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Prominent Bordeaux Négociant Facing Smuggling Probe in China

Prominent Bordeaux Négociant Facing Smuggling Probe in China

Your essential reading on China's wine market

Natalie Wang
February 06, 2024

Hello, this is Natalie from Vino Joy News.

Chinese New Year is fast approaching, and I would like to take the opportunity to wish all of our readers a prosperous and successful Year of the Dragon!

For this week, one of the most shared and read stories concerns leading Bordeaux negociant Joanne. The wine merchant is allegedly invovled in a wine smuggling case that’s being currently investigated by Chinese authorities. Despite our efforts to reach Joanne, the company still stayed silent. But there’s great news coming out of China. DBR Lafite group has won a landmark legal battle against counterfeiters!

On the trade side, we are seeing a contraction from once bullish South Korean wine market, and a continous downward trend in Australian wine exports. In France, winegrowers and farmers squeezed by rising operational costs and energy prices are taking to streets to protest.

Here are the top headlines that you don’t want to miss.

Bordeaux Négociant Allegedly Investigated for Smuggling in China

Bordeaux's renowned négociant, Joanne, faces allegations of wine smuggling into China, marking its second investigation after a previous incident in 2022. The most recent case under probe by Chinese authorities reportedly involves an employee surnamed Xiao. According to the report, Xiao has been out of reach for over a week since January 23.

The case highlights ongoing challenges with cross-border wine smuggling practices exacerbated by the pandemic, underscoring the complex dynamics within China's lucrative wine market.

DBR Lafite Secures RMB 80 Million in Trademark Victory

DBR Lafite Group has been awarded nearly RMB 80 million in a landmark lawsuit case against counterfeiters, a record-breaking amount granted to a foreign wine company.

This victory marks the culmination of a more than 20-year-long legal battle. The decision, handed down by China’s Supreme People’s Court, upheld a previous ruling by Jiangsu High Court. It ordered the four defendants that sold wines under “Lafei Manor” and “拉菲庄园” to pay a grand total of RMB 79.19 million (US$11 million) for trademark infringement.

Korea's Wine Market Experiences Downturn

After three years of robust growth fueled by the pandemic, South Korea's wine import market has cooled, with a 20.1% decline in volume and a 12.95% decrease in value in 2023. This shift reflects a drop in home consumption and the challenge of managing overstock from previous demand surges. In contrast, the country's whisky imports have hit a new high, driven by the growing popularity of highball whisky.

Australian Wine Exports Dip Amid Global Slowdown

Australian wine exports have declined in 2023, falling below long-term averages due to decreased demand in Europe and North America. This downturn reflects a broader global softening in the wine market, with economic challenges and health consciousness impacting consumer spending. However, exports to Asian markets led by Hong Kong showed remarkable growth.

€80 Million Lifeline for French Winegrowers

France has introduced an €80 million emergency fund to aid winegrowers and farmers amidst financial difficulties, particularly in southern vineyard regions. This move responds to a crisis intensified by protests over rising costs and government policies. The package includes additional measures such as tax breaks and eased regulations, aiming to stabilize the industry and address farmers' grievances highlighted by recent demonstrations across Europe.