The 2008/2009 Wine Australia Market Program for China
In June 2007, the People's Republic of China became the top export destination for Australian bottled wine in Asia, and the Australian Wine and Brandy Corporation (AWBC) forecast that this demand will continue to grow with the estimated total market size reaching to just over 1 billion Litres by 2011/12.
In recognition of the growing demand and opportunity for Australian wine, and also acknowledging the challenges exporters face in this embryonic market the AWBC is launching a China Market Program in 2008/2009 to support exporters to China. The Program is managed by the AWBC and in partnership with Austrade is delivered through the Austrade China network where a new Wine Australia appointee is located.
The China Market Program operates on an annual subscription basis (financial year, July 01 - June 30) and subscription levels are based on a sliding scale determined by export volumes to the UK, starting at approximately AU$1,000 for exporters of less than 1,000 9litre cases and increasing to the highest level of approximately AU$30,000. The Program is open to bottled, branded Australian wines that have been bottled in the country of origin. Companies must have existing distribution in China preferably in Shanghai and/or Beijing and membership is restricted to companies with an Australian Business Number (ABN).
By joining the Program, membership will increase category presence and distribution in Shanghai and Beijing through a series of initiatives focussing on education, positioning and awareness to buyers, media, educators and trade. Wine Australia China Program Members will benefit from the following initiatives which will:
Required outcomes for 2008/09:
1.Grow Brand Champions and Regional Heroes shelf space and sales through the retail channel and encourage consumers to trade up from locally produced wines to Australian Brand Champion wines and to explore Australia's regional diversity. This will be achieved through partnering with targeted independent retailers and national retail chains and providing dedicated in-store support and a tailored staff training program which will foster a minimum of 10 Wine Australia ambassadors/educators. Currently listed Program Member wines will be prioritised in consumer promotions, and Program Member wines/wineries will be included in staff training sessions and retail visits to Australia.
2.Increase Australian wine listings, trial, awareness and sales in the on-trade through an incentivised program targeting a minimum of ten on-trade outlets including internationally owned hotels and restaurants in Shanghai and in Beijing with a focus on Regional Heroes. Incentives to list and/or sell Program Member wines will be included in the promotion and the training program for participating outlets will include Program Member wines.
3. Position Wine Australia as an aspirational and premium category through a series of Landmark Australia tastings to select media in Beijing and Shanghai achieving a minimum of 8 media reviews at each media event.
4.Support a minimum of two targeted media visits to Australia achieving comprehensive reports on Australian wine with priority visits to Program Member wineries.
5.Increase awareness and opportunity for trial of the Australian wine category through participation in two trade shows and Wine Australia educational seminars. Program Member wineries will have complimentary inclusion in each trade show as a benefit of the Membership and Program Member wines will be considered for inclusion in appropriate educational seminars.
6. Increase listings of Australian wine through two private category buyer tastings in Shanghai and Beijing targeting the on and off-trade with exclusive access to Program Member wines only.
7.Partner with major education providers to provide a comprehensive training program in Australia which includes visits to regional areas and Program Member wineries. Support education providers through the provision of Australia:World Class and wine education other relevant Wine Australia support material.
8.Create Wine Australia ambassadors through the "Wine Australia Travel Scholarship" in Association with the Wine and Spirit Education Trust (WSET).
9.Improve bilingual communication and awareness of the Australian wine category in the trade through the development of a 'Wine Australia Trade Directory' and through bilingual point of sale and communication including a quarterly newsletter.Membership will include complimentary inclusion in the Directory and visibility of all bilingual communication.
10.Maintain effective and regular contact with new and existing importers through importers meetings held twice a year in Beijing and Shanghai.
The 2008/2009 Wine Australia Market Program for the People's Republic of China is a new initiative of the Australian Wine and Brandy Corporation with the support of Austrade China. Due to the embryonic nature of this market and of the Program, initiatives may be adapted over time and Program Members will be advised of any changes accordingly