china wines sales, tax revenue and profits registered increases of 19.29%, 18.2%, 17.31% and 16.07% respectively

In fact, the output, sales, tax revenue and profits from grape wines registered increases of 19.29%, 18.2%, 17.31% and 16.07% respectively, for a tidy return on a still small industry.As in many sectors, a few select brands have cornered China’s red wine market after several years of intense competition. Now there is a period of consolidation: the leading brands can build on their manoeurves, and encourage consumers to move from product consumption to brand consumption.Yantai’s Zhangyu, Beijing’s Great Wall and Tianjin’s Dynasty – the three stars in China’s red wine market – are wineries with an output value exceeding Rmb100 million (HK$94.3 million).

Together they control 50.6% of the market. Their sales and profits make up 61.9% of the total industry, with the remaining market largely shared by newly emerging wineries.April statistics make Zhangyu the market leader, followed by Great Wall and Dynasty. Tonghua holds fourth place, with an overall market share of 9%. The other brands on the top 10 list are Weilong, Chizhiwang, Xixia King, Baiyanghe, Suntime and Yeli.The cost of importing red wine has dropped following China’s entry into the WTO. At present, CIF for a bottle of imported wine is Rmb150 (HK$141.5). It will likely retail at Rmb500 (HK$471.6) by the time a 65% tariff and other costs are added. On the other hand, the retail price for these wines could drop to Rmb300 (HK$283) following the lowering of tariffs.

Low-end red wines are mostly bottled in China, though produced overseas. These retail at between Rmb20 and over Rmb100 (HK$18.8 to HK$94.3). Those in the Rmb20 range include Zinfandel, from France, which retails at Rmb22.9 (HK$21.6) and Malesan (France) at Rmb27.9 (HK$26.3). Those with price tags of over Rmb160 (HK$150.9) include Villa Antinori, which retails at Rmb169.9 (HK$160.2) a bottle, and Chateauneuf Du Pap at Rmb190 (HK$179.2).Meanwhile, importers of red wines have embarked on a new offensive after readjusting their product mix and marketing strategy, following China’s entry into the WTO.

Over 80 different red wines were launched in supermarkets across the country at New Year and during Spring Festival, 2002.Most imports are from Bordeaux and other famous red wine producing areas, bearing the names of famous vineyards like Martini and Pigalle.Red wines priced over Rmb80 (HK$75.4) are generally regarded as upmarket, and are basically all imported. Further down, at between Rmb20 and Rmb80 (between HK$18.8 and HK$75.4) are mid-range products. Competition was most intense in the mid-range market in 2001, although profit margins were also the highest.

2012 China Blackberry Wine Industry Development Analysis and Forecast Report
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