Picture: Belgian Beer in Antwerp
Recently, on a trip from Zeeland in Holland to Frankfurt in Germany, I had a beer in Antwerp in Belgium. I am not a beer drinker, but being in Belgium, I thought I should have a beer with my salty waffle. In fact, I let my daughter Katharina Schiller order the beer for me. What I got was beer with 8,5% alcohol, an alcohol level very typical for a sweet-style Kabinett or Spätlese from the Mosel Valley, which was not far away. And, as Katharina said, there are beers with much higher alcohol level, including in Belgium. And, finally, like neighbor Holland, Belgium is also an emerging wine producer: I could have had a Belgian wine!
Pictures: Antwerp
Beer Producer Belgium
The Belgians have been brewing beers since the Middle Ages. The country produces more than 450 different varieties of beer and has approximately 125 breweries.
Perhaps the most famous of all the Belgian beers is Lambic beer. This is made using an ancient style of brewing, which relies on spontaneous fermentation to produce a very dry and naturally gassy beer that improves with years in the bottle. Gueuze is a famous Lambic beer, produced by mixing a young Lambic beer with more mature vintages.
Trappist beers are ales brewed in a Trappist Monastery. The production process for this beer must be carried out, or supervised on site, by a Trappist monk to qualify for this category. At the moment, there are six monasteries in Belgium that meet this requirement. Brands include Chimay, Orval and Achel.
Pictures: Belgium
The other main types of beer produced and drunk in Belgium are:
(1) Lager type beers, known as dark (dubbel/double) beer, or even stronger versions, known as triple (tripel/triple) beer and
(2) White beers – witbier in Dutch and bière blanche in French. Well-known brands include Hoegaarden and Brugs Tarwebier
The Economist: As well as having a good claim to brew the best beer in the world, Belgium is also home to the world's biggest brewer. Anheuser-Busch (AB) InBev, based in Leuven, a small university town half an hour by train from Brussels, turns out one in five of every beer sold around the world. Belgium also makes a bigger range than any other—1,131 at the last count. Apart from six Trappist ales and other abbey beers, it churns out lagers such as Stella Artois and its stablemate Jupiler, the more popular brew in Belgium. Tipplers can also choose from an array of wheat beers, brown ales, red beers from West Flanders, golden ales, saison beers based on old farmhouse recipes, and any number of regional brews. Oddest are the austere, naturally fermented lambic beers of Brussels and the nearby Senne valley, a throwback to the days before yeast was tamed. These anachronisms have survived only in Belgium. The country generously shares its creations with the rest of the world. It is one of the biggest exporters of beer in absolute terms and as a proportion of national production (statistics boosted by the worldwide thirst for Stella Artois). More than half the booze it makes is sent abroad.
Picture: Antwerp is located on the river Scheldt, which is linked to the North Sea by the Westerschelde estuary. The city has one of the largest seaports in Europe.
Wine Producer Belgium
Belgium only recently began re-establishing a domestic wine industry. The Romans had established vineyards and made wine in Belgium 2000 years ago. However, this had come to end as a result of the colder climate in the 15th century. The recent climate change helped to restart winemaking in Belgium.
Modern winemaking in Belgium was initiated by Jean Bellefroid. During World War II, Bellefroid went to Moselle in Germany. There he worked in a vineyard and learned how to make good wine. He start his vineyard in 1963 in Borgloon.
There are now a number of vineyards, totaling about 200 hectares. Wine production occurs in both Wallonia and Flanders.
Pictures: The Cathedral of Antwerp with Paintings of Rubens
Belgium has five officially demarcated Appellations d'origine contrôlées (AOCs), four in Flanders and one in Wallonia, and two Vin de pays regions. AOC Hageland in Flemish Brabant close to Leuven was the first AOC, created in 1997. AOC Haspengouw (Hesbaye) followed in 2000, located in Limburg, close to the border with Netherlands, and home to Belgium's most famous and largest wine producer, Wijnkasteel Genoels-Elderen. AOC Heuvelland followed in 2005. There is also an AOC for sparkling wine from Flanders, Vlaamse mousserende kwaliteitswijn, created in 2005.
The first Wallonian AOC, Côtes de Sambre et Meuse, was created in 2004, and is situated between the rivers Sambre and Meuse, in the vicinity of Liège.
The two Vin de Pays (country wine) regions cover Flanders and Wallonia, respectively. The Flemish country wine is simply designated Vlaamse landwijn, while the Wallonian country wine carries the name Vin de pays des Jardins de Wallonie.
