaily.com.cn