An American company that delivered wine bottles to China for several years is planning to shut down its business, saying it has been hit by a steep decline in business as the Chinese economy has grown.
The company, Wine Bottle Delivery, delivered over 3 million bottles of wine to the People’s Republic of China (PRC) in 2016.
The company also served China as the host for the 2016 Olympics.
But over the past few years, it has struggled to maintain a profit.
In a statement posted on its website, the company said it has lost $5.7 million in the last 12 months, with most of that due to the recent drop in sales.
“Wine Bottle Delivery has been and continues to be the largest winery distributor in the United States and the world, serving the world’s best wine,” the company wrote in its statement.
“It is also the world leader in delivery service, providing the world-class service to wine, beer, spirits and other alcoholic beverages.”
In the last year, Wine Bottles delivered nearly 10 million bottles to Chinese consumers, the statement said.
In its statement, the California-based company said the company is still working to recover the losses it has incurred.
“We believe that our continued success has come as a result of our extensive international relationships and extensive customer relationships,” Wine Bottle stated.
“Our strategy of serving China has allowed us to maintain our market position, but our financial position is deteriorating.
We have been forced to shut our doors for the past two years.”
Wine Bottles, which is based in Orange County, Calif., was founded in 2010.
It operates a network of more than 20 wineries and distilleries in the U.S., and it has about 50 delivery partners.
Wine Delivery was one of the first wine delivery services in the world to accept credit cards and was among the first to accept a PayPal payment system, the American Express website shows.