Business and Finance News from the HK is reporting that Beijing has agreed to provide two new facilitation measures in which wine exported from HK to the mainland.
1. Importers who have registered with Mainland customs authorities can ask for a pre-valuation of wine duty 10 working days before a shipment is exported from Hong Kong to the Mainland. When it arrives at a Mainland boundary point, Mainland customs will valuate it within one working day
2. For registered importers who have not chosen to conduct wine duty pre-valuation, Mainland customs will strive to shorten the clearance time at Mainland boundary points. For wines which have been imported to the Mainland before, with submission of all the necessary documents and no irregularities identified after inspection, the clearance procedures will normally take no more than three working days. For wines which are new to the Mainland market, the valuation procedures will usually be completed within seven working days. If the customs clearance cannot be completed in time, the goods can still be released with a guarantee deposit.
The measures will first be implemented as a pilot in Shenzhen, and may be extended to other major Mainland boundary points subject to development. Both sides will work towards the target of implementing the measures early next year.
Mir Global Marketing LLC’s winter promotional tour of the major Chinese metropolises is now under way. For the next few weeks we will be bring you updates live from the Chinese cities of Shanghai, Guangzhou and Beijing.
“When I choose a wine, it should be ripe,” said Palette Vino’s founder and managing director, John Gai, as we tasted two wines at its Dongsi Yitiao location. Swirling the glass thoughtfully he added, “And it should taste ripe and balanced.”
John Gai, founder and managing director at Palette Vino's
For the 41-year-old Beijing native, chef and wine expert, wine appreciation is an education that need not be expensive.
And it is this idea that forms the foundation of his two Beijing-based businesses: Palette Wines, a wine wholesale and distribution company, and Palette Vino, bistros he opened to bring affordable foreign wines and his passion for fine dining together.
Palette Wines, the main importer for Palette Vino restaurants, is how Gai manages to keep prices reasonable.
“Seventy percent of our wines we import ourselves,” he said. “We negotiate the lowest price from producers, vineyards and agents and then ship them to China, where we manage that cost as well.”
Just how Gai got his passion for wines and fine dining has been an odyssey, and spans the entire Eurasian continent.
In 1992, after a job opening a Chinese restaurant in Hungary fell through, he took the time to travel around the Baltic States and fell in love with Talinn, Estonia’s capital city.
“It was a beautiful, medieval city,” he recalled.
“It was right after it gained its independence from the Soviet Union, so I saw an opportunity to open the first Chinese restaurant in all the Baltic States,” he said.
However, it was only when Gai returned to Beijing in 1996 that he started managing the CourtYard hutong restaurant and became closely involved with wines.
Two years later in 1998 he met members of the Zonin family, who run Italy’s largest privately owned vineyard and winemaking business, at a Beijing wine exhibition and they took him on as their manager for China.
“It was my job to look for the importers and distributors for the company, analyzing local market trends and reporting it back to the family,” he said.
“I also helped train the staff to know about wines.”
In September 2002 he founded Palette Wines, a name suggested by a close friend to impart a rich variety of flavors and colors.
Until recently Palette Wines sold exclusively to hotels, companies and private customers.
But in 2005, it opened the first Palette Vino restaurant and wine bar in Shunyi district near Pinnacle Plaza, then a second in Central Park (a retail wine store), and by the end of 2008 another in Dongsi Yitiao.
Palette Wines claims the largest South African wine portfolio in Beijing, using nine different vineyards and each with two or three different wines, plus extensive Spanish, Italian and Australian portfolios.
But his diverse selection is being overlooked by inexperienced and wealthy taste buds.
“Some people drink names, not wine,” he said declaratively.
“They just don’t know enough, which is why the industry of importing wines into China tends to be big business.”
Gai said the costs of wine are dropping in developed markets such as the US and parts of Europe, Holland and Germany.
“It seems costs became more reasonable over time because it became more competitive, and people would not accept these high prices,” he said.
“This trend has not really reached big hotels and restaurants here.
Despite his best efforts to keep the cost of wines available at his bistros low, Gai’s business struggles to expand beyond Beijing. Gai admits he has had a tough year.
“I think, for now, finance is a big issue,” he said.
“It really depends on how we look at this as a long-term investment and whether or not we copy it to another location.”
To show off some “absolutely, very delicious” Spanish wines, reasonably priced from suppliers between 200 and 300 yuan, Gai served up a bottle of Abrego 2006, made from Tempranillo grapes found in Castilla, Spain (200 yuan).
With its low tanning, caramel and prune accents with a medium body, it demands to be served all by itself.
“The grapes were picked at the right time,” he remarked.
