Grape Wall of China articles and $CAGR list of acc

Grape Wall of China articles and $CAGR  list of accomplishments

California Grapes among those planning wine bars in Beijing’s Sanlitun

Posted on | March 5, 2012 | No Comments

Frank Yglesias of wine importer and distributor California Grapes International says the company will soon open a California wine bar and retail space in Sanlitun Soho. The Miami native says he just signed a three-year lease for 135 square meters of space and plans to have it up and running by May 1.

The Sanlitun-Workers Stadium area has seen several major outlets open that are each backed by a single importer, including The Wine Gallery by ASC in Sanlitun North, a three-floor establishment by Aussino in Regentdale Center, Enoterra by Enoterra Trading in Nali Patio and a soon-to-open Everwines shop by Torres China. Operations such as Enoteca, Changyu AFIP, Zun Club, with involvement from Great Wall wines maker COFOC, are also in the area. And look for more to join them. Last week, someone — also from Miami! — told me he is planning one closer to Tuanjeihu Station and at least one other person is contemplating a California wine bar. Whew!

As for Yglesias, he says his company will have 300 different wines from California and plans free tastings for F&B managers early each week, “decompression” tastings on Fridays, and events to allow customers to “discover Californian wines.” Brands listed in the California Grapes catalog include Alpen Cellars, Andrew Lane, Bumgarner, Igneous, Keller Estate and Russian Hill.

I’ll soon have a longer write-up with Ygliesias, covering everything from import challenges to how to increase retail sales, in the next few days.
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Grape Wall of China article Part 2

Wine Word: Frank Yglesias of California Grapes on wine in China

Posted on | March 6, 2012 | No Comments

Frank Yglesias

By Jim Boyce

I recently met with Frank Yglesias of California Grapes International in his office here in Beijing. We talked about issues facing importers, the wines in the CGI portfolio, and his plans to open California wine bar here in May. He agreed to do a longer interview via email. Here it is:

What is the process for adding a California wine to your portfolio, from the point of connecting with the winery to making the wine available to customers here in China?

We are the largest SKU holders of California wines in China with over 300 in our portfolio. Our process is a multilayer one starting in California. My partners there are homegrown Californians: Brian Bumgarner, our CVO (Chief Vintner Officer), has well over 15 years of experience blending and crafting California wines, while Jeff Crittenden, our CEO, and Jeffrey Wieser, our CLO (Chief Logistics Officer), know the ins and outs of consolidating, shipping, logistics and export document management. These skill sets are of the essence since most wineries in California concentrate on producing wine, not exporting wine.

Our California team takes a hands-on approach and selectively chooses esoteric wineries throughout California’s AVA’s [American Viticultural Areas]. We look for unique varietals and unique stories. We believe that besides the wine, the wineries have a story to tell, and it is our mission to share it with consumers.

Once we identify the wines to ship to China, we educate the wineries on the Chinese market and our responsibility in China to their brands and their wines. We take the same “mother hen” passion that they have and export it with the wines.

In China, our company is a WOFE [wholly owned foreign enterprise], and we have all the legal documents to clear Customs and register CIQ [China Inspection and Quarantine] labels, owning the entire process from arrival in China to our warehouse and eventually to our clients. Our strategy is DtC (Direct to Consumers), or, as we like to say, “from grape to glass”. No one touches it but us.

What is the biggest misconception California wine producers have about the China market?

What I call the “fool’s gold syndrome”. The world is overflowing with analytical data about the Chinese market. But does that make the data right? Not necessarily. When you have lived in China, trying to place your stake in the ground, then you get a realistic view of the Chinese market. Everything that shines is not gold.

What are the three biggest mistakes people make when they are importing wine into China?

When importing California wines, I see these common mistakes or pitfalls.

Making California wines price-driven. This is a mistake. No “two-buck chuck”.
The private labeling of California wines. This is very bad because it removes the history from the wine and the understanding of what it took to create it.
A lack of understanding of the California wine industry and its vintages and grape varieties.

