Double Dragon: China Wine Market Lessons, 2012 vs 2024

Year of the Dragon departs in ten weeks and then Year of the Snake slithers in.

China’s zodiac has 12 signs, a cycle of a dozen years, and contrasting Dragon v2012 and Dragon v2024 reveals much about the wine market.

Especially as 2012 was a noteworthy year, one of soaring imports led by France, of industry leaders like Moet Hennessey, Decanter and Wine Enthusiast staking claims in China, of the Ningxia region popping up on the wine world’s radar, and much more.

Below is a “then versus now” analysis, to show the major changes, some of which seemed unlikely at the time.

For example, few in 2012 believed that Australia would ultimately end French import supremacy. Or that white wine would gain on red wine given the latter is a ‘lucky’ color, a status symbol, a [fill in the blank]. Or that Chinese wine would improve so quickly in terms of quality and diversity.

But that all came to fruition, in some cases for reasons going far past 2012 and to the 1980s and 1990s.

Okay, on to Dragon v2012 versus Dragon v2024!

(This post first appeared in the free Grape Wall of China newsletter. Sign up for free at this link.)

The Import Boom

Then: It was a familiar tale when Customs released its 2011 import data in early 2012. France crushed the competition for bottled wine imports as the market soared 65% by volume compared to 2010.

France beat the average, with volume up 73.9% to 117.9 million liters, talking almost half of market share, as Australia lost ground despite growth of 37.2%. France also took more than half of the market by value, soaring nearly 100% year on year.

During 2012, import stats showed growth slowing, with a predicted rise of 10% to 20%, a result that would be still impressive most anywhere else in the world.

Now: It might seem little has changed, as France was the leading source of bottled wine imports last year, we saw much turbulence between 2012 and now.

Australia, buoyed by a free trade pact with China, a reputation for food safety, China investment in Down Under wineries and its “bottled sunshine”, did topple France for top spot by 2019. Then had it all wiped out when China hit with heavy tariffs.

But Australia was not the only loser. Overall wine consumption began collapsing–the pandemic did not help!–and now stands at about one-third of 2012. Who saw all of that coming?


Wines with Altitude

Then: In 2012, Reuters reported a signing ceremony for a joint venture 2400 meters high in the Shangri-la region of Yunnan province, for Moet Hennessy Shangri-La (Deqin) Winery. This news came on top of Moet Hennessy’s plans to make bubbly in the Ningxia region.

Now: That winery bottles under the label Ao Yun and is ranked among the best, if not very best, in China, sourcing fruit from four vineyards and consistently getting kudos and high scores. (See my last newsletter, “The Rise of Thousand-Dollar Bottles“, for details.)

On top of that, Shangri-la is a favorite as having the best terroir for top-quality wines. (Can we call them Grand Cru-nans?)

Other wineries such as XiaolingBaozhuang and Muxin have shown the region’s potential while major players Treasury Wine Estates and Shangri-la Wine and a bunch of independent winemakers are active.

Shangri-la is also ramping up promotion and held its first international wine festival last November. Let’s see where the region stands when Year of the Dragon next arrives.

Oh, and about that Moet Hennessy project in Ningxia? It did launch, as Domaine Chandon, with a growing number of neighbors now also making traditional-method bubbly–and pet-nat, too.


Big Brands Get Busy

Then: 2012 saw a slew of famous publications, contests and personalities in the then-booming China wine scene.

Wine Enthusiast paired with YesMyWine and on a Chinese edition of its magazine. Decanter announced plans for a new contest, The Asia Wine Awards, chaired by Stephen Spurrier and Jeannie Cho Lee. And La Revue du Vin de France put a spotlight on local talent with its China Wine Awards, releasing the results at Vinexpo Hong Kong.

Meanwhile, at Food & Hospitality China (FHC) in Shanghai, Gerard Bassett  told local sommeliers to focus on sales and Michel Rolland said local producers should work on the vineyards. At the same fair, ProWein announced it was teaming up with the organizers to create ProWine China.

We also saw more focus on international contests, such as the Decanter Wine Awards and International Wine Challenge. And education: the Hong Kong Wine & Spirits Fair dedicated a large area to that topic for the first time and Debra Meiburg, a Master of Wine based in that city, led several sessions.

(Taking a Beijing taxi in 2012 meant a good chance of a Debra Meiburg wine tutorial courtesy of the TVs embedded in the headrests.)

Now: Some of those projects, such as the Wine Enthusiast magazine, are long gone, while others, such as ProWine China, continue. But what is consistent is the steady rise of trade fairs, contests, magazine awards and education, notably, the nonstop flow of “master classes.”

I have written about this often, and won’t go into detail here, but this growth is in stark contrast to falling wine consumption.

And while much of this scene in 2012 was limited to China’s biggest cities and well-known brands, there have since been many newcomers, doing everything from new fairs in cities few people outside of China know to leveraging their wine education to create online platforms and followings. It’s a daunting world out there for those seeking the right trade fair, publication or key opinion leader.


Ningxia Rises, Part 1

Then: Ningxia winery Helan Qing Xue officially launched the Bordeaux-style blend–Jia Bei Lan 2009–that won it a Decanter International Award, a first for China that brought attention to Ningxia and controversy for the contest organizers.

Many were curious about this wine: I shared my first bottle with a dozen bar and restaurant people in my Beijing neighborhood. Critics, too: at a 2012 tasting in Beijing, Australian Jeremy Oliver gave it a score of 19 out of 20.

