The wine sector is a well-established and stable sector and continues to grow. According to The International Organisation of Vine and Wine, 2015 world wine production was estimated at 275.7 million hectoliters, a rise of 2 per cent. compared with the previous year.

The Company believe the luxury food and fine dining sectors to be both aligned with and complimentary to the wine sector and intend to explore opportunities to make investments in one or more of such sectors or to seek to grow an investment in one sector through synergies afforded by another sector.

GN Group believe that the expansion of the global middle class will continue to drive significant gains in the consumption of consumer and luxury goods within the wine and associated sectors. In particular, research projections which estimate that hundreds of millions of Chinese are likely to join China’s middle-class in the short and medium term. In this regard, it is projected that, by 2030, China’s middle class by broad definition will amount to approximately 93 per cent. of China’s urban population which would, over that period, amount to an increase of approximately 325 million people falling within China’s urban middle class among a total urban middle class, by then, of 854 million people. Further, the Directors have noted that the household income level of the Chinese middle class population is predicted to reach Taiwan’s current median household income level. It is also estimated that the rise of China’s middle class will result in a rise by 2030 in its share of total consumption to around 50 per cent. of Chinese GDP from 36 per cent. in 2014.

The Directors consequently believe that the growth in the middle class of the Asian markets and other emerging markets will underpin the value proposition of luxury consumable goods such as wine or those related to the luxury food and fine dining sector as specified above. As a result, investments in these sectors offer an attractive opportunity to generate returns.

Notwithstanding the opportunity the Asian market and emerging markets present to the Company, the Directors of the Company remain open to investment opportunities in any geographic region.