Asian consumers struggle to understand traditional Western wine language
by Suzannah Ramsdale of Decanter

Asian consumers struggle to grasp traditional Western wine descriptions, says Jeannie Cho Lee MW.

Writing in this month’s Decanter, Cho Lee explains that wine writers need to discover new ways to communicate with Asian wine drinkers, but that it may take two generations to come up with a language that is relevant and meaningful to Asian wine lovers.

The traditional Western language of wine has been subject to inaccurate translations and means little to many Asian consumers, according to Cho Lee.

When it comes to the Asian palate there is a need for more familiar reference points which relate to their cuisine and dining habits.

For example, wine drinkers in Japan, Hong Kong and Singapore appreciate the subtle elements in mature fine wines, which share the same restrained characters as some of the most-sought after ingredients in Asia such as sea urchin, Kobe beef and shark’s fin.

Similarly, the tolerance level for tannins varies depending on whether the consumer is a regular drinker of tea or bitter vegetables such as ginseng and radish. For those people, full-bodied tannic red wines are extremely enjoyable.

Cho Lee points out that while wine drinkers in the West may describe a Shiraz as having notes of black pepper, liquorice, game and bacon fat, Asian consumers will refer to Tandoori spice, roasted goose or char siu (barbecued pork).

See the full article in the June issue of Decanter magazine – Subscribe here

Southeast Asia is home to many consumers with rising levels of income. When income rises and a given society modernizes or evolves so do its tastes and preferences.

This is currently going on in the greater Asia region as we speak. Add the extra element of a ever more interconnected global economy and the pace of change is truly incredible.

Singapore, Malaysia, Thailand and Vietnam have a combined population of roughly 180 million people. These countries represent a diverse mix of different elasticities, levels of development and traditions.

Malaysia — For instance the majority of Malaysians are Muslims who in accordance with their religious practices do not drink any alcohol. However even in this context a great potential wine market exists.

For starters Malaysia is home to about 28 million people, of which 2/3 are Muslim and therefore do not drink alcohol. The remaining 1/3 still presents a sizable market of about 8-9 million people, greater than the combined markets of Singapore and Hong Kong, two already very developed wine markets.

Second, ethnic Chinese in Malaysia are unarguably one of the wealthier segments of Malay society and are also coincidentally the largest consumers of wine in Malaysia. As members of the upper-echelons of society they unknowingly serve as status symbols for people to emulate as they aspire to move up the social latter.

This great article I have just stumbled upon at the China Wines Information Website, shares some good statistics.

Singapore – Wine market breaks down as follows: 10% sparking wine, 65% red wine, 25% white.

Thailand – According to the New Zealand government which published these statistics, consumers in Thailand lack detailed knowledge about wines and have a unfounded, preconceived notion that the only “real” wine is red wine. At the moment wine makes up about 20% of the alcohol consumed in Thailand every year. About 83% of the wine consumed in red. A major challenge for those trying to break into the Thai market will be educating the consumer about white wines, which in many instances would accompany Thai foods better than red wines.

Vietnam – Most Vietnamese do not drink grape wines because they have yet to acquire a taste for it. Wine is a relatively new product to the average Vietnamese person. Therefore most wine demand within Vietnam comes from expatriates, tourists and a few Vietnamese of the upper classes who have acquired a taste for it.

The importance of using Singapore as a hub for serving all these wine markets is highlighted in this article from New Zealand.

“It is important for New Zealand wine exporters to consider leveraging on Singapore’s position as a regional distribution hub for wines by developing partnerships with distributors who have strong regional distribution networks.“

INTERVIEW with Pierre Castel.

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….

Click here to access the full interview