Asia Generates Half of Global Demand for Super-Sweet Canadian Wines
By 2009-4-7 8:17:56
The world's largest maker of ice wine, Canada produced 300,000
liters of the sweet dessert drink in 2006.
Spelled as one word "icewine" in Canada or called "Eiswein" in
Germany, ice wine is made from frozen grapes that are hand-picked
from the field and then processed at night when temperatures are
never higher than -10癈. Pressed before thawing, the grapes produce
a super-sweet liquid with a residual sugar level of at least 125
grams per liter. After fermenting in stainless steel vats, the
resulting alcoholic drink is a rich, fruity dessert wine that is
sold in bottles half the size of regular wine containers.
Canada's Ice Wine Competitors
Only Germany, Austria and China have climates that resemble Canada's
cold seasons closely enough to be able to harvest ice wine. Due to
the inconsistency of their cold seasons, Germany and Austria are not
able to harvest ice wines every year.
According to Agriculture and Agri-Food Canada, a Chinese vintner
named Changyu Winery produced more than 600,000 liters of ice wine
in 2007 ?doubling Canada's ice wine production for 2006.
Competitive exporting countries like Canada and Germany question the
quality of China's ice wine products, however.
Canada's Top 10 Ice Wine Export Countries
Canada exported $11.7 million worth of ice wine in 2006. Among the
leading countries that import Canadian ice wine, the United States
continues to be both the biggest and fastest- growing market.
United States ?US $5 million (42.7% of total Canadian ice wine
exports)
South Korea ?$2.1 million (17.9%)
Japan ?US $1 million (8.5%)
Singapore ?$884,000 (7.6%)
Taiwan ?$835,000 (7.1%)
China ?$600,000 (5.1%)
Malaysia* ?$225,000 (1.9%)
Belgium* ?$210,000 (1.8%)
France* ?$165,000 (1.4%)
United Kingdom* ?$150,000 (1.3%)
*estimated based on 2004/5 statistics from Agriculture and Agri-Food
Canada
While Canada also exports ice wine to about 20 other countries, the
top 10 countries above represent about 95% of Canadian ice wine
exports. Frank Baldock;s Wine Express estimates that 80% of Canadian
ice wine production is exported; however our calculations have that
export percentage closer to 60%.
Asian Demand for Canadian Ice Wine
Six of the top 10 importers of Canadian ice wine are Asian
countries. Generating a value of $5.6 million in 2006, Asian demand
for Canadian ice wine represents about 48% of Canada;s worldwide
exports of the super-sweet dessert wine. Because ice wine is
extremely rare in Asia, visitors from the Far East often purchase
ice wine as special gifts or investments to treasure back home.
These tourist purchases also serve as a wake-up call to Canadian ice
wine producers and exporters, who may not be taking full advantage
of Canada's competitive advantage in exporting its high-quality,
luxury product to fast-growing and increasingly wealthy groups of
drinkers in Asia.
Ice Wine Challenges in China and Taiwan
The Ontario Wine Council reports that sales of Canadian ice wine in
China have dropped 60% from around year 2000. While Chinese demand
for super-sweet wines is robust, counterfeit ice wine is flooding
the Chinese and Taiwanese markets with price tags of $15 per
half-bottle, 3 to 10 times less than the price of genuine ice wine
from Canada, Germany or Austria. Often the fake ice wine is made by
adding water to juice concentrates and sugar or grapes frozen in the
freezer. Bill Ross of the Canadian Vintners Association reveals that
some so-called ice wines are non-wine beverages disguised with dyes.
Counterfeit ice wines at discount prices may be merely symptoms of a
deeper international marketing problem. Specifically, affluent
Chinese consumers buy ice wine as a status symbol, but do not
understand what genuine ice wine tastes like much less how to savour
a true ice wine experience.
Canadian Ice Wine Ingredients for Success
To effectvely market its competitive advantages globally, Canadian
vintners need to initiate two strategic international trade
measures.
1.Canadian ice wine exporters must collaborate with China's official
state importers including the China National Cereals, Oils and
Foodstuffs Import and Export Cooperation (CEROILS) to constrain the
flow of beverages labeled as ice wines but that do not contain the
required ingredients nor meet process quality controls.
2.Canadian wine makers must effectively communicate, educate and
thus market the unique ingredients, qualities, production processes
and benefits of real Canadian ice wine to prospective clients around
the globe.
Sources
This article presents unique insights and calculations based on
statistics and data from Agriculture and Agri-Food Canada's The
Global Mead Market Comparison to the Success of Canadian Icewine
Abroad (June 2007) and from canadianvinters.com.
liters of the sweet dessert drink in 2006.
