Tuesday, June 16, 2009

South American Wines (南美洲葡萄酒) growing popularity

Did you know that wine is produced throughout Latin America? Chile and Argentina have been able to successfully break into the international market but they are by no means the only players in the market.

A few months ago Sophie Kevany, a journalist for Decanter based in Lima, contacted me and explained she was writing an article on South American wine harvests.



[Courtesy of http://www.robgroh.com/maps.htm]

I was immediately interested due to a focus of her article being on wines from countries other than South America's traditional producers. Her research has yielded a incredibly informative article, which you can access through clicking here.

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In Brazil sparkling wine exports were up 18% in value for the first three months, with much of the wine going to America and Germany, Wines from Brazil said

Overall exports were also positive. Brazil aims to export US$6m this year, with US$2.3m already confirmed for January to April.

...

At the higher end there was also positive news. In Peru, Tacama � which produces wines in the $10 to $40 bracket retail - said export values were up 10% in the first quarter.

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Click here to access Sophie Kevany's article in its entirety

Click here to check out Decanter.com -- a great resource for keeping up to date with developments and new trends in the wine industry

Click here to follow Decanter.com's news feed on Twitter


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Thursday, June 11, 2009

Yunnan Province -- Well kept secret of China's burgeoning wine culture

High on wine: Forget a wine cellar, China’s Yunnan province has a wine tower

by Maggie Rauch

The city of Kunming, capital of Yunnan (South of the Clouds) province, sits at 1,900 meters (about 6,200 feet). One day that might mean interesting things for wine making, but right now it just means that the city is home to China’s national high-altitude training center for Olympic athletes. That base, bizarrely enough, is also home to one of the coolest hidden places to buy and consume wine in China.

The Haigeng National Training Base is about a 20-minute drive from the city center, a stone’s throw from Dianchi Lake, China’s sixth largest inland body of water, on the side opposite Kunming’s Western Hills.

Western Hills of Kunming

Until a few months ago, the first sign you could see of Haigeng from the road was a drab cement water tower that looked like the kind of place where one might brew performance-enhancing cocktails for weightlifters and swimmers.

Since being taken over by an American businessman who built a miniature golf course on the site, the water tower has been painted a much more playful bright yellow and transformed into one of the coolest places in China to uncork a bottle of wine. The tower is the centerpiece of the new Hello! Haigeng Mini Golf Park, which has a big restaurant on the first floor and a tiki bar on the second floor patio.

You enter the wine cellar–which I guess is technically a wine tower–with the permission of the proprietor, from a door next to the tiki bar’s VIP cabanas. Inside, brick walls, hardwood flooring and soft lighting give the place a cool and surprisingly rustic vibe.

Sit on one of the cushioned benches and order a Syrah, and you might forget that you’re above one of China’s first mini golf parks, in the place where its top divers and soccer players train, inside a bright yellow water tower. Now sip your Syrah, remember where you are, and think about how surreal it is.

Click here to read Maggie's entire article at the Grape Wall of China



[Source] -- Grape Wall of China


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Monday, June 8, 2009

Opportunity knocks for Argentinean and Chilean wine exports to China

[Mir Global Wine Corner Analysis] -- HKTDC article, "China's wine imports slowing."


China's wine imports are slowing reports HKTDC in this article. Wine imports increased a incredible 100% between 2006-2007 but slowed between 2008-2009, growing only 36%. None the less, total imports reached a impressive 6,389,439 cases, or 76,673,268 bottles of wine, making China the world's largest wine import market (once again according to this HKTDC article).

Despite the slow down, the macro picture of China's wine market is still overwhelming positive for wine exporters, especially for lower cost producers in the Southern Hemisphere.

The challenge for Argentinean and Chilean producers will be to figure out a way in which to take advantage of a more conservative and cost conscious Chinese consumer in the midst of the global economic downturn.

The HKTDC article, is of the opinion that the biggest winner from slowing wine imports will be China's domestic producers. While this may be partially true, Mir Global Marketing Co., attributes the rise in the consumption of domestically produced Chinese wine to other far more significant market factors.

1) The global slowdown has forced consumers around the world to cut back on luxury spending and to be more cost conscious. For the Chinese wine consumer who has yet to develop their wine pallet and is exploring wine for their first time, it makes sense they would economically rationalize to spend 20 rmb on a Chinese bottle versus 120 rmb on a French bottle.