You’ve told me you think poor selling techniques are a major reason restaurants don’t move more wine in Beijing. What do you mean by that?

Wine sales in the restaurant industry in the U.S. are driven by interaction between the customer and wait staff. As a former restaurant owner in Miami, I love the interaction I get in a restaurant in the U.S. Sadly, the wait staff in China typically lack the skill and education that are needed for such interaction and that are of the essence of the promotion of wine sales in the restaurant industry.

There is a big difference between good service and being subservient. The practice here of no “tipping” does not help promote better service. It is a vicious cycle in China: consumers don’t tip because they get bad service and the wait staff does not give good service because they get no tips. It’s a chicken-and-egg scenario.

My favorite place to drink wine in Beijing, because of the interaction, is Sureno at the Opposite House Hotel in Sanlitun. The wait staff are genuinely friendly, they know you by name, they know their wines and they can make recommendations. They smile, they look you in the eye, and do so with a respectful elegance. Kudos to the team at Sureno.

What would be the one white and one red you would open to impress someone?

For the white, hands down the varietal would be a California Chardonnay. Most people, and even most restaurants, kill a Chardonnay because they chill it too much. It’s not ice wine, and it’s not a Sauvignon Blanc, so it only needs to be slightly colder that a red. I would open a bottle of 2005 Reserve Chardonnay, from the Spring Mountain district in Napa Valley, produced by Vineyard 7&8.

For the red, my favorite varietal is Zinfandel. Its spicy taste and bold finish put it into a league of its own. I would open and decant a bottle of 2003 Zinfandel from Easton wineries in Shenandoah Valley. This “Zin” pared with Korean food is out of this world. You would think the spiciness in the Zin would not pair with kimchi, but it does, and works with the freshness of the vegetables wrapped around the barbecued meat.

$CAGR list of accomplishments (since Jan. 1st, 2012):

For potential investors and non-investors alike, A compilation of recent $CAGR events and information for DD purposes. Please feel free to add verifiable information (link included) to this list as new information is released.

OTC Pink Current
http://www.otcmarkets.com/stock/cagr/quote

California Grapes International, Inc. (CAGR Tier Change
Thu, Mar 01, 2012 12:00 - California Grapes International, Inc. (CAGR: OTC Link) - Tier Change - The symbol, CAGR, no longer is classified as OTC Pink Limited. As of Thu, Mar 01, 2012, CAGR resides in the OTC Pink Current tier. You may find a complete list of tier changes at otcmarkets.com.
http://stockalyzing.com/pink-otc-market-news.html

Annual Company Disclosure Statement (Revised)
Published: Feb 27, 2012
Period End: Dec 31, 2011
Status: Active
http://www.otcmarkets.com/financialReportView...p;id=73766

Supplemental Information- Beijing Retail California Wine Store Lease OTC MARKET
California Grapes International, Inc. (OTCPINK: CAGR) announces today that it has secured a lease for the first retail store in Beijing targeted to open April 1st.

SEC/FINRA approvals

U.S. embassy connections

Fast track through Customs

California Grapes International, Inc. 1st Retail Location
"CGI" has come to an agreement for a lease with the first retail location. The terms of the agreement are for 3 years and will provide for a retail location that allows for approximately 900 sq. ft. of indoor and 300 sq. ft. of outdoor space in one of the premier shopping and residential developments in Beijing.

California Grapes International, Inc. (OTCPINK: CAGR) announces today that it has shipped the first container for initial inventory its retail store in Beijing.
"CGI" has completed the consolidation and has shipped the first container for inventory of its retail location in Beijing.
The shipment consisted of 198 unique SKUs. Of the wines included, "CGI" has added over 20 new wineries for market testing in the order that we look to place inventory orders with soon. The wineries included in this shipment that will be made available for retail sales are as a direct result of our first market testing in 2011.

