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

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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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

Stina's Cellars of Washington State break into the Chinese market

The concept of "sister cities" is something I first learned about when Wikipedia came online a few years ago. When you "wiki" a city, it conveniently provides you a list of sister cities.

For instance, when living in Suzhou, China I "wikied" the city to learn some random facts. Suzhou's sister cities in the United States include such places as Jacksonville, Florida and Portland Oregon. Go figure?

The concept of sister cities never crossed my mind again, that is until I read this great article and learned that Stina's Cellars, a vineyard from Tacoma, Washington managed to break into the China market via their sister city of Fuzhou, China.

After three consecutive delegations of representatives from Fuzhou, China visited the vineyard and sampled the wine, calls started coming in and Stina's Cellars suddenly found it self with 224 cases in new orders from a market they never thought they would be selling to. One importer recently emailed the Washington Vintner and asked "What’s the maximum capacity of the winery? I want to know how much I can get."

Vintner Perry Preston - Stina's Cellars

It is clear there is untapped demand in China for a variety of products. The real challenge for vintners, agents and exporters is to find away to connect buyers and sellers. There are websites like Alibaba and Chinabusinesworld, but the internet only extends so far.

Here are a few excerpts from the article:

“When I got the call about the tastings I was like, well, it was worth taking a chance on,” Preston said. “The market over there is expanding, and I want to expand. Hopefully, we’ll be able to expand together. And it was just one city, instead of all of China. If it would have been all of China, I would have said, ‘No thanks.’”

About a month later Preston learned that the population of Fuzhou tops 6.6 million – slightly larger than the state of Washington.

To say Perry and Penny Preston, and their son, Ethan, grew Stina’s Cellars from humble beginnings doesn’t do justice to their story.

The old joke in the wine industry goes, “Q: How do you make a small fortune in the winery business? A: Start with a large fortune.”

Australian wine export data sheds some light on the industry

An Australian Wine and Brandy Corporation report released this weekend states the value of Australian wine exports declined 14% in the year ending April 2009.

The report highlights that despite overall pressure from the global financial crisis, which has strained many traditional export markets, growth in Asian markets remains robust.

The report says that more than half of the industries export decline originated from the United Kingdom. Export growth came from Hong Kong, China and Japan. China recorded the largest growth in value, with a increase of $30 million.

Another trend also highlighted in the report was a move towards lower-prices bulk wine shipments. It seems the greater market is cutting back on higher end wines in exchange for "bang for your buck."

Good news for South American and other low cost producers making quality wine which tend to struggle to break into Asian markets where consumers are VERY brand consciousness and prefer French, Italian and more recently Australian and Californian wines.

Data snips accessed from this ABC-Australia article

Beijing Wine Classic to be Hosted at Aman Summer Palace

Luxury Travel Magazine -- Beijing Newswire


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.

[http://www.luxurytravelmagazine.com/news-articles/beijing-wine-classic-to-be-hosted-at-aman-summer-palace-13604.php]