New Zealand winemakers plan to stake claim in moving China market

WELLINGTON, May 1 (Xinhua) -- The New Zealand government and wine industry are planning a long-term strategy to build the presence of New Zealand wine in China over the next three to five years, an industry expert said Tuesday.

As New Zealand winemakers prepare for a major push in China this month with their biggest-ever road show taking in Hong Kong, Beijing and Shanghai, industry association New Zealand Winegrowers (NZW) admitted they were still feeling their way.

"There are a just a few things we think we know about wine consumption in China right now," NZW market manager Asia Monty James told Xinhua.

"We know consumption in the Chinese mainland has enjoyed a sustained and exciting period of growth, in line with China's growing prosperity as a nation. We know that wine has become a popular beverage of choice for celebrations, festivals and banquets. We also see a remarkable thirst for wine knowledge and a fast-growing sophistication as a result," said James.

"What we also know is the market is in a state of considerable and constant change. This feature of the market means we also must accept that we know very little, as today's market knowledge is tomorrow's history lesson."

James said in an e-mail interview that New Zealand winemakers had a clear understanding that they would have a discerning market in China.

"From our end, we know who we are and what we're not. We are not one of the world's larger wine exporters looking to have significant market share across all of China we simply will never have the supply to be this," he said.

"We are a boutique producer of premium and diverse wines made by innovative, highly educated craftsmen. Our wines are celebrated not for their volume of production but for their quality and character. They are wines with stories."

NZW is taking 30 wineries to Beijing and 29 wineries to Shanghai for New Zealand-only exhibitions in May, and 20 New Zealand wineries taking 120 wines are to feature at the Vinexpo Asia Pacific, one of the region's biggest wine and spirits exhibitions, from May 29 to 31.

The Vinexpo New Zealand Wine Pavilion will have the support of the economic development agency, New Zealand Trade and Enterprise, as co-sponsor in what is described as a "new strategic partnership " between the industry and government.

James said the industry and government would be working together to build market presence for New Zealand wine in China over the next three to five years.

"Our objective is to find our consumers and our potential consumers and engage them with our wine story quite a challenge we know, but you're about to see a considerable effort made by government and industry to achieve this," he said.

"We'll be spending more time in the market, engaging those who are already selling New Zealand wine in China, connecting with those who influence the market and understanding the dynamics across market channels and across cities."

According to NZW, New Zealand wine exports to mainland China rose by 53 percent in the year to the end of March and exports to Hong Kong by 16 percent.

New Zealand winemakers believe the market still has huge potential, with figures showing France consumed 55 liters of grape wine per person in 2005 and New Zealand 20 liters, while China consumed 1 liter per person and Japan, Asia's biggest wine importer, 2 liters.

New Zealand wines usually sell at the upper end of the market in Asia, averaging just over 11 U.S. dollars per bottle.