Monthly Archives: August 2013

South Africa wine in China: Charl Coetzee of Babylonstoren visits Beijing

charl coetzee of south africa wine operation babylonstoren at pinotage beijing-001

Charl Coetzee of Babylonstoren with one of winery’s cookbooks and a bottle produced to mark South Africa-China diplomatic relations.

By Jim Boyce

Dating to the seventeenth century as a farm, Babylonstoren — translation: Tower of Babylon — has recently emerged as a wine producer. This 400-hectare operation also grows a wide range of fruits and vegetables, including citrus and olives, and includes two restaurants, a bakery, a greenhouse and a produce store. I talked to wine maker Charl Coetzee ahead of a recent tasting at Pinotage restaurant and bar in Beijing.

On interest in the China market:

Babylonstoren has a long history but has just recently focused on wines. We started to produce a small quantity and to sell locally but the wines did quite will so we decided to export some of them. Our owner has good business ties in China and so we decided to do it here. Also, if you look at the wine market globally, China is attractive. That’s part of the reason for the decision, along with our owner’s love for China.

On market strategy:

In the beginning, there will be a big focus on Beijing. We also don’t want to go the traditional distributor route. We are busy setting up our own business, applying for our importer license. We will send wine from our own warehouses to customers, create our own distribution channels. We will sell in some restaurants but a major focus will be on-line retail and group buying.

On the use of Chinese by the winery:

If you come to Babylonstoren, you will see all of the signs on the farm written in English, Afrikaans and Chinese. This matches with our name, which refers to the Tower of Babel in The Bible. We are one of the few wineries in South Africa to do our signs in Chinese.

Our [Chinese-language] website was launched two years ago because we knew we were going to focus on the Chinese market. Everything big we do is in Mandarin. Our Babel restaurant cookbook will also be translated.

On facilities for visitors:

We definitely have an interest in tourists. We have a five-star farm hotel and spa. It’s a very popular property and was on Conde Nast Traveler’s Hot List 2011. We have had some Chinese delegates visit [usually connected to the owner’s business links].

On overall promotion of South African wine in China:

It is a matter of being persistent. WoSA [Wines of South Africa] is doing a lot all over the world. We were at the Yantai wine show [before Beijing] and tonight we have this dinner in Beijing.

[Get the free Grape Wall e-newsletter. See a sample here. To join the mailing list, use the form in the right sidebar or click here.]

Californifakin’: How prevalent is fake California wine in China?

By Jim Boyce

The quirkiest notion from this story I wrote for Wines and Vines magazine about fake California wine in China? Californian wines from one region used to fake California wines from another.

Before I get to that, I generally found — based on chats with winery reps, officials, distributors, lawyers and other industry watchers — that California wines, including “cult” ones like Opus One and Screaming Eagle, are faked less than their French and Australian counterparts.

California “cult” wines are niche. They tend to attract buyers who know and appreciate them. In contrast, a brand like Lafite has entered the zeitgeist. It tends to attract people who want an association with a certain lifestyle and typically wouldn’t know a real bottle from a fake one. That’s what makes it so attractive to the unscrupulous.

Chinese wines also have bigger much problems with being faked than do their U.S. counterparts. Top-three producer Great Wall is regularly ripped off while smaller wineries such as Ningxia’s Helan Qing Xue and Inner Mongolia’s Chateau Hansen also report problems with fakes.

As for the California on California problem (my highlights):

There is also the recent recognition by China’s government — via the Administration for Quality Supervision Inspection and Quarantine — of Napa Valley as a geographical indication. This should offer more protection to Napa but might bring unexpected results.

“People throw the name Napa around like it’s Bordeaux,” says [Dan] Christensen [director of California vintner and exporter Thirvin].

“We find ourselves in an uphill battle trying to explain why our legitimate premium Napa gear costs 200% more” than wines from Lodi, Paso Robles or Temecula, which some merchants call “Napa,” too.

“This is happening more and more. As awareness of California and its most prestigious AVA increases, so too will misrepresentation of the names,” he says.

