WSET D3 - China Flashcards

1
Q

Summarise the developments in the history of wine in China.

A
  • Grape-derived alcohol exist in poetry of Tang Dynasty, modern Chinese wine industry as recently as late 19th Century. Zhang Bishi, businessman and Chinese government consul in Asia, imported150 V. vinifera varieties, founded Changyu winery in Yantai (Shandong Province), modern wine industry started. However, due to political events, industry did not develop substantially most 20th century.
  • Expansion of China’s vineyards began in 1980s, when People’s Republic opened to international development. This was when CITIC, government’s foreign investment arm, partnered with French government and Remy Martin to create a Sino-French winery in Huailai (near Beijing) with Dynasty label. At same time Pernod Ricard formed a joint venture to develop a new Chinese brand Dragon Seal. French involvement remains a feature to this day, as with LVMH’s Chandon sparkling wine operation in Ningxia.
  • Wine industry encouraged by Chinese government in 1990s in order to replace cereal-based spirits with wine and fruit-based drinks, partly a health campaign partly to address shortage of grain.
  • Overall vineyard area for wine relatively small, 10% total vineyard area. (majority table grapes, fresh and dried, much higher returns, in a culture where fruit often a premium gift).
  • Domestic wine production, despite 1980s expansion, also experiencing rationalization in era of President Xi Jingping’s ‘anti-extravagance’ measures. No longer rely on gifting to government officials, most wineries shifting to targeting consumers. This hit some operations hard, especially majority wineries in Ningxia and some new areas established as recently as 2010, spurred by support from Ningxia provincial government, then looking for ways to develop province’s rural economy.
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2
Q

What is the climate here?

A

Nearly all marked continental climates with very cold and arid winters. Most regions, vines have to be buried sometimes as early as November, to survive low winter temperatures, and very arid conditions (vines underground retain more water). Heavy summer rains also affect most regions, though some regions total rainfall is small. Due to vastness of the country, regions can have very different climates.

Heilongjiang and Jilin:
Far north-east, extreme winter cold, making winter burial essential.

Beijing and Hebei:
Coastal Beijing and Hebei have a humid continental climate with warm humid summers and cold winters, often- torrential rain in August and September. However, overall rainfall is low (200–300 mm). Cool Pacific breezes moderate warm temperatures and reduce humidity. However, still enough humidity to make fungal diseases in summer constant challenge. Older vineyards often planted on flat land with poor drainage and fertile soils (excessive yields and poor quality), newer vineyards have been planted on better sites. Vines closest to ocean do not need buried, saving cost, but excessive short-term rain, humidity and over-rich soils remain.

Shandong:
Also on east coast, warm maritime climate, wetter with rainfall at worst point of season in August–September before or during harvest. High precipitation - rot persistent problem.

Shanxi and Shaanxi:
Inland, central regions, dry continental climate (less than 500 mm). Humidity higher in more southerly Shaanxi, raising risk of fungal diseases.

Ningxia:
Well inland, arid continental climate (200 mm) with monsoon rains. Very windy, exacerbating dryness. Essential irrigation water drawn from Yellow River. Best area is in Helan Shan region where mountains protect from worst north-west desert winds.

Xinjiang and Gansu:
Far north-west, climate in Xinjiang extremely dry (80 mm many areas) and winter snows arrive as early as beginning of October, thus short growing season. Xinjiang also suffers from very windy conditions. Frost also problem, not only in spring, also early autumn in southern Xinjiang, where vines at high altitude (1,100 m and higher). The dry conditions (reducing need to spray), availability of water from melted snow in Tian Shan (Heavenly Mountains) range and very warm climate enable high volume production. Much wine is sold to eastern regions.
Gansu also very dry, short growing season and slightly cooler than Xinjiang.

Yunnan:
Far south, sub-tropical humid climate. Vineyards typically on slopes at high altitude (1,600–2,900 m) including foothills of Himalayas, moderate temperatures and reducing humidity. There is a long frost-free season, vines do not have to be buried.

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3
Q

What are the training system used here?

A

China has both large tracts of traditional vineyards (ungrafted vines (phylloxera not present)) and some modern vineyards developed by international, especially French, investors.

  1. Multi Cordon Fan system: (multiple cordons grown from a very low trunk, popular for table grapes).
  2. Single Dragon system: (single trunk at a slight angle as a spur-pruned cordon).

