SBDC to help small wineries export products to China
Wineries in the north country sell their products to customers across the state, but finding larger markets for distribution can be challenging.
Thanks to a new initiative by the state Small Business Development Center set to launch this summer, small wineries will have a chance to export their products to China.
The SBDC in Albany has made an agreement with Chinese agencies to launch a New York state wine outlet at the free trade zone in Shanghai, giving the state’s 300 wineries a chance to export their wines to a booming marketplace overseas, said Jinshui Zhang, director of international development for SBDC.
Wineries participating in the program will be able to feature wine at trade shows during the year in Shanghai, Mr. Zhang said, and the SBDC will serve as the middleman by making arrangements to sell wines at chain stores, supermarkets and hotels. Promotional events, such as wine tastings, will be held at an outlet center in China to market products.
Most of the roughly 300 wineries in the state are small and not familiar with the marketplace or business practices overseas, Mr. Zhang said. By eliminating red tape involved, the program will serve as a launch pad that will enable small wineries to market and sell their wines.
In the north country, the wineries in Jefferson, Lewis and St. Lawrence counties could establish a consortium to export their products to Chinese customers, said David B. Fralick, president of the Northern New York Growers Association.
Area wineries will be eager to learn more about the SBDC program when it’s launched, Mr. Fralick said.
“I think it would be very worthwhile for the wineries here to get together, maybe, and come up with a set of products they want to offer,” he said. “Once the market opens up in China and more people are getting on board, this could be a good deal.”
As a group, the wineries do about 90 percent of their business with customers in New York, Mr. Fralick said, with the rest done over the Internet.
Even if wineries here don’t participate in the near future, the international program should help expand the winery industry across the state, Mr. Fralick said.
“The biggest thing is this is going to introduce (Chinese) people to New York state wines, and we’re going to get recognition for our products here,” he said.
Meanwhile, the burgeoning wine industry in the north country is expected to grow rapidly in the coming years, Mr. Fralick said. About half of its seven wineries were launched in the past five to 10 years, he said, and that number is expected double in the next two to three years.
Thousand Islands Winery, which opened in 2003 in Alexandria Bay, could take advantage of the program to export its wines, said Victoria Herrera, marketing director.
“The opportunity to ship our wines to a virtually untouched Chinese market through collaboration with the New York state SBDC is a wonderful way to be able to raise awareness about the quality wines New York state has to offer in a market that would be hard to reach on our own,” Ms. Herrera said. “We are really excited about this opportunity and look forward to being able to reach new customers across the world.”
Mr. Zhang said there is potential for small wineries in the north country to form a consortium to sell their wines using the program. Staff from the SBDC will provide assistance to wineries interested in forming partnerships.
“Sometimes wineries’ production capacity may be too small to meet the demand from overseas customers, but that can be overcome by collective efforts,” Mr. Zhang said. “If you combine several local wineries that have a similar product, you can use a” collective approach to distribute, market and sell products to Chinese customers.
The state wine outlet is slated to open in Shanghai in June, Mr. Zhang said, and a free public presentation will be hosted by the SBDC this spring in the Syracuse area for wineries that are interested. To participate in the program, wineries will pay an annual fee that is to be determined.