Californian Winery Enters Cambodian Market

California-based winery E. & J. Gallo has entered Cambodia and is offering four of its more economically priced brands in an effort to introduce locals to wine without breaking their budget, company representatives said Monday.

“Cambodia, as well as other markets in Asia, is perfect for wines at our price level,” said Jonathan Chang, Asia-Pacific regional director of E. & J. Gallo.

The winery started importing its four brands—Carlo Rossi, Barefoot, Gallo Family Vineyard and Apothic—last month, but announced its entrance Monday evening to a crowd of about 150 businesspeople at the InterContinental Hotel at an event attended by U.S. Ambassador William Todd.

E. & J. will offer about 20 variations of its four brands, including Cabernet Sauvignon, Merlot, Moscato and White Zinfandel, at prices ranging from $5 to $15 per bottle. The wines are being sold in local restaurants, hotels and retail stores, such as Lucky supermarket, as part of a deal with Hung Hiep (Cambodia) Co. Ltd., a local sales and distribution company.

“We can see in the market a lot of French wine, Australian wine and even Chilean wine. They are generally priced over $15 retail, and for us, we are bringing wines which are priced between $5.50 to $15,” said Pily Wong, CEO of Hung Hiep.

Mr. Chang said that he estimates E. & J. will ship about 20,000 cases of wine, or 240,000 bottles, to Cambodia each year.

“With the wealth creation and the growing middle class [in Cambodia], there is a market,” he said.

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