Media reports

The “real wine guarantee” mode of Vats Liquor Store has been acknowledged, so Vats Liquor Store wi

   On November 15, Vats Liquor Store, the biggest chain institution of real wines guarantee mode, announced they had already received the 250,000,000 RMB Yuan investment from New Horizon. It is said that about several score of investment institutions contacted Vats Liquor Store, but Vats Liquor Store and New Horizon succeeded in their cooperation at last. 

  “New Horizon cooperates with us because they think highly of the real wines guarantee mode and future development potential of Vats Liquor Store. We also want to improve our management system and enhance the development of Vats Liquor Store. New Horizon pays much attention to the unique “real wines guarantee” mode of Vats Liquor Store and its great potential development”, Chairman of the Board of Vats Liquor Store told the journalist from China Business in Beijing, after this investment, the company would further improve the management mechanism, bring in excellent talents, and increase input in information technology, product development, construction of selling network and enhancing the service.  

   Tie Li, a visiting professor of Southeast University and wines specialist, thinks that the investment will push forward the development of wine chain ends and bring in driving force for the development of wine industry.

  Two years of negotiation and success in cooperation

  The joint investment came from the Dollar Fund Investor Pullock Investment Limited under New Horizon and RMB Fund New Prospect Growth (Tianjin) Equity Investment Partnership (limited partnership). Pullock Investment Limited contributed 160,000,000 RMB Yuan, and New Prospect Growth Fund 90,000,000 RMB Yuan. Half a year after the investment in Shanxi Xifeng Liquor, a famous liquor enterprise in China, New Horizon Capital invested again in wine industry and its downstream chain store.  

  Wu Xiangdong said, they negotiated for bout 2 years, and succeeded in “becoming partners quickly”. Vats Liquor Store hopes to improve its management mechanism and accelerate its rapid development, which New Horizon Capital also approves the “real wines guarantee” mode and future development potential of Vats Liquor Store. 

  As for the details such as the investment scale and proportion, Vats Liquor Store expressed the inconvenience in revealing such details due to the confidentiality agreement between both parties; However, Wu also said that “the “real wines guarantee” mode of Vats Liquor Store and the value of its wines selling network made up of several hundred shops has been thought highly of by New Horizon. 

  In fact, the cooperation between New Horizon and Vats Liquor Store is also the first “hand in hand” between Chinese White Spirit Chain Retailing Enterprise and investment bank.

  Tie Li said, New Horizon invested in Vats Liquor Store just because it realized the unique business mode and growth of Vats Liquor Store. Vats Liquor Store is the first brand of real wines guarantee in China that has won consumers’ trust, the first brand of retailing chain operation, and also the largest real wines selling Chain Company in China.

  Opportunity for chain mode 

  With the help of private equity, Vats Liquor Store will embrace significant opportunities for development.

  According to the data from CIC Industry Research Center, the national wine market has developed quickly recently, for example, the consumption of white spirit rises by 15% every year, and the increase of cognac and whisky is also very rapid, but the increase of red wines is even higher. 

  “Vats Liquor Store has never sold one bottle of fake wine since its establishment 5 years ago”, Wu Xiangdong told the journalist from China Business, “it is also the point New Horizon pays much attention to.”

  At present, Vats Liquor Store is making the development plans for the next few years. It is introduced that Vats Liquor Store will accelerate its speed in opening shops in 2011. The investors will also participate in the improvement of all management systems of Vats Liquor Store, which will be helpful to the rapid development of Vats Liquor Store.  

  As for the news of listing, Wu Xiangdong answered, “Vats Liquor Store will push forward the process of listing at the right time when all conditions are ready, but there is no such schedule right now. It depends on the capital conditions and the development of Vats Liquor Store.”

  “Now our focus is to develop our business. we hope that we will increase the number of our shops in several years with our efforts, so that consumers will have more convenient places to buy real wines.”

   In Wu’s opinion, it is a good phenomenon that more and more institutions in wines industry such as Join & Joy, YiJiu YiJiu etc join in “real wines guarantee” mode. “I hope the wines terminal sales will be purified, and the whole wines industry can develop soundly through our joint efforts”.  

  “It can be expected that Vats Liquor Store will grow rapidly in the long term.” Tie Li said. 

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