Author Archives: boyce

China Wine Press: Australia exports up, Kendall-Jackson’s new partner, Georgia’s new wine center

All the wine world’s a stage and China keeps getting bigger roles. Some press coverage of that drama. By J. Boyce


china grape press wine australia export figures 2015 in abc rural

Australia has just seen its highest export sales in a decade, reaching 2.1 billion dollars in 2015, and China played a strong role in that rise, reports ABC here:

[Wine Australia] chief executive Andreas Clark said while the United States remained Australia’s largest market, exports to China experienced the greatest growth.

China was up 66 per cent, for a total value of $370 million of exports,” he said.

Hong Kong was up 22 per cent, up to $172 million.

ABC also reported that Anne Ruston, Assistant Agriculture Minister, stated the growth came before passing of the recent China-Australia free trade agreement:

“The fact that Australia’s strongest export growth was recorded in to China, and the new ChAFTA effects are not yet reflective in Wine Australia’s figures really does indicate that we are in the midst of yet another boost in market optimism,” she said in a statement.

“Under ChAFTA, the tariff on bulk has already reduced from 20 per cent to 12 per cent, and the tariff on bottled wine has reduced from 14 per cent to 8.4 per cent.”

Not mentioned by ABC, but pointed out by Philip White in this In Daily post called “The truth behind the latest wine export figures”, is how a weak Australian dollar helped. I dug up the last two years of CNY-AUD exchange rates and the visual is striking:

White breaks down the export numbers in more detail, and looks at the role played by premium brands, in a semi-rant that is well worth reading. Check it out here.


Georgia, with thousands of years of wine-making history under its belt, is about to open its newest wine center in China, says Tbilsi-based site Agenda:

Georgia’s Agriculture Ministry announced the wine centre will be opened in February this year in China’s province Jiangxi where about 30 million people live. A Georgian wine centre will cover 4,000 sq.m. territory where will be placed wine-testing and exhibition halls, museum, Georgian restaurant, etc. This will be the fifth Georgian wine centre to be opened in China.

Agenda notes that Georgia has opened venues in Beijing, in Zhejiang province and in the Xinjiang region. Georgia has also been active at recent trade fairs in China.


Kendall-Jackson has turned a new leaf in China by switching importers. One month after ASC Fine Wines announced, in this terse statement, its parting with Jackson Family Wines, competitor Summergate, which seems to have been buoyed after being acquired by Woolworths just over a year ago, announced it has partnered with this well-known California operation. From this Summergate press release:

After several months of discussions and joint planning, Summergate and Jackson Family Wines (JFW) today announced a successful multi-year partnership for the Greater China market for Kendall-Jackson wines. Effective immediately Summergate has been appointed the sole importer and distributor for this iconic American wine producer across the region – Hong Kong, Macau, and Mainland China. Summergate expects to have Kendall-Jackson wines available in all major cities across Mainland China in the Spring of 2016, and even sooner in Hong Kong and Macau.

Summergate also lists the U.S. brands Black Stallion, Brazin, Delicato, Gnarly Head, Ingelnook, Irony, J. Christopher, Kistler, Ridge, Tablas Creek and Woodhaven.


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Meet the NWC winemakers | Nova Cadamatre of The United States

Nova Cadamatre (front, center) and fellow Ningxia Winemakers Challenge contestants.

Nova Cadamatre of The United States is one of 48 candidates from 18 nations participating in the two-year Ningxia Winemakers Challenge (NWC) that started in September of 2015 and pairs foreign winemakers with local wineries. She is director of winemaking for Constellation at Canandaigua Winery in New York State, has worked at Robert Mondavi, Souverain, Beringer Knights Valley and Chateau St. Jean, and writes about her experiences here. This Q&A focuses on her first visit to Ningxia last September.

What was your travel route to Ningxia?

I traveled from Rochester to Chicago then Chicago to Beijing and Beijing to Yinchuan. The individual flights were 1.5 hours to Chicago, 13 hours to Beijing, and 2 hours to Ningxia, not counting layover time which was significant.

