China Wine!

October 7, 2009

Ho Yeow Sun, better known as Sun Ho, is a Singaporean pop music singer. Sun started her Mandarin pop singing career in 2002 and has since exploded. She has worked with the likes of Wyclef Jean, Diane Warren, The Underdogs, David Foster and Carole Bayer Sager.

Although Globowines is a bit late on bringing the existence of this video to your attention, we no less thought our readers would get a kick out of this. This song a result of a 2007 collaborated with writer/producer and Fugees co-founder Wyclef Jean. The music video was directed by Wayne Isham and featured Tony Matterhorn and Elephant Man alongside Wyclef and Sun. Wyclef was also co-writer and executive producer of Ho’s English album, due for release in 2009.

In 2008, Ho was featured in an opening spot on Wyclef’s American and Canadian concert tour, and invited to appear in his music video “Fast Car,” featuring his duet with Paul Simon.[31] She also performed “China Wine” with Wyclef at the SonyBMG Europe Music Awards After Party.

Not bad a Singaporean pop star eh? Go China Wine!

Hong Kong overtakes NY in wine auctions

October 7, 2009

[Source]AFP

Hong Kong overtakes NY, London in wine auctions
Hong Kong has overtaken New York and London as the largest wine market for two of world’s biggest auction houses, the firms said Tuesday, highlighting a trend spurred by surging demand from China.

Sotheby’s said its wine auction held in the southern Chinese city over the weekend, together with another one in April, have raised 14.3 million dollars.

The figure surpassed those of New York and London, which respectively recorded sales of 10.5 million dollars from four auctions and of eight million dollars from seven auctions held this year, the auction house told AFP.

Christie’s also said that its recent auction results have also shown that Hong Kong is taking over New York and London as its largest wine market.

“In Sotheby’s first year of selling wine in Asia, Hong Kong has become (its) most important wine centre, ahead of very successful auctions in New York and London,” said Serena Sutcliffe, head of Sotheby’s international wine sales.

“Sotheby’s have exciting plans to build on this momentum to bring to the market top collections in 2010,” she added.

Sotheby’s and its rival Christie’s began to hold regular wine and champagne auctions in Hong Kong after the city’s government abolished duties on wine imports in 2008 in a bid to establish the city as a regional wine hub.

China’s economic boom and growing demand for top French wines has become the key driver of Hong Kong’s wine market, as can be seen from the increasing number of mainland Chinese bidders at the auctions.

At Sotheby’s weekend sales, a Chinese bidder splashed out a record 93,077 dollars for a bottle of 1982 Chateau Petrus Imperial.

Sutcliffe said 99 percent of buyers in the two-day auction were Asian buyers, including those from China, Hong Kong, Taiwan, Singapore, Indonesia and the Philippines.

The latest auction fetched almost 30 percent more than Sotheby’s estimate of 6.13 million dollars.

David Elswood, head of Christie’s international wine department, said its Hong Kong wine auctions had the highest average lot values among its global sales, at 150,000 dollars per lot.

“Asian buyers are very active not only in Hong Kong, but also in the international wine market,” Elswood told AFP.

This spring, Asian buyers accounted for 61 percent of Christie’s global wine sales in New York, London and Hong Kong, whereas they made up only seven percent of global buyers in 2005, he said.

“Buyers from Hong Kong, Taiwan and mainland China also grew substantially between last autumn and this spring at our auctions. We expect this trend to continue.”

Wine in China 2009: A Market Analysis

October 4, 2009

For a pricey $1320 you can get your hands on the latest market analysis of China’s burgeoning wine market.

This report covers the market for alcoholic wine in the People’s Republic of China. The report covers the red, white and blended grape and sparkling wines sectors. There is also some coverage of fruit wines (normally referred to as ‘berry wines’ in China) in the report. This report does not include yellow rice wine, or Shaoxing wine.

KEY REPORT FEATURES

This recently updated report includes:
- An overview of China’s total food market with sales statistics up to interim 2009;
- The total value and volume of wine consumption, including consumption channel breakdowns and by type of wine, up to interim 2009;
- The total value and volume of wine retail sales, including by sector, up to interim 2009;
- Leading manufacturer market shares based on revenues to 2008;
- Volume & value forecast the meat market in China up to 2014;
- The retail wine market background and current issues;
- Marketing & distribution;
- SWOT analysis
- Key manufacturer profiles
- Key contacts & trade events;
- Overview of China’s demographics and macroeconomics

EXECUTIVE SUMMARY

China claims over 160,000 acres of vineyards nationwide, but much is in remote areas, such as those in Tibet near Kazakhstan, where Silk Road traders brought seeds centuries ago. There is also a small native grape (Vitus thunbergii) that grows wild north of Shanghai. And Russian visitors brought plantings of Muscat and Ratsiteli to China in the early twentieth century.

