June 17, 2008
China Organic Agriculture Establishes New Subsidiary
China Organic Agriculture, an agriculture products company, has announced the incorporation of the Far East Wine Holding Group. The formation of this subsidiary represents a major component of the company's recently launched strategic plan to capitalize on the demand for premium California wines in China.
The formation of the Far East Wine Holding Group follows China Organic Agriculture's acquisition in February 2008 of the Bellisimo Vineyard property, which provides Chardonnay, Merlot and Cabernet Sauvignon wine grapes, located in Sonoma County, California.China Organic intends to market wines in China under its own label, and to distribute other California-based wine brands.
Changqing Xu, CEO of China Organic Agriculture, said: "China Organic will focus on serving the Chinese demand for California wines with a mission to distribute a range of upscale brands at premium prices as well as good quality wines at competitive prices. It is our intention to establish a leadership role in this emerging marketplace to capitalize on the industry's high revenue growth opportunities and very attractive profit margins."