At that time, Ningxia wineries had a heavy focus on Bordeaux-style blends. With ample oak aging. Often using the same brand–Radoux!–as Helan Qing Xue. And it raised the issue of possible stagnation within the trade.

Now: While barrel-aged Bordeaux varieties still represent the majority of Ningxia wines, their grip on the scene has loosened. We now see excellent Syrah and Marselan and Viognier, examples of Sangiovese and Malbec and Dunkelfelder, and the emergence of pet-nat, orange wine, tea-infused wine and much more, something also happening in regions across the country.

One can now easily put together a tasting of Ningxia wines without even dipping into the Bordeaux-style options.


Ningxia Rises, Part 2

Then: In 2012, Ningxia launched a two-year project to invite 10 foreign winemakers to come and practice their craft, with the resulting wines to be judged in 2014 and the best receiving prizes totaling USD30,000. The project was headed by Cao Kailong, director of a new entity, the Bureau of Grape and Floriculture Industry, which would drive Ningxia’s wine projects, from installing drip irrigation to creating a nursery to organizing major events.

It was a unique intense project, in which I was involved, with only 10 weeks to advertise for participants, choose candidates, get visas, arrange flights and have everyone in Ningxia on time.

Seven winemakers ultimately made it, several showing up early for Ningxia’s wine festival. That included a major Ningxia tasting co-chaired by Ma Huiqin and Jancis Robinson, the latter giving unexpectedly high scores and including the region in the next edition of The World Atlas of Wine, which she co-authors.

Now: That first contest was followed by a second, from 2015 to 2017, this time with 48 winemakers from 18 nations. Each was paired with a winery–many were still under construction and / or yet to release any wines–and assigned a plot of grapes from a collective vineyard. This time, USD120,000 in cash was up for grabs when the ensuing 48 wines were judged in Beijing in 2017

Fast forward to today and only one of the 48 participants still makes wine in Ningxia, as a consultant. But their influence is still being felt.

Most significantly, at least to me, these 48 pioneers showed what a striking range of unique wines could be made from one vineyard and thus undermined the notion of some fixed “Bordeaux recipe” that could be followed for all of Ningxia. 


PRC x OIV

Then: Word came in February of 2012 that Ningxia would be the first province / region in China to join the International Organisation of Vine and Wine as an observer. (Yantai in Shandong province was an observer at the municipal level.)

A key motivation was improving wine quality via access to winery management, wine-making and wine standards info. 

Now: China joined the OIV last week as a full-fledged member. It felt like the end of a 37-year vintage, starting in 1987 with Yantai becoming an OIV “International City of Vine and Wine” and including Ningxia joining as an observer, one that resulted in dozens of forums, trade fairs and projects involving China and the OIV, and fact-finding missions to everywhere from France to Argentina to New Zealand. Let’s see if there is a Chinese OIV president in the future.


The Good Old Days

Then: For many years, the Hilton Wine & Food Experience was the vinous highlight of the year in Beijing. Two floors of wines from every corner of the world, tastings and classes in the side rooms, live music, and plenty of food, whether it be free samples or a full buffet. Made possible by the dedication of Hilton team members like Chris Roberts, Simon Amos and Emile Otte.

I loved this event so much that I partnered with Hilton for Grape Wall contests. In 2012, I asked readers to create celebrity wines–Lady GaGamay, Syrah Elton John, Shaqteau O’Neal and so on–with the top prize a stay in the presidential suite on the night of the fair.

[I made a mistake in the newsletter. The celebrity wine contest was 2010. In 2012, we did a “party of five” contest, with the presidential suite and buffet breakfast again up for grabs.]

I also helped organize an attempt by resident / sommelier Philip “Awesome-ton” Osenton to break the world record for holding wine glasses. He did break it, several times, ultimately holding 51 glasses in one hand.

“He isn’t human!” screamed someone on that Saturday afternoon. (It was me.)

Now: The Hilton event, first held more than 25 years ago with visiting guests like Tim Hanni and Miramar Torres, is a shadow of itself. Many former fans, who used to look forward to it each year, are unaware it is happening due to the light promotion. I’ve only known because distributors have called me the day before the event, or even the day of, to ask if I’m going.

I have indeed gone the past two years and found the event modestly attended and only a quarter of the size of its heyday. That’s not to say it isn’t worthwhile. At just RMB108 / USD15 to try hundreds of wines, with an especially strong focus on U.S. brands, it’s a good deal.

But compared to the good old days of a thousand-plus wines, of large crowds featuring every vino fan in town, of shenanigans one would talk about years later, it feels like something has been lost for nearly a decade now. And it feels especially sad given how many thriving festivals we have for craft beer, burgers, coffee, whisky, pizza and more–even agave spirits this year!–in Beijing.

I guess one good thing about wines is you can always drown your sorrows in them. I’ll confirm this soon. I just found out the Hilton Food & Wine Experience is later today.

[Update: Yep, as noted, good value for money and some fun people, but also a reminder of what Hilton Food & Wine Experience once meant for Beijing.]

Grape Wall has no sponsors of advertisers: if you find the content and projects like World Marselan Day worthwhile, please help cover the costs via PayPal, WeChat or Alipay.

Sign up for the free Grape Wall newsletter here. Follow Grape Wall on LinkedIn, Instagram, Facebook and Twitter. And contact Grape Wall via grapewallofchina (at) gmail.com.

Be the first to comment

Leave a Reply