“This vineyard picks them at night and quickly transports them to the winery, and the barrels are medium-toasted oak so as not to overpower.”
His full bodied and rich personal insights are evidently present in every bottle he sells.
Mir Global Marketing LLC has always emphasized the importance of including clever ways to promote and educate Chinese consumers about Latin American culture when marketing wines from Chile and Argentina.
For the record we practice what we preach. For all our readers out there, you also know that we love to share insight and encourage discussion about the world of wine here at our company blog, Globowines.
For you’re viewing pleasure, a short video I personally recording in Beijing this past month and feel articulates my feelings on how China is hungry for “Latin America”.
Mir Global Marketing LLC has completed it’s summer tour of China, and what a journey is has been! What do we have to report? Well, quite a bit. Since it is too much to compile into one simple blog entry, I have decided to begin with some travel advice and general words of wisdom about doing business in China.
July 13 — New York City –> Beijing (12.5 hours on Continental’s direct flight.) Highly recommend anyone traveling to China from the New York City area and not obligated to any specific carrier book their ticket on this flight. You save between 4-8 hours in additional travel time / transfer time at airports. You do not risk missing a connecting flight, and the service on the plane is quite good for a US owned airline. The one negative side is the cranky American flight attendants, which you do not find if you’re traveling JAL, Cathay, Asiana, etc.
Arrival in Beijing was quick and easy. Customs allowed me to pass with more wine than I was probably legally allowed to bring, I recovered from jet lag quite fast and was out on the town showcasing our wines from Chile and Argentina by my second night.
After reconvening with Xu Wenquan, Mir Global Marketing’s director of sales in China/ Asia we set out a game plan for how to best approach diverse selection of potential buyers / contacts. We would need to fine tune our marketing strategy for three different market segments.
- Chinese government owned entities.
- Chinese entrepreneurs / business owners of bars and night clubs which cater China’s rising middle and upper class. In other words, the sons and daughters of wealthy Chinese who are looking to make a name for themselves and are have chosen to start a business. Not with the goal of attracting foreign customers (although they would not object), bur rather China’s new consumers looking for a good time and some nice drinks.
- Western operated and privately owned establishments in Beijing, Shanghai and Guangzhou. These type of businesses cater to China’s trendy, diverse, metropolitan cultures. I define this group as a mix of foreigners and urban Chinese you would find at a popular bar in a major city like Beijing.
Now, I present a few words of wisdom for those considering to do business in China. These are my own opinions, and I welcome those who would like to discuss any of these points. Please add your comments below or drop me a email, bennett.reiss (at) gmail.com
1. The more interaction you have with China, and the longer you stay, the more you realize how little you truly know and understand the country. Don’t think a mere semester or two of studying in China, speaking Chinese, reading books about “doing business in China,” foreign policy or cultural communication classes make you a expert. They do not.
2. What you learned in business school will not necessarily apply in China. You must cautiously and selectively archive into the back of your mind what you have come to accept as common business practices. What you learned in all those over-priced business classes will usually not apply in China. This is especially true when dealing with Chinese partners, be it from the private sector or a government owned entity.
3. Smile. Even if you are impatient, frustrated, mentally a mess, cranky, jet lagged, suffering from heart break, or angry with life itself… Smile and put a face that mixes happy, calm and confident all in one. The moment you allow what you have bottled up inside to show, vis-à-vis body language or with words, you have lost the battle. You will fail at negotiating a cheaper hotel, you will fail to convince your taxi driver to take the shorter route and you will fail in business negotiation. A calm, collected persona and a smile go a long way in China. Remember this.
4. Keep an open mind and remain flexible as to adapt to any given situation you face. It is popular in western cultures to look for a logical explanation for something you do not understand or a problem you may face. Westerners also tend to believe it is possible to control things like your schedule. Many times in China, there is no logical answer, and controlling things is quite difficult when you are operating in a country as complex and large as China. Accept this now, before you lose your mind, and therefore compromise all the elements I described above in point #3.
5. Dress to impress if you’re doing business. Even if its hot and humid, put on that suit and leave the tie and jacket behind. As they say, you only get one first impression. When you’re dealing with a Chinese businessman/ woman, it is incredibly important to do all in your power to make your first meeting as professional as possible.
** Reminder to all readers, opinions expressed in this entry are my own and should be not treated as fact. Thank you.
~ Bennett Reiss – International Trade Consultant at Mir Global Marketing LLC
Aman at Summer Palace, Beijing hosts an unprecedented weekend of food, wine and culture at the inaugural 2009 Beijing Wine Classic.
The Classic is an annual event which will focus on different wine regions around the globe. This year’s showcase features California’s most notable producers in a three-day festival marked by extensive panel discussions hosted by winemakers, tastings, dinners and a silent auction.
