REGIONAL SPOTLIGHT:
REGIONAL SPOTLIGHT: CHINA Tracking Wine and Spirits Sales in China Vinexpo Hong Kong takes the pulse of Asia’s biggest wine and spirits market The Asian markets and particularly the Chinese market have evolved quickly over the past few years. According to Guillaume Deglise, CEO of Vinexpo, “Even if China still remains the world’s number one market for spirits, the consumption patterns are swiftly changing; consumers are no longer simply seeking prestigious wines and spirits for gifting. They are learning fast and getting savvier.” Mr Deglise underlines that at the same time, distribution is evolving at a steady pace, e-commerce platforms are gaining momentum, the off-trade and particularly supermarkets are on the rise, whilst at the same time the on-trade is gaining importance in the fine wine market sector. “The sommelier profession is also one to be watched as sommeliers are getting increasingly important prescribers for wines and spirits,” says Mr Deglise. “We are simply at the beginning of the emergence of the Chinese market, the best is yet to come.” CHINESE CONSUMERS DRINK MORE RED WINE THAN THE FRENCH According to the VINEXPO/ IWSR market study, red wine consumption will continue to grow in China and Hong Kong up to 2017 to reach nearly 207 million cases by the end of the period. Back in 2013, China, including Hong Kong confirmed its position, which it first rose to in 2012, as the largest red wineconsuming nation in the world. Having consumed 155.41 million 9-litre cases of red wine, equivalent to 1.865 billion bottles in 2013, up 136% compared to 2008, the region now dominates the worldwide market for red wine, followed by France, now in second place with nearly 150 million cases and Italy with 141 million. The growth in popularity of red wine for Chinese consumers has continuously sped-up since 2005. The VINEXPO/ IWSR market study reveals that between 2008 and 2013, Chinese red wine consumption grew by 175.4%, while in the same period, Italian red wine consumption fell by 5.8% and the French consumed 18% less. SUBSTANTIAL GROWTH IN WINES SOLD FOR US TO US PER BOTTLE (CNY30.3 TO CNY121.2) The VINEXPO/IWSR study predicts that growth in Chinese wine consumption between 2012 and 2017 will be mainly in the segment of products retailed at prices between US and US (CNY30.3 and CNY60.6), whose sales are expected to increase by 64%, as well as in the US to US segment (CNY60.6 to CNY121.2) which should grow by 69.48% in the same period. At the same time, wines sold for less than US a bottle will be consumed less and the segment is expected to contract by 7.39%, while consumption of wines sold for more than US per bottle will grow slower than the market: “only” 23.58% in the 5-year period. FRANCE STILL TOP EXPORTER OF WINES TO CHINA AHEAD OF AUSTRALIA AND SPAIN Between 2008 and 2012, the consumption of French wine in China was multiplied by 4.6 and reached 15.46 million 9-litre cases at the end of the period. In the same period, the consumption of Australian wines grew by 147.5%, while that of Spanish wines was multiplied by 6.2 in 5 years. 40% OF ALL SPIRITS CONSUMED IN THE WORLD ARE DRUNK IN CHINA China is the largest consumer of spirits in the world with a thirst that amounted to 1.201 billion 9-litre cases in 2012, equivalent to almost 40% of the total volume of spirits consumed worldwide. Between 2008 and 2012, the Chinese consumption of spirits rose by 82.7%, with growth particularly focused on locally produced spirits. Between 2013 and 2017, the VINEXPO/ IWSR study forecasts further growth in Chinese spirits consumption, but this will be at a slower rate of 8.69%. • China, including Hong Kong is: •THE LARGEST RED WINE MARKET WORLDWIDE •THE FIFTH LARGEST WINE MARKET IN THE WORLD FOR STILL, LIGHT AND SPARKLING WINES •THE FIFTH LARGEST PRODUCER OF WINE WORLDWIDE - AT LAST COUNT •THE LARGEST SPIRITS MARKET IN THE WORLD •THE SECOND LARGEST COGNAC MARKET WORLDWIDE (AFTER THE U.S.) 14 VINEXPO DAILY / PREVIEW EDITION / TUESDAY 17 TH MAY 2016