The winery partners for NWC range from big producers to boutique operations, the accommodations span the capital of Yinchuan to more than 100 km away, and the equipment varies from place to place. How is your winery partner and situation?

Lansai is great! It is such a beautiful winery. It is small by Ningxia standards but brand new so there is lots of great equipment and I was able to find everything I needed to make the wine. The winery owners are extremely friendly and I feel we have a great partnership. I stayed at the winery, which is about 40 minutes from Yinchuan, so we could get to the city quite quickly.

Each winemaker had three hectares of grapes to use. What was your fruit quality like? Given persistent worries of rain, when did you decide to harvest?

I would say my fruit quality was average from what I’ve seen in my career. I was quite lucky that I didn’t have any disease issues in my block but fruit shading was a big issue as was uneven ripening. I did pick on the early side before the rain. If I’ve learned anything from my 13 years of winemaking it is that it is always better to pick pre-rain.

We were quite strict in sorting and sorted out a little over a ton of fruit of the 15 that we received. That level of selection really contributed to the quality of the wine and the team was so amazing! It was definitely the most detail-oriented sorting crew I’ve ever worked with. It took 18 hours to sort 15 tons!

What do you consider the biggest short-term and long-term challenges for Ningxia?

The biggest short-term challenge seems to be winemaking knowledge. It’s a relatively young winemaking region and some things can only be learned from experience. Some of the wines I tasted there had minor issues that could easily be fixed through winemaking intervention.

The fruit quality from the vineyard we got was surprisingly good considering how the vineyard looked and I was extremely impressed with the quality of fruit from the vineyards where they had the vines on VSP [vertical shoot positioned trellising] and leaf pulled to let the fruit be exposed to sunlight and air flow.

Another short term challenge is what to do with all the saignee rose wine that results from making high-quality Cabernet. I don’t think I spoke with a single winemaker who didn’t have some level of saignee, or bleeding off of juice after crushing. It would be good to foster a taste for rose in the region and beyond so that these wines don’t go to waste and can be enjoyed on their own merits.

The biggest long-term challenge is going to be having the rest of the winemaking world acknowledge that Ningxia has good quality wines. Until the entire region brings consistent quality year after year this may be challenging. However, they are off to a good start with the recent press they have received both from the visits from the global trade and through this competition.

You’ve made wine everywhere from Napa to New York State, in places with very different climates. How did the Ningxia wine regions fit into that experience?

Ningxia is unique. The winters are cold like New York. The growing season is not as long as in Napa but they are longer than in New York. It seems like Cabernet is a good fit there based on what I have seen and tasted. I think the summers are probably too hot for Pinot Noir but perfect for Bordeaux varieties. The low humidity definitely helps but there is also the late season rain to be concerned with. It is not an easy region to grow vines but I think that the struggle is worthwhile.

Besides participating in NWC, did you experience any interesting foods or sights?

I was in and out pretty quickly during the harvest but I did get to experience some of Ningxia’s great food. I absolutely fell in love with the “Chinese pancakes” [葱油饼 | cōngyóubǐng] that our winery cook made out of eggs, flour, and green onions. I loved them so much that after I came home I found a recipe and now I make them at home for my family, too!

I also loved going shopping in the Drum Tower district. It had tons of carved Helan Mountain stones. I brought back many gifts for my family and friends and these carved stones made perfect gifts. I also got to witness Chinese negotiating at its finest while shopping.

Nova Cadamatre (white shirt) during a vineyard taping in Ningxia for China’s national broadcaster CCTV.


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(100) Grand Cru | I spotted this bottle of ’82 Lafite in Beijing last week…

By Jim Boyce | Saw this ’82 Lafite at Lufthansa Center in Beijing a few days ago. It was in a case with a few dozen other Lafite bottles from different vintages near the fancy packages of sea cucumbers and mushrooms that are priced higher than most people’s monthly rent.

That particular tag seems to date to about three years ago, before the government austerity campaign, when such bottles were far more popular and far easier to move. CNY99,480 translates to USD 15,100 or EUR 13,900, enough money to buy a fleet of scooters or easily pay a year’s rent in most parts of Beijing or enjoy about 1000 delicious lunches at most excellent mid-day spot Migas. (Saturday brunch is tasty there, too.)

