Wineries visit may open door to China
Campbells Winery’s Colin Campbell says the visit from a Chinese delegation could open up a bigger market. Picture: KYLIE GOLDSMITH
AN official Chinese wine delegation will descend on Rutherglen for the first time next week as exports to the US and Britain take a pounding because of the soaring Australian dollar.
Muscat of Rutherglen chairman Colin Campbell said the visit should help open up avenues into the Chinese market with those coming involved in bar management, retail, online trading and senior wine management.
He said it was important to expand, with the value of the Australian dollar hurting sales in the US and Britain.
“The dollar is a real worry, in the US it’s probably cut our sales by 40 per cent,” Mr Campbell said.
“You can’t blame all that on the dollar because costs are going up but the dollar is a big part of it.”
Mr Campbell said his winery’s position was probably reflective of most Australian vignerons who exported.
Winemakers of Rutherglen chairwoman Eliza Brown said the exchange rate did not hit most of her members because 70 per cent traded solely domestically.
“It’s an issue for everybody in every industry but if you look at it as a large issue for Rutherglen it’s not really because only a small percentage of our members actually export,” Ms Brown said.
Mr Campbell said the role of price was evident in China with the strategy of French producers.
“I think the Chinese are very indoctrinated by the French wines,” he said.
“The French have a good grasp on the market therefore it’s difficult for Australian wine to come in because usually we’re above the French in price because France sends a lot of cheap wine over there.”
Muscat of Rutherglen executive officer Kevin Bascomb said four wineries from his district, Campbells, Morris, Pfeiffer and Rutherglen Estates, exported less than $1 million worth of wine in 2010.
“There is enormous scope to grow, there is enormous potential,” Mr Bascomb said.
“Asia is the new Europe, to put that in context the Australian wine industry currently exports $1.6 billion to $1.8 billion per annum and with China we export $130 million.”
Mr Bascomb said next week’s visit was aimed at creating “ambassadors to encourage Chinese consumers to try our wines”.