* Market: Food and Drink
* Published Date: 21/10/2009
* Report Title: Wine – BRIC (Brazil, Russia, India, China) Industry Guide
* Table of Contents: View Table of Contents
* Report Type: Market Report
* Country: Global
* Number of Pages: 102
The Wine – BRIC (Brazil, Russia, India, China) Industry Guide is an essential resource for top-level data and analysis covering the BRIC (Brazil, Russia, India, China) Wine industry. The report includes easily comparable data on market value, volume, segmentation and market share, plus full five year market forecasts. It examines future problems, innovations and potential growth areas within the market.
Scope of the Report
Contains an executive summary and data on value, volume and segmentation
Provides textual analysis of the industry´s prospects, competitive landscape and profiles of the leading companies
Incorporates in-depth five forces competitive environment analysis and scorecards
Compares data from Brazil, Russia, India, and China, alongside individual chapters on each BRIC country; Brazil, Russia, India and China
Includes a five-year forecast of the industry
Highlights
The BRIC Wine market grew by 8.5% between 2004 and 2008 to reach a value of $25.3 billion.
In 2013, the market is forecast to have a value of $34.6 billion, an increase of 6.5% from 2008.
India was the fastest growing country with a CAGR of 21.2% over the 2004?08 period.
Why you should buy this report
Spot future trends and developments
Inform your business decisions
Add weight to presentations and marketing materials
Save time carrying out entry-level research
Market Definition
The wine market consists of fortified wine, sparkling wine and still wine. The market is valued according to retail selling price (RSP) and includes any applicable taxes.
Click here to view the table of contents from the report
The China chapter breaks down as follows:CHAPTER 6 WINE IN CHINA 78
6.1 Market Overview 78
6.2 Market Value 79
6.3 Market Volume 80
6.4 Market Segmentation I 81
6.5 Market Segmentation II 82
6.6 Market Share 83
6.7 Five Forces Analysis 84
6.8 Leading Companies 92
6.9 Distribution 97
6.10 Market Forecasts 98
6.11 Macroeconomic Indicators 100
After partnering with France during this year’s show, the 3-day Hong Kong International Wine & Spirits Fair that concluded successfully last week, the Hong Kong Trade Development Council which organises the show has announced that Australia will be the partner country next year.
An agreement between the Australian Trade Commission (Austrade) and the HKTDC was signed last week, following the number of exhibitors taking part this year. Australia was the country with the largest representation at the show with 65 participants.
Fred Lam, executive director of the HKTDC, said: “It seems fitting that when it comes to announcing our partner country for next year we are passing the baton from the Old World to the New World,” France was the partner country during the second edition.
Australia is Hong Kong’s fourth-largest supplier of wine and the value of imports from Australia to Hong Kong between January and September this year increased by 22% compared with the same period last year, according to Drinks Business.
India also showed a decent presence with ten wineries present- Sula, Grover, Indage, UB, Vintage, Big Banyan, d’Ori, Deccan Plateau, Renaissance, and Empire. Mrs. V. Kotwal, CEO of the Indian Grape Processing Board which organised the producers, was very satisfied with the response and hopes that next year will see a bigger participation at the show. The constant stream of people at the Indian stand was quite encouraging.
A group of importers had also visited the show under the banner of Indian Wine Academy and most were pleasantly surprised by the quality of the show, the seminars, amount of wineries present and the business possibilities that came up.
Next year’s Fair will be a big test of the prowess as the Vinexpo Hong Kong also lands up during the same year.
[Source] –The Indian Wine Academy *** Please note. Only 1-2 paragraph excerpts from the different topics Seth covers in his article of China’s domestic wine industry have been posted here.To access the full article click here.
[Pingyao, China -- Shaanxi Province 2006]
China is associated with a variety of things, from food to martial arts but few in India link it with wine. However, the world’s fifth largest vineyard area and the seventh largest in production, according to OIV, the importance of Chinese Wines is growing, writes Rajiv Seth.
China has a long history of wine production. Chinese literature recounts the introduction of grapes from modern Uzbekistan during the Han dynasty (136 to 121 BC) and their planting in Xi’an, the legendary eastern terminus of the Silk Road near China’s Yellow River.