Guests can choose from a menu of ticket offerings ranging from a three-night stay at the resort and full festival participation to day passes for attendance at specific events. This is an extraordinary opportunity to meet and mingle with renowned winemakers while enjoying the luxurious setting of Aman’s resort located on the fringes of Beijing’s iconic Summer Palace.
The Classic begins on Friday, 13 November with a welcome reception followed by a Gala Opening Ceremony and Dinner featuring many of California’s finest sparkling and still wines. The evening is capped by a whisky tasting and cigars in the Bar.
The following day, guests may participate in an early morning tai chi class followed by a breakfast buffet. The first lecture covers “Anything but Chardonnay” and will explore the other white grape varietals grown in California. A dim sum lunch with distinctive wine pairings will be followed by an afternoon of lectures including “California Chardonnay – Napa vs. Sonoma,” “Pinot Extravaganza – Napa vs. Sonoma” and “Imperial Culture Workshop (served with “afternoon wines”).”
Late afternoon leaves ample room for a relaxing spa treatment in the resort’s extensive spa and recreational facilities. Dinner this evening will highlight Kobe beef and cult Cabernets. Day Three features an early tai chi class, followed by breakfast and two lectures on “Quirky Reds & Whites” and “Charbay Vodka & Whisky Cocktails.” An early afternoon brunch precedes a live auction and closing ceremony.
Tastings during each of the seminars include single vineyard and regional offerings as well as varietal comparisons and are hosted by the winemakers themselves in casual, interactive panel-style discussions.
Participating wineries include Harlan Estate, Bond Estates, Chateau Montelena, Staglin Family Vineyard, Flowers Vineyard & Winery, Honig Vineyard & Winery, Calera Wine Company, Fisher Vineyards, Howell Mountain Vineyards, Gargiulo Vineyards, Claudia Springs Winery, Schramsberg, Peay Vineyards, Lail Vineyards, Patz & Hall and Rudd Winery and Vineyards along with Charbay spirits.
Reservations may be made by phone at (86) 10-5987-9999 extension 7601/7606 or by email to Cecilia Leong, Reservation Manager at cleong@amanresorts.com. For specific event inquires please contact wine@amanresorts.com. Several participation opportunities exist to suit the interest of wine connoisseurs and explorers alike.
The Imperial tier begins at $2,800 for single occupancy and $3,600 for double occupancy and includes two nights accommodation, attendance at six seminars, all breakfasts, lunches and dinners, a spa voucher and salon treatment, Pilates consultation, transfers to and from the resort to the airport, and access to all Aman at Summer Palace facilities. The Royal tier is $1,200 and includes attendance to six seminars, the dim sum and wine pairing lunch, brunch and silent auction, cult Cabernet dinner, one salon service and spa treatment, a Pilates consultation and access to all Aman facilities.
The Palace pass is a two-day pass for $500 which includes six seminars, lunches on both festival days, and access to all Aman facilities. The Aman pass at $300 includes access to two seminars, one lunch and all Aman facilities. Tickets to the Gala Dinner may also be purchased separately for $500 each.
The 2009 Beijing Wine Classic is the first event of its kind under the umbrella of Amanresorts’ new wine and spirits programme launched just last year. The programme sees Aman partnering with handpicked family and boutique producers from every corner of the globe to make available some of the world’s most coveted wines and spirits at select Amanresorts properties worldwide. Exclusively for Amanresorts, a select group of producers have developed reserves and single-vineyard bottlings of their finest vintages. Others producers in the programme have made their previously ‘off-limits’ caves, private reserves and personal library selections available to Amanresorts.
Aman at Summer Palace, Beijing is housed in a series of pavilions, some of which are over one hundred years old. This tranquil retreat adjacent to the East Gate of the Summer Palace is an ideal base from which to discover the multi-faceted city of Beijing.
The resort offers a variety of accommodation which pays homage to traditional Chinese architecture and celebrates the courtyard style of Imperial China. Guests can enjoy an expansive Spa and recreational facility which include a state-of-the-art gym, a dedicated Pilates and yoga studio, an on-site juice bar serving freshly-squeezed juices and smoothies, two squash courts and a 25-metre indoor lap pool graced by a wide deck with reclining daybeds. The Aman Spa features nine self-contained double treatment rooms offering a variety of wellness and beauty treatments and a hair studio by celebrated stylist Kim Robinson. Other facilities include three restaurants serving Chinese, French kaiseki and Western cuisine, a lounge for relaxation and wine tastings, a bar, library, 37-seat cinema and boutique.
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.
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