When I posted the photo of that ’82 Lafite on social media app weixin, wine trade people cited the current price as between rmb20,000 and rmb40,000. One person, from one of the city’s top hotels, said its bar lists ’82 Lafite at rmb72,000.

Online, wine-searcher turns up a China listing with ’82 Lafite from rmb58,000.

Meanwhile, ASC, a major importer / distributor here, has bottles at rmb48,000:

Not surprisingly, given its duty-free environment and status as a wine hub, Hong Kong has it for far less:

But if you do find yourself in Lufthansa Center, itching for Bordeaux but with much less than rmb100,000 in your pocket, you can always try a less expensive option:


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Is Grace Vineyard the Yao Ming of China’s wine scene?

I was going through old Grape Wall newsletters (subscribe for free here), spotted a short piece called ‘Grace Vineyard is the Yao Ming of China wine from a year ago, and realized I never posted it to this site. Here it is, followed by a few comments:

“When Yao Ming became the top NBA draft pick in 2002, and then an all-star multiple times, many people hoped a steady flow of Chinese players would follow and find similar success. That hasn’t happened and China has so far been a one-shot wonder.”

“You could make a similar case for Grace Vineyard. Established in Shanxi in 1997, and with a first vintage in 2001, it quickly earned a reputation for quality and raised hopes others would soon catch up and join, if not surpass, it. More than a decade later, Grace remains the top quality producer in China.”

That’s the opening of an upcoming story in [a] trade magazine…. I don’t argue that we lack good made-in-China wine. We don’t. There are dozens of local operations that produce a decent drop.

What I argue is none come close to the overall performance of Grace. Most good wine in China is made in small quantities (thousands or tens of thousands of bottles), is pricey (often rmb500 and up) and is hard to find.

Grace, on the other hand, makes some two million bottles per year, has wines that start at rmb60, and sells nationwide via its mailing list, its own shops and its distribution partner Torres.

Grace plays the game on a different level. It doesn’t just have one or two wines but more than a dozen labels. It hasn’t endured just a few vintages but more than fifteen years. And it continuously experiments with everything from screw tops to new vineyards to grape varieties like Marsellan and Aglianico.

I’ve enjoyed wine from Kanaan (Ningxia), Bolongbao (Hebei) and Yuhuang (Ningxia) this year. I’ve included wines from Great River Hill (Shandong) and 1421 (Xinjiang) in tastings as they combine quality, value and availability. But during the past decade, no one but Grace has brought Yao Ming-level skill to the China wine game.

So, has this situation changed since I wrote that about a year ago?

We do see more good wines than ever in China, but they tend to come from vineyards focused almost entirely on Cabernet or Cabernet blends, and no one is near the diversity and creativity of Grace. Since a year ago, Grace has released not just one but four sparkling wines — a Cabernet Franc, a Chenin Blanc, and an entry-level and reserve Chardonnay — that are generally good and fairly priced. It has released that above-mentioned Aglianico, a commercial first for China as best I know, as well as a Syrah and Marsellan. And it has plenty of plans in motion, including for a Tempranillo and a Sauvignon Blanc. That’s on top of its regular portfolio. It’s a Yao Ming that’s added a few new moves to its game.

This isn’t to say Grace makes the best wine or wins every competition it enters or has the fanciest cellar or winery or packaging. What it means is Grace makes decent wines (a large range of them). It makes them accessible in terms of price and distribution. It excels in everything from creative marketing to innovative projects. And the result is what seems to be a practical and sustainable business model. (Making decent wine and making decent wine *and* a profit are very different things.) While the overall wine scene is improving by leaps and bounds, Grace Vineyard continues to be one to watch.


 

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Grape Wall projects | The China Wine Directory

By Jim Boyce,

One New Year’s resolution for 2016 is to finally, after years of procrastination, put together an online directory of some key players in the China wine scene. This project is just off the ground and includes categories for retailers (here), local producers (here), and importers and distributors (here), with more to come. It will include a mix of listings posted by companies (with that content indicated by quotation marks) and info and links provided by me. Check this work in progress here.

