Awa Wine: As part of the strategic focus on the rapidly growing Chinese wine import market, RGLC has acquired 26% of Awa Wine at a cost of approximately $500,000. RGLC also has an option to increase its ownership to 51%, subject to certain business milestones. Following are some of the key points RGLC reports regarding the operations of Awa Wine:

The company commenced operations in 2005 and has now reached sales of over 100,000 bottles annually.

There are 16 corporate owned and franchised Awa Wine retail locations, with immediate plans to open another 5 stores and an expansion strategy that calls for 100 locations by 2013.

The company also operates a wholesale wine distribution business, with an emphasis on local government departments.

A typical AWA Wine store consists of a street level storefront, a well appointed interior, and an upper level lounge area catering to the company's growing Membership Network.

The Awa Wine Membership Network now numbers in excess of 50,000 generally affluent Chinese citizens who become members through wine testing events held at Awa locations and through wine educational programs sponsored by corporations such as China Unicom, BMW, HSBC, Bank of China, and China Mobile Limited. RGLC's expansion plans calls for increasing the number of active Awa Wine Club members to 1 million by 2013.

China's Growing Interest in Wine Clubs and Wine Tasting Events: The importance and value of wine clubs, tasting events, and general product education is reflected in the related efforts of some of the leading companies operating in China. It's also clear that an important part of the marketing strategy of some of the leading distributors is to build interest and awareness through events and wine clubs, as evidenced by a review of the calendar posted for events Wine China Exhibition  and at the Grape Wall of China blog.