Research and Markets: Revealing the Impact the Global Financial Crisis Has Had on China’s Food and Beverage Industry
In the fist half of 2009, China above-scale food industry accumulatively achieved RMB2.299 trillion of total output value, up 14.76% compared to the same period of last year, of which, the agricultural non-staple food processing industry’s rose 15% to RMB1260.646 billion, the food processing industry’s increased 14.55% to RMB407.909 billion, and the beverage manufacturing industry’s rose 18.92% to RMB348.186 billion.
Impacted by the global financial crisis, the food and beverage industry’s operating revenue changed from rapid growth momentum to downturn in H2 2008. During Jan-Feb 2009, the revenue of the overall food and beverage industry increased only 14% year on year, 23 points lower than that of Jan-Feb 2008, recording new low in recent years. The growth rate in Jan-May 2009 rebounded a little to 15%.
In the past several years, the operating revenue of the food processing industry, one sub-industry of the whole food and beverage industry, has grown faster than that of the other two sub-industries, food manufacturing and beverage manufacturing. Due to the price decline of meat products (mainly pork), the food manufacturing industry rebounded slowly during the financial crisis, while the beverage manufacturing industry showed certain decline-resistance ability, whose operating revenue rebounded steadily during Jan-May 2009, up 16% year on year, 1 point higher than the figure in Jan-Feb 2009 and higher than the average level of the whole food and beverage industry. Taking Kweichow Moutai Co., Ltd for example, its liquor output in H1 2009 was 23,833 tons, up 35.9% year on year; its sales revenue went up 20% to RMB5.5 billion and net profits rose 25% to RMB2.8 billion.
In H1 2009, the high-alcohol Moutai liquor products took 84.27% of the company’s operating revenue, while the low-alcohol liquor products accounted for 9.63%.
Based on the authoritative statistics from the National Bureau of Statistics of China, the China National Food Industry Association, China Alcoholic Drinks Industry Association, Dairy Association of China, etc, this report makes an in-depth analysis of the status quo of China’s food and beverage industry and its influencing factors, giving priority to the analysis and research of its eight sub-industries on market scale, industry concentration, regional distribution, economic benefits, production & sales as well as growth space. Besides, It also predicts the future development trends of the industry.
Key Topics Covered:
1 Food and Beverage Classification and Research Scope 2 Development of China Food and Beverage Industry 3 Segmented Industries 4 Regional Development 5 Key Listed Companies 6 Development Trends and Prospect of China Food and Beverage Industry
For all the toothsome crabs and delicate siu mai that make Hong Kong one of the world’s best places to eat, until recently wine was largely enjoyed more as a marker of status than as a complement to a meal. Wine programs and shops in the city’s main district catered to local tycoons and expatriates with a taste for Bordeaux and expense accounts to match.
But venues for wine—shops, tasting bars and even a winery—now flourish in the city, thanks to a happy convergence of factors that includes reduced taxes and a government mandate declaring 2009 “Food & Wine Year”. Auction houses are clamoring to sell fine Bordeaux, Burgundies and Barolos and ever more restaurants are hosting dinners with wine makers flown in for the occasion. Tasting events, trade shows and oenology courses abound. A recent Sotheby’s auction of two American-owned wine collections raised $7.9 million, almost 30% more than estimated.
Still, many of the best and most interesting sites are tucked away, often a short taxi ride out of central Hong Kong.
Click here to access the complete article from the WSJ
Globowines first mentioned Wine for Asia 2009 back in April (see post) earlier this year. Fast forward 6 months and the time for the big show is upon us.
Just a reminder to all those readers out there in Singapore — Wine For Asia begins October 22 and runs until October 24.
Wine For Asia (WFA) 2009, the most comprehensive international wine exhibition in the region, returns to Singapore from 22 – 24 October 2009 with the promise of another bumper event.
An exciting exposition that help you expand your footprint into Asia’s burgeoning wine market, WFA 2009 offers a one-stop opportunity to keep abreast of the latest wine offerings, complete with a myriad of first-class business, educational and networking opportunities and lifestyle pursuits. Exhibitors and visitors can look forward to three days of non-stop business, networking and learning opportunities.
Click here to visit the Wine for Asia home page for more information.
Ho Yeow Sun, better known as Sun Ho, is a Singaporean pop music singer. Sun started her Mandarin pop singing career in 2002 and has since exploded. She has worked with the likes of Wyclef Jean, Diane Warren, The Underdogs, David Foster and Carole Bayer Sager.
Although Globowines is a bit late on bringing the existence of this video to your attention, we no less thought our readers would get a kick out of this. This song a result of a 2007 collaborated with writer/producer and Fugees co-founder Wyclef Jean. The music video was directed by Wayne Isham and featured Tony Matterhorn and Elephant Man alongside Wyclef and Sun. Wyclef was also co-writer and executive producer of Ho’s English album, due for release in 2009.