The story also looks at approaches to protecting brands, including legal ones like distinguishing between criminal and civil actions, realizing police need to be educated (the average officer doesn’t understand foreign labels let alone have the ability to spot fake ones) and the no-brainer of registering trademarks, as well as nonlegal ones, such as using social media to build brand consciousness. It also touches on the importance of positioning fake wines as a food safety issue, especially given the government’s increasing attention in this area (my highlights):

Growing consumer power seems destined to make opposition rather than resignation to the food safety situation the norm, and this will be of benefit to fighting fakes. This consumer and government attitude is evident from how many makers of baijiu, the potent white spirit drink with a far bigger market share than wine, have anti-tamper seals.

“China has set a priority on food safety,” says [Jorge] Sanchez [director of the U.S. consulate’s Agricultural Trade Office in Guangzhou]. “I believe if someone is using the label of another winery or refilling bottles, (the authorities) could see that as a food safety violation and take immediate action.”

Get the full article here.
(See a sample of the free Grape Wall newsletter here. To join the mailing list, use the form in the right sidebar or click here.)

Wine word: SK Group subsidiary to close its China wine offices?

By Jim Boyce

South Korean conglomerate SK Group plans to close the wine import and distribution offices it runs in China via a subsidiary company, according to three industry sources. Word is the company’s winery partners have already been informed of the news. One brand rep told me he is now seeking a new distributor. Another source says SK plans to sell its remaining stock and end its physical presence in China by closing its Shenzhen and Shanghai offices in the fall.

If anyone else more info on this situation, much appreciated if you let me know at beijingboyce (at) yahoo.com

From sex toys to Chateau Lafite: Andrew Caillard on China wine documentary ‘Red Obsession’

By Jim Boyce

Andrew Caillard, best known as one of Australia’s first Masters of Wine and publisher of Langton’s Classification of Australian Wine, is also associate producer of the China wine documentary Red Obsession. As the documentary made its red carpet premier in Caillard’s home base of Australia this week, he was fulfilling a commitment to explore vineyards in China’s northwest region of Xinjiang and took time for a short Q&A.

How would you describe ‘Red Obsession’ in a few sentences?

‘Red Obsession’ is almost like a thriller about China and the passion for wine. It’s a tale of the rise of the middle class in China and its voracious appetite for luxury goods as seen through the prism of Grand Cru Class Bordeaux.

What’s the plot?

It’s a film in three acts. The first follows the 2010 en primeur campaign and the escalation in price of First Growth Bordeaux, especially Chateau Lafite. It also tells the story of the aspirations of the Chinese wine industry and of the new regions opening up in Ningxia, Xinjiang and Shandong. The final act is the extraordinary change in market sentiment [for Grand Cru] and the aftermath of the massive hangover from the damped down enthusiasm of the China market.

Who’s the most intriguing character?

Peter Tseng, a maker of sex toys in Shenzhen. I actually know him. He’s a big wine collector. He’s also the biggest manufacturer of sex toys in the world.

On the French side, Christian Moueix, because he speaks about wine in such a philosophical and beautiful way. He gives you a sense of what fine wine is all about without sounding like a wanker.

Also, Fongyee Walker, who is half-Chinese and half-English, and serves as a bridge between Chinese and Western ideas. She uses examples from her family to explain the difference between China and the west.

Where has it been and where will it be shown?

It premiered at Berlin in February. Then it had a screening at Tribeca, where Robert Di Niro called it one of his two favorite films. It’s been at several other film festivals around the world , including Seattle, Sydney, Melbourne, Helsinki, Moscow, Athens, Pusan and Warsaw.

Australia gets its theatrical release on August 15, it will be released in the United States in September and Scandinavia in October, and further releases will depend on success in Australia and the U.S. It’s very unusual for a documentary in Australia to get a theatrical release and the signs are already good.

Note: Red Obsession is directed by David Roach, produced by Warwick Ross, who is an owner of winery Portsea Estate, and narrated by Russell Crowe. You can see the official website and trailer here.

Andrew Caillard in Xinjiang, perhaps creating a storyboard for a new movie?