Around 90 percent of the production is white wines. Most of the grape varieties planted are the traditional vitis vinifera grape varieties (e.g. Riesling, Pinot Gris, Rivaner, Pinot Blanc, Auxerois, etc). French American hybride grape varieties that resist mildew diseases better and ripen quicker, but lack a bit the elegance of the traditional vitis vinifera grape varieties, are also planted. They are, however, much more popular in neighboring Holland.
Belgian wines are mainly sold to vineyard visitors or distributed in local shops and restaurants.
Picture: Katharina Schiller, Annette Schiller, Cornelia Schiller Tremann and Christian G.E. Schiller in Belgium
schiller-wine: Related Postings
Emerging Wine Producer The Netherlands
The Wines of Madagascar
Champagne in Russia
Emerging wine country: Russia --- After the break down of the Soviet Union, many important wine growing areas became foreign for Russia
Emerging Wine Country Serbia - Still in the early Stages after the Break-up of Yugoslavia
New World Wine Producer South Africa
The Exciting Wines of the Czech Republic
Emerging Wine Country Poland: The Early Days of a Climate Change Gainer?
Tokaji: Depressing and Encouraging News from Hungary
Emerging Wine Giant China: Top Wine China 2014, Beijing, China
Emerging wine country: China's wine boom since 2000
New World wine country: New Zealand - facing the fate of neighboring Australia?
New World wine country: Chile and the Carmenere grape
The Size and the Structure of the German Wine Industry
Trends in the global wine market: old world, new world, emerging wine countries
A Global View: Who Makes and who Drinks Wine?
Wine Consumption by Country: Total and Per Capita
Global Wine Consumption and Production
Showing posts with label Emerging wine country. Show all posts
Showing posts with label Emerging wine country. Show all posts
Friday, August 29, 2014
Friday, August 15, 2014
Emerging Wine Producer The Netherlands
Picture: Typical Dutch Windmill in Ouddorp, South of Rotterdam in Zeeland
I visited The Netherlands for the first time when I was 5 years old. My parents had decided to spend the summer vacation at the Dutch beach town Noordwijk aan Zee in the west of the Netherlands; I learnt to swim there. Infrequent visits to The Netherlands followed, in particular after I met my wife, who comes from a German region which borders The Netherlands.
My interest in The Netherlands got a boost recently when my daughter Katharina accepted a position as junior researcher at the University of Wageningen. I started to do some research on winemaking in The Netherlands and recently visited one of the best winemakers of The Netherlands, Wijnhove De Kleine Schorre in Dreischor, Schouwen-Duiveland. A separate posting on Wijnhove De Kleine Schorreis will be released in due course.
Pictures: Christian G.E. Schiller at Wijnhove De Kleine Schorre in Dreischor, Schouwen-Duiveland with Winemaker and Owner Johann van der Velde.
Wine in Holland? The Dutch climate is cool and damp, which is not conducive for producing premium-wines. Yet, over the past twenty years, Dutch viticulture has boomed, with farmers planting vineyards at a growing rate. The 2 main contributing factors are: The European climate's rewarming to Roman-era temperatures of 2,000 years ago and the development of new, colder climate-resistant hybrid grape cultivars. Still, now exceeding 200 hectares, Dutch wine production is negligible by international standards. In neighboring Germany, for example, the vineyard area totals 100.000 hectares.
Pictures: The Netherlands
Snooth on Dutch Wine: The climate in The Netherlands, or Holland, is too cool and damp to produce quality wine. However the Dutch have been very active in the European wine market through the centuries, with their geographic location perfectly positioned as a prime merchant port for German and French wines. In addition, the Dutch have heavily influenced the production of South African wines. The Dutch settled there in the 17th century and established many wineries throughout the country, and also the Koöperatieve Wijnbouwers Vereniging van Zuid-Afrika Bpkt (KWV) in 1918. First developed as massive wine cooperative, this became the regulating force in the South African Wine industry. But while wine is not a big Dutch export, the Netherlands is known for gin….
Pictures: Annette Schiller and Cornelia Schiller Tremann at the Beach
History
Adriana Stuijt: Two-thousand years ago, after Roman conqueror Julius Caesar invaded trans-Alpine Europe, his colonists planted extensive vineyards, also in the Netherlands. The climate must have been much warmer then: The ancient Roman grape vines required an annual temperature which should not drop below 23 Fahrenheit for too long: and any brisk freeze would usually kill these old Roman cultivars. Over the centuries, the temperatures in The Netherlands, even the most southerly province of Limburg where most of the vineyards were located, dropped to such an extent that most of the old Roman vineyards disappeared.
