The Australian wine industry has always seemed to be mono-focused. When we first started to export seriously it was the UK, then the USA, and more recently/now, China. The question now is: Is it time to find another country to focus on? I think so! For the last five years I have been suggesting that we should be looking much more closely at the rest of Asia (other than India), so that we don’t have too many eggs in the one Asian basket, so to speak.
OK, so what are the signs that China is starting to fall out of love with us?
There are a number of indicators which on their own aren’t alarming or any cause for concern BUT when added together should be ringing alarm bells. Here are the main ones:
►China is not happy with Australia in general terms. Starting with us not siding with them in the South China Sea bun fight, followed by our perceived stance in the USA-China Trade war. There have been quite a few angry/warning noises being made towards Australia by the Chinese Government over the last one to two years. Not awarding the 5G contract to Huawei is a “biggie” of a black mark against us.
►In recent times a considerable number (if not all) wine shipments to China have taken way longer than “normal” or before, to clear China Customs.
►The ability to send wine samples to China has all but been cut-off. A decade ago we used to regularly send a dozen bottles of samples via Australia Post to potential customers in China. It was a swift and safe service. Then they cut it back to six bottles, then to three bottles, then down to just two bottles. Most recently the China Customs Department has started requiring the same documentation for samples as it does for a container full of wine.
So that now you can’t send samples by Australia Post, you have to use DHL or FedEx, costing $200-300 and you have to spend around $200 on government certificates. So that is around $500 (or more) to send two sample bottles to China. Wow! If that isn’t slowing down business development, I don’t know what is.
►The Chinese Government’s current five-year plan (yes they still have those) includes the almost doubling of their acreage under vine. Just stop and think about that for a second. They already produce more wine than what we do and they are aiming to double that!!! They have started exporting wine, but that will only be a small portion of their sales from the foreseeable future, so they are in effect planning not only to cover the increasing “middle-class” population, but also to reduce the dependence on wine imports.
►In the last four to five years there has been a significant increase in the quality of Chinese wines. Five years ago, and then last year I attended Chinese wine tastings at the Waite Campus of Adelaide University and in that time there was a marked improvement in the quality of the wines tasted. It is easy to dismiss the rising quality, just like the French dismissed English Sparkling wine until the Nytimber Bubbles beat the Champagne in that famous tasting last decade.
Hey, I am not saying that wine sales to China will suddenly collapse but rather that is going to become increasingly difficult to maintain, let alone grow wine sales into China.
So I am suggesting that the more ‘switched on’ wineries, should be looking at expanding their exports to other parts of Asia, such as Korea or Japan, where we have a Free Trade Agreement (FTA) in place. Look at the rise of Chilean wine in Japan – five years after signing their FTA they went from No.6 imported wine to No.1. Imagine if we could do that, or even become No.2 behind Chile.
How about Vietnam, whose economy is booming? Or even, Indonesia, where despite being a Muslin country (as everybody keeps telling me) there are around six million expats and non-Muslims living in the most tolerant Muslin country in the world. Ignoring that is a bit like ignoring Sydney in your Australian wine sales. By the way, we have a client who has started exporting wine to Timor Leste!
Food for thought!
THIS WEEK’S WINE REVIEW:
This week I am raving about an absolutely sensational Aussie Nero d’Avola, the Lino Ramble 2017 McLaren Vale ‘Tom Bowler’ Nero d’avola.
These guys, Andy Coppard and Angela Townsend, could be called “slightly out of left field”. For starters their winery name is a composite of the representation of texture (Lino) and adventure (Ramble), which gives you a clue that they aren’t “mainstream”. They say, “Our range of wines uses grape varieties that we find intriguing, interesting and drinkable. We make wines stylistically to complement the food we like to eat.” I say, what a “Spot on” attitude/philosophy.
Their wine range is eclectic, including the ‘SIMON SAYS’ SAPERAVI (see WBM, “Saperavi The Sensational”, Mar- Apr 2017), the ‘LUDO’ FIANO (recently reviewed for a WBM Fiano article), the cracking ‘SOLITAIRE’ GRILLO, the superb ‘DOMINO’ MONTEPULCIANO, and a raft of other wines – with every one of them that I have tried so far being worthy of a mention.
However, the focus today is on the LINO RAMBLE 2017 McLAREN VALE ‘TOM BOWLER’ NERO d’AVOLA.
What an awesome NERO! Made from bio-dynamically grown grapes with a lovely, medium-depth, cherry-red colour. This is followed by the complex and appealing aromas of cherries and a modicum of dried herbs leading to the very rich, super tasty, ubber smooth palate which has masses of complexity – leading to elegant, drying tannins on the delicious and long, lingering finish. TRULY SUPERB! This classy wine is one of, if not the best, Australian NERO d’AVOLA I have ever tasted. BRILLIANT!
Check out the range of LINO RAMBLE wines at www.linoramble.com.au or if in Adelaide, pop down to Port Noarlunga and visit their cellar door and try their great wines.
Have a good week and enjoy great Aussie wines. Cheers!