Established in 1988, Huaxia Company is China's first export-oriented enterprise especially engaging in production of claret. Today, the company is subordinate to China National Cereals, Oils and Foodstuffs Import & Export (Group) Corporation (CNCOFI&EC), one of the world's Top 500 Enterprises.
Since the company set up its winery, it led to carry out production at home strictly in the light of "International Wine Brewing Rules". It classified products by "place of origin, variety and vintage" and produced high quality products, enabling its overall development to meet international requirements in all aspects. Its Huaxia Great Wall series of claret is exported to over 10 countries and regions including Europe, filling the blank that no domestic claret is produced for export. In 1998, Huaxia Great Wall was titled "Chinese Famous Brand for Export" by the State Commodity Inspection Bureau. And since 1994, the company was continuously appraised by the country as "Quality- and Benefit-oriented Advanced Enterprise", and has won over 30 major awards at home and abroad. In 2000, Huaxia Great Wall won the title "Chinese Famous Wine Protected Brand", and in 2002, Changli wine became one of the first groups of the state's "Protected Place of Origin".
For over 10 years, thanks to strong brand position of its products in domestic and international markets, the enterprise embarked the road of transnormal development. Its total asset increased from RMB 7 million in the early stage to today's RMB234 million, and its annual output increases from 1000 tons in the early stage to today's 15314 tons. By the end of June 2002, the company has achieved output of 8420 tons, sales revenue of RMB195 million and before-tax profit of RMB62.59 million, up by 28%, 32% and 63% respectively over the same period of previous year. The company is leading in sales revenue and No. 1 in profits and tax contribution per capita in the same sector. The enterprise has won a series of honorary titles as "National First Group of Technical Innovation-oriented Spark Leading Enterprise" and "Top 10 Enterprises in Agricultural Industrialization", and achieved rapid economic and social growth in a leaping manner. With its powerful superiority, Huaxia Great Wall has developed into one of three major brands in China's wine sector.
The company's operational strategies include the following:
I. Setting up Brand of Huaxia Great Wall, Producing International Quality
Huaxia Company is located at Changli County, Hebei, a place surrounded with mountains and seas named by the nation as "Home of Viniferous Grape". With its peculiar natural and geographic advantages, Huaxia led to import detoxified saplings of international famous breeds, such as Chixiazhu, Meiluzhe, Xiaduoli and Huibinuo, and became the first to build up the largest domestic viniferous grape base. It realized "base-scaled production of raw materials, base planted with fine breeds and regionalization of fine breeds", enabling a perfect combination of good land, good vintage and fine breeds most suitable for growing at the place. At the same time, the company imported from Germany, France, Italy and the US a whole set of internationally advanced equipment, including that for fermenting, vinifying, purifying, deep filtering, cool stabilizing and bottling, ensuring high-efficient operation of modern management mode and modern production techniques。
"Greenness and vintage, high-efficiency and innovation, practicality and good faith, brand and leadingness" is the quality principle the company has stuck to all along. Today, the company has formed 30 varieties of 3 major Great Wall wine series: claret series represented by Chixiazhu Claret of 92,94 and 95 vintages, white wine series represented by Xiaduoli of 96 and 98 vintages, and pink wine series. In 2001, the company developed another 6 varieties. After winning the Special Award at the 29th France International Wine Appraisement Fair in 1989 and the Gold Prize at the 14th Paris International Food Exposition in 1990, Great Wall wine won Silver Prizes at Shanghai International Wine and Firewater Appraisement Fair in both 2001 and 2002. It became the sole Chinese brand winning a prize at the fair. In 2001, Great Wall wine won No. 1 Claret and No. 2 White Wine at the 4th Beijing Hilton International Wine and Food Demonstration Fair. All the above prizes lay down groundwork for Huaxia Great Wall wine to become an international brand.
II. Accumulating Strength in R&D, Achieving Remarkable Results in New Products Development
With human as the core, improvement of overall quality is the drive source for long-term development of the company. And the company sticks to the operational principle - orienting to science and technologies, relying on quality to seek development and asking for benefits to management. Since the 7th 5-year Plan period, the company has undertaken 6 state-level science and research projects. China's first bottle claret was produced here, filling the domestic blank. Today, the company has 4 international and national wine appraisers. With technicians over junior collage level accounting for 76% of total employees, the company tops the sector in the country in education background and professional quality of employees.
To enable leading vinifying technologies to be converted into productivity in the first time, the company accelerates information exchange and cooperation between enterprise and scientific research institutes and universities. The company has set up the Huaxia Scientific Research Center in collaboration with domestic institutes of high learning to develop new products, initiating an operational way integrating production, study and research. In 2001, the company cooperated with the Northwest Agriculture and Forests Technologies University, China Agriculture University and Jiangnan University in research on picking and breeding and planting of grape breeds, vinifying techniques, and construction projects of "AA-grade Green Food Base". In 2002, the company applied for several province-level and state-level major scientific research projects, including the state-level "50000-ton High-level Claret Processing and Rebuilding Works", "Grape and Wine R&D Center Construction Project", the state-level "Technical Innovation-oriented Spark Leading Enterprise", "Integration of Key Technologies in Environment-friendly Grape Production and Demonstration of Industrialization", and "AOC-grade Viniferous Grape Origin Project Research - Chixiazhu". And such projects were listed among those to which the country gives top priorities for developing and supporting. In March 2002, Great Wall wine was titled as "First Group of Inspection-exempted Products" by National Quality Supervision, Inspection and Quarantine Administration. In June of the same year, they were verified as "AA-grade Green Food" by China Green Food Development Center, and became first domestic wind brand meeting the highest world's standards.
III. Expanding Production Scale, Improving Competence in Global Market
Through its marketing strategy "Driving domestic sales with exports and excelling the strong with the fine", Huaxia soon occupied domestic and international markets. In face of intense global competition after China's accession to WTO, as the leading Great Wall wine enterprise in CNCOFI&EC's wine division and China's backbone enterprise in claret, Huaxia increased its investment in recent years, and tried to meet competition in global wine market with development of scale. For three successive years, Huaxia invested in infrastructure expansion. It built another 6 rows of underground arch cellars with Chinese traditional building characteristics, the largest underground granite cellars in Asia. It imported from Italy two sets of 10000- and 15000-bottle/hour full automatic bottling production lines, over 6000 quality oak wood barrels, and imported several quick refrigerators, internationally advanced cross-flow filters and wine analyzers. And it also rebuilt a group of wine tanks and refrigerating tanks. Today, Huaxia has realized an annual production of 30000 tons. Meanwhile, the company sets up the International Viniferous Grape Demonstration Park according to international mode, providing the first-hand data for scaled development of grape base and development of new products.
With its first-class producing area, first-class technical team and first-class equipment, in face of new international competition, Huaxia Company will continue to take advantages of its strong brand. By 2005, its annual production will reach 50000 tons, sales revenue will exceed RMB 1.2 billion and its profits and tax contribution will reach RMB 300 million. The company will realize intelligentization of production procedures, automatization of control system, computer network and scientization of management, and build up a wine industrial park integrating ecological environment protection, tourism and sightseeing and wine culture, making Huaxia Great Wall Claret No. 1 Brand in Chinese claret.