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Bottle Benevolence | Three Charity Wine Projects in Beijing

By Jim Boyce

I’ve spent much of the past three Novembers helping to organize a month-long charity project called Maovember. The idea is for small bars, restaurants and vendors to partner with their customers for good deeds, whether that means furnishing a reading room via The Library Project or, this past year’s goal, funding cataract surgeries for the elderly poor in rural China via Orbis. The “mao” refers to the money of that name — a tenth of one renminbi — and the idea small things lead to big results.

Three of this year’s events had a wine focus. The weather gets chilly about the time Maovember starts and few things are as warming as a hot mug of mulled wine. For the third straight year, wine shop chain CHEERS used this winter drink to support Maovember. In 2013, it served mulled wine from its Sanlitun shop on the campaign’s final day. In 2014, owner Claudia Masueger upped the effort to two stores over several weekends. This year, it went even further with a three-day mulled wine marathon at all 15 Beijing shops. The result: a rmb10,000 donation to Maovember.

Meanwhile, Cafe de la Poste tested wine aficionados’ palates with a blind tasting of French and Chinese wines. Each taster paid rmb100, which went to charity, to try four pairs of wine, each with a French and a Chinese pour. Tristan McQuest and Justin Barthelemy led the tasting and there was plenty of discussion and debate — and general agreement that picking wines with labels unseen is no easy task!

The French wines were provided by Cafe de la Poste while the Chinese wines were donated by East Meets West (Chateau Nine Peaks), Torres / Everwines (Grace Vineyard), 1421 Wines (1421) and Grape Wall of China (Kanaan). The evening, which included numerous rounds of “Office Basket-Bola“ (see here), raised rmb1664.8.

Finally, despite a rare snowfall in Beijing, there was a strong turnout for the ‘Mystery Wine Party‘ at the shop La Cava. The idea? Customers paid rmb100 and picked one of 50 gift-wrapped wines — each retailing from rmb120 to rmb2000 — then tore open the packaging to see what they got. All 50 bottles were snapped up in an hour. Given most people then opened their wines to drink, and share, it wasn’t surprising the event lasted well beyond it’s scheduled three hours.

The more sporting imbibers signed up for the Wine Flights Paper Airplane Race. Eleven contestants each paid rmb50 for a flight ticket, carefully designed their craft, then raced for glory–and a bottle of Charles Ellner Champagne–in the hallway outside La Cava. The Mystery Wine Party, airplane race and donation spittoon raised rmb6000.

The wines were donated by Randy Svendsen of 1421, Nick van Leeuwen and Ross Tan of Australian Natural, Jim Boyce of Grape Wall of China, Mariano Larrain of La Cava, Vicente Muedre of Le Sommelier International, Alberto Pascual of Pasion, Helene Ponty of Ponty, Edouard Simon of Seina and Mike Signorelli of Signature Wine Club.

For more info about Maovember, see the official website here. And if you’d like to get the free Grape Wall of China e-newsletter, sign up below.


Books | Karen MacNeil’s new ‘Wine Bible’ includes China section

Last year’s lone wine trip outside China was to California in October and it came just after the new edition of The Wine Bible by Karen MacNeil was released. A fellow traveler picked up a copy of this massive tome — it’s almost 1000 pages — and I checked to see if it had any China coverage.

Indeed, it does. There is an overview of the market, short entries on key provinces and regions that produce wine, and sidebars on topics like fake wine. Market watchers will quibble with some parts for being too simple or vague — such as the claim China is split between huge producers doing cheap wines and small ones doing expensive ones, or the list of easily recognizable white grapes planted that only names Chardonnay, Chenin Blanc and Semillon, even though Rieslings are far more prominent than the latter two — but the book nevertheless lets readers know that China has an increasingly important wine industry.

