Bordeaux has something very special about it. It is a mix of strong tradition and very modern and accurate economic vision. I would like to give you a glimpse of Bordeaux’ brasseries where a lot of things are being discussed… And rest assured that China is one of the most popular topics there.

However, there is one particular subject that we reluctantly talk about in Bordeaux, although it has been discussed a lot in the Press since August: it is the creation of the first Chinese Fund specialized in wine investments: Dinghong.

Dinghong is a Fund dedicated to wine investment. Mrs Ling, one of the founder, will invest in Bordeaux Crus Classés (not only in the most expensive ones) and in Burgundy’s wines, which are not as famous as Bordeaux’s in China. The Fund will invest in both Primeur and back vintages.

To be part of  Dinghong, the minimum required investment is 1 million RMB, locked for a minimum of five years. According to the Financial Time, the Fund is expected to deliver an annual return of about 15%.

According to the French local newspaper Sud Ouest, Ling Zhijuin expects to collect 200 million RMB each year for the five next years, in order to reach a total value of 1 billion RMB.

Mrs Ling said that her Fund will be focused not only on good investments, but also on deepening Chinese appreciation for fine wines . But, it doesn’t say if the investors will have the ability to taste and drink the wines they buy through Dinghong…

Undoubtedly, China already has a huge impact on La place de Bordeaux, increasing somehow the prices which had never reached such high levels. Moreover, Dinghong is not the only Fund interested in wine investment in China. Some private Funds already offer wine investment among others products. This new phenomenon raises the question: might those Funds induce a Bordeaux financial bubble?

If you take a step back, you realize that this is not the first time that wine, especially Bordeaux wine, has been used as a secure investment. For instance, talking with some brokers of Bordeaux, I discovered that some English Funds had also been created for tax advantages back in 2005.

So the question narrows down to this : do Chinese Funds represent a real trend that will deeply transform some aspects of La Place de Bordeaux, the distribution for instance, or, is it simply the everlasting repetition of economic cycles which will not significantly affect the rules of the game ?

A good movie is worth much more than a long talk, so enjoy!

With Chinese subtitles:

With English subtitles:

Established in 1808, the renowned Maison M. Chapoutier is nowadays considered as the landmark winery from the Rhône Valley, nested on the foot of the Hermitage Hill in Tain L’Hermitage.

Michel Chapoutier is the charismatic leader of Maison M. Chapoutier and they are specialized in the production of prestigious appellations such as Hermitage, Côte-Rôtie, Crozes-Hermitage, Côtes-du-Rhône and Châteauneuf-du-Pape, etc..

Michel Chapoutier quest to the world’ best Terroir, result in the establishment of winery in Roussillon and Australia, but also more recently in Alsace…

M. Chapoutier has been a pioneer in Biodynamic farming in the Rhône Valley in the early 90’s. In addition, they are now using unique Braille labelling on all the bottles.

The Chapoutier family commitment to China is deeply rooted and as a result, Mathilde Chapoutier, daughter of Michel Chapoutier, is currently based in Beijing.

Last but not least, Mr Li Keqiang, Vice Premier, has been spotted a few weeks ago in Hong Kong drinking their Côtes-du-Rhône Belleruche!

Nico(s) for Zhongguo Wine

To quickly introduce myself, my name’s Florent GENTY, I am 29 years old and live in Shanghai for 6 months now. For 4 years, I was in Paris as wine salesman for Burgundy and Rhone Valley vineyards.

I met Ari and Lucas thanks to their website. I contacted them after reading their articles on their blog when I was in France. For few months now, I am working for a Chinese importer-distributor named Grandgle Wines and Spirits. I’m working in the purchasing department and sometimes I have to promote the wines of our portfolio in different cities of China.

September, 22^nd, while attending the 2^nd competition for the best sommelier of French wines in China, I got the idea to contact them and actively participate in their blog through articles and interviews.

For my first participation, I decided to contact two of the three winners of the competition, Sylvia Liu and Yin Guo. Congratulations! 3 girls on the podium! Through different questions, I try to understand how Chinese can be familiar with the wine and try to understand better what they are expecting with wine in China. I also wanted to highlight the different events around wine.

The Best Sommelier Competition of French wine in China was judged by international and local experts, based on the rules and constitutions of the Association of Sommelier International (ASI). This competition brings awareness and prestige to wine professionals in China and also provide a benchmark for the local industry. Candidates from various cities in Beijing, Guangzhou and Shanghai can participate to the competition. Organizers hope to attract not only sommeliers, but also bartenders and others working with wine and beverages, and employers that want to affirm or improve their staffs’ expertise.

