Temecula wine growers cancel trip to China

TEMECULA ---- A group of local wine growers has cancelled a trip to China in search of new markets after negotiations on prices broke down. 

"The Chinese were asking for an unsustainable business model," said Bill Wilson, president of the Temecula Valley Winegrowers' Association, which counts about 60 grower members, about half of whom also run wineries. Wilson's family operates Wilson Creek Winery & Vineyards.

Wilson said the Chinese wanted Temecula wines for $1.25 a bottle, generally below the cost for local wineries to make and

bottle the wines. Temecula Valley wines generally are considered midrange in cost and sell from about $16 to $45 per bottle, the association said. In making the trip to China, Temecula Valley growers were anticipating serving the Asian nation's emerging middle class.

Local wine growers had planned the trip in November, but then delayed it to March.

China had said it would drop all taxes and tariffs on California wines, and this summer officials invited a delegation of Southern

California grape growers. Riverside County Supervisor Jeff Stone planned to accompany the growers. Organizers rescheduled the trip for March to allow members more time to raise money for the trip, according to the Riverside County Office of Foreign Trade.
 

Chinese fees and taxes can be as high as 100 percent, the trade office said. The fees deterred area growers from making sales

efforts in China, where the market tends to be dominated by two categories of wine ---- prestigious, higher-priced French wines and some Australian wines, and inexpensive Chinese wines bottled under the "Great Wall" label.

Although disappointed, local growers are looking closer to home to expand the market for Temecula Valley wines."There's 26 million people in Southern California and only 3 million have tried Temecula wines," said Bill Wilson, the association president.