In 2008, Ho was featured in an opening spot on Wyclef’s American and Canadian concert tour, and invited to appear in his music video “Fast Car,” featuring his duet with Paul Simon.[31] She also performed “China Wine” with Wyclef at the SonyBMG Europe Music Awards After Party.
Hong Kong overtakes NY, London in wine auctions
Hong Kong has overtaken New York and London as the largest wine market for two of world’s biggest auction houses, the firms said Tuesday, highlighting a trend spurred by surging demand from China.
Sotheby’s said its wine auction held in the southern Chinese city over the weekend, together with another one in April, have raised 14.3 million dollars.
The figure surpassed those of New York and London, which respectively recorded sales of 10.5 million dollars from four auctions and of eight million dollars from seven auctions held this year, the auction house told AFP.
Christie’s also said that its recent auction results have also shown that Hong Kong is taking over New York and London as its largest wine market.
“In Sotheby’s first year of selling wine in Asia, Hong Kong has become (its) most important wine centre, ahead of very successful auctions in New York and London,” said Serena Sutcliffe, head of Sotheby’s international wine sales.
“Sotheby’s have exciting plans to build on this momentum to bring to the market top collections in 2010,” she added.
Sotheby’s and its rival Christie’s began to hold regular wine and champagne auctions in Hong Kong after the city’s government abolished duties on wine imports in 2008 in a bid to establish the city as a regional wine hub.
China’s economic boom and growing demand for top French wines has become the key driver of Hong Kong’s wine market, as can be seen from the increasing number of mainland Chinese bidders at the auctions.
At Sotheby’s weekend sales, a Chinese bidder splashed out a record 93,077 dollars for a bottle of 1982 Chateau Petrus Imperial.
Sutcliffe said 99 percent of buyers in the two-day auction were Asian buyers, including those from China, Hong Kong, Taiwan, Singapore, Indonesia and the Philippines.
The latest auction fetched almost 30 percent more than Sotheby’s estimate of 6.13 million dollars.
David Elswood, head of Christie’s international wine department, said its Hong Kong wine auctions had the highest average lot values among its global sales, at 150,000 dollars per lot.
“Asian buyers are very active not only in Hong Kong, but also in the international wine market,” Elswood told AFP.
This spring, Asian buyers accounted for 61 percent of Christie’s global wine sales in New York, London and Hong Kong, whereas they made up only seven percent of global buyers in 2005, he said.
“Buyers from Hong Kong, Taiwan and mainland China also grew substantially between last autumn and this spring at our auctions. We expect this trend to continue.”
For a pricey $1320 you can get your hands on the latest market analysis of China’s burgeoning wine market.
This report covers the market for alcoholic wine in the People’s Republic of China. The report covers the red, white and blended grape and sparkling wines sectors. There is also some coverage of fruit wines (normally referred to as ‘berry wines’ in China) in the report. This report does not include yellow rice wine, or Shaoxing wine.
KEY REPORT FEATURES
This recently updated report includes:
- An overview of China’s total food market with sales statistics up to interim 2009;
- The total value and volume of wine consumption, including consumption channel breakdowns and by type of wine, up to interim 2009;
- The total value and volume of wine retail sales, including by sector, up to interim 2009;
- Leading manufacturer market shares based on revenues to 2008;
- Volume & value forecast the meat market in China up to 2014;
- The retail wine market background and current issues;
- Marketing & distribution;
- SWOT analysis
- Key manufacturer profiles
- Key contacts & trade events;
- Overview of China’s demographics and macroeconomics
EXECUTIVE SUMMARY
China claims over 160,000 acres of vineyards nationwide, but much is in remote areas, such as those in Tibet near Kazakhstan, where Silk Road traders brought seeds centuries ago. There is also a small native grape (Vitus thunbergii) that grows wild north of Shanghai. And Russian visitors brought plantings of Muscat and Ratsiteli to China in the early twentieth century.
Although having been started at the beginning of the 20th century, the wine industry in China has only recently begun to develop into a significant market. Chinese consumers have tended to stick to what they know, being beer and grain spirits – drinks that offer a higher alcohol level per unit than wine.
However, wines have attained consumer acceptance, not least due to Chinese politburo member Li Peng, who decreed that state banquets should be lubricated with wine instead of spirits in 1996. The influence of western eating and drinking habits have been key in this, as have rising average incomes in China. Indeed, wine is now becoming the fashionable drink for the wealthy younger generations in China’s cities, and the “badge” drink of China’s wealthiest élite.
The value of the market has more than doubled over the last seven years, and has become much more sophisticated. Not only are there more foreign wine imports available in restaurants and in the shops, but the number, variety and quality of domestic wines has also increased. This has served the market by providing local consumers with a greater array of cheaper products to try.
However, the domestic market has moved on, and domestic wines are now reaching a level of quality that they can compete on price with imported wines, and even look to developing an export market. However, the domestic market is where most Chinese wineries are looking to develop their sales. With about 600 million young Chinese, all exploring new types of alcoholic drinks, the potential market for sales of wine in the future is great.
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