French-American Hybride Grapes
The Dutch wine industry was kick-started by the development of new hybrid cultivars. “These new varieties resist mildew diseases better, their grapes ripen quicker, they are more adapted to the Dutch climate,” says winemaker Job Huisman.
Here is a list of the most popular French American hybride grape varieties planted in the Netherlands. In addition, mainly in the Limburg area, winegrowers still cultivate the traditional vitis vinifera grape varieties (e.g. Riesling, Pinot Gris, Rivaner).
Leon Millot: Light, fruity Beaujolais-type wine.
Maréchal Foch: Light fruity Beaujolais-type wine.
Rubens: Riesling-type wine.
Melody: Pinot Blanc-type wine.
Rayon d'Or: Riesling-type wine.
Cabernet Cortis: Cabernet Sauvignon-type wine
Regent: Crossing between [(Silvaner and Muller Thurgau) x Chambourcin]. Red wine.
Solaris: A Merzling x (Saperavi Severny x Muscat Ottonel) cross. Chardonnay-type wine.
Johanniter: Riesling-type wine.
Imports
At 22 liters, per capita wine consumption is about at the level of Germany and half of France. Practically all of it is imported. 30 years ago, the wine market was dominated by French wine, with a market share of over 70 percent. The French wine consumption has dropped to 30 percent, but still is #1. South Africa is #2, with 22%. Chile is doing well, with a share of 9 percent now, slightly ahead of Germany which is at 8 percent and on a downward trend.
The Future of Dutch Winemaking
“Fifteen years ago when I tasted Dutch wine, it was simply undrinkable,” says Nicolaas Klei, a Dutch wine specialist who has written several books on the subject. Klei, though, remains sceptical about the quality of Dutch-made wines. “Actually, I would say it’s not bad to drink … in the best case,” but he argues that new varieties cannot rival the classics. “We must be realistic, there will never be a great wine made in The Netherlands.”
schiller-wine: Related Postings
The Wines of Madagascar
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Emerging wine country: Russia --- After the break down of the Soviet Union, many important wine growing areas became foreign for Russia
Emerging Wine Country Serbia - Still in the early Stages after the Break-up of Yugoslavia
New World Wine Producer South Africa
The Exciting Wines of the Czech Republic
Emerging Wine Country Poland: The Early Days of a Climate Change Gainer?
Tokaji: Depressing and Encouraging News from Hungary
Emerging Wine Giant China: Top Wine China 2014, Beijing, China
Emerging wine country: China's wine boom since 2000
New World wine country: New Zealand - facing the fate of neighboring Australia?
New World wine country: Chile and the Carmenere grape
The Size and the Structure of the German Wine Industry
Trends in the global wine market: old world, new world, emerging wine countries
A Global View: Who Makes and who Drinks Wine?
Wine Consumption by Country: Total and Per Capita
Global Wine Consumption and Production
I visited The Netherlands for the first time when I was 5 years old. My parents had decided to spend the summer vacation at the Dutch beach town Noordwijk aan Zee in the west of the Netherlands; I learnt to swim there. Infrequent visits to The Netherlands followed, in particular after I met my wife, who comes from a German region which borders The Netherlands.
My interest in The Netherlands got a boost recently when my daughter Katharina accepted a position as junior researcher at the University of Wageningen. I started to do some research on winemaking in The Netherlands and recently visited one of the best winemakers of The Netherlands, Wijnhove De Kleine Schorre in Dreischor, Schouwen-Duiveland. A separate posting on Wijnhove De Kleine Schorreis will be released in due course.
Pictures: Christian G.E. Schiller at Wijnhove De Kleine Schorre in Dreischor, Schouwen-Duiveland with Winemaker and Owner Johann van der Velde.
Wine in Holland? The Dutch climate is cool and damp, which is not conducive for producing premium-wines. Yet, over the past twenty years, Dutch viticulture has boomed, with farmers planting vineyards at a growing rate. The 2 main contributing factors are: The European climate's rewarming to Roman-era temperatures of 2,000 years ago and the development of new, colder climate-resistant hybrid grape cultivars. Still, now exceeding 200 hectares, Dutch wine production is negligible by international standards. In neighboring Germany, for example, the vineyard area totals 100.000 hectares.
