China: Wine Law and Business Flashcards
China: Wine Law
-treated as a food product -must declare the product 100% fermented fruit juice with indication of alcohol and production / shelf life on the label
-wine is taxed as an industrial product rather than agricultural adding 10% to the price
China: Wine Business
Sixth largest producer of wine
-domestic market has grown 70% between 2007-2017
-wine is expensive compared to other alcoholic drinks
-downturn with ban on gifting expensive wine
-market hit with slowing of the economy, trade war with US and Australia, and Covid
-Domestic and imported wine roughly equal on the market
-Domestic consumption is low at 0.9L per Capita
-Industy is dominated by three main companies :
Changyu
Great Wall (owned by gov. arm )
Dynasty
creating bulk wines and blend with imported wine to keep up with consumer demand
-All three have a prem and super prem portfolio - eg. COFCO’s Chateau Junding
and also aquired international wineries
-smaller wineries that have created an international reputaion are :
Grace Vineyard in Shanxi
Silver Heights in Ningxia
AoYun in Yunnan ( south)
-online sales are important eg. TMall and Alibaba
-Fraud in the shape of counterfeit bottles of French, Australian and Chinese wine is an ongoing issue
-very littel exports of Chinese made wine
-Licensing is more fluid - wine can be purchased at any time of day in retail locations -convenience and supermarkets and at restaurants , clubs, karaoke bars and tobacco stores
