From Sigi Hiss
, at 11. April 2011 10:34
just-drinks.com editorial team – French wine producers enjoy a prestige among China’s fledgling wine drinkers that is threatening to drown out opportunities for other foreign producers, according to Rabobank.
France is the “epitome of wine” in China and French producers have been gaining market share at the expense of rivals in Australia and the US, Rabobank said in its latest quarterly wine report, published this week.
“With wine consumption still predominantly based around customary entertaining and gift-giving occasions, Chinese consumers are primarily interested in making a ‘safe’ purchase that can confidently convey a suitable level of prestige, status and respect,” said Rabobank. “More often than not, this means French,” it said.
France’s market share of Chinese wine imports is approaching 50% in volume terms. It also commands the highest average price point, at up to US$5.5 per bottle, among the main importer countries.
China is often touted as a highly promising market for all wine producing nations, and particularly for Australia, which lies in relatively close proximity and has struggled against a cocktail of overproduction and falling exports over the last few years.
However, Rabobank’s report underlined the challenge that France’s dominance in China has created. “Despite the favourable positioning of their wines, Australian producers have in fact surrendered significant share in recent years, as have US producers,” it said.
“There is a clear need for wine importers to improve their distributor relationships,” it said. China’s market for table wine has expanded by around 20% per year for the last five years, to 1.48bn litres, according to Euromonitor figures. Imported, bottled table wine makes up around 10% of that market.
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