Swartland sets its sights on the Far East

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Wu, whose interests in the electronics business brought him to South Africa in the early 1980 has, has cultivated an appetite for the wine business since investing in Paarl winery Veenwouden. A majority of Swartland Winery's 70 shareholder members approved his purchase of a 51% stake for an undisclosed sum.

"My decision to invest in Swartland Winery was driven by the fact that I am coming to the winery with a market for the product," says Wu, who, as the winery's new chairman, will directly be involved in operations. "The market is in China where I have a ready demand for the quality and volume of wine Swartland produces. Swartland Winery is a great investment. It has access to good, well-farmed grapes and is one of the few South African wineries of this size where the majority of grapes planted are red varieties, in which the Chinese market is most interested."

Wu said that Swartland Winery's infrastructure, including bottling, warehousing and distribution offered total control of supply and a one-stop shop for exporting to the Far East as well as continuing to service global and local markets.

"The investment by Mr Wu will allow Swartland to unlock value for our member-farmers with new markets in China, which comes at a time when the Swartland brand is also making inroads in the European and African market," says outgoing chairman, Frans Maritz. "The energy and insight of our new Chinese partner and his associated in China are going to rejuvenate the Swartland brand and gear our wine business for these exciting new markets and a different business ethos, while unlocking value for our shareholder-farmers, as well as the region's wine industry at large."

The deal is still subject to a process of due diligence.