Author Archives: boyce

Long Dai and prosper? |On Lafite’s new Chinese winery name

Iconic Bordeaux producer DBR Lafite just announced the name of its Shandong-based winery, a decade after the project began. I wrote this piece for Wine Searcher about what Lafite and that winery mean for China. Here are a few points about the name that didn’t make the cut.

Lafite’s China winery is named Long Dai. Yes, it sounds like Long Die.

The name is inspired by Taishan, a sacred peak in Shandong province, home of the winery. And represents “an idealized mountain that rose through the power of nature and was then carefully chiseled by human hands.” High-level stuff.

But the first reaction of a Chinese friend, and wine trade veteran, was of surprise.

She immediately associated Long Dai with Dynasty, the big China wine producer. We have both heard people label wines from Dynasty as “Die Nasty“.

Whether or not that is fair is besides the point. (See here for medals won by Dynasty in contests.) The point is a name can open the door for a joke, especially when the key has been turned by somebody else.

(I’m not sure what would happen if you blended Dynasty and Long Dai. They say that life is “nasty, brutish and short”. In that case, it might end up nasty, Cru-tish and with a short finish?)

Anyway, I have a PR solution. Because I assure you, my friend won’t be the last to make this association.

Long Dai / Lafite is in Qiu Shan Valley and close to the myths of Penglai Mountain—said to be home of The Eight Immortals.

“According to the ancient text [Mountains and Seas], Penglai Mountain was an isle of eternal summer in the Bohai Sea, where wine glasses refilled themselves and magic fruits granted everlasting youth,” states state media China Daily.

Self-refilling wine glasses? How appropriate. Sign me up for that club.

With this intriguing back story, “Long Die” can simply be a terse way of proclaiming “immortality”. Or at least “longevity”. Made possible simply by guzzling Lafite wine.

In short: Long Dai –> Long Die –> Live Long –> Immortal.

No need to pay for this advice, Lafite. A six-pack of Long Dai is enough. I will use it for a special Long ‘Die Hard’ movie night with my friends. We can enjoy action movie antics and live forever — or for at least for a very Long time.

And if there is any wine left, then we’ll switch to Star Trek. And ganbei each time Spock says “Live Long (Dai) and prosper.”

Long Dai | Lafite names its Shandong winery

By Jim Boyce | Ten years after it started. Lafite finally named its project in Shandong: Long Dai. The wines are slated to go on sale in September and be delivered in November. I wrote about the name—pronounced as Long Die—here. And a much longer piece for Wine Searcher here.

That longer piece includes quite a bit about how the China market has changed during the past decade. From the early days of generous state-owned enterprise entertainment accounts, which covered top wines, to today’s scene where the austerity campaign is largely in force. From quality local wines being few and far between to there being dozens of operations making worthy wines. From Lafite being the most faked brand to, well, not much has changed except Penfolds has risen to be a challenger for that title. Etc.

In general, it’s not 2009 any more and Long Dai isn’t your uncle’s Lafite.

Anyway, you can find more on that, some of the challenges of making wine in Shandong and some early reviews of the wine here.

From ASC to DFC | Richard Li new president of two boutique Chinese wineries

By Jim Boyce | Richard Li has joined the boutique wineries Domaine Franco-Chinois and Canaan in Hebei province as president after a 17-year stint with ASC Fine Wines. Li joined ASC in 2002 when it was run by co-founders Don St Pierre Sr and Don St Pierre Jr, and stayed on board after Suntory bought a majority share in 2009. As ASC vice president, his portfolio included brand marketing, supply chain management and open-market fine wines. In a staff announcement, CEO Yoshi Shibuya stated that Li will remain involved with ASC as an adviser to both it and Suntory Group.

Domaine Franco-Chinois (DFC) and Canaan are neighboring projects based just outside of Beijing. They are owned by Cher Wang, prominent in IT business circles, with Tom Hsu overseeing the founding of Canaan in 2006 and acquisition of DFC in 2010. DFC originally began as a joint Chinese-French scientific project in 1999, with China providing land and France providing vines and technology. DFC and Canaan wines are not yet commercially available but have received good reviews from critics and are set to create a splash once released.

