David DeBoer of Delicato Family Vineyards. [Photo/China Daily]

David DeBoer, vice-president of international sales of the 90-year-old company, says it specializes in China's emerging "millennial consumers".

"This group is focused on the values of authenticity, quality and value. The overpriced wines of the past that were not authentic are being abandoned by consumers."

One of Delicato's 16 brands, Belle Ambience, distributed by COFCO, came onto the Chinese market a year ago. In supermarkets such as Wumart and COFCO Wine & Wine Store, Belle Ambiance generally sells for about 120 yuan to 130 yuan.

"The first year in the market with Belle Ambience has been an extraordinary success," DeBoer says. "While we don't disclose our sales results, I will say that Belle Ambience has achieved our goals and expectations."

The Chinese Wine and Spirits Market Overview, a study published this month by the International Wine and Spirit Research based in London, says the imported wine market is recovering at the lower end.

Chinese wines accounted for more than 80 percent of sales in 2014, but this segment is now in decline, those who market it finding it increasingly difficult to compete with high-quality low-cost imported wines, the study found.

The International Wine and Spirit Research says that in the medium term, consumption of imported wines should continue to grow in a stable way. Growth lies in regular drinking wine aimed at the emerging middle class, and wines priced at less than 100 yuan are performing best, it says.