Although having been started at the beginning of the 20th century, the wine industry in China has only recently begun to develop into a significant market. Chinese consumers have tended to stick to what they know, being beer and grain spirits – drinks that offer a higher alcohol level per unit than wine.

However, wines have attained consumer acceptance, not least due to Chinese politburo member Li Peng, who decreed that state banquets should be lubricated with wine instead of spirits in 1996. The influence of western eating and drinking habits have been key in this, as have rising average incomes in China. Indeed, wine is now becoming the fashionable drink for the wealthy younger generations in China’s cities, and the “badge” drink of China’s wealthiest élite.

The value of the market has more than doubled over the last seven years, and has become much more sophisticated. Not only are there more foreign wine imports available in restaurants and in the shops, but the number, variety and quality of domestic wines has also increased. This has served the market by providing local consumers with a greater array of cheaper products to try.

However, the domestic market has moved on, and domestic wines are now reaching a level of quality that they can compete on price with imported wines, and even look to developing an export market. However, the domestic market is where most Chinese wineries are looking to develop their sales. With about 600 million young Chinese, all exploring new types of alcoholic drinks, the potential market for sales of wine in the future is great.

Click here to order your copy

Wine in South Korea — a new market and company analysis

September 15, 2009

Sorry folks. As they say, “there’s no such thing as a free lunch.” If you clicked into this site from some a search you just made on Google expecting to find a copy of this report for free, you have come to the wrong place.

Nonetheless, as a website which strives to keep readers current on wine markets in Asia I thought it would be a nice to share the existence of such a report with readers involved in the South Korean Wine Market. The report is described as follows:

The Wine in South Korea industry profile is an essential resource for top-level data and analysis covering the wine industry. It includes detailed data on market size and segmentation, plus textual and graphical analysis of the key trends and competitive landscape, leading companies and demographic information.

Scope
* Contains an executive summary and data on value, volume and/or segmentation
* Provides textual analysis of the industry’s recent performance and future prospects
* Incorporates in-depth five forces competitive environment analysis and scorecards
* Includes a five-year forecast of the industry
* The leading companies are profiled with supporting key financial metrics
* Supported by the key macroeconomic and demographic data affecting the market

Highlights
* Detailed information is included on market size, measured by value and/or volume
* Five forces scorecards provide an accessible yet in depth view of the market’s competitive landscape
* Market shares are covered by manufacturer or brand

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. Any currency conversions used in the compilation of this report have been calculated using constant annual average exchange rates. Market shares by company or distribution channel are calculated on the basis of market volume in 2008.

Asia-Pacific comprises Australia, China, Japan, India, Singapore, South Korea and Taiwan.

The report runs about £145.00, yes that’s right, British Pounds… not US Dollars.

To purchase your copy of the report please visit: http://www.companiesandmarkets.com/Summary-Market-Report/wine-in-south-korea-155874.asp

South African Wine in China; what to learn from the experience of others?

September 15, 2009

Stumbled upon a great article this afternoon, “Promoting South African Wine in China.” Originally sourced from allafrica.com, you can access the article via this link directly.

The article discusses the failure of official promotional strategies of Brand South Africa wines.

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No matter from which angle you look at it, however, SA wines are promoted too irregularly in China, if at all, and for the most part China’s burgeoning middle class has little inkling that our country produces any wine, never mind being a source of excellent wines.

French wines sell themselves with little effort due to an enviable country brand positioning they hold in China. Australian wines, especially the Jacob’s Creek brand, is advertised so extensively that its posters could rival Coca-Cola billboards in Africa. All this while this year we celebrate 350 years of SA producing wine, yet nothing is being done to generate awareness of this in China.