An obvious question is who will distribute those wines. No doubt, given Li’s connection, there will be much speculation about ASC. It already works with Shanxi winery Grace Vineyard, which signed in late 2016 after over a dozen years with Torres China, and which is arguably the country’s biggest fine wine success story. Combining Grace’s rounded portfolio, including four sparkling wines and varieties like Aglianico, with the already well-received wines of DFC and Canaan would make for an impressive one-two punch.

More to come on this project soon.

“If they don’t care, we also don’t care” | Simon Su on Chinese tariffs, US wines

Shanghai-based Simon Su has imported Santa Barbara brands Dierberg and Star Lane for nearly a decade—and has a lot to say about the three Chinese tariffs levied on U.S. wines these past 15 months. I included his key points in this Wine Searcher story and posted an extended version of his comments below.

On the trio of tariffs

“With the first and second tariffs, some wineries provided discounts to help importers survive. That was okay, especially for fine wine. But for the third tariff, effective June 1, this is very serious.”

“This means if the importers don’t increase prices now, they will make zero money. You can calculate the total of the three tariffs. Importers in China have no room to make money at all if they focus on wholesale.”

[This is based on importers selling wine at ~50 percent over the cost of buying the wine, shipping, Customs et al. Tariff hikes of 15, 15 and 10 percent essentially consume that.]

On different kinds of clients

Su says 30 percent of his sales are to upscale restaurants and five-star hotels. “For this portion, we cannot increase the price, so we just break even. We continue to sell but we don’t make any money. Strategically, we want to keep this customer base. Hopefully, we can withstand this situation for one year or two. Hopefully we can see improvement and progress between [US President Donald] Trump and [China President] Xi [Jinping].”

Fifty percent of Su’s clients are private. A typical one is a factory owner who needs wine to entertain guests and has bought from Su for years. “He’s very loyal to one brand, he doesn’t want to change to another region, I have a lot of these customers. We will increase our prices 15 percent, which is the same percentage as the third tariff. Since most of our clients know the quality of our wines, it makes sense. We just add 15 percent. We told them if the trade war ends, we will decrease this. Normally all of them can accept this. That’s how we can survive and make some slight profit. These sales subsidize the 30 percent of clients where we break even or lose money.”

Finally, 20 percent of Su’s sales are via distributors around the country. “Right now, we lost almost all of them. They don’t want to increase costs and it’s harder to sell American wine.” He cites two reasons. “First, their customers know American wine is not competitive now. Second, people have a mood, they think Trump made trouble for China, and they don’t want to buy that commodity.”

On downsizing

“Some importers are considering shipping less than a container. So, one pallet or two pallets, instead of a full container. If they still need to shift some wine to China, that’s what they are considering.”

On wine smuggled from duty-free Hong Kong

“Without a Chinese back label, you can’t sell it in a restaurant or hotel. And the people who help bring this wine into China will charge 20 to 50 percent as labor cost, so it’s not cheap at all. If you want to take Lafite or Burgundy Grand Cru [for private customers], it might be worth doing so, but if you want to sell it in a restaurant or market to compete with other legally imported wines, you shouldn’t do it.”

On his overall sentiment

“I’m not optimistic. I don’t think the trade war is just about the trade imbalance, It’s related to politics and the military and I think it will last a very long time. Probably there will some commodities with temporary [tariff] decreases, but long-term developments will not be easy.” And if it does last a long time, and the U.S. doesn’t come to an agreement with China?

“If they don’t care, we also don’t care. If someday we aren’t making any money, then we will find another country’s wine.”

Read the full Wine Searcher piece here.

