The Chinese Wine Market

I can not over stress the importance of the fact that in Chinese the word for alcohol "jiu" is used to mean all types of beverages, from beer" to liquor of all sorts (just called "jiu") to grape wine, called "putao jiu", literally, "grape alcohol". This lumping together of all intoxicating beverages gives us great insight into the traditional use for alcohol, intoxication. Even in modern China alcoholic beverages are generally classed by the general population by how much intoxication it delivers for the money. From this point of view table wine is at the bottom rung of the consumer preference list, with brandy being much higher.

This has not escaped the official notice of the Chinese government who in 1987 began to encourage the Chinese people to drink grape wine over the sorghum based "baijiu" (almost a pure alcohol white liquor). This would switch public consumption from grain based to fruit based beverages, very important in a country struggling to feed its masses; as well it would bring down the average ethanol content consumed in the market. This program has met with limited success, but what success it has found has been in the younger markets, which bodes well for the future.
Any venture to export wines to China must be prepared to establish their brand over a long and potentially unproductive period. They must be able to price their product, after paying 70% duties in such a way as to compete with other alcoholic beverages, especially beer. They must be willing to create or support a distribution system in each major urban area. They must create not only their own storage facilities, but help their customers learn about storing, and even opening bottles of wine. With perseverance, and deep pockets, the potential to market wine to 1.2 billion people is a staggering concept with great potential for profit, in the long run. Education above all else is required before the Chinese people will become a wine drinking nation of even the most meager sort.