New Zealand, United States Clamor For Piece of Growing Chinese Wine Market Pie

Jon Troutman
My Website · My Articles
Posted: July 5th, 2010
Bordeaux’s biggest names have been resoundingly successful thus far with their 2009 Futures campaign, despite a global economic climate more turbulent than Space Mountain. The region can attribute much of its success to brilliant marketing combined with an emerging Chinese market that has shown an insatiable thirst for the most high-end Bordeaux wines. The success of Bordeaux’s classified growths in China has left many of the other great wine regions of the world scratching their heads, asking, “What about us?”
New Zealand is hoping to take their piece of the Chinese wine market pie, according to one Canoe Travel report. Backed by government funding, New Zealand wine makers will take major steps towards promoting and marketing their wines in China during the coming year.
Just last month, President Obama and the White House announced an initiative to partner with the Hong Kong government in order to promote and bring increased exposure of United States wine to the Chinese.
New Zealand and the United States certainly aren’t alone in recognizing the expected rapid growth of the Chinese wine market. The May 2010 Vinexpo Asia-Pacific, far and away China’s largest wine and spirits exhibition, saw a 43% increase in attendees over the year prior. An astounding 35 countries wines were represented by just shy of 1,000 different exhibitors. With so many different wine regions clamoring to cash in on the newfound interest in wine by the Chinese, only one market has yet to strike gold: Bordeaux.
Bordeaux’s allure for Chinese collectors lies in its price tag. Speaking with Debra Meiburg recently, an American-born Master of Wine living in China, I gained serious insight into the mindsets of wealthy Chinese collectors. Paraphrasing Meiburg, the reason that the Chinese have a taste for Bordeaux is not due to its quality, history, or critics scores – its due to its astronomical price tag.
Thankfully for Bordeaux vintners outside of Lafite, Latour, and other big names, it seems that a trickle-down effect has begun to occur. According to Jing Daily, just last year, China overtook the United States as the largest market by volume for Bordeaux wines.
With a growing economy, an emerging middle class, and a continued attraction to Western Culture, China could be the perfect place for a number of wine regions looking to unload wines during a tumultuous global economy. What remains to be seen is if the United States, New Zealand, or anyone else outside of Bordeaux can establish themselves as the “next big thing” in China.
  • boyce
    The New Zealand Embassy in Beijing held a blind tasting on Monday that featured these eight wines:

    Château Lafite 2006
    Château Pichon Baron 2006
    Château La Gaffeliere 2005
    Cos d’Estournal 2005
    Craggy Range Sophia 2007
    Craggy Range The Quarry 2007
    Sacred Hill Helmsman 2007
    Trinity Hill The Gimblett 2007

    Lafite narrowly edged the Craggy Range Sophia, but in some ways New Zealand came out the winner by making a point about value: a bottle of the former costs more than three cases of the latter.

    Wine Australia also launched a new initiative this past week, called "Every One Has a Story", to push its better wines. For the Beijing stop, they gathered about 60 "gatekeepers" - journalists, distributors, etc - to have dinner with 10 Australian wine makers and learn about and taste their wines.

    Australia already has about a 20 percent share of the China market by volume, trailing the French at about ~42 percent, but would dearly like to increase the numbers in the value column.

    Cheers, Jim Boyce
    http://www.grapewallofchina.com
    A non-profit China wine blog
  • DCaragher
    Interesting article...now this is just a quick thought, but it might seem that the Chinese attraction to price tags and Bordeaux might hurt other consumers, as I wouldn't be totally surprised if some wineries jacked up their prices to magnify themselves to that particular market. We will see...lets hope for the best!
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