The Maker of Moët & Chandon Is Sweet on China

At first glance, the bottle might look like a fine Champagne from LVMH Moët Hennessy-Louis Vuitton, the French maker of wine, spirits, and other luxury goods. Gold wrapping covers the pressurized cork, and the label bears the description “Méthode Traditionnelle.” The telling details are in the fine print. This sparkling wine is made by Domaine Chandon (Ningxia) Moët Hennessy, a partnership between the winemaker and the local government of Ningxia, a small region in north central China.

LVMH, like other wine and spirits makers, is counting on China to become a major growth market. After more than doubling its vineyard acreage since 2000, China has more land for growing grapes than France. China’s wine market will be worth 153.8 billion yuan ($22.3 billion), according to Euromonitor International. Since 2014 the joint venture has been producing a bubbly mix of chardonnay and pinot noir from locally grown grapes at its winery in Ningxia. To win over Chinese drinkers, the company is tweaking its traditional formula, says Davide Marcovitch, global president of LVMH subsidiary Chandon, which makes sparkling wines in Argentina, China, and other countries. “We are innovating for consumers who don’t like the traditional taste of Chandon,” he says.