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May 17, 2012

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Wine fans look beyond France

WINE drinkers in China are increasingly rejecting France in favor of wines from other parts of Europe and the New World, an industry survey suggests.

The rapidly growing market for wine has to date been overwhelmingly dominated by the titans of French red, in particular Chateau Lafite and other famous names from the Bordeaux region.

However, consumers are starting to look beyond the French estates to seek out wines from other countries, particularly Spain, Italy and New Zealand, the report from Wine Intelligence, a UK consultancy, found.

"Mainstream Chinese consumers prefer lighter, fruit-led and sweeter wine styles, which fits the profile of some New World wines that have more recently entered the market," author Jenny Li wrote in the report.

Younger wine drinkers were also starting to move away from the French reds favored by their parents to what they perceived as more easy drinking and fashionable, as wine became less a luxury status symbol and more an everyday beverage, she added. "Young people distinguish themselves from the older generations by drinking 'new wines.' New World branding often suits young consumers looking for creative and interesting wine."

The amount of wine consumed in China has more than doubled in the past four years, from 64 million cases in 2007 to 156 million last year.

Growing popularity

Red wine has overwhelmingly dominated the Chinese market, in part because of its associations with good luck and fortune, and still accounts for 85 percent of wine sales, with France still the most popular country of origin.

However, white wine is growing in popularity particularly in Southern provinces such as Guangdong, where it goes well with the lighter flavors and seafood present in the regional cuisine, the report said. A lack of fake white wine products compared with red meant that it was also seen as a safer choice by consumers.

At the top end of the market, where wine is bought for collections or as gifts, French wines remain most popular, Rufus Beazley, Head Representative for China at Berry Bros and Rudd, a high-end wine retailer, told Shanghai Daily. However, consumers were moving away from Bordeaux to "more complex" wine growing regions, such as Burgundy, he said.

"Bordeaux was 'first in, best dressed' - it's been the wine everyone understands. Consumers can buy it for a dinner, confident that it's going to be appreciated," Beazley said.

The flight from Bordeaux was partly due to extra strong vintages in 2009 and 2010 that had inflated prices, sending customers looking for better value elsewhere, he said.

"With the rate of sophistication and the wine community learning so quickly, it's only a matter of time before people start to be a lot more adventurous. There's definitely going to be a diversification into other regions and countries."

Beazley also said he had seen a rise in sales of Champagne, despite Chinese consumers' traditional aversion to fizzy drinks.




 

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