Saturday, September 12, 2009

Globowines Newswire: China's domestic wine industry

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

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