The Modern Era
The modern wine era in China began with the communist takeover in 1949. State-owned wineries were built and expanded. The term wine traditionally has a different meaning in Chinese culture than in the west. Jiu, which literally means alcohol, was used on all labels until recently, not allowing for the distinction among, alcoholic beverages. Rice-based alcohol is also referred to as wine. Modern Chinese winemakers now make an effort to specify grape wine by labeling with the term butajiu. The term wine is still widely misunderstood in China.
In 1978, Chinese government opened the door for the modernization through international involvement and by emphasizing wine consumption to help curb the national thirst for alcoholic beverages. Indeed, the Communist Party decreed that consumption should change from grain liquor to fruit liquor in 1987. The 1990s saw a decline in state-owned wineries, but an increase in foreign investment, modernization, and western technology.
The Current Scenario
More then 100 wineries have been established since the National People’s Congress in 1966 decreed that Chinese must reduce their consumption of grain alcohol, and switch to wine. Since then, the government has encouraged state-run ‘wine manufacturing plants’ to grow western grape varieties...
The Domestic Wine Industry
China has more than 300 wineries. Most of this development has been in areas near Beijing, in the eastern maritime region of Shandong. The industry is dominated by six large producers who account for about 55% of the total production. The average capacity of Chinese wineries is approximately 2000 tons, with 70% of the producers under 1000 tons. The more predominant wineries include Changyu, Great Wall, Dynasty, and Dragon Seal, all producing over 10,000 tons. Wine production in China in 2005 was 434,000 tons, an increase of 14% from 2004.
Standards and Appellations
Some wineries still use flavor essence, ethyl alcohol, sweetening, agents, and water to produce wines. There have been attempts to establish standards like an AOC type appellation system. New standards and types are evolving, including premium wine and ice wine which is produced in the extremely cold Xinjiang region and is available in abundance in stores in most big cities. Regulations are being put into effect to control raw materials, regional identity, variety, and vintage…
Vines and Viticulture
China has 26 indigenous vine species and hundreds of grape varieties. These are used to produce mainly low-end wines. Widespread introductions from Russia, including Muscat along with Italian Riesling, make acceptable, if not noteworthy products. Among the most common are Cabernet Sauvignon, Cabernet Franc, and the mysterious Cabernet Gernischt.
Shandong Province is roughly at the same latitude as California. Cool Pacific breezes moderate the temperature, which ranges from about 3°C in winter to 26°C during the summer. Monsoons come from the South China Sea, although spring is usually dry, and summers and autumns wet…
Winemaking Process
Virtually every winemaker harvests grapes based on sugar; measures of TA, pH. Aroma evaluation are not of common concern. Fermentation is conducted in modern stainless steel, concrete, French 200-L barrels, or in some cases very old wooden (oak) fermentors, with or without temperature control. Red wine cap management is not a large concern and consists almost entirely of pumping over. Practices such as cold soak, bleeding, and delestage are not practices and none of the producers is involved in the process maceration…
Dry Wines and food pairing
Dry wines have over taken sweet and semi-sweet wine production in the past 12 years. Sales of still red wines represent about 70 percent of the total. This seemed odd, since Chinese food does not go well with red wines. However, food and wine pairing, is not part of Chinese culture.
Marketing a dream or nightmare
China can be considered both a western wine marketer’s dream and nightmare. Wine consumption is rising faster than domestic production, currently allowing imports to make up the balance. Beginning January 1, 2001, Chinese tariffs on wine have fallen from 44.5% to 14%. This dramatic reform was brought on as part of China’s accession to the WTO, and has substantially changed the domestic wine market. Given the traditionally low incomes, the majority of wines must be sold at low prices- a problem in light of the fact that taxes account for about 50% of the retail price of imported wine. Domestic wine can sell for about 20 RMB/L ($4), with the very expensive ones at about $20.
About the author — Rajiv Seth became the first Indian in the year 1987 to receive a gold medal from wine and sprint education trust, London. Presently he is making continues efforts in educating the lab assistants of a number of wineries on procedures of micro vinification through his manuals.
