(Reuters Video) – From pampered grapes to budget bottles, wineries tempt untapped customers in China’s growing wine market.

Any major themes to take note of?  Comparing this commercial, with that of the Remy commercials in yesterday’s posts, one thing is indeed VERY clear.

When marketing a product that is (generally speaking) for the masses of everyday consumers, tapping a worldly theme is very important.  China wants to fee like it is not only a part of the greater global community, but that it is contributing to it.  This commercial highlights such a theme perfectly in a very straight forward fashion.

The commercials from Remy Martin (see yesterday’s post) target a wealthier consumer and promote images of peace, tranquility, class and sophistication which are derived from the pleasure of enjoying a exclusive and expensive beverage like Remy Martin cognac.  Perhaps this is tapping into the desire to find a way to relax and disconnect from a life of a over-worked Chinese executive.  Offering a type of reward incentive for ones hard work, in the form of a “special” drink, the you work hard to be able to afford, consume and thereafter experience the feeling promoted in the marketing image.

Chinese culture tends to place far less emphasis and importance on receiving and giving compliments.  Confucius said, “to remain un-soured even though one’s merits are not recognized by others, is that not what is expected of a man of virtue?”  In other words, when the over-worked, wealthy business executives in China see this commercial, they see a beverage that creates the aura of achievement, recognition and merit so desperately desired.

The Tsingtao commercial on the other side wants you to let go of that hard day, drop your personal barrier and simply enjoy a beer with the world around you (not escape from it).

(Newswire:  businesstimes.com.sg)

When Hong Kong slashed its alcohol taxes to zero last year, it put a dent in Singapore’s attempts to grow as a wine business hub of Asia. Without the huge mainland Chinese market in its backyard, wine businesses have also found it a challenge to grow the local industry, even as Singaporean palates become more sophisticated and the demand for more variety increases.

However, recent activity has shown that the industry is not being stymied by Hong Kong. It has instead found several niche areas that are showing some promise.

Wine conferences and fairs

This is turning out to be an area of growth as organisers see greater interest from consumers in learning more about wine while distributors, retailers and restaurateurs reap benefits from visibility, networking and co-operation.

This week, for example, sees the International Congress of Chinese Cuisine & Wine (ICCCW) and Wine For Asia (WFA), running back-to-back, while the Singapore Wine Fiesta starts at the end of the month.

The ICCCW conference was founded last year by local publisher and columnist Ch’ng Poh Tiong, and it’s a feather in Singapore’s hat that after its first year in Beijing, he brought it here instead of tax-free Hong Kong, although it will be touring there next year.

‘The choice of venue is not dictated by local tax regimes vis-a-vis wine,’ explains Ch’ng. ‘Our goal is to spread the concept, and culture, of wine with Chinese cuisine wherever Chinese cuisine is highly appreciated.’

…

Click here to access complete article from Businesstimes.com.sg

[Source] – Businesstimes.com.sg Written by Christopher Lim and additional reporting by Melissa Lwee

(Newswire : Channel NewsAsia)

Guilin, GUANXI PROVINCE: French cognac maker, Remy Martin, is cashing in on China’s growing luxury market. It recently unveiled a rare cask of its “Louis the 13th” cognac in the Chinese city of Guilin.

Remy Martin chose Guilin to debut its limited edition vintage Louis the 13 Rare Cask.

Patrick Piana, CEO, Remy Martin, said: “The launch of Louis XIII rare cask is very important to the brand Louis XIII and the fact that it’s in China is a very important symbol of the future of Louis XIII overall.”

…
One consumer said: “Chinese people love wine and cognac hasn’t been promoted in a large scale here in the past however gradually Chinese people will learn to drink good cognac.”

Chinese drinkers are more accustomed to baijou or rice wine and whiskey and Remy Martin said it is not in the business of converting them.

Mr Piana added: “We’re not in a volume game so as to converting whisky drinkers, tequila drinkers, or vodka drinkers in other markets. It’s about making sure we cherish and nourish our brand to convert existing consumers to our brands.”

And it seems the group is going in the right direction.

[Source] – Channel NewsAsia’s China Correspondent Glenda Chong

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

Companies mentioned in the report include:

- Kweichow Moutai Co., Ltd (600519)
- Wuliangye Co., Ltd (000858)
- uzhou Lao Jiao Co., Ltd (000568)
- Shanxi Xinghuacun Fen Wine Factory Co., Ltd (600809)
- Hebei Hengshui Laobaigan Liquor Co., Ltd (600559)
- Sichuan Swellfun Co., Ltd (600779)
- Yantai Changyu Pioneer Wine Co., Ltd (000869)
- Beijing Yanjing Brewery Co., Ltd (000729)
- Tsingtao Brewery Co., Ltd (600600)
- Zhejiang Guyue Longshan Shaoxing Wine Co., Ltd (600059)
- Shanghai First Provision Co., Ltd (600616)
- SDIC Zhonglu Fruit Juice Co., Ltd (600962)
- Bright Dairy & Food Co., Ltd (600597)

Click here to purchase the report

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

[Source] – The Wall Street Journal, by Jake Lee

During Mir Global’s recent promotional trip in China I was lucky enough to be enlightend about North-Eastern China’s drinking habits. Dongbei ren as they are called in Mandarin seem to love to drink.

This article, “In China, taste for wine comes of age,” published by the Hindu is a interesting summary of Ananth Krishnan’s perspective on the ever developing Chinese wine palate.

I’ve copy and pasted a few excerpt for your viewing pleasure and I recommend checking out the full article by clicking here or on one of the other various links I’ve provided in this post.

Deep in the cellars of a sprawling industrial complex in China’s northern Hebei province, a row of giant steel vats runs as far as the eye can see. At first glance, they seem to be just another massive manufacturing plant in China’s northern industrial heartland. But the vats in this cellar do not hold chemicals or dyes. Each container holds some 1,000 tonnes of grapes, and this plant in Hebei’s Huailai County is at the heart of China’s wine revolution.

In China, even the business of wine, that most refined of indulgences, is all about quantity. The country now has the world’s fastest growing market for wine, with an estimated 600 million consumers. In 2007, Chinese wine consumption was estimated at a huge 800 million bottles. (India’s annual consumption is around 10 million bottles.)

The import of high-end European wines has been steadily rising in the affluent southern cities of Shanghai and Guangzhou. Now, more high-end boutique wines, set up as collaborations with European houses, have begun to emerge such as Grace Vineyards in Shanxi, which was set up by Spain’s well-known Torres wine house.