To enter the competition several conditions must be respected, as being a Chinese citizen, being aged over 18 years, working in restaurants or hotels for minimum a year…
June, 28^th, about 150 candidates have passed the qualification round. There was a questionnaire of 50 questions and a blind tasting of two French wines.
The top 2 from each city could enter the final competition in Shanghai. The final phase confronts 6 candidates on five workshops:

-Blind tasting of 3 French wines and 2 spirits

- Service lunch at restaurant settings (decanting, pouring, food and wine pairing)

- Comments of wines.

ZW : Could you present yourself (age, city, job..) ?

Sylvia Liu : My name is Sylvia LIU, I’m 28 years old and I live in Guangzhou. I’m actually manager and Sommelier for Mouton Cadet Wine Bar (Manager/Sommelier)

Yin Guo: My name is Yin GUO, I’m 28 years old and I live in Shanghai. Even I have different offers from companies or restaurants, I’m actually looking for a job of sommelier.

ZW : What is your school and professional career ?

SL : I began my higher education with a bachelor degree in Applied Chemistry from Qingdao University of Science and Technology. One of the part time jobs I took to help pay for schooling was doing sales and translation for a local wine distribution/club company. . I became very interested in the wine industry. To date, I have completed several ISG and WSET courses, and have obtained teaching certificates issued by those two organizations. I now have a strong desire to share my enthusiasm for the wine business, and see a sommelier position as an ideal way to combine all my interests.

YG: I have a bachelor in Advertising and communication. After my studies and before begin to enter my working life, I decided to travel around the world to meet people from different cultures. I saw rapidly that people have a deep link with wine that Chinese don’t have. I met foreigners sommeliers who gave me the passion for wine and I began to study by myself. After 2 years working in a wine Cellar.  Then, I worked for a French restaurant as a sommelier.  I also studied in WSET courses.

ZW : What do you think about this competition and what that bring to you ?

SL : It helped more people to know the sommelier occupation. It was very meaningful, especially for China’s wine market and hospitality industry. This competition could bring me new opportunities and challenges for future.

YG : This competition is a way to democratize the wine and give the opportunity to Chinese to show their knowledge about the wine. More and more are Chinese are passionate by wine, this competition can highlight that job of sommelier is a very respectful and hard job.

ZW: What is the workshop you particularly liked ? Why ?

SL: I prefered the Sparkling wine service and decanting. These workshop consisted in opening bottles (Champagne and red wine) with professional items and glasses for the jury. I liked because that is I usually do in everyday work and where I feel better.

YG : I prefered the food pairing workshop. Why ? Because I think that a sommelier has to develop a real open mind with his clients. He has to know what kind of drink should be the best for a lunch, a dinner or a simple meeting. Moreover, you have to create an empathy and a discussion with them to know what should be the best taste for their palate. The drink must sublimate the food and not the opposite. We must also put in practice his memory.

ZW: How do you know the wine culture ? Why are you attracted by wine ?

SL: I felt in love with wine by accident. I have a very good friend from United States. His name is Joe Benson. 5 years ago, he threw a net-working party for all his friends in South China. He always wondered that what would happen if his friends got to know each other. Yes, something happened! I had met one of Joe’s friends at the party. Later on, his friend introduced me into the wine field. 5 years later, I’m where I’m standing now. If it wasn’t Joe, I think I wouldn’t be in the wine industry.

YG: First, by working of course, you need to understand and learn by “drinking”! I mean, you need to keep trying wines all the time! You  can read anything s from the books, but to understand, you need to try and drink it! Also thanks to some trips I’ve done. I am also very interested in geography in order to learn all the appellations all around the world. Then the training courses allowed me to master more and more science of tasting. It takes a lot of homework because Chinese do not know nothing about wine culture.

ZW: Were you born in a family where wine was often present?

SL: In my family, wines have never been present. We mostly drink local white spirits made from grains call BaiJiu.

YG: It’s the same for me! My family is the owner of a Baijiu company for 12 years now. So I always grow around white alcohol but never around the wine. In ours family meals, most part of the time we drink beers or Baijiu.

ZW: Is the chinese have a easy access to wine? Can you see more and more Chinese interested by wine around you and how wine is perceived?

SL: Not really. Comparing to the salaries in China, wines are quite expensive. Chinese are more and more interested by wines and I think there’s a great future for the wine industry. I think for the majority of Chinese, wine is an elegant and expensive drink. The wine must appear as a rare and sharing drink, to bring a magical moment in the meal.