Lease agreement for 1st Retail Store
http://www.otcmarkets.com/financialReportView...p;id=73719

California Grapes International, Inc. Record Wine Sales at the 16th Annual Sichuan New Year Shopping Festival
California Grapes International, Inc. (OTCPink: CAGR) announces today that its subsidiary, Beijing Jin Long Fei International Trading Co., Ltd., increased its wine sales over the previous year's performance at the 16th Annual Sichuan New Year Shopping Festival in Chengdu, China. Special occasion purchases for Chinese New Year account for approximately 60% of Chengdu Event wine sales, while around 20% of the purchasing is made because consumers view the healthy qualities of red wine as important. A recent survey suggests there are favorable business opportunities for CA vintners in Chengdu and the Sichuan Province as the market continues to grow and evolve.

Investor Kit available:
“CGI” now has an Investor Kit available for download through Company Spotlight.
http://www.cagrapes.com/category/company-update/

THE CC IS POSTED!
http://www.cagrapes.com/category/company-update/

The US Embassy Employees Wine Tasting and Education Event
http://cagrapes.tumblr.com/

California Grapes International, Inc. In the UAE
California Grapes International, Inc. (OTC:CAGR) announces today that it will work with the American Embassy in Abu Dhabi, UAE to conduct a multi-day CA Wine event in the cities of Dubai and Abu Dhabi. "CGI" and the US Embassy plan to conduct a series of 4 strategic tasting events designed to develop and secure new trading lines and business ventures into the UAE for CA Wines.

California Grapes International, Inc. Announces the Hiring of Marble Arch Research, Inc.
California Grapes International, Inc. (OTC: CAGR) announces today that it has entered into an agreement with Marble Arch Research, Inc. as our new Equity Research and Investor Relations firm http://www.marblearchusa.com.

The company's agreement with Marble Arch Research, Inc. is focused and designed to advise on, and assist in providing, a research visibility program and investor relations program intended to stimulate better recognition and understanding of the Company. This agreement will include the following benefits for the company and shareholders;

California Grapes International, Inc. Announces Filing of 2011 Year End Financials and Information Statement
California Grapes International, Inc. (OTC: CAGR) announces today that it has filed "Year End" Financial Statements for 2011 and Year End "Company Disclosure/Information Statement" ending December 31st, 2011.

Fiscal 2011 Financial Highlights:
-- Inventory increased by 83% to $302,906 from $166,050 in 2010
-- Total Assets increased by 30% to $877,123 from $673,003 in 2010
-- Total Sales increased by 303% to $690,343 from $225,537 in 2010
-- Operating loss increased by 61% to $528,372 from $327,782 in 2010
-- Net loss increased by 20% $326,851 from $271,398 in 2010

Jeff Crittenden CEO stated, "2011 was the year of preparation. From the combined efforts of 6 years experience, we are now properly positioned for the 2012, year of execution! As so many domestic businesses have looked at the opportunities of the international market, especially China, as the source for building fortune, the lack of structure, direct engagement and overall business operational requirements needed to succeed have created not much more than a lot of little bites out of a very big pie."

Frank Yglesias EVP of China Operations stated, "We are very pleased, that we now have laid the legal, structural and operational frame work in China to be the top player in the California Wine Industry. China will be the largest wine consumer in the next decade, accounting for 15% of the global consumption."

CAGR working at Marriott/Renaissance Hotels in China
Private Wine Education, Sales & Tasting Event for the Lenovo Group in Beijing. This event was held at the Renaissance Hotel in Beijing on Friday the 9th. Renaissance Hotels are a division of Marriott Hotels (US:MAR).
http://cagrapes.tumblr.com/

Let's not forget the $CAGR online retail store with FREE SHIPPING to China:
http://kznlg.ahvfn.servertrust.com/

Things are falling right into place according to the business plan. The road map to success as it has been laid out by the company is going perfectly to plan and being executed flawlessly.