Pictures: The Netherlands
Snooth on Dutch Wine: The climate in The Netherlands, or Holland, is too cool and damp to produce quality wine. However the Dutch have been very active in the European wine market through the centuries, with their geographic location perfectly positioned as a prime merchant port for German and French wines. In addition, the Dutch have heavily influenced the production of South African wines. The Dutch settled there in the 17th century and established many wineries throughout the country, and also the Koöperatieve Wijnbouwers Vereniging van Zuid-Afrika Bpkt (KWV) in 1918. First developed as massive wine cooperative, this became the regulating force in the South African Wine industry. But while wine is not a big Dutch export, the Netherlands is known for gin….
Pictures: Annette Schiller and Cornelia Schiller Tremann at the Beach
History
Adriana Stuijt: Two-thousand years ago, after Roman conqueror Julius Caesar invaded trans-Alpine Europe, his colonists planted extensive vineyards, also in the Netherlands. The climate must have been much warmer then: The ancient Roman grape vines required an annual temperature which should not drop below 23 Fahrenheit for too long: and any brisk freeze would usually kill these old Roman cultivars. Over the centuries, the temperatures in The Netherlands, even the most southerly province of Limburg where most of the vineyards were located, dropped to such an extent that most of the old Roman vineyards disappeared.
French-American Hybride Grapes
The Dutch wine industry was kick-started by the development of new hybrid cultivars. “These new varieties resist mildew diseases better, their grapes ripen quicker, they are more adapted to the Dutch climate,” says winemaker Job Huisman.
Here is a list of the most popular French American hybride grape varieties planted in the Netherlands. In addition, mainly in the Limburg area, winegrowers still cultivate the traditional vitis vinifera grape varieties (e.g. Riesling, Pinot Gris, Rivaner).
Leon Millot: Light, fruity Beaujolais-type wine.
Maréchal Foch: Light fruity Beaujolais-type wine.
Rubens: Riesling-type wine.
Melody: Pinot Blanc-type wine.
Rayon d'Or: Riesling-type wine.
Cabernet Cortis: Cabernet Sauvignon-type wine
Regent: Crossing between [(Silvaner and Muller Thurgau) x Chambourcin]. Red wine.
Solaris: A Merzling x (Saperavi Severny x Muscat Ottonel) cross. Chardonnay-type wine.
Johanniter: Riesling-type wine.
Imports
At 22 liters, per capita wine consumption is about at the level of Germany and half of France. Practically all of it is imported. 30 years ago, the wine market was dominated by French wine, with a market share of over 70 percent. The French wine consumption has dropped to 30 percent, but still is #1. South Africa is #2, with 22%. Chile is doing well, with a share of 9 percent now, slightly ahead of Germany which is at 8 percent and on a downward trend.
The Future of Dutch Winemaking
“Fifteen years ago when I tasted Dutch wine, it was simply undrinkable,” says Nicolaas Klei, a Dutch wine specialist who has written several books on the subject. Klei, though, remains sceptical about the quality of Dutch-made wines. “Actually, I would say it’s not bad to drink … in the best case,” but he argues that new varieties cannot rival the classics. “We must be realistic, there will never be a great wine made in The Netherlands.”
schiller-wine: Related Postings
The Wines of Madagascar
Champagne in Russia
Emerging wine country: Russia --- After the break down of the Soviet Union, many important wine growing areas became foreign for Russia
Emerging Wine Country Serbia - Still in the early Stages after the Break-up of Yugoslavia
New World Wine Producer South Africa
The Exciting Wines of the Czech Republic
Emerging Wine Country Poland: The Early Days of a Climate Change Gainer?
Tokaji: Depressing and Encouraging News from Hungary
Emerging Wine Giant China: Top Wine China 2014, Beijing, China
Emerging wine country: China's wine boom since 2000
New World wine country: New Zealand - facing the fate of neighboring Australia?
New World wine country: Chile and the Carmenere grape
The Size and the Structure of the German Wine Industry
Trends in the global wine market: old world, new world, emerging wine countries
A Global View: Who Makes and who Drinks Wine?