2) Wine demand in China can partially be attributed to the symbolism behind wine. As the great American author Ernest Hemingway once said, "Wine is the most civilized thing in the world." If you are a Chinese consumer who has yet to develop your personal wine preferences and are trying to network in the business or political world where it is a good thing to appear "sophisticated," you might be able to accomplish this with a Chinese bottle of wine. So, why invest in a expensive French or Italian bottle of wine?

Although, if a lower-middle class university student was about to meet with the head of Google's Recruiting Office in Beijing, and had never tasted wine in his/her life, I think it would justify dipping into your savings for a French bottle of wine. But, if you're simply going out for a nice drink with some friends on a Friday night to the Beijing's bar district, splitting a bottle of French wine when you don't know what you're tasting will not be a common site.

To further explain:

A considerable amount of wine demand in China is generated from a new elite class of consumers with considerable spending power who can afford expensive wines and liquors. This includes, the rising class of sophisticated, metropolitan consumers in cities like Beijing, Shanghai and Guangzhou. Businessmen and women. Politicians. Wealthy university students. Chinese who have lived abroad. And of course, foreigners living or visiting China.

However, the majority of China's new wine consumers can not afford to indulge in relatively expensive bottles of wine, especially in times of economic uncertainty. What is more likely to occur is the new middle class consumers in 2nd and 3rd tier Chinese cities like Harbin, Dalian, Suzhou, Chongqing, Kunming, Taiyuan, etc will attempt to emulate (the best they can) China's new class of rising elites.

This has been the case in societies around the world since the dawn of civilization.

The main difficulty for Argentine and Chilean producers at the moment is convincing the very brand conscious Chinese to trust the quality of their products. France remains synonymous with quality when it comes to wine, while wines from Italy, Australia and Chile have had to struggle for years to build a trusting image with Chinese consumers.

Opportunity has come knocking at the door. Before you answer, just make sure you and your company are ready.

Bennett Reiss - International Trade Consultant at Mir Global Marketing Co.


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China's Wine Imports Slowing -- HKTDC

"China has always been the biggest market of wine imports globally. However, the situation is changing. With the rise of China's domestic wine production, China's import of wine is on a downward turn.

After world renowned brands Hennessy, Remy Martin and Martell, Courvoisier's Napoleon wine, one the four top-class brands of wine in the world has announced its formal entry into the Chinese market. Not long ago, Hennessy announced the debut of its Iridescence, a world classic type X.O. on the China market, alleging that China was its biggest consumption market for the first time.

Although various brands of imported wine products have poured into China's market, the import growth has slowed down. According to statistics from the customs, China's import of packed wine of less than two litres slowed down its growth last year, and the import of wine in packaging of more than two litres has stayed at the same level for three successive years. After hefty rises of about 100% in the 2006-2007 period, China's import of wine was 6,389,439 cases of packages of less than two litres (nine litres per case), rising 36% year on year.

The increase of raw materials for wine production has weakened China's dependence on import. With the expansion of planting areas for grapes, the raw materials for wine production have increased gradually. However, with increasing expansion of China's wine market, there will be more and more foreign brands of wine entering the China market, indicating more fierce competition for China's wine- making industry in the coming years. "


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Friday, June 5, 2009

French Wine Exports Will Decline 20%, Winemakers Say


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


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Tuesday, June 2, 2009

2009 Southern Hemisphere Wine Harvests -- Chile, Argentina, South Africa, Australia, New Zealand

The results are out, the reviews have been written, and now its time to sample the 2009 wine harvest. At lease this is the case for producers in the Southern Hemisphere of the world.

As producers in North America and Europe watch their grapes ripen, vintners in Argentina, Chile, South Africa, Australia, and New Zealand are preparing to sample their first bottles of 2009.

A healthy growing season is paramount in the process of ultimately producing a quality wine. This is of course why certain regions in the world excel in wine making. These regions are blessed with extremely conducive climates for growing grapes used in wine making. This is why regions like Mendoza, Argentina have historically been known to consistently produce high quality wines. Click here to read more about the region of Mendoza from Mir Global Marketing's home page)

This article from the Winespectator.com provides links to the publications reports on how the 2009 grapes have turned out in Chile, Argentina, South Africa, Australia and New Zealand.

Argentina: Heat spike hurts Argentine white wines, but reds weather the warmth

Chile: A warm and dry year leads to ripe wines and slightly higher yields

South Africa
: South Africa's wine regions enjoy a cool, dry season, producing quality across the board

Australia
: Yields are down in most regions, but a cool, dry season may have produced elegant reds

New Zealand
: A moderate growing season bodes well for the country's reds and whites


To access complete country harvest and grape reports from the Winespectator.com, please click on each respective country link


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