The fortified rice wine traditionally poured at Chinese business banquets is associated with lethal after-effects that hamper productivity. When Mr St Pierre Sr was formulating his plan for the business in the 1990s, he gambled that a profitable slice of the Chinese population would soon be wealthy enough to choose an alternative – by buying high-quality wines from abroad.
His instincts were right. Today ASC earns $95m in annual revenues, employs 500 and is thriving amid a buoyant Chinese market for fine wine. Its story illustrates some valuable lessons for foreign entrepreneurs operating in Asia's most vibrant economy.
Mr St Pierre Sr was no newcomer to China when he and his son, Don St Pierre Jr, entered the wine business. During the 1980s “Big Don” had learned much about brand building, logistics and people management in the country while running Beijing Jeep, a politically fraught joint venture between American Motors Corporation and Beijing Automotive Industry Holding Corporation. Later, he worked at China Automotive Components Corporation, a subsidiary of Asimco.