Wine Consumption by Country: Total and Per Capita
Global Wine Consumption and Production
Labels:
2014,
Emerging wine country,
The Netherlands
Monday, June 13, 2011
Decanter 2011 Wine Power List: I am – With my Fellow Amateur Wine Bloggers Around the World – # 16 on the List
Decanter Wine Power List 2011
The British Wine Journal Decanter just released the Decanter Wine Power List 2011 – the 50 most influential people in the wine world 9althought I counted only 49) And I am on it!! With my fellow bloggers around the world, the Amateur Wine Blogger made its first appearance at number 16.
Here is the list.
1. Pierre Pringuet (France) - the 60-year-old executive presides over the world’s fourth biggest wine company, Pernod Ricard, owner of brands from Champagne Mumm and Perrier-Jouet to Jacob’s Creek and New Zealand’s Brancott Estate. Pernod Ricard spans both the mass-market and premium end of the global wine market.
2. Eric de Rothschild (France) – he has looked after the portfolio of Domaines Barons de Rothschild for 37 years. He has shot up from number 20 2 years ago on the basis of Chateau Lafite’s huge influence in China
3. Robert Parker (US)
4. Mel Dick (US) – Senior Vice President of Southern Wines and Spirits (Distributor)
5. Robert Sands (US) – President of Constellation Brands
6. Annette Alvarez-Peters (US) - Wine Buying Director, Costco
7. Don St Pierre Jr. (China) of ASC Fine Wines
8. Wu Fei (China) - Chairman and General Manager of Chinese giant Cofco
9. Eduardo Guilisasti (Chile) - CEO, Concha y Toro, largest wine producer in Latin America
10. Jancis Robinson (UK) – wine critic of the Financial Times
11. Bernard Arnault (France) - LVMH Chief, owner of Chateau Cheval Blanc and Chateau d'Yquem, controlling stakes in Dior Couture, Tag Heuer, De Beers, Louis Vuitton
12. Nobutada Saji of Suntory
13. Steven Spurrier
14. Dan Jago (UK) - head of Tesco's Wine, Beer and Spirits division
15. Gina Gallo (US, Winemaker)
16. The amateur wine blogger – first appearance on the list
17. Robert Shum of Aussino
18. Michel Rolland (France) - consulting winemaker
19. Pierre Castel (France) - owner of Groupe Castel
20. Tony Laithwaite (UK) - owner of the largest specialist home delivery wine business in the world
21. Marvin Shanken
22. Miguel Torres
23. Sylvie Cazes (France) - President of the Union des Grands Crus de Bordeaux and MD of Chateau Pichon-Longueville Comtesse de Lalande
24. Gary Vaynerchuk (US, Web 2.0 Leader)
25. Jean-Charles Boisset
26. Jeannie Cho Lee MW (Asia, Wine Critic)
27. Simon Berry (UK) - Chairman of Berry Bros. and Rudd
28. Hugh Johnson (UK)
29. Peter Gago (Australia, Penfolds Winemaker)
30. Aubert de Villaine
31. John Kapon (US) - CEO of Acker Merrall & Condit, the largest wine auction house in the world and America's oldest fine wine merchant
32. Ch’ng Poh Tiong (China) - Publisher of The Wine Review (South-East Asia’s oldest wine magazine, since 1991), and the world’s first annual Guide to Bordeaux in Chinese
33. Stéphane Derenoncourt
34. Piero Antinori
35. Ghislain de Montgolfier (France) - Head of Bollinger
36. Denis Dubourdieu
37. Eric Levine (US, Web 2.0 Leader)
38. Gary Boom (UK) - MD of fine wine merchant Bordeaux Index
39. Allen Meadows (US) - American wine critic (Bourgogne)
40. Mathieu Chadronnier
41. Michael Hill Smith MW (Australia_ - winemaker, judge and consultant
42. Serena Sutcliffe MW (UK) - head of Sotheby's international wine department
43. Pierre-Marie Guillaume
44. Nicolas Joly (France) - one of the leading biodynamic winegrowers (Loire)
45. Frédéric Rouzaud (France) - CEO of Champagne Louis Roederer
46. Nicolás Catena (Argentina) - winemaker
47. Yasuhisa Hirose (Japan) – owner of Enoteca, Japan's best-known chain of wine shops
48. Pedro Parra (Chile) - winemaking consultant
49. Lorenzo Bencistà-Falorni
50.
Who Will be on the Decanter Wine Power List 2013?
