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Juice maker Huiyuan to enter wine business

Updated: 2012-03-19 17:37

By Bao Chang (chinadaily.com.cn)

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China's largest juice maker, Beijing Huiyuan Juice Drinks Food Co Ltd announced on Monday that it will invest 500 million yuan ($79.15 million) to enter the grape wine business.

According to a report on the news portal Hexun.com, Huiyuan will first invest 200 million yuan to grow 333 hectares of grapes in Liuhe county, Jilin province, which is expected to produce 3000 tons of grape wine. The company will establish a modern agricultural industrial park including a "chateau" for tourists, The second phase of the project is to produce 10,000 tons of grape juice a year. The total output value of Huiyuan's grape and juice business is expected to reach 600 million yuan, the report said.

Industry experts say Huiyuan is seeking new sources of profitability under the current weak juice industry market, the report said.

baochang@chinadaily.com.cn

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