REGIONAL SPOTLIGHT: CHINA New Look For Château Nine Peaks Château Nine Peaks arrives at Vinexpo Hong Kong with a brand new look this year - including a new logo and new labels. A European Château in China Treaty Port Vineyards exhibits for the first time at Vinexpo Hong Kong The forthcoming release of Château Nine Peaks Cabernet Sauvignon 2013 and Chardonnay 2015 wear a brilliant new look, with a refreshing label and logo to match the high esteem in which this estategrown wine is held. Dr. Karl Heinz Hauptmann, founder of Château Nine Peaks, is a wine lover and visionary with a background in finance and experience with leading financial institutions. In 2008 Karl sourced the perfect location for his renowned winery at Nine Peak Mountain. Château Nine Peaks consists of 150 hectares of rolling hills and terraces. The winery is the only one in its class in China with a vineyard that consists of the best quality vines imported only from France. As the shining star of Shandong Province Château Nine Peaks produces more than 400,000 bottles of wine and has been listed in top hotels such as Shangri-La, Hyatt, restaurants, specialized wine shops and high- end retail chains in mainland China and Hong Kong. The decision to update the design of Château Nine Peaks’ iconic image was not made lightly. After 3 years of tireless effort, one of the main reasons was the accomplishment of the Château. The estate is an integrated complex covering 12,000 square meters, 5 floors, including winery, cellar, the production facilities, bar, restaurants, tasting room, and a hospitality area with 300 guest capacity. Château Nine Peak promises to become a major tourist attraction in Shandong province, that offer services associated with wine, such as wine appreciation, wine tasting and dining but also corporate and social functions • Level 3, Stand R-60 China-based Treaty Port Vineyards are coming to Vinexpo Hong Kong for the very first time this year… with an interesting story to tell. Treaty Port appears to be a piece of Scotland transposed onto Chinese territory, with its impressive château and Scottish flag flying high, right down to kilt-adorned staff members. This is all part of the flair and passion of Scotsman Chris Ruffle, who decided a decade ago to create his own wine brand in China. Treaty Port is a 20-hectare vineyard planted on granite soil between 2005 and 2007 in Mulangou village, Penglai county, Shandong Province, and production is now ramping up. “We will be featuring our three powerful reds from 2014, which was an excellent vintage in Shan-dong: our gold medal winner, the Prince (Petit Verdot/ Arinarnoa), the Inspector General (Cabernet Sauvignon/ Merlot/ Petit Verdot) and the Commissioner (Marselan)”, says Ruffle. “We will also have our gold medal winning rose, the Debutant, and our Viognier/Chardonnay blend, the Lady of Fashion. We will also show the latest bottling of our main product, Castle Red 2014.” “We welcome customers to visit our vineyard,” Ruffle continues. “There are now direct flights from Hong Kong to Yantai airport, which is just 20 minutes from our vineyard. We have a comfortable hotel, where customers can enjoy good food & wine, enjoy the local scenery and visit our neighbouring vineyards, such as Lafite.” Ruffle is seeking distributors for Beijing, Shanghai and Hong Kong, adding “Any fine hotel or restaurant in China should have a good Chinese wine on their menu”. The Scottish wine grower puts forward the argument that Bordeaux wine is quite subtle, but Chinese food is highly flavored, so for him, it’s not a very good match: “The Chinese mostly drink reds, but actually white is much nicer with Chinese food”, says Ruffle. “For example, in Shandong we have very good seafood, and you don’t want a heavy red with seafood.” Those looking to find more background on the development of the vineyard can read about it in Chris Ruffle’s newly published book “A Decent Bottle of Wine in China”, which is available on Amazon, and can also be bought at Vinexpo, at Treaty Port Vineyards stand • Level 3, Stand R-52 vinexpodaily.com VINEXPO DAILY / PREVIEW EDITION / TUESDAY 17 TH MAY 2016 15