YG: For the moment, I think it’s a little hard for Chinese to access the wine universe. On the one hand, prices are really high for majority of the population and on the other hand, universe of wine is complicated and full of codes. Sometimes, Chinese are afraid by losing their face if they make a mistake when drinking wines. Moreover, in China, we don’t have meal rules like in Europe with starters then main course and deserts. All our dishes are served together. Wines need to be served step by step like a story with a beginning and an end. That’s why I think it will take a long time to democratize the wine into the Chinese meals but I believe in it.

ZW: What is your dream career?

SL: I would like to be a Master Sommelier.

YG: My dream is to travel and work around the world in different vineyards

ZW: What is your best tasting wine souvenir ?

SL: A Iconic wine tasting hosted by Mr. Pancho Campo (Master of Wine) from Spain. We tasted Chateau Cheval Blanc 2001, Chateau Lynch Bages 2004, Chateau Palmer 1999, Chateau D’Yquem 2001, Vega Sicilia Unico 1995, Felton Road block 5 Pinot Noir.

YG: Although I have good souvenir of a Latour, I remembered a wonderful Corton Charlemagne and a Chablis Grand Cru. The more I taste the wines, the more I am interested in white wines because I find them complex, elegant and we can drink them in any occasions.

ZW: If you have to choose one red and one white ?

SL: A German Riesling and a Pinot Noir from Burgundy !

YG: I felt in love with a white wine from Tasmania and for red, I’d love to keep it as a secret!

Florent Genty for Zhongguo Wine

(PS: Sorry Florent, Sylvia and Yin for taking so long to post the interview… Ari & Lucas)

-          Do you know who I am? he asked in English.

-          Not exactly, I answered, still in English. (We realized quickly we were both French people speaking to each other in English. Those kinds of situation happen sometimes!) So, I said, I guess you are the partner of Raphael Sarri, of the Company Beijing Wine Store.

-          Not only!

I didn’t know I was in front of the man named “Fa Jiu Long”, The French Dragon of wines!

Let me very quickly introduce you to Bruno Paumard. He is originally from Angers in the Loire Valley in France. He first has been sommelier, and won many high distinctions. After, he decided to become a winemaker; he worked in a vineyard in Saumur. He was passionate and learned a lot. Then, something happened: he fell in love… in China. Since then, he lives in China and he is not sure he’ll ever come back to France.

What does he do in China?

He is now the wine maker of Château Hansen, an organic vineyard from Inner Mongolia, which I will talk you about in detail in another article, since there are many things to say about it. He has also built a company of import and distribution, with Raphael Sarri. The company, Beijing Wine Store (http://www.bjwinestore.cn), has a very good quality selection of different wines.  Plus, he recently wrote for the “Revue française des vins de France”, which has begun to be edited for China. He also was recently elected The Organic man in Hong kong and awarded Ambassador of Ecology in China, by the Green Chanel Central Television .He is more and more famous and was interviewed very recently by CCT 1 and 2 and others journals and magazines…

I had the chance to spend time with him. I asked him to give us his point of view about the three main ideas you are always dealing with in China, when you are interested in wines. Some of those ideas or clichés, I guess, are true, some are partly false. Let’s see what Bruno Paumard thinks…

Is it true that Chinese people only drink wine as « Ganbei ! » ?

B.P : First of all, we shouldn’t forget that the consumption of wine in China is mostly due to the « Ganbei » culture. But, some regions have different levels of consumption and different ways of consuming. I would say that for 1 Ganbei in Beijing, there are 10 Ganbei in Inner Mongolia. Beijing and Shanghai are also different. In Shanghai, the market offers two extremes: on the first hand, the 1^er Grands Crus, which are extremely expensive, and on the second hand, the very low-end wines. In Beijing, the market is different. It seems that there are a lot of people who appreciate good wines and are eager to taste new wines, not only the more expensive ones. I am sure that good wine makers will have more and more success in Beijing.

Wine consumption is evolving very fast in China. According to Bruno Paumard, the phenomenon of organic wines in China is one of the signals. From his experience in Château Hansen, which produces organic wines with ecological project in the region, he says that more and more Chinese people are interested in organic wines. They want to drink a healthy wine while also behaving responsibly. Those people of course are not the majority. They are the middle business class, who work abroad, meet foreigners, and talk about wines, which helps them to be valorized in their social status.

