ITALIAN WINE ON THE SCENE IN BEIJING, SHANGHAI, AND MACAO. “VINITALY CHINA” (19/22 NOVEMBER) A PROGRAM THAT PROMOTES THE CULTURE OF WINE AND COMMERCIAL RELATIONS IN A COUNTRY WHERE CONSUMPTION IS CONTINUOUSLY GROWING

Veronafiere took more than 100 Italian winemaking companies to China in mid November in an attempt to conquer the three cities with the highest growth rates in the world: Beijing, Shanghai, and Macao. This also includes the highest growth rate in the world for wine consumption (in Beijing, consumption has increased by 50% since 2007), and which should continue to grow by about 13% until 2013.
“Vinitaly China” – explained Camillo Cametti, board member of Veronafiere and delegate for international activities – “is reaching a goal of ten years and is continuing in its efforts to promote Italian wine. The prospects are good because imports from Italy continue to grow as shown by the data for the first eight months of the year made available yesterday by ISTAT (the Italian National Institute for Statistics), which registered almost 51,000 hectoliters for a value of over 9.5 million euros, versus less than 41,000 hectoliters and 8.4 million euros for the same period of 2007. It is an increase of 24.4% in quantity and 13.1% in value”.

“We are continuing to develop” – explained Giovanni Mantovani, general director of Veronafiere – “the activities of Vinitaly in China, adding a stop in Macao this year, which will give Italian producers an important opportunity on a consumer market that is potentially very interesting”.
Improving the position of wine in this country has definitely been aided by the zeroing of customs duties for wine in Hong Kong and Macao, which means for consumers a decrease in final cost per bottle of 20-30%. Thus, if a bottle initially worth 10 U.S. dollars was sold in Hong Kong for 31 dollars, now, without customs duties, it costs less than 23 dollars. The goal for Italian wine enterprises is that of conquering a space on the market even in cities that are considered the Las Vegas of the East. It is a promising market, which until now has been dominated by France and Portugal. Thanks to this new economic policy of opening up towards foreign markets, in the first 5 months of 2008 alone, China has imported almost 850,000 hectoliters of wine, with an increase of 10.3% for the same period in 2007, with a significant increase even in terms of value equivalent to 49% for a total of 310 million dollars.
Within this scenario, Italy finds itself in sixth place among exporters towards China, following France, Australia, U.S., Chile, and Spain, but it can certainly conquer a new position among its competitors. The main appeal is for high end wines, so much so that by 2010, it is predicted that they will represent half of wine imports.
Within the vast territory of the Dragon, Beijing and Shanghai are the most promising areas. Growth of the wine market in Beijing has been very fast in recent years. In 2007 alone it jumped by 50% and, given the recent Olympic Games as well, it will continue for the next several years.

Over the current year, the offer of high end wines has increased by many labels, to the point that the main hotels have invested in the training of personnel so that they can acquire adequate competencies in wine.

And Shanghai follows closely behind Beijing: here, imports for Italian wines have grown exponentially since 2003. This growth has also been favored by initiatives and international promotion of Italian wine: these actions, which are having an increased success in penetrating the Chinese market with a significant return in terms of acquisition, are, in fact, those that are aiming towards increasing the awareness of wine among potential customers.
Even the Italian ambassador to China, Riccardo Sessa, agrees with this approach, by pointing out how, “Italian wine & food are the main Italian exports to China but also those that arouse the most attraction among local consumers”.

“Chinese cuisine” – declared Walter Brunello, President of Buonitalia Spa – “is represented overall by a territorial difference that allows for the great variety of Italian wines to potentially be accompanied by the different flavors that are available. Our goal is that of accompanying, in a correct way and with the maximum number possible, our wine production with Chinese dishes. We must stimulate the interest of Chinese consumers so that they are given a push to visit the places of production of our wine directly in Italy”.