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Australia’s wines seek ways back into China market

A similar story arose at the Helen Hong Wine Factory in Ninxia. An Australian delegation visited our company in May to discuss the partnership, ”said one employee, who asked not to be identified as he did not have the authority to speak publicly.

Ma Rui, manager of the Sheez Estate in Yongqing Province, said Penfolds, the world’s largest wine company, had “visited the warehouse and visited some wine factories in the region in association with government departments involved in the wine industry.”

The Bojialong vineyard overlooks the Yellow River.

The Bojialong vineyard overlooks the Yellow River. loan:Sanghi Liu

I was worried about the prospect of working more with Australians. Its style is best suited for Chinese consumption. Unlike the delicate European cuisine, the Australian style is more relaxed and open. An open drinking environment for wine tasting requires less preparation or ritualistic procedures, ”he said.

Chi said I was at a completely different stage in its wine evolution. “Even the youngest wine-producing countries, such as Australia, New Zealand, Chile and South Africa, have a wine-making history of more than 100 years,” he said.

“We have to master them in 10 to 20 years. Therefore modern management is essential. Australia is very powerful in agricultural modernization. It produces very good quality wines and is our strong future focus.

Ding Life, president of the Bojialong Wine Factory, was optimistic. “Accord wants to keep 40% of our shares after a 12-month consideration period,” she said.

An employee at the Siege Estate oversees the fermentation facility.

An employee at the Siege Estate oversees the fermentation facility. loan:Sanghi Liu

The local Qinghai Department of Commerce was also convinced. It states that Acolade aims to make a “strategic investment” in the Bojilong Wine Factory to “promote joint brand development and expand the scale of production.”

But five months later, no partnership has been signed and the workers who set up the vineyards for Australian visitors remain out of pocket.

“Negotiations broke down,” Ding said, adding that he optimistically took advantage of Acolyde despite tariffs and heavy barriers to entry.

Workers say the Bojiyolong wine factory is no longer floating. “The company has no money now,” I said. “It’s not paid for the villagers’ land contract or the labor contract.”

Bojialong vineyards are difficult to float even in the midst of favorable conditions.

Bojialong vineyards are difficult to float even in the midst of favorable conditions. loan:Sanghi Liu

Ding laments that his daughter wants to run a business, but without foreign investment, China’s young wine industry will not be able to reduce it despite the huge demand for wine locally.

“It simply came to our notice then. We have the spirit of craftsmen and strive to produce the best quality, ”she says. The quality of our wines can compete with French Chattanooga for 4 to 5 years. What can we do if the government does not support us by providing large quantities of imported wine?

The request for an interview was rejected by Acolod Wines and the Treasury. Peter Dixon, managing director of Accord Wines Asia, said in a statement that the company has long established commercial ties with China.

“We are always open to opportunities to grow the Acolaid wine business worldwide, but we can confirm that there is no planned investment in a wine factory in China,” he said.


Large Australian winemakers are now looking at other avenues to reach the $ 52 billion market. Acolade is considering launching an initial public offering in Hong Kong, with a Treasury spokeswoman emphasizing that it intends to launch Australian brands with wines sourced from the US and Africa.

On the mainland of China, [Treasury] Will continue to invest, ”the Treasury annual report said. “[The second half of 2021] Highlights including the launch of the Penfolds California collection and the release of the Rosens Retreat from South Africa. ”

Matthew Reeves, a senior analyst at IBISWorld, said “China’s expectations of the Australian wine industry are bleak by 2021-22.”

Competitors in Australia have never been wasted trying to grab market share. The French piece grew 28 percent to 35 percent in the six months to June, according to the Shanghai Research Institute. Nimbleness told Forbes. At the same time, Chile rose from 16 percent to 23 percent.

Australia now has only 6 percent of the market value of imports, up from 40 percent last year. “When Australia removes Chile, Argentina moves on,” I said.




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