The continuing emergence of China in the wine industry

Chateau-Reifeng-Auzias Cabernet 2010

China's presence in the wine world has been a busy subject in wine journals and magazines lately. The articles cover a large range of wine-related aspects and all indicate that the Asian market is on the rise.

This month's Chinese presence in wine publications is no exception. In terms of wine production, a Chinese bordeaux blend was (for the second year in a row) selected as an international trophy winner in the Decanter World Wine Awards; this year, for "Red Bordeaux varietal under £10" (Decanter 38:1, October 2012: 46).

In this month's Australian Journal of Grape and Wine Research (vol. 18, no. 3), Williamson, Robichaud and Francis's article "Comparison of Chinese and Australian consumers' liking responses for red wines" (p. 256-267) is an extensive study of consumer preferences; Australian and Chinese wine consumers evaluated 14 wines with the intended aim of establishing potential sensory preference differences across cultures. This study is related to a long-term project the Australian Wine Research Institute (AWRI) is conducting on wine quality and consumer preferences.

In terms of the region as a whole, this month's Wine & Viticulture Journal (vol. 27, no. 5) includes an article, "Emerging Asian markets" (p. 78-79), examining the export market (from Australia) to nine emerging Asian markets, excluding China and Japan. Among other insights, Singapore is a very fast-growing market and South Korea currently appears to be the market with the best potential return on investment.

Winery and vineyard transitions

This is the first in a series of posts called "Wine News" highlighting articles and trends in recent journals and magazines of interest, both to those in the wine industry and those interested in winemaking…not to mention the consumption of wine and food!

This month in Vineyard & Winery Management (v. 38, no. 5, Sept–Oct 2012), one finds a couple of articles related to beginnings and endings of winery ownership. "Preparing for an Ownership Change" by Rob Morris is directed at winery owners at any stage of the ownership process, intended to provide advice for making future transitions smooth. "How to Get a Business Loan — in Good Times and Bad" by Adam Beak provides sound advice for anyone looking to find a boost in funding, and informs the reader about trends in commercial lending by banks and about the building blocks for a successful business model. Finally, "Selecting and Training Your Company's Next Leader" by Greg Scott lays out successful methods of planning a succession of leadership, both long-term and short-term.

In Wines & Vines (v. 93, no. 9, September 2012), there are a few other articles of use to new owners and grapegrowers as well. "Special Report: Wine Industry Finance" by Ben Narasin explores the top 20 lenders specializing in wine industry lending on the West Coast, offering perspectives on the market, services offered, types of credit available, and some useful financing scenarios for assessing a situation. "Leasing Meets Cash-Flow Demands" by Andrew Adams further explores the different ways of acquiring assets.

You can access these articles and more at the Wine Library. Contact us for more information!