Media coverage of that industry has grown by leaps and bound over the past three to five years although English-language books about it are still relatively rare. Two recent ones are A Decent Bottle of Wine in China by Chris Ruffle, about his trials and tribulations in establishing Treaty Port Vineyard in Shandong, and Thirsty Dragon: China’s Lust for Bordeaux and the Threat to the World’s Best Wines by Suzanne Mustacich — reviews coming soon. Works like The World Atlas of Wine by Hugh Johnson and Jancis Robinson also have sections on China. I’ve created a books page here that includes these, and other wine books I like, and will update it as more become available.

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China wine distribution | CHEERS expands to eight cities, opens new office

In April, I wrote that wine importer / wholesaler CHEERS, which has more than a dozen shops in Beijing, would soon expand to Shanghai. The team, led by Claudia Masueger, has been on a role ever since and has now opened shops in six more cities — Chengdu, Dalian, Hangzhou, Lanzhou, Qiqihar and Shenzhen. While Masueger says the dream goal is 888 stores, reaching 50 shops over the next year is her more modest target.

The company has struck a chord, especially with younger drinkers, given the shops offer a colorful and upbeat vibe (the motto is “CHEERS makes you smile” and screens show fun CHEERS TV videos), activities (including free tastings and events like comedy nights) and inexpensive wines (starting at rmb28). CHEERS is working on wine recommendations categorized by mood and occasion and on more food options, such as cheese platters, and continues to sell a small range of spirits as well as beer from Yunan operation Shangri-la Brewing.

CHEERS also recently expanded its office, which includes a demo store, and marked the occasion with a party earlier this month that included giving away a trip to Switzerland, Masueger’s homeland, to the winner of the company’s photo contest. There’s a lot going on with the company, which I wrote about in early 2014 for Wine Business International — more details here — and it will be “one to watch” in 2016.

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The Italian Job | Rory Quirk of CruItaly’s wine strategy in China

By Jim Boyce

Three years ago, IT company Xiao Fu Ecommerce Group saw an opportunity to promote not only wines but also coffee, fashion, home furnishings and other products from Italy. The result was CruItaly, which handles brands such as Tasi, San Leonardo and Feudi Di San Gregorio via both physical and online shops.

As part of a Wine Business International story I wrote this year on niche importers and retailers in China, I interviewed Rory Quirk, the managing director of Xiao Fu and CruItaly. I’ve included the full interview below. To get details on all of the niche retailers covered, see the Wine Business International story at this link.

How did CruItaly originate?

We started CruItaly almost three years ago as an Italian lifestyle platform to import wine, coffee and designer furniture and to partner with other players in the areas of gourmet and fashion products. We were already purchasing a lot of wine for corporate use, around rmb10 million per year, and importing directly allowed us to save a significant amount of money there, too.

How do you sell the wines?

Our main goal is to develop an online sales platform supported by our retail outlets. We have a mobile application, an e-an commerce store, a WeChat store, and soon will be opening a T-Mall flagship store. [Tmall is a business-to-consumer site while WeChat is China’s most popular social media app.] We also have an Italian Center in Beijing and others under construction in Shanghai [opened last Friday in the Hongqiao Xintiandi area], Guangzhou and Chongqing.

Who is the key target for online and shop sales?

The key clients for online sales are younger Chinese consumers interested in quality wines for a low price. That will also be the focus when our T-Mall store opens. We have a large portfolio of wines from south Italy, including Sicily and Puglia, that fit this price range. Our retail shops allow us to develop both new wine drinkers as well as private clients.

For private clients, personal service is more important considering they purchase higher-end wines, so having the shop is very helpful. We also host weekly events in an effort to develop new consumers into wine enthusiasts that are more likely to support our online business as it develops in the future.

So if a consumer enters our shop and enjoys the wine, they can add us on WeChat or download our mobile application to purchase more wines that we can deliver. It is a combination of good products and convenient service.

How are the wines chosen?

That’s an interesting story. When we were setting up CruItaly, my business partner, Luca Cavallari, first approached Tenuta San Leonardo owner Anselmo Gonzaga about joining our wine portfolio as the flagship winery brand. Not only did Anselmo agree to join us, but he also helped us develop the rest of our wine portfolio with high-quality boutique producers. Through his network we were able to partner with fantastic producers from each major wine producing region of Italy. So we have to thank him for our portfolio of high quality wines.