Would you say that Chinese people don’t know anything about wine? Do you think that they buy it because it is pricey and famous?

I would say it depends on the consumer. I would define three kind of Chinese consumers:

1. The Rich: They buy Grand Crus for two principals reason: because they want to have a fine life style, but also because they make money upon wines.
2. The Ganbei people: They usually are rich people too, they have not a lot of interest for Culture, but they buy very famous wines. It is a way to impress their surroundings.
3. The Middle class: They earn around 4000 to 12000 RMB each month, and they like to buy wine for gift. When they buy wine, they buy foreign wines or Great Chinese wines, the most expensive ones. In China, when you make a present, you give a gift and its price! I have a client for instance, he spends a lot of RMB on only 10 bottles each year, to give a gift. They also like to taste wines and choose middle hand wines.

Is it true that Chinese people don’t like red wines?

It is mostly the Chinese women who don’t like red wine. But, since it is said to be good for health, they do drink it, just like you drink a medicine, for some of them. Recently, a Spanish study showed that the tannins of red wine do protect from sunburn and increase skin health. This is definitely an argument to convince women to drink red wines and not other alcohols.

Chinese people are not yet very interested in white wines. Moreover, they don’t like Champagne or Sparkling wines. They have the feeling that something is wrong since there are still bubbles. They think those wines are not yet finished! They do like sweet wines, but don’t drink it a lot yet.

Thanks Bruno for your time and for having shared with us your point of view on the three main ideas which are puzzling.

We wish you successful harvest in Inner Mongolia.

Fanny

Wine and Online Shopping

What does the future hold in China?

In an article on July 12th, wine-info.com, stated that according to their sources, the number of operational B2C (online wine sellers) has increased to over one hundred sites. I wasn’t able to locate the source of this date but it definitely indicates that people believe there is a future for buying wine online. But, will this belief become a reality?

Recently there was an interesting webinar, presented by Digital River Payments where they had compiled the latest Chinese online shopping estimates in conjunction with Alipay. They estimated that this year the number of people online in China is expected to grow to over 500 million users, with an estimated 35% of them shopping online and expect that over $90 (RMB575) billion will be spent online. (In 2010, $63 (RMB403) billion was spent online). These are extraordinary numbers and they are set to continue to grow. From 2009 – 2015 the cumulative annual growth rate is expected to be at a rate of 52%.

These figures solidly establish the potential for the online market here in China, so how about the potential for wine consumption? The OIV (International Organization of Vine and Wine) estimates that overall global wine consumption fell 3.6% from 2008 – 2010, but China’s wine consumption defied everybody else in the market and grew by 50%. It also showed there was over 80% increase in the volume of imported wines entering China. All the data indicates that both wine and online shopping are two growth markets but does it automatically translate that people will actually buy wine online? Economists always like to try to use comparables to predict future growth, however in this case it is very difficult to find a suitable comparative as the size, growth rate and movement of goods is extremely unique. You might expect that the US market might be a possible indicator, however there is one stark difference that has curbed the growth of buying wine online in the US – the state alcohol laws restrict shipping alcohol across certain state lines. This is a key barrier to growth that exists in the US market but does not exist here. These regulations are thought to be one of the reasons why Amazon.com decided to put their online wine store on hold in 2009.

A key characteristic of the Chinese online shopping market is trust. This has been one of the key success factors at Taobao.com. The consumers put a very large emphasis on the rating of each merchant on Taobao; it is very important that a merchant has a proven track record. A consumer’s key concern is that they do not want to be tricked. This was a key point that was raised by my Chinese friends when we were launching crushedgrapes.cn.

So, what does all this mean for the hundred or so online wine shops that have opened recently, how can they build that individual trust in their website? Is the market big enough so that one can just build an online wine store and they will come, or is the online Chinese consumer more sophisticated than that? Then again, as the e-commerce marketplace becomes more sophisticated, will trust remain such an important factor? These are questions that will only be answered over time, but I for one am intrigued about how this will develop.

By Niamh Given for Zhongguo Wine

Sources:
-OIV Report:

http://news.reseau-concept.net/images/oiv_uk/Client/DIAPORAMA_STATISTIQUES__AG_Porto_2011_EN.pdf

-Digital River Payments Webinar:

http://www.digitalriverpayments.com/form/thank-you/china-epayments-webinar

-Wines-info.com Article:

http://www.wines-info.com/En/html/2011/7/228-38823.html

-OIV Report:http://news.reseau-concept.net/images/oiv_uk/Client/DIAPORAMA_STATISTIQUES__AG_Porto_2011_EN.pdf

Niamh Given founder and managing director of CrushedGrapes.cn.
With a passion for Wine, China & Online Shopping; Niamh and her husband Daniel have set up an online wine destination based in Shenzhen, China.