Rogue rouge | Bordeaux with a traditional twist for Beijing

If you spend time in some more mature markets, you realize there is a big trend of people looking for lighter reds, for chilled reds, for something easier to drink. Clairet is a really traditional wine, but when I show it in Australia or the UK, it’s also a hipster wine. – Helene Ponty

By Jim Boyce | Six weeks ago, I talked to a pair of China-based owners of Bordeaux wineries about the state of the market here. Mostly concerns about France’s and Bordeaux’s positions, given their declining share in a market that is hitting road bumps.

Much of Bordeaux’s share remains highly linked to status buying, that is, to gift-giving and entertaining. And the region faces fierce competition for that growing niche of enthusiasts who are curious about and enjoy wine, and are happy to explore. It’s no surprise those with a stake in Bordeaux wonder about how to reinvigorate their region and story.

Enter rose.

“There’s been a huge push by CIVB and other government bodies for all the [Bordeaux] winemakers to make rose because they see how it’s booming and people are talking about it,” says Helene Ponty of family-owned Canon-Fronsac winery Ponty, about which I have written several times.

But Ponty sees the approach as misguided, mostly because Bordeaux isn’t associated with the type of rose that has become so popular. She does, however, see a tempting alternative.

Enter Clairet.

“We have this darker rose, Clairet, and it’s really traditional,” says Ponty, who recently imported her family’s version to China.

By traditional, she means it harks back to when Bordeaux in the Middle Ages was under English control and the wines were much lighter than the inkier reds we find today. (Read more about Clairet and its history here, here and here.)

Now that’s a good story. Even better, it fits a niche.

“Younger crowds are seeking something fresh and easier to drink. They are the kind of people who don’t drink Bordeaux,” she says. In fact, she says they are surprised to learn of the wine’s origins.

“It’s a way for us to reintroduce people to Bordeaux.”

The vivid color of Clairet comes from a longer maceration of the skin with the juice of the grapes, Merlot in Ponty’s case. I recently tried some at Tiens Tiens in Beijing. Plenty of floral and berry aromas, notably strawberry, and a body that is heavier, richer and drier than most roses I’ve tried, but pleasantly fresh and fruity.”

“It’s a good mix of tradition and innovation,” says Ponty. Will it work here in China? She says that is still to be seen.

“In China, it’s a little trickier, and we’re still wondering how to market it here.”

At the very least, she will no doubt have more people talking about Bordeaux.

If you are in China and want to get some, there is a buy two, get one free deal until June 24. Check it out here. There is also a launch party on June 21 with free-flow cocktails, sangria and snacks, plus Ponty’s brother making a Beijing visit to DJ. Buy tickets here.

Six and the Cities | Italy tries to boost China share with wine roadshow

By Jim Boyce | Italy ranks with France and Spain as the world’s biggest wine exporters but it’s performance in China has been così così (so so) at best. It trails front-runners France and Australia, and has struggled to generate momentum, despite spending plenty of money.

A roadshow that taps into smaller cities hopes to change that story and boost the country’s share of bottled imported wine from 6 percent.

“It’s an important moment for consumers of Italian wine in China,” said Simone Incontro, the Greater China GM for Veronafiere, over lunch this month.

The four-city roadshow isn’t just hitting tried-and-true destinations like Beijing and Guangzhou — Xian and Zhengzhou are both on the map.

“Nationally, Italy has a 6 percent share (of imported wine), but in non-first tier cities it is less,” says Incontro.

He cites evidence of the enthusiasm in smaller cities by noting that 360 people in Xian had already registered to attend as of May 28.

Those guests will be able to try more than 500 wines from 50 exhibitors, including brands from Piedmont, Puglia, Sicily, Tuscany and Veneto.

If this sounds like projects done by Wines of Australia and Wines of Chile, among others, that’s no mistake. Incontro gives them credit for providing a road map.

He also says data helped determine the first stops. One example is the VinItaly website.

“We can see where traffic from China originates, and the top three are Beijing, Zhengzhou and Shanghai.”

As far as trends in China, Incontro says he hopes Lambrusco will be “the next big thing” and that more white wines from Italy gain prominence.

