Vino Joy News
Posts
Leadership Shake-up at China's Biggest Importer and Top Stories of 2023

Leadership Shake-up at China's Biggest Importer and Top Stories of 2023

Your essential reading on China's wine market

Natalie Wang
January 16, 2024

Hello, this is Natalie from Vino Joy News.

What a week it has been! We are just off to 2024 and China’s wine trade woke up to the shocking news of ASC’s leadership shake-up. In other news, we also explored the reasons behind the faltering Chilean wine exports to China, and celebrate the launch of Louis Roederer's Cristal 2015 in Hong Kong. Additionally, we take a look back at the top 10 stories of 2023, reflecting on the year's most impactful news stories.

ASC Leadership Shake-up

ASC Fine Wines, China’s largest fine wine importer, has announced a significant change in leadership this month. The company's Chief Operating Officer Mario Aron has stepped down, less than 3 years after joining the company. Aron, who joined the company in 2021, amassed a wealth of experiences from various sectors including shipping, logistics and wine industry. Prior to joining ASC Fine Wines, Aron served as as CEO of Sarment, a prominent wine and spirits distributor.

The wine community will be closely watching ASC Fine Wines’ next steps as it continues to be a key player in the Chinese wine market, shaping the preferences of consumers and driving the growth of the industry.

The Great Unexpectation: Chilean Wine Exports Falter in China

Following Australia’s setback in China market, Chile's anticipated market expansion was somewhat underwhelming. This downturn has raised several questions about the sustainablity of Chile’s pricing strategy and consumer preferences in China’s vastly segmented market. Wang Xuwei, Secretary-General of CAWS, in an interview attributes this downturn to the lower average price and smaller proportion of branded Chilean wines compared to those from countries like France and Italy.

He notes that this aligns with the overall market's downward trend. For wine merchants and wineries disheartened by the current climate, he points out the significant growth potential in Chinese per capita wine consumption. With the increasing influence of young consumer groups, the Chinese wine market is expected to see broader development opportunities.

Louis Roederer Launches Cristal 2015 in Hong Kong

The renowned champagne house Louis Roederer has debuted its Cristal 2015 in Hong Kong through its importer Links Concept. This launch is noteworthy as it marks the first time since 2002 that Cristal has been crafted from a blend of grapes from all 45 of the estate's vineyards.

TOP 10 STORIES OF 2023

1. Is China the Next Wine Superpower?

The most read story of last year is about a provocative documentary on China’s domestic wine industry made by Shanghai-based filmmaker Sebastian Basco titled Waking the Sleeping Grape. Having watched the premier in Hong Kong at FCC with the filmmaker himself and Fongyee Walker MW, I have to say it’s a deeply moving film that for once focused the human endeavors behind generations of aspiring winemakers in China. (However, it stirred controversy, particularly with comments from a wine critic about China.) But the fact itself attracted this much attention shows that China is now seriously being considered a winemaking powerhouse.

2. Singapore Puts a Damp on Alcohol Sales

Singapore introduced restrictions on alcohol sales in 2023, capturing significant attention in the wine industry. The move was highly discussed for its potential impact on regional wine markets and consumer behavior, making it our second most popular top story.

3. WINWSA Unveils Most Influential Women in Drinks Industry of 2022 Highlighting the achievements of women in the wine and drinks industry, this piece was widely read for its inspirational content and recognition of female leaders in a traditionally male-dominated sector.

4. Breaking: China's Leading Importer Summergate Sold

The past year has seen many shifts in China’s top wine importing companies with Beijing-based Wajiu surprisingly mothballed two leading importers, Summergate Fine Wines and Torres China. The shocking sale of Summergate to Wajiu was certainly one of the most talked about news in China’s wine community.

Later in Woolworths 2023 annual report, we learned the sale included both the assets (like inventory, property, equipment, etc.) and liabilities (debts, obligations, etc.) of Summergate.

Woolworths purchased Summergate for AU$25 million in 2014 and sold it at a loss last year, this suggests that the company's value decreased during the period Woolworths owned it. The net loss of AU$30 million as the group wrote in the 2023 annual report reflects this devaluation, indicating that the sale price and the value of the remaining assets were not sufficient to recover the original investment and any additional costs incurred during the ownership period.

5. How Wine Consumption Has Changed in Key Countries from 2009 to Now

The landscape of global wine consumption has experienced a series of intriguing shifts since 2009 after financial crisis, marked by changes in top consuming countries and evolving trends. This article uses visualisation to show how world’s top wine countries have changed from 2009 till now using OIV data.

6. Singaporean Investment Firm Completes Acquisition of Wine Connection

The acquisition of Wine Connection by a Singaporean firm was a major story, indicating significant investment interest in the Thai and Southeast Asian wine market. The recent announcement from Thailand government to remove up to 60% import tariff is certainly aiding the deal in the right direction.

7. Breaking: Woolworths Weighs Shutting Down Summergate

The news of Australian retail giant Woolworths weighing to sell Summergate was the start of much watched news cycle on Summergate’s fate.

8. Thailand Bans Alcohol Ahead of Election

Thailand's decision to ban alcohol sales before an election was a unique regulatory move that intrigued our readers, given its potential impact on the wine market.

9. Winner of 2023 Best Sommelier of World Announced

The announcement of the 2023 Best Sommelier of the World garnered attention for celebrating excellence in wine knowledge and service.

10. OIV: China's Wine Consumption Is Dropping by 260 Million Bottles Each Year

This report by the OIV on the significant drop in China's wine consumption was a critical piece. It put China’s wine consumption contraction into perspective and highlighted the challenges in one of the world's largest wine markets.