Hong Kong and mainland China have been serving as bright spots for wine exporters in the United States and Australia. While global American wine export volume and value by rose 8 percent and 6 percent respectively in 2008 as compared to 2007, it saw massive jumps in China, reports Decanter, although the local market is relatively small:
Exports to the European Union, up 2% by value and 9% by volume, accounted for more than half of export volumes, but the biggest growth came in Asia.
Shipments to Hong Kong surged 244% by value and 166% by volume, buoyed by the removal of excise duty; and exports to China were up 34% by value and 79% by volume.
Meanwhile, MICE BTN, quotes Lorna Wong, director of the Hong Kong Economic and Trade Office, about the rise in Australian wine imports:
“Last year’s abolition of import duty on wine saw a 90 per cent increase in wine imports over 2007. While the global economic downturn has put pressure on Australian wine exports, China and Hong Kong continue to provide a silver lining, recording strong value growth. In the year ending January 2009, wine exports to China and Hong Kong increased by 34 per cent (up A$18 million) and 20 per cent (up A$6 million) respectively, according to the Australian Wine and Brandy Corporation.
It is always important to note that exports of wine to Hong Kong and mainland China is one thing and sales of that same wine is yet another, as it is difficult to know just how much surplus wine distributors have in stock.
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Seems like these figures point towards an increase in Chinese drinkers appreciation of Aussie wines. This despite Charles prediction in the interview article above.
I noticed that he quotes Chillean wines are both great value and price, but does not mention Australian wines value. Hmmmm?
I have to disagree with his prediction that people will necessarily spend more on wine as they gain experience, especially as it seems the case here in China. Many local Chinese drinkers are not drinking four of five bottles a week, but rather spending a large amount on a single expensive bottle for the Saturday night dinner table, much of the time, as a sign of prestige. But contrast that with many Westerners here in China, who have a weekly wine budget, trying to squeeze as many bargains out of it as possible. As someone who does weekly face to face wine promotions, I can tell you that many will not spend over 100RMB per bottle, simply because they believe that there is a wealth of choices available under this price, And they believe, and rightly so, that the quality more than justifies the price. Most of the wines at this price do come from Australia, and South America, but not France. So I predict that yes, total volume of wine drinking per person may increase with knowledge gained, but not necessarily with an increse in average expenditure per bottle.
But the best value of Australian wines isn’t under 100 RMB, it’s in the 100-300 RMB price range. Jim, there’s another blind taste off for you, where I’m sure those over priced Fench wines will cop another walloping.
Seems like these figures point towards an increase in Chinese drinkers appreciation of Aussie wines. This despite Charles prediction in the interview article above.
I noticed that he quotes Chillean wines are both great value and price, but does not mention Australian wines value. Hmmmm?
I have to disagree with his prediction that people will necessarily spend more on wine as they gain experience, especially as it seems the case here in China. Many local Chinese drinkers are not drinking four of five bottles a week, but rather spending a large amount on a single expensive bottle for the Saturday night dinner table, much of the time, as a sign of prestige. But contrast that with many Westerners here in China, who have a weekly wine budget, trying to squeeze as many bargains out of it as possible. As someone who does weekly face to face wine promotions, I can tell you that many will not spend over 100RMB per bottle, simply because they believe that there is a wealth of choices available under this price, And they believe, and rightly so, that the quality more than justifies the price. Most of the wines at this price do come from Australia, and South America, but not France. So I predict that yes, total volume of wine drinking per person may increase with knowledge gained, but not necessarily with an increse in average expenditure per bottle.
But the best value of Australian wines isn’t under 100 RMB, it’s in the 100-300 RMB price range. Jim, there’s another blind taste off for you, where I’m sure those over priced Fench wines will cop another walloping.