The owner of Australia's McGuigan wine label said Monday it had won a distribution deal with China's state-owned food conglomerate COFCO, giving it a chance to tap the vast market.

Australian Vintage said it had signed a long-term agreement with COFCO Wine and Spirits to distribute McGuigan wine effective immediately.

"There is currently an opportunity for Australian wine in China, and it's one of the most exciting emerging markets for the global wine industry," chief executive Neil McGuigan said.

China overtook France as the world's largest consumer of red wine last year, guzzling 1.865 billion bottles, according to Vinexpo Asia-Pacific.

However, growth has begun to stall as Beijing reins in luxury spending and extravagant banquets against the backdrop of a slower economy, with people increasingly turning to cheaper wines.

McGuigan said Australian Vintage hoped the deal could help it reach the "substantial targets we have set ourselves".

He added that the partnership with COFCO was an honour because "they are a forward-thinking wine distribution company that understands the need to take the Chinese consumer on the wine journey".

"This is an exciting time for the McGuigan brand, and our commitment to the Chinese market is stronger than ever," he added.

In a statement, COFCO Wine and Spirits general manager Li Shiyi said wines from Australia would be key for Chinese consumers.

"There is no doubt that Australian wine will play a critical role in the future of wine in China," he said.