1) Can you present yourself?
I was born in Xinjiang and came to shanghai when I was 12. Then I attended university in Canada and majored in physics at University of Toronto. But I was not great at that because I lost my interest. I touched a bit on wine when I was taking a bartending course, and a trip to vineyard made me to decide to study wines. Then in the last year of my university, I enrolled in a 2-year winemaking and viticulture diploma program at Niagara College. During the course of the program, I was exposed to the profession of sommelier, and it seemed very interesting to me. Also I want to learn about wines from all over the world. So in the 2nd year of winemaking school, I also registered to study sommelier diploma program at International Sommelier Guild. By the time I graduated from winemaking school, I also graduated from the sommelier diploma, which to my knowledge made me the first ever internationally certified sommelier from mainland. Then I worked in a winery called Le Clos Jordanne for 8 months. After that, I got into restaurant business in Toronto, and gradually worked my way up. In 2009, I came back Shanghai to be the opening sommelier for the Peninsula Shanghai till now.

2) So you realize you want to become a sommelier and you start working in a restaurant to learn from scratch. How was it? You, the used to be physics student washing dishes? It must have been hard in the beginning no?

I don’t want to say it’s hard, but it’s definitely necessary and different. It’s a cliché to say I started with washing dishes for couple of days, but that’s just a process I need to get through. Sommelier is a relatively independent role in restaurant, but it’s still a team work. And modern sommelier does much more than just recommending and serving wines on the floor. It’s very important for sommeliers to understand all the different positions of a restaurant. If you don’t know how to be, or understand the job of a food runner, captains, hostess or managers, you cannot become a good sommelier.

3) In which restaurants did you work in Canada?

I worked at a winery called Le Clos Jordanne, which is a high-end joint venture between Vincor (the biggest wine company in Canada) and Boisset (a power house in Burgundy). The winery is specialized in pinot noir and chardonnay. Then I worked two restaurants in Toronto, Canoe Restaurant and Bar at first, then Bite Me Restaurant by Marc Thuet. I learnt the skill of service there.

4) At the same time, you start sommelier competitions and wine classes and you start to be quite successful, right?

The first competition I participated in is the first Penfolds China Sommelier Competition in Shanghai in 2008. I was fortunate to get the 1st place, because my service is not very refined and up to the standard at that time, but I won because of my knowledge and tasting was stronger than other participants. In 2010, I was the champion for first Best Sommelier for French Wines Competition organized by Sopexa, and the champion for the 2nd China National Sommelier Competition. Internationally, I was 2nd place for the first Greater China Sommelier Competition in Hong Kong, and 4th place for International Jeunes Sommelier competition in Spain, organized by Chaines des Rotisseur for sommeliers under 32 years old.

In terms of certification, besides graduated from international Sommelier Guild, I was fortunate to become the 1st from mainland to pass Certified Sommelier Exam from Court of Master Sommeliers, and one of currently 4 people in mainland completed WSET Level 4 Diploma.

5) And why did you come back to China? You had already done a lot of things in Canada? Was it not difficult to start again in China?

China is my home country, my family and friends are here. Also the wine market here is booming tremendously. I have advantage over local sommeliers because of my educational background, and over foreign sommeliers because I can speak Chinese. It was very challenging at first, because I have never worked in China, I don’t know the market, and many things are different from Canada. But I am lucky enough to manage to get by, and still remain a sommelier till now.

6) Yes China wine industry is booming. Imported wines of course, but Chinese are also starting to do good wine. What do you think?

Chinese wines still have a long way to go, but we have been witnessing some very positive signs and great progress already in recent years. Of course Grace Vineyard has been the leading quality-oriented producer. There are a few smaller wineries that have gained much reputation as well, including Silver Heights and Jia Bei Lan. It seems the number of small-scale wineries is growing fast. I am very sure there will be more and more good Chinese wines. But it will take much more time, investment and effort to produce a truly great wine.

7) The wine that left you the best memory so far?

Probably tasting with Aubert de Villaine from DRC in 2009. He came to Shanghai, and guided us through the 2005 vintage. Not only I tasted great wines and learnt a lot, but I also witnessed a true legend in wine industry, and understood what made him so great. The day before the tasting, I was personally serving a hairy crab to him at our Chinese restaurant. That was fun too.

