Looking back on my most recent business trip to China to promote Mir Global’s wines and last night’s Sister City Networking Event in Chicago which Mir Global was present at, the two grapes the new Chinese wine consumer seem to prefer are Sauvignon Blanc and Malbec.

This doesn’t mean it is as simple as pitching quality bottles of each of these types of wines to importers / distributors in China. For starters, Chinese by and large have never heard of Malbec and when it comes to white wines you are always fighting against the current because about 70% of the wine consumed in China is red.

Cabernet Sauvignon’s dry, deep tannin full tastes are seldom well received in China. Wine experts and sophisticated consumers do exist, but these consumers are not representative of the greater wine market.

When it comes to Chardonnay, a young wine which has not been aged in french oak and has a sweet almost fresh taste (which reminds me of Sauvignon Blanc) can work. However, finding a young Chardonnay which has these qualities is quite difficult. It is a great deal easier to find a Chardonnay from California that does have a drier, woody taste… sadly Chardonnay’s of this style (which are very popular in the US), are not what the unrefined Chinese wine palate seems to prefer

A friend of mine who is marketing French wines to China has also found Viognier to be quite conducive with the Chinese palate. The floral fruity aromas of a Viognier, attract the Chinese to the wine and when paired with food it goes superbly with spicy Asian cuisine such as Thai food.

Sauvignon Blanc’s fruity and vibrant aromas along with its crisp and refreshing taste seem to draw the Chinese wine drinker in. During last night’s networking event in Chicago, I was particularly intrigued by the overwhelming positive reaction of women who sampled Palmer Vineyard’s 2008 Sauvignon Blanc.

Palmer’s Sauvignon Blanc gives the wine drinker a refreshing and crisp experience. It is almost as if this particular wine has a subtle carbonated kick to it. Not strong enough to think you are drinking a wine spritzer, but just enough to give it a unique kick and not overcompensate other elements of the wine.

Moving onto Malbec’s, Argentina’s pride and joy. Many describe Malbec as a versatile red wine, and this is exactly what it is. Malbec in my mind, is almost a hybrid of characteristics commonly associated with other reds such as Merlot, Cabernet and Pinot Noir. Malbec’s which have been aged in french oak retain their berry, fruity substance while also balancing in a magical way with the dry and intense tannin’s typically associated with a full bodied red wine.

** 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

By Ladka Bauerova – Bloomberg

French wine exports will decline at least 20 percent this year as wholesalers become reticent to restock during the recession and consumers drink less in bars and restaurants, industry executives said today.

Sales are suffering in the U.S., U.K. and Japan, Claude de Jouvencel, head of France’s Federation of Wine Exporters and chief operating officer of Grand Marnier, said after the signing of an agreement with the French customs office and the Finance Ministry to assist winemakers with obtaining
medium-term loans. Champagne makers will also see a 20 percent decline in sales by volume this year, according to Yves Dumont, the non-executive chairman of Grand Siecle producer Laurent-Perrier SA.

“High-end wines are suffering the most,” de Jouvencel said in an interview. “Next year will remain difficult, but we may see a little growth since the stock will be readjusted.”

Revenue is falling in Russia where many wholesalers, unable to get credit, have fallen behind with payments, de Jouvencel said. Growth in China has been reduced by half, while sales are stagnating in France, he added.

LVMH Moet Hennessy Louis Vuitton SA, the maker of Dom Perignon, said in April that champagne sales by volume plunged 35 percent in the first quarter as drinkers chose to economize with cheaper sparkling wines.

The customs office has pledged to provide fiscal data on individual winemakers as an additional guarantee to banks.

“Some winemakers have had trouble financing their day-to- day operations because banks would give them only one-year loans,” Jerome Fournel, the director of the French Customs Office, said in an interview. “This will help them get the financing they need against their wine stock.”

[Source] — Bloomberg

WA winemakers look to Asia to beat industry downturn
By Georgia Loney of The West Australia

WA winemakers are turning to emerging markets in Taiwan, Nepal and South Korea to help the industry through the global economic crisis, as traditional markets in Britain and the US dry up.

Major wine importers from Japan, Nepal, South Korea, Sri Lanka, Taiwan and Thailand toured WA wine regions this week in search of supplies.

The value of Asian markets is rising rapidly, with China and Taiwan buying 54 per cent and 23 per cent more of Australian wine over the past year, while the volume of exports to Nepal is up 97 per cent.

Taiwanese wine importers Shelly Wu and Winston Lin signed a deal last month to import Cullen Wines from Margaret River and said there was a strong market for Australian fine wine in Taiwan but it was overwhelmingly for red varieties. Ms Wu said WA shiraz was popular. “The market for (fine wine) has been developed over the last 20 years but they mostly used to drink French wines. Now there is stronger interest in new world wines,” she said.

“There is strong interest in shiraz from Australia and the cabernet sauvignon is beautiful compared to the European style. We are adding to our portfolio of WA wines because the wine style is very elegant and very approachable to the Taiwanese palate.”

Nepalese wine buyer Amit Agrawal imports wine from the Hunter Valley in NSW and is yet to buy any WA wine.

He said the tiny country’s thriving tourism industry generated demand for fine wine. “Because we like spicy types of food, sauvignon blanc goes well,” he said.

Britain and the US remain by far the biggest wine export markets but their value has fallen 20 per cent and 12 per cent respectively over the past year.

In February 2008, the Hong Kong Special Administrative Region Government waived duties on wine and beer. With the scrapping of wine duties, Hong Kong becomes the first free wine port among major economies and is fast developing into a wine storage and distribution hub in Asia.

The total value of wine imports from around the world reached US$370 million in 2008, representing a year-on-year increase of almost 80 per cent. According to the US Department of Commerce, the total value of US grape wines exported to Hong Kong had increased by more than 500% in January 2009, when compared to the same period in 2008.

On April 30, 2009, the Hong Kong Economic and Trade Office in San Francisco will host a luncheon event at Wine Spectator Greystone Restaurant, the Culinary Institute of America. Hong Kong Financial Secretary, John Tsang will be the keynote speaker to give an update on the development of this exciting and flourishing business in Hong Kong and the business opportunities available to the American wine industry.

Date: April 30, 2009 (Thursday)

Time: 12:15 -2:15pm

Venue: Wine Spectator Greystone Restaurant,
the Culinary Institute of America
2555 Main Street, St. Helena

[Accessed from: http://www.wines-info.com & www.calwinexport.com]

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.

Wine For Asia (WFA) 2009, the most comprehensive international wine exhibition in the region, returns to Singapore from 22 – 24 October 2009 with the promise of another bumper event.

An exciting exposition that help you expand your footprint into Asia’s burgeoning wine market, WFA 2009 offers a one-stop opportunity to keep abreast of the latest wine offerings, complete with a myriad of first-class business, educational and networking opportunities and lifestyle pursuits. Exhibitors and visitors can look forward to three days of non-stop business, networking and learning opportunities.

Come feel the pulse of wine business in the fast-changing wine scene in Asia!

Click here for more information on Wine for Asia 2009!

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