Wineries eye Chinese market by Darren Snyder of the Mudgee Guardian
At least five wineries within the Mudgee region have shown they are fighting an Australian wine glut by working with the NSW government’s Asian export wine strategy.
While it has been reported the Australian wine industry is producing 20 to 40 million excess cases of wine every year, there are numerous wineries jumping on board to enter one of the world’s fastest growing wine markets.
Rapid growth in the Chinese market has been a catalyst for the State Government committing resources to local wineries in an attempt to sell more NSW wines in Asia.
Beijing wants a taste of Australian wine sector by Michael Sainsbury of The Australian
CHINESE companies are poised to target Australia’s $26 billion wine sector with a range of companies across the country — most of them government-owned — exploring deals that would result in them buying local wineries or taking equity interests in wine and beverage groups.
Australia’s largest trading partner is extending its investment activities into sectors other than mining and resources.
Shanghai-based food and beverage conglomerate Bright Group — one of China’s biggest — this week signalled its interest in paying $1.5bn cash for the sugar and renewable energy division of CSR, and is eyeing winemakers as part of a wide-ranging look at investment in Australia.
Other major beverage groups — including the massive food and drinks group COFCO, owned by the central government, which has recently stepped into the wine market in China as a major distributor — are also believed to be mulling Australian wine industry purchases.
[...] Click here to read the full article from The Australian
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Grape Wall of China – CHINA is tipped to become the world’s biggest wine producer by Jane Hamilton of The Sun – UK
The Far East giant – better known for its Great Wall than its vineyards – already makes more wine than Spain and Portugal.
And with British supermarkets stocking up, experts predict it will overtake Australia in 2010 and Italy and France within 50 years.
Nine out of ten bottles of Chinese wine are red. Supermarket chain Morrisons has trialled one and now Waitrose plans to sell another.
Waitrose wine buyer Andrew Shaw said: “Chinese wine is the hot new trend. We’re hoping to have a quality one in store by the end of the year.”
[...] Click here to read the full article from The Sun – UK
Evan Osnos, well renowned wine guru of the New Yorker, writes about China’s sudden romance with wine. The notion of getting rich by selling wine in China has a long history, which is marked almost entirely by failure.
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Prospects have sharply improved since the days of the Baron, and, today, China is one of the world’s fastest-growing wine markets. (Chinese buyers are consuming so much that they are affecting wine prices for some of the most expensive bottles.) In this video, produced by Mengfan Wu, we visit a wine class hosted by Torres China, which is trying to introduce new consumers to an unfamiliar product. We also hear from Don St. Pierre, Jr., the chief executive of A.S.C. Fine Wines, who explains why Chinese consumers sometimes prefer to down their glasses in a single enthusiastic gulp.
HONG KONG — Chinese wine imports have soared more than ten-fold in the past few years but foreign producers hoping to cash in on the boom are warning the market is fickle and not for the faint of heart.
China is on track to import 10 million cases of wine this year, up from 840,000 in 2004, according to the Hong Kong Trade Development Council (HKTDC).
Wangfujing, Beijing - 2006
Asian wine consumption, excluding Japan, is expected to double from this year to 27 billion US dollars in 2017, the council believes, with much of that growth driven by Hong Kong and cash-rich China.
In another sign of the growth of the market, last week’s Hong Kong International Wine and Spirits Fair, the second such annual event, attracted 520 exhibitors from 34 countries — double last year’s number.
“Many people are shocked by the speed of the growth,” said Raymond Yip, the HKTDC’s assistant director. “But there is a lot of pent-up demand for wine.”
The disposable income of an emerging Chinese middle class has grown and many of its members are choosing wine as a healthier alternative to spirits, Yip said.
“People are getting more health conscious and all of a sudden wine has become fashionable,” he added.
But Raymond Signorello, proprietor of Signorello Vineyards in California’s Napa Valley, said he has been struggling to find the right agent to market his premium reds on the mainland.
“It’s kind of a gold rush,” he told AFP from his booth at the fair.
[...] Click here to read the full article from AFP
Wine producers are pinning their hopes for growth during the financial crisis on a country that only recently entered the ranks of the world’s top ten wine drinking countries — China.
Wine bars and specialty wine stores have flourished in Shanghai, which prides itself of being the nation’s most cosmopolitan city, and have quickly become part of the landscape.
“More and more people are coming through the door, especially after a dinner with friends,” said Marc-Antoine Malia, head of sales and marketing for Enoteca, a small chain of wine bars in Shanghai and Beijing.
No longer a luxury just for foreigners, wine has become a status symbol among China’s fast-growing middle class.
“China was one of the ten biggest wine consumers in 2008 and should be ranked number seven by 2012,” said Xavier de Eizaguirre, president of Vinexpo, the world’s biggest wine and spirits exhibition, which takes place in Bordeaux in southwest France.
Sums up the current preoccupations of his company, which celebrates its 60th birthday this year. The accent is on investment overseas.
Sud Ouest : Two thirds of your activities are based in France, but you now wish to develop your export business. Why?
Pierre Castel : Business is difficult in France at the moment and potentiel development now lies outside of our borders. In 2008, due to the global economic crisis, our activity will be on the decline. Wine sales to the hotel/catering business have dropped by 20%. Luckily, our merchant brands, which are important reference points for consumers, are still selling well on the French supermarket shelves. I have been in the wine and beer business for sixty years and I have always adapted to suit the market.
S.O. : Where do your priorities lie in the exportation market?
P.C. : Definitely in China and Russia. We have a small office in Shanghaï which works with five distributors. With the 10 to 20 million bottles we hope to sell there in 2009, China will become our number one export market. Hypermarkets, restaurants, bars and night clubs….all these market niches need to be developed. In Russia, the situation is different because we possess our own bottling centre just outside Moscow, which has a capacity of 300,000 bottles per day. The authorities are setting the market in order and it’s expanding. However, I do not believe India is a viable export market. I have had dealings with Indian businessmen in my activities in the African beer market and I do not intend take it any further with them….
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