First question: how much is the average per capita wine consumption in China?

It is not easy to find reliable information about wine consumption of China. I have compared more databases, like Access Asia, OIV and Australian Wine and Brandy Corporation to clear this question.  Data of these databases are shown in the table below.

The table shows that real Chinese population was 1,318 billion people in 2007 [2007 – World population data sheet, 2007], which differs from the calculated OIV result, 1,51 billion (calculation is based on the average consumption per capita and total wine consumption). OIV result is 15 percent higher than it is expected by the real population in 2007. AWBC calculation results are much closer to the statistics made by the independent Access Asia Limited company. As a result, I can say that the per capita consumption was around 0,61-0,65 liter per person in China in 2007. In the view of the statistical researches and trends of market development, the possible per capita consumption may have been around 0,8 liter in 2009.

How many potential consumers we have in China?

Consumption has an unequal distribution in China. There are significant differences in consumption between different regions and provinces of China, even not every Chinese drinking wine.

As a result of Table 1. and second calculation of the correlation analysis I can say that higher educated people usually live in cities, while employees in the third sector have a higher salary then workers in other sectors. Based on these results I have calculated number of potential consumers between the middle and high educated, 25-54 age old people, living in urban and rural areas. I have used to calculate potential consumer number by  the following formula:

Value of ‘r’ means the share of man age of 25-54 in the total population age of 15-64.  Value ‘r’ was calculated with the formula below:

Calculation based on the 2005 census. The result of the formula is 59,5 million men.

Since 70 percent of Chinese alcohol consumers are men [WHO Global status on alcohol, 2004], I can say, that in 2005 number of total wine consumers was app. 90 million in China.

Since Chinese wine consumption has duplicated in volume between 2005 and 2010, [China Wine Market Competitor Analysis April 2010, 2010] I can say that the number of potential consumers were around 200 million in 2010. Average consumption calculated only for the mentioned potential consumers (200 million) is around 5,5 liters per capita.

About the author: Dr. Zsombor Sümegi Ph.D. is living in Hungary and studied at the Budapest University of Economic Sciences. After a few years of international carrier he joined the familiy winery in 2003. Sümegi and Sons Winery is located in Hungary, right at the Danube river, 150 km south from the capital Budapest. The owner, Dr. Jozsef Sümegi (founder and former leader of the Winegrowers Association of Hungary and Hungarian Wine Academy) is now for more than 50 years making wines. The family has made the first icewine and herbal wine in Hungary and is the leader of this market in the country. Their red and white wines are very famous and however mostly distributed only in Hungary, received international silver and golden medals, also. Since 1998 they are exporting their red and white wines to China, but the most liked products are the icewine and the healthy, herbal wine. Their plan is to find a permanent partner to operate a joint-venture winery in China, based on the Hungarian know-how and technology. In 2001 Zsombor Sümegi has started his Ph.D. research on the Chinese premium products and wine market. During a period of ten years he visited many parts of China and Taiwan to study wineries and the wine market, attended international conferences, trade fairs, worked in govermental cooperation projects between Hungary and China. In 2011 he finished his studies with “summa cum laude” degree and at the moment he is one of the few Chinese wine and premium market products expert in Eastern Europe. Due to his experiences in European and Asian markets this year he received the representative rights of the Hong Kong based Champion Technology company for Middle Eastern European region

Here is the first newsletter (of a long series I hope):

After two weeks in France at the end of August where I had the opportunity to visit vineyards in Provence and in Champagne during the harvests season, I came back to Shanghai on Monday September 5^th, 2011.

There were several events that were particularly important for us this first week of September:

- the fact that we were quoted in Le Point, a French weekly news magazine for their special wine edition,

- attending the opening of Kartel, a new wine bar in Shanghai, where we had been hanging out for almost two months since the soft opening

- meeting each other again (Lucas and I) to celebrate this recognition of our expertise on the wine market in China

And all this happened on the same day, i.e. Thursday September 8^th. Kartel’s opening kept its promise with free flow of sparkling, red and white wine during the whole night and an overpacked rooftop with smiling people (the free flow effect, I guess).

September 9^th: For the first time in the history, a Chinese wine has won a Decanter Gold Medal for best Bordeaux Varietal over 10 pounds. Jiabeilan, a wine made in Ningxia province. For those, who would wonder how a Chinese wine could win a Bordeaux trophy (surprising isn’t it?…), I have to explain a bit this trophy. As you might know, Bordeaux region in France produces wines in majority from the blending of three grape varieties: Cabernet Sauvignon, Merlot and Cabernet Franc. Actually, the competition opposed wines from all over the world which are made not of this typical blending but of a single variety typical of the Bordeaux region, in this case, Cabernet Sauvignon.