Both are designed to carry high yields and lack a single fruiting zone, can lead to uneven ripening. Many wineries therefore, converted to

  1. Spur-pruned Chang shaped systems, which have trunk trained in a bended form allowing easier burial, at same time ensuring unified fruiting zone exists.
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4
Q

What are some risks in the vineyard?

A

1.Dense canopies, extensive use of irrigation and excessive use of fertilisation can lead to poor fruit quality.
2.Leaf roll virus is prevalent, also leading to under ripe fruit.
3.The popularity of Cabernet Sauvignon and Carmenère is problematic as both prone to green flavours if not fully ripe.
4.Improvement in traditionally run vineyards is hampered by lack of viticultural training and, in the past, lack of good quality planting material.
The government owns all land in China; and official government units determine all agricultural practices. Making site-specific changes extremely difficult without official sanction. Independent viticultural advisers do not have power to affect what is happening in vineyards unless adviser is part of provincial or local government’s agricultural unit.
5.Vines typically buried in November and dug out again in March–April. Requires advanced manual labour skills and adds significantly to cost (20–30%). Cost and availability of labour are issues. Older generation familiar with vine burial practices is not being replaced by younger generation willing to work vineyards (many move to urban areas). Older generation is asking for higher pay for their specialised skills, particularly acute close to Beijing (eg: Huailai), because of availability of other employment for younger people.

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5
Q

What are the main grape varieties used here

A

90% are for table grapes or raisins. .
1.Cabernet Sauvignon
2.Carmenère
3.Merlot
4.Cabernet Franc
5.Chardonnay
6.Riesling

In addition to international varieties, China has its own indigenous species such as V. amurensis (named after Amur Valley of Liaoning Province) that is resistant to cold. However, it or hybrids produced from it produce wines with unusual aromas.

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6
Q

How’s winemaking like in China?

A

The model is Bordeaux reds. Premium and super-premium wines given prolonged maturation (e.g. 18m) in French barriques.
Winemaking standards have improved significantly in last decade with a marked reduction with technical faults (e.g. Brettanomyces or excess volatile acidity). Better wines show riper tannins than past due to better canopy management and more attention to picking dates to achieve ripeness of skins and pips.
Quality potential of best Chinese wines was demonstrated when a Chinese wine won a top international award for a CS blend. While some white (e.g. Chardonnay) and rosé wines are made in a very small minority.

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7
Q

What are the law and regulations?

A

In terms of labelling, all wine, whether Chinese or imported, traditionally been treated as a food product: only legal requirements formerly is declare a product 100% fermented grape juice with indication of alcoholic strength, production date and shelf-life indicators. However, wine continues to be taxed as an industrial product, rather than agricultural product, adding 10% to price.

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8
Q

What is the development trend for Chinese wine market?

A

All data about Chinese market is subject to revision and correction. Domestic market continuing to grow as affluent middle-classes continue to increase wine buying.
However, wine is expensive in comparison to other alcoholic drinks, government’s crackdown on gifting by officials had an impact. While China is 5th largest consumer in the world, per capita consumption remains extremely low (1.5 L per capita, 12 L per capita in USA and 20–60 L per capita in most European countries).

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9
Q

What are the 3 main companies?

A

Dominated by 3 large companies: Changyu, Great Wall (owned by government agricultural arm COFCO) and Dynasty.
In the main, these are bulk operations. However, owing to difficulty of producing high-volume, inexpensive wine in China and with increased consumer demand, many Chinese wines bottled by these companies rely on blending with imported wine.
All 3 diversified their portfolios with premium and super-premium offerings (e.g. COFCO’s Chateau Junding) as well as acquisition of foreign wineries, though has little impact on domestic production.
Several smaller wineries have created an international reputation, include Grace Vineyard (Shanxi), Silver Heights (Ningxia) and Ao Yun (Yunnan).

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10
Q

What’s the online sales like in China?

A

Online sales on a large scale beginning to be important, both through big players (such as TMall) and large investment in online drinks retail by very large Alibaba e-commerce company.

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11
Q

What has continue to be an issue in Chinese wine market?

A

Fraud in shape of counterfeit bottles of top French, Australian and Chinese wine continues to be an issue.

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12
Q

Where are most wines consumed in China?

A

Nearly all Chinese wine is consumed in home market with only a few brands being regularly exported.

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13
Q

What’s licensing like in China.

A

Licensing is more fluid than many countries.
eg: wine can be purchased any time of day in retail locations such as convenience shops and supermarkets and in hospitality sector (restaurants, clubs, KTV venues, i.e. Karaoke bars, and tobacco stores etc.).

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