He says that while e-commerce and education are on everyone’s tongue, the situation is a bit more complicated, at least for Italy.

E-commerce is largely tied to big groups like Alibaba, Taobao and jd.com but Incontro says small- and medium-sized importers are crucial players.

“These importers believe in Italian wine, we learn from them, they are the ones bringing in the containers.”

As for wine education, he notes it is widespread, with many countries and regions offering certificates. Italy alone has a slew of programs, from the ONAV (National Organization of Wine Tasters) and AIS (Italian Sommelier Association) to Taste of Italy and VinItaly International.

But he cautions against focusing too much on this.

“Education is important, but Italian wine is complicated. If we give them [consumers] too much, they’re just going to drink more Riesling instead,” he says.

Instead, he says its important to also focus on the experience, to simply give people access to Italian wines in a fun setting.

“People want to meet the winemakers, they want to want to try the wines and touch the bottles, they want to get them signed.”

The roadshow is headed by VinItaly and VeronaFiere, with support from Pacco Communications, Italian Trade Agency and I Love Italian Wines.

See more about the roadshow, including the schedule, RSVP info and a list of exhibitors here.

China wine bar identity | Isabella Ko of The Merchants

By Jim Boyce | The Merchants, a wine bar, cafe and gallery space near the National Art Museum in Beijing, opened late last year and offers intriguing tasting events, eclectic by-the-glass options from Opus One to natural wine from Ningxia, and creative food menus.

I interviewed founder Isabella Ko for an upcoming story in Meininger’s Wine Business International. As is often the case with print media, I could only use a small portion of the comments so I’ll post bonus excerpts here. I’ve been to The Merchants four times and will cover those visits with a separate post.

Why The Merchants opened in Beijing and not Shanghai or Guangzhou:

“We live here, we know this city, and we have a business base from being wine merchants here,” says Ko.

“I always think the most successful and scale-able lifestyle businesses will be started in any other city than Shanghai. Shanghai is the most mature market for food and beverage, mostly because it is the most international. No matter how niche your product, it will have enough of an audience to support it.”

“However, a lot of food and beverage businesses that succeed in Shanghai cannot be opened successfully elsewhere in mainland China. Because the market in Shanghai only represents the top 5 to 10 percent of consumers, but not the rest of the country.”

“A good lifestyle business should temper itself with the mass market first in other cities, and it will also succeed in Shanghai.”

“We will open in Shanghai next year after Beijing is more settled.”

The consumer focus of The Merchants:

“We target the young crowd of Chinese millennials who have the ability to consume, who are willing to consume, who value experience. [They] might not save their salary to buy an apartment like the parents–it’s too expensive, anyway–but they might spend 1000 rmb (USD150) trying a one-hour ultimate spa.”

The wine selection:

“We offer a curated short list of 30 to 50 kinds of fine wines and boutique wines by the glass, 80 percent of them are ranked more than 90 points by international critics. Our wine list changes every month, so guests can taste anything from 65 rmb per glass to 1000 rmb per glass, which would enable you to try a great vintage of Lafite or old vintage of Leroy.”

How Beijing and China compare to other places:

“I went to London and I think we are in a very special period of the China wine trade. There you either have trendy wine bars with strong natural wine focus in East London, like Sager and Wilde, or you have prestige wine clubs like 67 Pall Mall, with a super fine wine selection. But they do not overlap. Because the market is very niche.”

“But here in China, it’s a time that we can combine both. For example, Opus One president [David Pearson] came to host master classes for us when we just opened and we also had pioneer natural wine makers from South Africa [Silweris] do a tasting. Since the China market has only been opened up for wine for last 10 to 20 years, there is still a lot to do.”

On establishing a wine bar brand identity:

“For us, it’s all about providing the best possible experience. What exactly are you trying to do? And why?”

“When you think of coffee, you think of “Starbucks”, or “Blue Bottle”, or many other brands that represent a philosophy and style. But when you think of wine, where to drink it? There isn’t a brand that defines “wine bar.””