I am an economist by training and view things pretty much from an economic perspective, including the global wine market. In the world, there is a dramatic shift in purchasing power going on and will continue to go on, with implications for the global wine market. Within the past 40 years, the shares of the three main regions --- EU, USA and Asia/Oceania --- in world GDP have converged to around 27 percent, with the US going steady, the EU falling by roughly 10 percentage points and the Asia/Oceania region increasing by this amount. If you do a trend projection, than you end up, say in 40 years, with something like on the left-hand axe, with the only difference that the top line at above 35% is Asia/Oceania and the line in the middle at 15% is Europe.
Picture: Trends in World GDP Shares, from Greg Mankiw's BlogThis is in broad terms the economic set up for the global village in which people consume and produce wine. Often, one distinguishes two groups of wine countries, Old World wine countries and New World Wine countries, but I think one should add a third category, Emerging Wine countries.
Here is Decanter's list of names to look out for in 2013, when the next Wine Power List will appear, reflecting the trends seen in the main list, and expected to proliferate over the next two years. Editor Guy Woodward earmarked three major trends in this year's list: the rise of Asia, the empowerment of the consumer and the increasing diversity of the wine world.
Ian Harris (UK) – Wine and Spirit Education Trust
Eric Asimov (US) – New York Times
Simon Tam (China) – Christie’s Manager in Hong Kong
Debra Meiburg MW
Ryan Anderson Opaz – European Wine Bloggers Conference
Bill Foley (US) – Foley Family Wines
Bruno Paillard (France) – Champagne producer
schiller-wine: Related Postings
Emerging wine country: China's wine boom since 2000
New World wine country: New Zealand - facing the fate of neighboring Australia?
New World wine country: Chile and the Carmenere grape
Trends in the global wine world - old world, new world, emerging wine countries
Monday, March 29, 2010
The Forbes List of Rich People and Wine
Picture: Liv-ex 100 Index of Fine Wine and Forbes List of Billionaires (Source: Liv-ex The Fine Wine Exchange)The Forbes List of Rich People and Wine
The New Forbes List of the Richest People in the World
The new Forbes list of the richest people in the world is out. This year, the world's billionaires have an average net worth of $3.5 billion, up $500 million in 12 months. The world now has about 1000 billionaires, up from about 800 last year and not much lower than the record of 1125 billionaires in 2008.
Liv-ex 100
At the same time, the index of prices for fine wine is also up again, after having declined sharply following the financial crisis of 2008. In February the London Fine Wine Index Liv-ex 100 again increased by 3 Percent and has again reached 250 points, compared with 264 points in June 2008, at the onset of the financial crisis in 2008. On a 12-months basis, the index has grown by almost 20 percent, in line with the general recovery of financial markets.
Liv-ex 100 and the Forbes List
Liv-ex has published an interesting chart, which plots the number of billionaires from Forbes alongside the Liv-ex 100 Fine Wine Index. The correlation is startling.
Of course, it is not the increasing number of billionaires which is behind the recent strong performance of the Liv-ex 100 Fine Wine Index. But the Forbes data is a good proxy for what is happening on the demand side of the market for fine wines. One major factor of course is Asia, and in particular, China.
Two thirds of the new entrants of the Forbes data come from Asia. U.S. billionaires still dominate the ranks--but their grip is slipping. Americans account for 40% of the world's billionaires, down from 45% a year ago. Of the 97 new members of the list, only 16% are from the U.S. By contrast, Asia made big gains. The region added 104 moguls and now has just 14 fewer than Europe.
Eleven countries have at least doubled the number of billionaires they had a year ago, including China, India, Turkey and South Korea. For the first time China (including Hong Kong) has the most billionaires outside the U.S. with 89.
China biggest non-EU importer
In line with these numbers, China has become the largest importer of Bordeaux wines outside Europe; it has overtaken the US. These numbers, however, need to be put in perspective. 70% of the Bordeaux is consumed by the French themselves, mainly bought via large supermarkets. Of the remaining 30% percent, more than half is exported to other EU countries. China is now the leader of the pack of the non-EU exports, which account for about 14 percent of total Bordeaux output. China bought 13.7 million liters for 74 million Euros, overtaking the United States, which took 11.6 million liters for 139 million Euros. Japan came third, with the same volume as the United States. China’s imports will need to increase by 50% to overtake the UK. This sounds a lot. But doable when you compare it with last year’s growth of almost 100 percent. Bordeaux makes up around 2.5 per cent of world wine production.