Spelled as one word "icewine" in Canada or called "Eiswein" in
Germany, ice wine is made from frozen grapes that are hand-picked
from the field and then processed at night when temperatures are
never higher than -10癈. Pressed before thawing, the grapes produce
a super-sweet liquid with a residual sugar level of at least 125
grams per liter. After fermenting in stainless steel vats, the
resulting alcoholic drink is a rich, fruity dessert wine that is
sold in bottles half the size of regular wine containers.
Canada's Ice Wine Competitors
Only Germany, Austria and China have climates that resemble Canada's
cold seasons closely enough to be able to harvest ice wine. Due to
the inconsistency of their cold seasons, Germany and Austria are not
able to harvest ice wines every year.
According to Agriculture and Agri-Food Canada, a Chinese vintner
named Changyu Winery produced more than 600,000 liters of ice wine
in 2007 ?doubling Canada's ice wine production for 2006.
Competitive exporting countries like Canada and Germany question the
quality of China's ice wine products, however.
Canada's Top 10 Ice Wine Export Countries
Canada exported $11.7 million worth of ice wine in 2006. Among the
leading countries that import Canadian ice wine, the United States
continues to be both the biggest and fastest- growing market.
United States ?US $5 million (42.7% of total Canadian ice wine
exports)
South Korea ?$2.1 million (17.9%)
Japan ?US $1 million (8.5%)
Singapore ?$884,000 (7.6%)
Taiwan ?$835,000 (7.1%)
China ?$600,000 (5.1%)
Malaysia* ?$225,000 (1.9%)
Belgium* ?$210,000 (1.8%)
France* ?$165,000 (1.4%)
United Kingdom* ?$150,000 (1.3%)
*estimated based on 2004/5 statistics from Agriculture and Agri-Food
Canada
While Canada also exports ice wine to about 20 other countries, the
top 10 countries above represent about 95% of Canadian ice wine
exports. Frank Baldock;s Wine Express estimates that 80% of Canadian
ice wine production is exported; however our calculations have that
export percentage closer to 60%.
Asian Demand for Canadian Ice Wine
Six of the top 10 importers of Canadian ice wine are Asian
countries. Generating a value of $5.6 million in 2006, Asian demand
for Canadian ice wine represents about 48% of Canada;s worldwide
exports of the super-sweet dessert wine. Because ice wine is
extremely rare in Asia, visitors from the Far East often purchase
ice wine as special gifts or investments to treasure back home.
These tourist purchases also serve as a wake-up call to Canadian ice
wine producers and exporters, who may not be taking full advantage
of Canada's competitive advantage in exporting its high-quality,
luxury product to fast-growing and increasingly wealthy groups of
drinkers in Asia.
Ice Wine Challenges in China and Taiwan
The Ontario Wine Council reports that sales of Canadian ice wine in
China have dropped 60% from around year 2000. While Chinese demand
for super-sweet wines is robust, counterfeit ice wine is flooding
the Chinese and Taiwanese markets with price tags of $15 per
half-bottle, 3 to 10 times less than the price of genuine ice wine
from Canada, Germany or Austria. Often the fake ice wine is made by
adding water to juice concentrates and sugar or grapes frozen in the
freezer. Bill Ross of the Canadian Vintners Association reveals that
some so-called ice wines are non-wine beverages disguised with dyes.
Counterfeit ice wines at discount prices may be merely symptoms of a
deeper international marketing problem. Specifically, affluent
Chinese consumers buy ice wine as a status symbol, but do not
understand what genuine ice wine tastes like much less how to savour
a true ice wine experience.
Canadian Ice Wine Ingredients for Success
To effectvely market its competitive advantages globally, Canadian
vintners need to initiate two strategic international trade
measures.
1.Canadian ice wine exporters must collaborate with China's official
state importers including the China National Cereals, Oils and
Foodstuffs Import and Export Cooperation (CEROILS) to constrain the
flow of beverages labeled as ice wines but that do not contain the
required ingredients nor meet process quality controls.
2.Canadian wine makers must effectively communicate, educate and
thus market the unique ingredients, qualities, production processes
and benefits of real Canadian ice wine to prospective clients around
the globe.
Sources
This article presents unique insights and calculations based on
statistics and data from Agriculture and Agri-Food Canada's The
Global Mead Market Comparison to the Success of Canadian Icewine
Abroad (June 2007) and from canadianvinters.com.
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