“In Europe, the U.S. and Australia, there are a lot of nice wine bars that have their own character, but it might only be a solo shop on that corner of the street.”

“At The Merchants, we curate a display window installation every month for a winery, we change our first floor wine list every month with 30 to 50 listings, we use only Zalto glasses and Coravin in serving, we invite artists to curate an exhibition every season that is related to wine. All we try to do is define a standard for a place to enjoy wine, learn more about wine and to make friends that enjoys the same kind of fun.”

Learn more about The Merchants here.

Vintech | Pairing wine culture and high-tech in Beijing

By Jim Boyce | Wine and technology were paired last Friday at ZPark in Beijing’s Haidian District, home of the city’s high-tech Zhongguancun hub.

Mia Zhang, host of the two-hour session. opened by telling us Haidian is not only a leading technology center but also has the highest income per capita in the city.

Zhang, a consultant for Beijing International Wine & Spirit Exchange, then wondered about the prospects for wine culture to grow among this educated and well-off population, as happened with Silicon Valley, especially given the rising quality of wineries in Beijing and neighboring Hebei province.

The afternoon’s first panel focused on how technology is transforming the wine industry.

Pierre-Marie David of Berryfield noted the use of satellite data for soil analysis, digital sorting tables to maximize grape quality, and tech that helps monitor fruit ripeness.

Laura Mihaela Teodorescu of Shanghai Lanlin Funds picked up on this theme and said such soil analysis helped the wine industry in her home country of Romania decide where to plant incoming grape varieties.

Jelte Ansgar Wingender of Startup Grind said blockchain technology can help guarantee wine authenticity and also discussed some issues surrounding machine learning.

A second panel looked at wine consumers in China.

CHEERS wine shop chain founder Claudia Masueger said three themes of the wine scene were fast growth, a rise in consumer curiosity and the widespread use of technology.

“The end consumer has more choices and more precise ways to buy now,” she said, comparing the scene to a decade past when we saw more fake wine, fewer brand choices, and widespread problems with wine storage.

Mina Yan, founder of Hype Asia Communications said that a decade ago, people were always talking about “educating the locals.”

“We see much less of that now because the middle class knows wine and food,” said Yan. “It’s more about quality now.”

She also said that whether restaurants love it or hate it, people are going to take food photos and post them on social media, so it is best to embrace that reality and think about how to best present products.

Evgeniya Melnichikhina of Cordiniu said one key factor, in a highly competitive market, is simply to get your product into people’s mouths.

“People like products they’ve tried or that are recommended by friends,” she said. “If we can get them to taste it, then there is a chance of building loyalty.”

The session wrapped up with a look at the prospects for Marselan to be “China’s grape”, and help raise the country’s profile, as Malbec did for Argentina and Sauvignon Blanc for New Zealand.

I talked, with translation by Fiona Ruan, about how Marselan got its start in France, made its way to China, spread across the nation, and has been racking up medals and good reviews. Also, unlike with Chinese Cabernet, which brings comparisons to Bordeaux, Marselan is a relatively new and unknown grape, and thus gives Chinese winemakers lots of flexibility to do their own thing.

We then tried four Marselans. The first three had received gold medals from the annual wine contest Concours Mondial:

  • Amethyst Classic Marselan 2017 (Hebei)
  • Lanxuan Marselan2017 (Ningxia)
  • Martin Marselan 2016 (Hebei)

The last one, Domaine Franco Chinois Marselan 2014, came from the first operation to use this grape in China. Before becoming a private entity, it was known as Sino-French Demonstration Vineyard, a joint China-France project in the Huailai area of Hebei province , and is generally known as Zhong Fa.

The session was part of a weekend of events, that includes a food festival, a tasting of CHEERS wines, some high-tech displays, and more. Here are a few photos.

Selling U.S. wine in China? Try pairing it with a burger festival

By Jim Boyce | I often hear how it’s hard to connect the amazing wines of [country name] to consumers in China. How do we reach all those young adventurous people out there who might give our wines a try, is a common sentiment .