The Shares of the 3 Main Regions – EU, US, and Asia/Oceania – in World Output
Within the past 40 years, the shares of the three main regions --- EU, USA and Asia/Oceania --- have converged to around 27 percent, with the US going steady, the EU falling by roughly 10 percentage points and the Asia/Oceania region increasing by this amount. If you do a trend projection, than you end up, say in 40 years, with
Picture: Shares in World Output (Source: Greg Mankiw's Blog)something like on the left-hand axe, with the only difference that the top line at above 35% is Asia/Oceania and the line in the middle at 15% is Europe. There is a dramatic shift in purchasing power going on and will continue to go on, with implications for the wine market. This is in broad terms the economic set up for the global village in which people consume and produce wine.
Schiller Wine - Related Postings
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Trends in the global wine market: old world, new world, emerging wine countries
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Emerging Wine Country: China's Wine Boom Since 2000
Labels:
China,
Emerging wine country,
global wine market,
New World
Monday, November 30, 2009
Emerging wine country: China's wine boom since 2000
Picture: The Great Wall --- China
Source: Greg Mankiw's Blog, November 23, 2009
This is an interesting chart which shows the shares of various regions in world GDP.
Within the past 40 years, the shares of the three main regions --- EU, USA and Asia/Oceania --- have converged to around 27 percent, with the US going steady, the EU falling by roughly 10 percentage points and the Asia/Oceania region increasing by this amount. If you do a trend projection, than you end up, say in 40 years, with something like on the left-hand axe, with the only difference that the top line at above 35% is Asia/Oceania and the line in the middle at 15% is Europe. There is a dramatic shift in purchasing power going on and will continue to go on, with implications for the wine market.
This article will focus on one of the main drivers behind the rise of the Asia/Oceania region, China, and in particular --- this being a wine blog --- wine production and wine consumption in China. The Chart with the shares in world GDP is a useful reference for that.
Amazing things have been going on in China, both in terms of wine consumption and wine production, which, in a globalizing world will have major repercussions on wine production and consumption in other countries. Just take the recent wine auction in Hong Kong with very high volumes and high prices for the top French wines. Everyone in the world will have to pay now these Chinese prices.
Production of Wine in China
China has a long tradition of producing all kinds of wine, but produced practically no vinifera wine before the economic reforms of the early 1980s. Since then, hundreds of wineries have sprung up. Initially, the wine was exported abroad because the domestic demand was weak. But since 2000, when the economic boom finally reached the consumer, things are changing rapidly. At the same time, imported French wine has become very popular in China.
China now ranks 7th in terms of world production, ahead of Germany, South Africa and Chile and almost at par with Australia and Argentina, and it is likely to overtake Australia soon. To reach the level of the 4th placed --- the US --- it will need to double its production.
Looking ahead, experts are very optimistic. Britain's wine merchant, Berry Bros.&Rudd has come to the conclusion that China is set to become a leading wine-producing country. It estimated that China's current 400 wineries would increase more than tenfold in the next 50 years, with perhaps a quarter of them producing fine-quality wine. It also predicted that China would be the world's leading producer by 2058, overtaking France, Italy, Spain and the US. In addition, China has "all the essential ingredients to make fine wine to rival the best of Bordeaux" including "the right soil, low labor costs and soaring domestic demand," the report said.
Consumption of Wine in China
China already ranks behind Germany on fifth place in terms of wine consumption. Given current trends, China will soon overtake Germany.
There are two market segments that are of expected to grow particularly fast. First, the lower end mass wine market. Growth in demand in this market segment --- the easy drinking, low quality cheap wine --- is expected to be high. In this context, China is negotiating with Morocco to set up a bottling plant in China for Moroccan wine. Morocco is exporting in bulk to Europe but is now looking for China to export.
The other market segment, where China will be increasingly present is the top wines. Since 2000, expensive red wines, in particular from France, have become very popular in China among the rich and the famous. Red wine, in particular French red wine, has become a symbol of the elite and the rich. Reflecting that, in 2007 the Chinese wine importer St.Pierre became the most important buyer of Chateau Latour wines. Another wine that has become exceptionally popular in China is Lafite Rothschild. Against this background, Lafite Rothschild is in the process of setting up a winery in China to produce grand cru wines there. Within a decade or so, China’s rich have gone from mixing red wine with cola to checking Parker points when ordering a wine and being ready to pay top dollars to put a couple of cases of these wines in their cellar. They have become a major player in the top market segment.