How important is it to link wines sales with Italian coffee, food and other products?

Very important. That is why if you visit cruitaly.com you will see we have five category sections: design, wine, gourmet, travel and lifestyle. Our mission is to educate and inspire consumers about all aspects of the Italian lifestyle. We know if we promote wine on its own, it will be tough. This is our way of differentiating ourselves from the competitive market place.

Italy lags far behind France, with less than a fifth as much China market share, despite the widespread popularity of Italian food. How do you deal with this issue?

It is not just Italian food that is popular in China. Italian cars, fashion and design are also very successful here. It doesn’t make sense that Italian wine is not more popular. This is a major reason we decided to start CruItaly: we saw a large market opportunity to increase Italian wine sales in the Chinese market. Chinese consumers are ready to experience all of the different grape varieties of Italy.

As I mentioned before, we position ourselves as an Italian lifestyle platform. There is too much good wine being produced around the world right now to just sell wine products on their own. Our goal is to connect the wine with Italy’s beautiful lifestyle and to inspire more Chinese consumers to enjoy life in a different way.

Guests at the Beijing Italian Center opening in May.

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Swag time: The best wine freebie

Go to enough wine tastings, press conferences, trade fairs and winery tours and you will end up with a closet worth of openers, notebooks, lapel pins, towels, cork-shaped USB keys, T-shirts, bookmarks, baseball caps, grape bunch-shaped fridge magnets, and on and on and on. No doubt, much of this material will be carefully curated and passed through the generations of those who received it. But some is of immediate usefulness. The textbook example is this Sonoma County bag:

I received this bag in the May of 2013 during a visit to Sonoma County. The bags were sourced by Sophie Jump of Jumpstart Solutions when she worked with Sonoma County Vintners to bring a group of wine trade people from Beijing, Shanghai and Macau stateside. I don’t believe any amount of writing I could do would promote Sonoma as much as this bag.

First, it works perfectly as a carry on, able to neatly fit my laptop, a few books, lots of ear plugs, an extra pair of socks, and any other items crucial to a 12-hour flight. It has slots for pens and phones, a clip for keys, pouches that zip up tight, and flexible holders at the end that can fit small water bottles. It is equally useful — when packed with notebooks, an extra battery pack, some snacks and more — while traipsing around vineyards. So, what’s my point?

This bag has visited places like Mendoza, San Jose and Salta in Argentina, Stellenbosch in South Africa, Xinjiang, Ningxia, Shanxi, Hebei and Shandong in China and, earlier this year on a return trip to California, Sonoma, Napa, Lodi and Livermore. It almost always elicits a comment about Sonona that ends up with anecdotes about the wonderful Rockpile Zinfandels or the delicious Sonoma Valley Chardonnays or the incredible diversity of this relatively small county, anecdotes that would not likely have arisen in Capetown, Stellenbosch or Yinchuan if I was not carrying that bag.

It’s equally useful in Beijing, whether stuffed with up to six full bottles of wine en route to a tasting of with six half-full ones post-tasting to be shared with friends at a local bar or restaurant. Nothing makes people organizing tastings of wines from Napa, Barossa, Mendoza or leading regions happier than someone in the front row plunking down a Sonoma County bag in full view. (Did I mention that Sonoma offers to much diversity in contrast to many other well-known regions?)

It can also fit all of the score sheets, pencils, clipboards and the other materials needed for our annual Grape Wall Challenges. And it has made hundreds of shopping trips in Beijing, where it has been stuffed with everything from potatoes and tomatoes and walnuts and bayberries, brought to the city daily by farmers at the local wet market, to rice, beans, crackers, sesame oil, dumplings and anything else I might find at the supermarket.

It’s quite the swag. One that’s been lost and found a half-dozen times, stepped and vomited upon, soaked in wine (spills do happen) and in water (so do rainstorms) and coated in dirt from dozens of wineries. Yet it still functions well about 30 months of nearly daily yes. Did I  mention Sonoma County makes some of the more diverse wines in the world?

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