Leading wine companies from China and Japan join forces to develop the China market

December 9, 2009 - Shanghai

ASC Fine Wines Holding Ltd (“ASC”), Greater China’s leading importer & distributor of premium wine, is very proud to announce that the Suntory Group (“Suntory”), one of Asia’s leading beverage companies, will acquire (subject to the approval of China’s antimonopoly bureau) a majority stake in ASC’s business by purchasing all of Wine Holding GmbH’s (the Austrian holding company of Mr. Langes-Swarovski) shares in the company.

Don St. Pierre Jr. (“Don Jr”), ASC’s CEO and co-founder, will keep a significant amount of equity and remain the CEO in charge of the overall strategy and operations. Don Jr will also continue to serve on ASC’s Board of Directors. Additionally, ASC’s senior management will remain in place and the company will continue to be focused on the import and distribution of premium wine throughout Greater China (the Chinese Mainland, Hong Kong and Macau).

Don St. Pierre Sr. (“Don Sr”), who first came to China in 1985 as President of Beijing Jeep, and who, in 1996 founded ASC Fine Wines with his son Don Jr, will officially retire from ASC at the close of the transaction.

ASC’s success over the past 13 years can be attributed to many factors, but the most significant were the ones that Don Sr instilled in the team from the very beginning – passion, hard work, and perseverance. It is with these values in mind that ASC, along with its new partner Suntory, will write the next chapter in ASC’s history.

Suntory is one of Asia’s largest private companies and one of it’s most prominent beverage companies, with sales turnover of approximately Euro 11.5 billion. Suntory owns wineries in France and is one of Japan’s leading wine importers and distributors. Suntory views ASC as a long-term strategic asset and plans to fully support ASC’s future expansion plans by offering greater access to lower cost capital for both organic growth
and local wine related acquisitions, supply chain management know how, IT expertise and cooperation with Suntory’s Premium Whiskey and Midori Melon Liqueur portfolio.

The market demand for quality wines in China is expected to return to growth in 2010, and ASC is better positioned than any other company to deal with both the great opportunities and challenges China presents. With its exclusive portfolio of more than 100 leading wine brands (see attached list), more than 800 professional & experienced staff, dedication to wine education and training and its significant Greater China distribution footprint, ASC with Suntory’s significant resources and expertise, will continue to lead the way in developing Greater China’s premium wine business.

BofA Merrill Lynch acted as exclusive financial advisor to the selling shareholders on the transaction.

ASC and Suntory Acquisition Questions and Answers

1. Why ASC decided to discontinue the partnership with Swarovski?

Both ASC and Swarovski enjoyed the partnership with each other. ASC is grateful for Mr. Swarovski’s support along the growth of the company in the past decade. The partnership is discontinued partly because of the adjustment of Swarovski’
investment strategy and also owing to that Don St. Pierre Snr, Chairman of ASC has decided to retire. Therefore, it is the right time for ASC to forge the partnership with a new investor. Given Suntory’s support and the shared vision for the company, we are delighted to have Suntory as our new partner.


2. Why does ASC choose Suntory as its partner?

Suntory is one of Asia’s prominent beverage companies and owns wineries in France and is one of the leading wine distributors in Japan. Suntory and ASC share the same value and vision for the wine market in China. Suntory will also offer ASC
the capital and expertise for its future development.


3. Since Suntory has become the majority shareholder of ASC, will there be any change in the organization structure of ASC?

According to the agreement with Suntory, Don St. Pierre Jnr, CEO and Co-founder of ASC will keep a significant amount of equity and remain the CEO in charge of the overall strategy and operations and remain on ASC’s Board of Directors. ASC’s senior management will remain in place.


4. Has Suntory any plans to rebrand ASC?

ASC is China’s leading wine importer and distributor. There are substantial values attached to the brand, therefore Suntory will not rebrand the company. In fact, the brand equity of ASC is also one of the main factors for Suntory to join the partnership.


5. What benefits will the new partnership bring to ASC?

Suntory views ASC as a long-term strategic asset and plans to fully support ASC’s future expansion plans by offering greater access to lower cost capital for both organic growth and local wine related acquisitions, supply chain management know how, IT expertise and where it makes sense for ASC’s business, to seek cooperation with Suntory’s Premium Whisky and Midori Melon Liqueur portfolio.


6. Will ASC sell Suntory beer?

The partnership involves no plans for ASC to be engaged in Suntory’s beer business.


7. Will ASC sell Suntory spirits products?

If it makes sense for ASC’s business, ASC and Suntory will seek the possibility for cooperation on Suntory’s Premium Whisky and Midori Melon Liqueur portfolio.


8. Are there any conflict between the current distribution channels of ASC and that of Suntory?

The current distribution channels of both companies are unique and effective for their respective product portfolio, none of them are in competition and some of them are complimentary to each other. When both company see there is a need, ASC and Suntory will seek closer cooperation on distribution channel management.


9. Will ASC and Suntory open wineries in China as Asahi did in Jiangsu?

Suntory will support ASC for local wine acquisition.

A Selection of Exclusive Brands:

Champagne Ayala, Castello Banfi *, Baron Edmond de Rothschild, Beringer *, Champagne Bollinger *, Brown Brothers *, Cakebread*, Chateau St Michelle, Columbia Crest, Clarence Dillon Wines *, E.Guigal, Freixenet *, Fluer du Cap, Fonseca, Gaja *, Ginestet, Inniskillin, Joseph Phelps *, Kendall‐Jackson, Kim Crawford, Leeuwin Estate, Leroy *, Louis Jadot, Masi, Michele Chiarlo *, Nederburg *, Bodega Norton, Penfolds *, Petaluma, Peter Lehmann, Marques de Riscal, Ruffino, Santa Rita, Shafer *, Robert Skalli, Stag’s Leap Wine Cellar, Taylor’s *, Telmo Rodriguez, Trimbach*, Wolf Blass *, VOSS *, Sanpellegrino*, Aqua Panna*, Riedel*


* Mainland China Only