The November 23, 2009 edition of the New Yorker contains a fascinating article by Evan Osnos on Donald St. Pierre, a Canadian and a prominent importer of wine to China. He arrived in China in 1985, a few years after the economic reform process started, thanks to a position with American Jeep. Ten years later, he started importing wines after forays into other things such as scrap metal, lingerie, and Chinese and Russian ammunition. Dr. Vino's Blog contains a short summary of the article, including an interesting series of comments. The whole article is only available to subscribers of the New Yorker.
To conclude, here is the comment of Chris Robinson, which I found very useful: “The market in China has changed so markedly that no one would claim to be able to meet the diverse range of market demand in China. Leaving aside the huge differences between provinces in China it is clear that there are two market extremes for imported wines – the cheap and cheerful, velvety textured, red only wine, under US$10 and the LafMoutTrus segment where unless it has a Parker 95 plus US$100 plus retail price and can be pronounced by any drunken cadre over a corruption-funded dinner it is going nowhere. The Hong Kong auction market has to be the best indicator of the stupidity of this latter segment. A narrow range of wines sell to mainland Chinese buyers at auction some 20-30% above the retail prices one can pay for them in Hong Kong on the same day as the auction. This is all about one thing the mainland Chinese are masters at – showing off. It will be many years before a serious middle tier develops in China – and therefore many years before any wine marketer a la the West can claim to be a China success story. One amusing experience sums this up. At a recent auction in Hong Kong a rather attractive young mainland Chinese lady of about 20 years of age sat next to me. She was clearly struggling with the English and all the action of the auction. Being a “nice guy” I offered her a few tips and introduced her to some of the things she needed to understand if she was going to bid. She then told me her boyfriend had given her the equivalent of US$100K to buy wine and she was there to buy “Beetroot”, which of course rather threw me. it was only some 20 lots later that I discovered beetroot was in fact Petrus. When mistresses no longer bid on Petrus at auctions we can probably then conclude the wine industry in China may be appraaching maturity, until then today’s heroes are almost certainly tomorrow’s losers. As the Chinese would say, the industry is best described as ” playing a violin in front of a cow”. It will be years before serious wine interest catches up with the marketing bull…”
A good source for what is going on in China is Grape Wall of China, an English-language site about the wine scene in China.
China is clearly the most important emerging wine country, with potentially major implications for consumers and producers of wine around the world.
Schiller Wine --- related postings:
Emerging wine country: Russia --- After the breakdown of the Soviet Union, many important wine growing areas became foreign for Russia, October 24, 2009
Emerging wine country: Poland --- The early days of a climate change gainer? October 21, 2009
Emerging wine country: Serbia --- Still in the early days after the break-up of Yugoslavia, October 12, 2009
Labels:
Asia,
China,
Emerging wine country,
global wine market
Saturday, October 24, 2009
Emerging wine country: Russia --- After the break down of the Soviet Union, many important wine growing areas became foreign for Russia

I have started to cover countries east of the former iron curtain(although Serbs may argue that they were not east of the iron curtain). These are all what I would call emerging wine countries, although in Hungary, but also Serbia, wine making has a long tradition. But they were absent from the international market since the Second World War, at least from a western perspective.
I covered Serbia on October 2009, 1,5,12 and 19, Hungary on October 2009, 12 and 15 and Poland on October 2009, 21. Today Russia.
Wine making during the period of the Soviet Union was concentrated in the South, reflecting the climating conditions there: Crimea in the Ukraine, the valley of Ararat in Armenia, as well as the Republics of Moldova, Georgia and Azerbaijan.
The founder of modern commercial wine-making in Russia is Prince Leo Galitzine , who established the first Russian sparkling wine estate in the Crimea. In 1889 his sparkling wine won the Gold Medal in Paris. Until today, Russian Sekt remains very popular in Germany.
After the Russian Revolution in 1917, the French wine-savvy professionals fled Russia, but during the Soviet Union, wine growing and making came back. Few wineries, however, had any bottling equipment. Wine was sent in tanks to separate bottling plants located close to the big cities in the Soviet Union. In general, priority was given to higher-yielding sorts of grapes, quantity over quality.
After the break down of the Soviet Union, many important wine growing areas became foreign for Russia. The Russian population is approximately 145 million people and the Republics of the former USSR total over 295 million.
The wine growing areas of Russia are located between the Caspian and Black Seas. Until today, the wine market in Russia is almost entirely a table wine market.
Jancis Robinson now has a report on Russia in the FT of October 24, 2009.
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