September 11^th: World Trade Center Anniversary, 10 years already. That is also the date that chose a wine supermarket to open in Putao area in Shanghai. I have no pictures. And I was not there. But from what Lucas told me, they partnered with a Shanghai TV channel  to rent a big building in which will be showcased wine and spirits from all over the world. The goal is to attract retailers and to sell only big quantities.

The week after was particularly intense for Lucas, as he went to Beijing for work. He had the opportunity to visit a typical Chinese vineyard with a lot of perspectives like building a Chateau in the middle of this vineyard.

The third week of September started with a tasting. Indeed, the Rhone region organized a wine tasting of the region’s best and most representative wines, which was particularly interesting. The presentation was not too long, and very entertaining, and I think this is one of the key when you are dealing with wine. It is tempting to go too much in details and to lose the attention of the audience. Personally, this is the first wine tasting I am attending where there is actually a big effort made to make the audience really participating. After tasting each wine, the speaker would present 4 pictures and would ask the audience to vote for the most representative image, regarding your taste, and then he would ask someone to explain one’s choice. In French we call this game a Chinese portrait, which made the choice of this game even more consistent.

During this tasting, we would also learn that Rhone Valley wines have doubled their sales every year in China since 2007 and that Julien, the French presenter broadcast on CCTV and who is quite famous in China, will help Rhone Valley wines to enter the market thanks to TV ads.

September 22nd : Escoffier Awards at Zeal. The first edition of the F&B Night organized by the Escoffier chefs club who partnered with Luxia, a young event company specialized in events mixing casino games and wines.

A quite intensive month, let s see what October has to offer now.

Ari for Zhongguo Wine

From my experience working in the wine industry in China, I have identified several types of wine importers. In this article I am going to look at who they are, how they differ and why they got involved in the industry.

The first type is the importer of “Fine Wines”.

-I tend to be foreign owned companies but occasionally are Chinese, and are mainly in the market of fine wines and famous brands.

-I insist on Brand exclusivity before I spend any money on marketing as I think that I am the hottest thing in the industry

-I claim that I receive thousands of calls a day from wine producers asking for their help in importing their wines. So I chose who I work with, not the other way round.

The Importer of “small producers”:

-I am a foreigner with good connections with luxury hotels and fine restaurants where you will often find my wines.

-My company is not that famous, but my passion for wine more than makes up for this.

-You should know that my wines from small producers are often just as good as more famous brands.

The “Opportunistic importer”:

-I had a nail factory (a joints factory, a door handles factory… whatever) in ChongQing.

-I need something glamorous.

-I do not drink wine (I prefer baijiu) but I heard I can make money with it!

-I am looking for AOC Bordeaux 1 Euro per bottle to sell it 30 Euros to my clients.

The “logical importer”

-I have 200 outlets selling spirits in Beijing.

-I sell the most expansive Baijiu of China.

-Maybe I could try to sell spirits AND wines.

-I need to create a wine range from scratch.

-I like this laowai (=foreigner in Chinese) ! Let’s work with him.

The second type of “Logical Importer”:

-I am a food importer.

-All my clients buy food from me.

-Maybe they need wines as well.

-Let’s import wine from scratch.

The “Passionate Wine Importer”

I know more than you do about Burgundy and wine making.

I am a passionate. I read “The drops of God” (神之雫) twice.

I have already visited France, Italy, Spain, Napa Valley.

I am not afraid to import wines from unknown wine regions!

Only the quality matters. I am passionate about wines and am lucky to be able to earn a living from my passion.

The third type of “Logical Importer”

“The number 3 logical importer”

The business is good!

VDP wines, Chilean cheap wines… they are such easy-to-sell wines.

But my clients now need more expansive wines.

I am looking for middle range wines. What do you have?

The “Internet Generation” Wine Importer

I am young with great knowledge of the internet.

I have financial support to help me to develop a website plus to allow me to start importing wine.

I know I will make money from this.

