Latin American dance and culture is alive and growing in Beijing

Mir Global Marketing LLC has always emphasized the importance of including clever ways to promote and educate Chinese consumers about Latin American culture when marketing wines from Chile and Argentina.

For the record we practice what we preach. For all our readers out there, you also know that we love to share insight and encourage discussion about the world of wine here at our company blog, Globowines.

For you're viewing pleasure, a short video I personally recording in Beijing this past month and feel articulates my feelings on how China is hungry for "Latin America".

I stumbled upon this little party at a mall called "The Place." I was strolling around a new upscale neighborhood about 4km from the Forbidden City when I found a shopping complex with the world's largest LCD screen, which doubles as a ceiling, alternating between different eye dropping images.

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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Western wine descriptions; lost in translation

Asian consumers struggle to understand traditional Western wine language
by Suzannah Ramsdale of Decanter


Asian consumers struggle to grasp traditional Western wine descriptions, says Jeannie Cho Lee MW.


Writing in this month's Decanter, Cho Lee explains that wine writers need to discover new ways to communicate with Asian wine drinkers, but that it may take two generations to come up with a language that is relevant and meaningful to Asian wine lovers.


The traditional Western language of wine has been subject to inaccurate translations and means little to many Asian consumers, according to Cho Lee.

When it comes to the Asian palate there is a need for more familiar reference points which relate to their cuisine and dining habits.

For example, wine drinkers in Japan, Hong Kong and Singapore appreciate the subtle elements in mature fine wines, which share the same restrained characters as some of the most-sought after ingredients in Asia such as sea urchin, Kobe beef and shark's fin.

Similarly, the tolerance level for tannins varies depending on whether the consumer is a regular drinker of tea or bitter vegetables such as ginseng and radish. For those people, full-bodied tannic red wines are extremely enjoyable.

Cho Lee points out that while wine drinkers in the West may describe a Shiraz as having notes of black pepper, liquorice, game and bacon fat, Asian consumers will refer to Tandoori spice, roasted goose or char siu (barbecued pork).

See the full article in the June issue of Decanter magazine – Subscribe here

Winemakers turning to Asia to help ride out economic slowdown

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.

Affordable, Franzia box wine flying off the shelves!

With the global economic crisis in full swing liquor stores and wine bars are seeing their older, high-priced wines gather dust.

Bronco Wine Co. in Ceres, Stanislaus County produces more than just box wine like Franzia. The group is also behind other affordable brands such as Charles Shaw, Crane Lake and Napa Ridge.


Year to date, Bronco's Wine sales are up 25% on volume. Charles Shaw alone is currently selling about 6 million cases a year. The company has aspirations of eventually moving 100 million cases a year.

Where do they expect to find the bulk of their buyers? You guessed it, China.

Next month, the plan is to unveil a new Australian Chardonnay by the name of "Down Under." It will sell for half the price of Yellow Tale, currently one of the most consumed, affordable, white wine around the world.

Fred Franzia, who sold his brand to Bronco wines, had the following words to offer to offer the SF Chronicle, in this article.

"His only worry seems to be that he might run out of wine - even though he controls reportedly 40,000 acres and buys far more in bulk. "We'll probably have to allocate. Imagine that."

This is the year, after all, when cult-wine allocations are being busted, when retailers can cherry-pick the finest wines. And yet many wineries still won't flinch on pricing. Suddenly, Franzia's crusade against high prices - he still believes no wine should cost more than 10 bucks - has an eerie resonance.


Mir Global Wine Corner Analysis

It does not take a genious to figure out Franzia's market strategy, especially when it comes to China. In general, Franzia hopes to capitalize on the rising consumption of wine in markets like the United States, China and Russia by tempting people who like to drink with cheap prices and wine that doesn't taste like rubbing alcohol.

Franzia box wine and Charles Shaw do taste better than the majority of Chinese wines I sampled in the past. That does not however mean that they are by any means... good.

In the United States where a great variety quality wines from Chile, Argentina and Australia are widely Franzia will get lucky if this recession forces consumers to substitute slightly higher priced, quality wines from these countries for their poor alternative.

If Franzia is able to slightly improve its quality and hook consumers however, I can see their strategy working out to a certain extent.

As for China. This is great news for companies like my own Mir Global Marketing Co., which specialize in South American wines.

If Franzia goes through the trouble to promote their cheap products in China and are able to successfully get the Chinese consumers buying cheap, lower quality Chinese wines to switch to their wines, they will be doing South American wines a great favor.

One of the main difficulties for Argentine 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 had to struggle for years to build a trusting image with Chinese consumers.

Franzia already has a decent customer base in China where wines are outrageously over-priced. Although something just does not sit well with me when you must pay $6-8 for a glass of Franzia.

What if there was a Chardonnay from Argentina listed on a menu just Franzia's selection?

If Franzia's marketing and promotion of their own wines have worked, this will inevitably mean the Chinese consumer has become more educated about wines and that his/her tastes have evolved.

I have a feeling, after drinking a few glasses of Franzia, the sophisticated wine drinker in China will decide to spend a few extra RMB for a much higher quality glass of wine.

So let me say the following:

"Thank you Franzia."



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

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]

The Global Wine Market

Wine & Drinks Business Review - The world's wine market- an evolving panorama

A consistent theme of this site will be discussion about the ever evolving state of global wine markets. MIR Global decided to start this site as a resource for people to come not only to keep current on major news/development in the wine scene but also to discuss the ever changing nature of it.

First lets talk about supply. During the past decade wine production has exploded in many new countries. Wines from the United States, Chile, Argentina, South Africa, Australia and New Zealand have become household names around the world. Europe is not the only kid on the block anymore.

Now, consider the demand side of things. China, South-East Asia, India and Russia have suddenly emerged as the future major wine markets. With incredibly large populations, robust economic growth and a ever more interconnected global economy wine producers have switched their focus to Asia.

Described in this article from the Wine & Drinks Business Review

Countries, such as China, India and Indonesia, will compensate for the stagnation of Western economies.

The companies with strong international orientation will benefit from the demand coming from Asia, which will balance the markets that are more inclined to a stability situation, such as the Northern-American and the European ones.

Some facts from the same article

* European wine production falls to 161.6 million hl versus 163.6 million hl in 2007

* French production falls to 41.4 million in 2008 from 46 million in 2007.

* Argentina is decreasing to production to 14.6 million hl

* Chile's production grows to 8.6 million hl in 2008, not sure what it was in 2007, article doesn't say and a google search did not yield immediate results. If anyone knows please share.

* South African wine production increased 5% to 10.2 million hl.

* Australia's production grew a pretty stunning 30% to 12.3 million hl.

* New Zealand finishes off the count, growing a astounding 39% to 2 million hl.

Now in terms of exports from some traditional European markets, decline where seen across the board, with Italy taking the biggest hit proportionately.

* Italian exports fell to 17.8 million hl, which breaks down in layman terms to loosing about 7% of the share of Europe's exports.

* Spanish exports on the other hand gained 8.5% of the European export market of fine wines, exporting 16.9 million hl.

* US exports rose over the threshold of one billion dollar sales (+6%), with a volume of 4.9 million hl (+8%), of which 90% came from California.

* France had a 10.5% fall in the volumes, at 13.7 million hl.

* Australia showed a decrease of 11% at a little less than 7 million hl.

Click here to access the full article: "The world's wine market- an evolving panorama."

Courtesy of [wine.drinks-business-review.com]