China has lifted its sanctions on Australian barley. Could wine be next?

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The Chinese company Changyu has been evaluated as the second most valuable wine brand, narrowly trailing behind Moët & Chandon but surpassing it in brand strength, as reported by Peter Douglas.

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The market for Chinese wine imports halved in 2022. As would-be exporters watch with concern, the acquisition of Summergate and now Torres China by a fast-growing, but previously little-noticed, Chinese business changes the nature of the market. Robert Joseph reports.

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The tragic deaths of two Chinese online influencers after drinking large quantities of baijiu spirit may seem to have little relevance to the wine industry, but this should not be taken for granted.

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Prices on the world market for bulk wine are hardly changing, demand remains very restrained. 

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Amid a globally slow sales picture, activity on the bulk wine markets of France, Spain and South Africa managed to tick up through April into early May, for a variety of local reasons.

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Australian wineries have huge volumes of unsold wine. Most media coverage blames China’s swingeing punitive tariffs for this situation. But, as Dudley Brown reveals, Beijing’s responsibility for the situation is quite limited.

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High inflation levels and rising interest rates in many markets around the world have engendered pessimism as to the retail sales outlook. Food inflation has generally been lagging overall inflation’s levelling-off trajectory, encouraging consumers to cut back on supermarket spending. In this context, global bulk wine activity has proceeded cautiously through the final quarter of 2022 while sales are carefully analysed; no one wants to find themselves overstocked, or having paid too high a price. Report by wine broker Christian Jungbluth from Ciatti.

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Observers of the heady growth in Australian exports to China from 2016 to the end of the decade ignored a downward trend in Chinese wine consumption that began in 2018. OIV statistics reveal that this trend has continued during the Covid pandemic.

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