Lucas Botebol – Zhongguo Wine - Wine in China

Here is the guest article of the month written by Brandon Gray, an american wine lover:

Popular Chinese Wines in the United States

When most people think of exotic wine, they imagine a something bottled in France or Italy. China is the last place that comes to mind. But China’s wine industry is growing at a rapid pace and could easily pass up other nations in the next several years. Like any place, China has a mix of high and low quality wines. Although a few types of Chinese wines are truly awful, many are great. The following are just a few examples of Chinese wines that have grown popular in the United States. A great range of these wines either can be purchased in a local store with a great range of wines or one can order them online and get the wine delivered directly to one’s place. Nonetheless, the distribution of Chinese wines still has to grow for the United States (and many European countries as well) often forget or never experience the rich taste and quality of Chinese wines.

Changyu Pioneer Cabernet Sauvignon

Established in 1892, the Changyu winery is home to the oldest operating vineyard in all of China. Originally, Changyu’s grape cuttings were imported from France. Today it is produced in the Shandong Peninsula. This region provides an ideal climate for producing wine. Changyu’s medium-bodied Cabernet Sauvignon is very dry. It has a distinctive black cherry and cedar aroma and is similar in nature to Bordeaux wine produced near the Girande River.

Dynasty Extra Dry White Wine

Dynasty is currently one of China’s leading wine producers, consistently having been awarded 揟he Certificate of Best Selling Grape Wines” by the China Industry and Enterprise Information Centre. Dynasty ensures that all wine is of a high standard by imposing stringent regulations along every step of the wine bottling process. The white wine produced by Dynasty features a refreshingly fruity taste. The product has won numerous awards at international wine contests.

Dynasty Dry Red Wine

Another great product made by Dynasty, this delicious red wine uses locally grown Cabernet Sauvignon grapes. With a full-bodied taste and rich red color, it is no wonder this red wine is Dynasty’s best-selling product.

Dragon Seal Chardonnay

This wine company has long been popular in china, but is only just beginning to gain notoriety in the United States. It has largely crossed over on the backs of immigrants and students studying at American universities. As they share the distinctive wine with others, the demand grows every day. Unfortunately, it is almost impossible to find in the United States at the moment. One of the most popular products is Dragon Seal Chardonnay. The wine is favored for its perfectly balanced fruit and oak flavors.

Dragon Seal Huailai Reserve

A long time producer of wine made from French grapes, Dragon Seal did not start making local wines until 1996. Its first locally produced wine was bottled in the Hauilai region. It has won multiple awards at the Bordeaux International Wine Competition. This sophisticated wine is smooth with a lingering aftertaste.

Jia Bei Lan

The winner of several international awards, Jia Bei Lan features a unique blend of Cabernet Sauvignon, Merlot, and a hint of
Cabernet Gernight. The wine is hand-picked and aged in French oak for the perfect taste. The winery is located in the Ningxia Province, a region that grows very cold during the winter months. Often, the grape vines have to be buried under the ground during a cold snap. The extra effort is worth it, for Jia Bei Lan is an excellent wine.

Dragon’s Hollow Riesling

Most wines produced in China never make it to the United States unless they are personally transported by a tourist or immigrant. Dragon’s Hollow is the exception to the rule. This wine company was created with the intent of producing quality Chinese wine and importing it to restaurants in the United States. A number of high-profile New York City restaurants carry Dragon’s Hollow wine, including Bare Burger and the Essex House Hotel. The Riesling wine is produced on Ningxia Helan Mountain. With touches of roses, Pagoda tree flowers and honey, the sweet wine has a distinctive buttery flavor.

Dragon’s Hollow Merlot

Also produced on the Ningxia Helan Mountain, Dragon’s Hollow Merlot is almost too pretty to drink. The wine has a beautiful garnet hue and a scent that hints of spice. This is a great Merlot to try if you’re into Italian wine or planning on eating a large plate of pasta.

About the Authour:

Brandon Gray works part time for a wine delivery company and has a personal affection for wines and food.
‘What appears to be missing in wine writing is the personal attachment to wine in one’s writing – the soul, the desire to not just drink a glass of it but maybe drown the whole bottle because it tastes so good to the meal one made for himself / herself. Isn’t that, what wine should really be about? The desire of tasting something that gives you an instant feeling of being taken either to Tuscany enjoying the fabulous grapes and cherry notes while eating classical Spaghetti, or to French Riviera wearing your big shades while sitting in a restaurant at the boardwalk being all tied up with yourself and the glass of Bordeaux Chateau de Selle and Chateau de Saint-Martin in Taradeau.’

Other articles related to the Chinese wine industry:

Rebranding of the Chinese Wine Dynasty
Do Fine Chinese Wines exist?
CHINESE WINES – China 7th producer in the world
Ryan Pyle: China’s Wine Industry in Pictures