China Foods, a Hong Kong-listed unit of China state-owned food conglomerate Cofco, mulls to purchase two or three wineries in Australia and the US for around $20m.

The move is part of the company’s plan to increase its wine sales and compete with foreign wine suppliers.

The company already owns two wineries outside the country – Chateau Viaud in Bordeaux, France, and the Bisquert winery in Chile.

In 2012, sales from the the company’s wine import business was less than $15m, which is in contrast to the overall Chinese wine imports which jumped from 400 million litres in 2004 to 1,400 million litres in 2011, according to Rabobank report.

French wines continued to be the main competitors in China wine market in 2012, with China importing 63 million litres of Bordeaux wine in between July 2011-12.

To compete with these French wines and boost local wine sales, China Foods is expanding into overseas markets and is also launching new entry-level products.

China Foods managing director Luan Xiuju was quoted by the website as saying, "The new products will be priced between 50 and 100 yuan, to make them affordable to common consumers."

Beijing Orient Agribusiness Consultant senior analyst Ma Wenfeng told the website that entering into overseas markets will help China Foods gain more expertise in wine production and winery management.

"China’s market is growing very fast but is still less familiar with the wine culture than Western countries," Ma added.

"The most important thing right now is to bring wine into the households as well as to people’s daily life."

The acquisitions are expected to be completed within two years period.