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The Grape Wall Press
A Regularly Updated Roundup of China Wine Stories
AUGUST-SEPTEMBER 2024 EDITION
(Past Editions Here)
“Award-winning Chinese winemakers battling for market recognition”
Kyodo News: Maya Kaneko
“In a desert region of northwestern China, Liu Li spoke proudly of how the once barren sands have been transformed in recent years into rolling vineyards, helping the region become one of the heartlands of the country’s domestic wine industry.
“‘We have turned a yellow sand area into a golden one,’ said Liu, workshop director and assistant brewer at Lilan Winery in Ningxia, referring to the success of the local wines. ‘Good grapes and wine are produced, winning many awards at home and abroad.’
“But although wine production there is being promoted by the government with prominent backing from President Xi Jinping, the home market has become more challenging due to social and economic changes while the increasing recognition that Ningxia wines have won in international competitions has yet to result in robust exports.”
[Best mainstream media story about Ningxia / China wine — one touching on many key issues — that I have seen in a long while.]
“Cost-conscious Chinese tourists look to affordable options for Golden Week holiday”
Reuters: Sophie Yu & Casey Hall
“Chinese tourists are expected to take longer trips than last year during the Golden Week holiday that kicks off on Tuesday, but that will not necessarily lead to a bump in spending, travel industry experts said.”
“With the economy slowing and consumer confidence hovering just above historic lows, they expect many travellers over the week-long National Day break will opt for cheaper domestic or short-haul overseas destinations and take advantage of a decline in airfares.”
[Not specifically about wine but I find strong parallels. That is, given consumer concern about the economy, huge numbers of people are traveling but finding cheaper options, just as huge numbers continue to dine out but are cutting back on costs per meal, which could easily be done by buying cheaper wine or none at all.]
“Next-gen Chinese winemaker starts exporting to Australia”
Australia Financial Review: Max Allen
“Ian Dai is a busy man. The winemaker has 30 wines in his portfolio, produced from grapes grown in six regions across China, from the inland plains of Ningxia to the mountain country of Yunnan. He is also a founding member of the Young Generation China Wine group, a collective of around 20 next-gen producers who are reinventing the image of Chinese wine. And he has just started shipping small quantities of some of his wines to Australia, his first export market.”
[Yep, one of the main “winemakers without wineries” getting local drops into more mouths, also covered by yours truly, including in these Wine-Searcher and Grape Wall stories.]
“China’s wine industry still in trouble”
“Changyu, China’s largest wine producer, has released its 2024 semi-annual report. Data show that in the first half of the year, the company achieved operating income of 1.522 billion yuan, down 22.6% year-on-year; net profit returned was 221 million yuan, down 39.17% year-on-year, and revenue and net profit fell into a double decline.”
[Tough times for China’s mega-producer given overall consumption has seen huge declines over the past decade.]
“Australian wine triumphs at China roadshow”
“The China Roadshow (20-28 August), supported by the Australian Trade and Investment Commission, brought together 50 exhibitors who presented more than 90 Australian wine brands to receptive and engaged audiences at masterclasses and tastings held in four key cities: Beijing, Shanghai, Chengdu and Guangzhou.
“Held for the first time since 2019 and now in its eighth edition, the roadshow attracted more than 2,500 Chinese trade visitors including influential wine buyers, importers, distributors and media.”
[Imports are one thing, roadshows and “master classes” another, and sales still yet another. Let’s see the overall consumer reaction.]
“China offers ‘great potential’ for Hungarian wines”
The Drinks Business: Eloise Feilden
“Wines of Hungary has launched a new campaign in China to increase visibility and availability in the ‘high potential yet complex market’… The campaign will run for seven months, from September 2024 to March 2025, and will consist of a mix of events, educational activities, digital and media campaigns aimed to engage with trade players and consumers.
“Wines of Hungary has centered the campaign, the first of its kind in China, around a three-day roadshow in Shenzhen and Shanghai.”
[I dunno, it seems like many of the same-old same-old people are involved in so many of these types of efforts and, given import and consumption trends, without much impact. Good luck to Hungary in bucking the trend.]
“Taste of Wonders documentary sets out on food journey through China”
China Daily: Yuan Shenggao
“As part of the campaign, more than 300 Chinese restaurants across the country will create menus based on the four themes of seasonal cuisines, wine or tea pairing, homestyle dishes and local menu co-creation.
“In accordance with the campaign launch, Marriott International also held the first F&B Inner Circle Panel to discuss the latest insights into the food and beverage industry.”
[Eat, drink and be merry!]
“WSET sees Diploma soar globally”
The Drinks Business: James Evison
“The Wine & Spirit Education Trust (WSET) has seen a 15% in candidates for its Level Four Diploma in Wines course globally as it celebrates its 55th anniversary.
“The total figure includes 1,962 candidates from 19 countries who took a Diploma exam during the last academic year. Top markets for the Diploma were the UK, USA, Hong Kong, Japan and Mainland China.
[Sure, wine consumption is plummeting in China but at least wine education, wine contests and wine guides are doing okay, and that’s all that really matters to some people, right?]
“Australian winemaker for Penfolds on her rise and role in making wine in China, California”
South China Morning Post: Lisa Cam
“Steph Dutton, senior winemaker for Australian producer Penfolds, who has had a role in its northern hemisphere winemaking in California and now China.
“Penfolds’ 2024 anniversary collection also includes the highly anticipated second release of the brand’s experimental CWT (Chinese Winemaking Trial) 521 Cabernet Sauvignon Marselan, following its inaugural 2021 Chinese vintage.
“The first number in the name refers to the wine being made with grapes from five vineyard plots – four in Yunnan province, in southwest China, and one in Ningxia, in north-central China – and the subsequent digits refer to the 2021 vintage.”
“The 2022-vintage trial wine blends cabernet sauvignon grapes from Yunnan’s Shangri-La region with a higher proportion of marselan grapes from Ningxia than was used for the first release.”
[I did an interview with Australian media a few days ago, touching on Down Under wines and particularly those from Penfolds, which I see as facing some major short-term and long-term challenges. I will update on that soon!]
“Geographical indication booms on Chinese market”
“An exhibition hall filled with booths displaying pomelos, pears, mushrooms, its air fragrant with the enticing aromas of black tea, mooncakes and spicy rice noodles, could easily be mistaken for a food expo. In fact, it was part of a conference on intellectual rights.
“The products on display at the 13th China Intellectual Property Annual Conference last week in Beijing, all have one thing in common: a geographical indication or GI.
“A GI is a form of IP that signifies a product’s origin as well as the traits or reputation associated with that location, and serves as a mark of quality that sets it apart from competitors. Notable examples of GI include Champagne and Kweichow Moutai.”
[We see a growing number of China news stories and officially sanctioned events concerning EU and geographical indications, suggesting the area is seen to have both diplomatic and commercial value, and might ultimately be of much interest to European producers given how many wine-related GIs from the continent are already covered.]
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