This holds true for U.S. wines. Yes, the current trade dispute with China has put a damper on sales. But the numbers were far from spectacular the preceding seven years.

Anyway, I attended today’s press conference for The Beijinger magazine’s annual Burger Festival. This two-day festival attracts 14,000-plus paying attendees, who enjoy music and games and feast at 50 booths featuring burgers, craft beer, and more. The GM of The Beijinger said over 90% of attendees are aged 21 to 39, 75% are Chinese citizens and 25% expats, and they spent ~2.6 million rmb at last year’s event.

These survey stats from the last festival stuck out: “55% [said] I changed my opinion of my favorite burger” and “78% of visitors purchased a vendor’s product / service as a result of hearing of them via the festival.”

That sounds like a good chance to reach young adventurous consumers interested in foreign drink and food, and with a reasonable amount of disposable income, all in a fun environment.

There’s more. This year’s event, June 22-23, has a U.S. theme: Route 66.

Also, along with bands, DJs and activities, the main stage will feature a singing contest–this was very popular last time.

When I mentioned U.S. wine to the organizers today, one proposed idea was to find a California wine sponsor and focus that song contest on entries with the state’s name in their titles: California Gurls (Katy Perry & Snoop Dogg), Hotel California (Eagles), California Dreamin’ (The Mamas & The Papas), etc.

Will we see U.S. wines at this event? Who knows. Last year, sibling event The Pizza Festival had an Italian theme. It also had a dearth of wine from that country, despite the woeful numbers for Italian wine in China amid those common queries of how to reach consumers.

If anyone is interested, let me know via beijingboyce (at) yahoo.com). I’ll connect you to the The Beijinger and you can take it from there.

Finally, here are some photos from the most recent Beijinger festival, the Hot & Spicy one, to give an idea of what’s involved: the fun starts around noon each day and continues until after sunset. You can also click here for coverage and photos of the 2017 Burger Festival, which I attended and which was fun.

Last call (for now) | Pudao Wines to close in Beijing

Pudao Wines is closing its Beijing branch nearly ten years to the day the company launched its first shop in Shanghai.

The store will close June 2 (see details below), which justifies extra drinking for members with credit on their enomatic machine cards. Those with credit after June 2 can redeem it for event fees or wine deliveries.

Beijing’s branch of Pudao opened in 2011 in The Office Park. A mix of wine shop and bar, it has lounge areas, a patio, about 500 different wines, and those enomatic machines with 20 options rotated monthly, giving members the chance to try a sip before splurging on a glass or bottle.

Craig Aldous, CEO of importer and distributor Summergate Fine Wines & Spirits, which owns Pudao, states the store is closing due to the expiration on the lease.

“While for a period we will not have a physical store location in Beijing, we are still fully committed to delivering great wines and service to our members and customers,” he writes, and adds that Jim Yang and Alex Caillard will continue to serve Pudao customers.

“Beyond delivering great sales service, we are also committed to continuing to deliver best-in-class events on a regular basis at various venues around Beijing”, writes Aldous.

Those include a Parker Coonawarra master class by Dale Wyman on June 1, from 3 PM to 5 PM, and a store farewell party on June 2, from noon to 9 PM. Also planned: an All in New Zealand event on June 15, a cigar and drinks event by Jennifer Docherty on June 29 and a Clarendon Hills master class by Alex Bratasiuk on July 5, with times and venues to be announced.

Also: “We will be honouring the Enomatic tasting machine credit registered at the Beijing store, which we will allow to be used for the purchase of wine for delivery, or for tickets to our upcoming tasting and dinner events.” The credits should be used by September 30.

It’s sad news about the closing but it’s good that Pudao fans have ample time to get over for some final glasses. I was there this afternoon and they have some nice Rieslings, among other wines, in the machines and on sale. Here’s hoping we see a new Pudao shop soon!