A consistent theme of this site will be discussion about the ever evolving state of global wine markets. MIR Global decided to start this site as a resource for people to come not only to keep current on major news/development in the wine scene but also to discuss the ever changing nature of it.
First lets talk about supply. During the past decade wine production has exploded in many new countries. Wines from the United States, Chile, Argentina, South Africa, Australia and New Zealand have become household names around the world. Europe is not the only kid on the block anymore.
Now, consider the demand side of things. China, South-East Asia, India and Russia have suddenly emerged as the future major wine markets. With incredibly large populations, robust economic growth and a ever more interconnected global economy wine producers have switched their focus to Asia.
Described in this article from the Wine & Drinks Business Review
Countries, such as China, India and Indonesia, will compensate for the stagnation of Western economies.
The companies with strong international orientation will benefit from the demand coming from Asia, which will balance the markets that are more inclined to a stability situation, such as the Northern-American and the European ones.
* European wine production falls to 161.6 million hl versus 163.6 million hl in 2007
* French production falls to 41.4 million in 2008 from 46 million in 2007.
* Argentina is decreasing to production to 14.6 million hl
* Chile’s production grows to 8.6 million hl in 2008, not sure what it was in 2007, article doesn’t say and a google search did not yield immediate results. If anyone knows please share.
* South African wine production increased 5% to 10.2 million hl.
* Australia’s production grew a pretty stunning 30% to 12.3 million hl.
* New Zealand finishes off the count, growing a astounding 39% to 2 million hl.
Now in terms of exports from some traditional European markets, decline where seen across the board, with Italy taking the biggest hit proportionately.
* Italian exports fell to 17.8 million hl, which breaks down in layman terms to loosing about 7% of the share of Europe’s exports.
* Spanish exports on the other hand gained 8.5% of the European export market of fine wines, exporting 16.9 million hl. * USexports rose over the threshold of one billion dollar sales (+6%), with a volume of 4.9 million hl (+8%), of which 90% came from California.
* France had a 10.5% fall in the volumes, at 13.7 million hl.
* Australia showed a decrease of 11% at a little less than 7 million hl.
Click here to access the full article: “The world’s wine market- an evolving panorama.”
Twenty years ago New Zealand barely had a wine industry. Now now only are their wines found on shelves in Europe, North America and Asia.
Zealand’s wine exports have grown at an average of 23.8% over the past two years, four times the rate of growth in any other export sector.
Marlborough, one of New Zealand’s primier wine growing regions and home to the country’s most famous Sauvignon Blanc’s, now accounts for 20% of ecomonomy. Not bad for a industry which as I already mentioned did not really exist 20 years ago…
“For the industry the NZIER report represents a very positive analysis of the contribution grape growing and winemaking make to the New Zealand economy. That contribution totals over $3.5 billion of revenue through our own direct sales and the sales we generate in related sectors such as the tourism and hospitality industries,” Winegrowers chairman Stuart Smith says, according to a news report by the NZ National Business Review.
India, a relative new comer in the global wine scene is now looking to use growth of New Zealand’s wine industry as a template for nurturing their own infant industry.
Wairau Valley, Marlborough – New Zealand
Here are a few excerpts from a interesting article covering this topic, courtesy of The Indian Wine Academy.
—————————————————————
In India, Sula took the lead in wine tourism with a tasting room and a reasonably world-class structure has been commissioned but nothing much has been done by Indage or Grover- though Indage opened a wine bar outside the winery with a modern tasting room inside and Grover has also opened a tasting room recently.
The infra-structure to travel to Nashik is practically non-existent. It takes over 5 hours to reach Nashik from the airport with a private taxi and once you reach there, finding the winery locations is a nightmare for most visitors.
The tourism ministry does not seem to pay much attention to this aspect either. Even Destination India 2009 project to promote tourism in India seems to have ignored this lucrative part of the tourism. Hopefully, the Nashik grape growers association or the newly formed National Grape Board would have a look at the potential honey pot when it gets down to business.
Welcome to Mir Global Marketing’s blog, Globowines!
~~ Click here ~~ to visit our company website. Our current catalog includes new wines are from Argentina and Chile, which have have been especially chosen for the China and Singapore market