[South Africa Vineyard ~ http://www.ultimatehideaways.co.uk/]


Yet while this logic is apparent to most, SA wine exporters seem either completely ignorant of China’s growing consumption market – or are so utterly scared of the foreign of foreign markets – that it is not even considered. Of equal concern are the companies already exporting to China that do little to promote their brands in the local market; for them I have included some takeaway points.

~~~~~~~~~~~~~~~~~~~~

Much like Mir Global’s own efforts in promoting Argentinean wines, a major challenge has been to educate the Chinese consumer on the mere fact South Africa even produces wine.

The author describes one particular situation where Cloof Wines of South Africa combined cultural and historical education with a marketing event they hosted at a South African restaurant in Beijing. Upon learning about South Africa in such a situation, the culturally curious Chinese became eager to sample a “exotic” bottle from a place like South Africa.

Cloof Wines is a South African company which has signed up with a large Chinese distributor but is also seeking further opportunities in other market segments within China that the distributor does not target.

From our experience we feel this is the ideal way to approach entering the Chinese market with a novel and niche product like South African wine. The distributor instantly enables a particular wine to begin branding itself with the Chinese consumer. If your wine has found success, or a potential client sees that you are already operating and have a presence in the market, he/she will be far more willing to do business with a entity it already perceives as legitimate and having experience in the China market.

I definitely suggest reading this article, which inspired this small analysis at Globowines. It presents two clear wine marketing strategies for the China market–one which the author of the article feels to have succeeded, and the other which he feels has failed.

~ Bennett Reiss – International Trade Consultant at Mir Global Marketing LLC

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Hong Kong Food & Wine Year – Best Place. Best Taste

September 14, 2009

October 30 – November 1, 2009 at West Kowloon Waterfront Promenade

Hong Kong’s first vintage

September 14, 2009

“Product of Hong Kong” is new to Asia’s multi-billion dollar wine industry, but The 8th Estate Winery has produced the region’s first vintage.”

[Source] — Reuters

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Globowines Newswire: China’s domestic wine industry

September 12, 2009

Globowines Newswire: Wines from China – An inside story — By Rajiv Seth

[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.

[Source] – The Indian Wine Academy

HK Supermarket Golden Dragon Holdings Registers Private Wine Label in China

September 11, 2009

Golden Dragon Holdings, Inc. is a Chinese company which conducts the majority of its food and beverage business in the Asia-Pacific Rim economies. The company’s functions as a importer, exporter and distributor of staple, organic, specialty, gourmet and foreign foods and beverages.

This week, Gold Dragon Holdings announced that it had registered its new trademark for its private label wine, “Endless Wines.” Both the red and white wines are made from a blend of exclusive grapes from Spain’s Rioja region.

The company mission statement is simple. “Good food, high-quality food, wholesome, healthy, and delicious food”. Gold Dragon Holdings strives to help independent producers and growers worldwide of fine quality foods, introduce their products to China and other areas in the Asia region.

Chief Operating Offiicer, Mr. Cesar Cuenca explained in this article “We have identified a unique niche in the wine market in China, we call this niche the 100RMB retail wine market. Typically imported wine in China sells at a higher end of the wine market, we have selected exceptional grapes to start producing high quality red and white wines at reasonable cost to consumers. Good wine does not mean expensive wine.”

I highly recommend checking out the full article linked here and in the above paragraph because it is full of the company’s assessment of various elements of the China wine market.

Current State:

China is a large emerging country with an amazing potential of wine consumption. The influence of western eating, drinking habits and rising average incomes have been key factors in the fast development of wine market in China. China has stepped into one of the ten largest wine consumption markets in the world. The value of the market has more than doubled over the last five years and a lot of signs are showing a bright future of China wine market.

Growth Rate:

What greatly spurs the speedy growth of imported wines from wine producers around the world, such as France, Italy, Spain, Australia, New Zealand, Chile, Argentina, South Africa, Austria, US and some other European traditional wine-producing countries. The annual growth rate of imported wines is up to 13-15%.

Targeted customers:

Wine is now becoming the fashionable drink for the wealthy younger generations in China’s cities, and the “badge” drink for China’s wealthiest elite. With about 600 million young Chinese exploring new types of alcoholic drinks, the potential market for sales of wine in the future is so great without any doubt.

SOURCE Golden Dragon Holdings, Inc.

http://www.gdfbhk.com

The Long Island Wine Experience

September 10, 2009

Just finished updating the loose outline of Mir Global Marketing LLC’s new Long Island Experience section.

For all the readers of Globowines, we invite you to take a sneak peak –

The Long Island Wine Experience

Click through the subsections on the tap at the top to see all the updates!

~ Bennett


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