China Uncorked
The much-maligned Chinese wine industry is in the process of turning a corner and is readying itself to compete with traditional wine-making powerhouses. Could the Middle Kingdom one day conquer the world of wine?
In 2008 Berry Bros. & Rudd, one of the world’s oldest wine merchants, released the Future of Wine Report. Sensationally, the study claimed that within 50 years China would be the world’s leading producer of wine by volume with upwards of 4,000 vineyards – a quarter of which would be producing fine wine that will “rival the best of Bordeaux.”
Needless to say, these predictions were accompanied by both shock and scepticism from the global wine industry. Despite a history of over 4,500 years, domestically-produced Chinese wine is still battling the perception that it’s poor in quality, aroma and taste – an unholy trinity for a developing market.
“We are finally seeing the first stirrings of a credible wine market and the eyes of the global industry are turning toward China.”
This reputation is a result of the local wine industry’s dominance by five large, state-owned producers who control a 90 per cent market share and sacrifice quality for the sake of industrial-scale quantity. Traditionally, they have been able to bank on brand recognition to retain their controlling interest in the Chinese market, but the winds of change have begun to blow in an ominous fashion for the ‘big five’.
Internationally-renowned British wine critic Jancis Robinson came to China several years ago and declared local wines to be all but undrinkable, but her tune had certainly changed when she recently returned to promote the first simplified Chinese translation of her book, The World Atlas of Wine. “Many more bees are currently buzzing round the honey pot that is the potential for Chinese wine,” she said.
This change has come about as, over the past decade, the birth of a nascent fine wine industry has taken shape, led by small, family-owned wineries, committed to creating top-quality examples of Chinese wine.
Shanxi province’s Grace Vineyard is China’s original fine wine success story. Co-founded by Hong Kong billionaire CK Chan and Frenchman Sylvain Janvier, Grace was established in 1997 and is currently operated by Chan's daughter, Judy Leissner. Grace’s popularity has spread throughout China and even made its way overseas, with international critics singing the praises of its Bordeaux-like vintages.
Located in the northern Ningxia region, Silver Heights is China's first garage-winery. Winemaker Emma Gao, 33, is one of only a handful of Chinese women to have studied oenology in France and then gone on to become a winemaker in her homeland. Her first several thousand bottles of Cabernet blends have been creating a lot of buzz at home and abroad and while they are very much in the beginning stages of development, it’s hoped their success will inspire others to follow the approach of quality over quantity.
Industry-wide, optimism reigns due to an attitude that although success may seem distant, it is inevitable. While many challenges remain before the domestic product is seen as a genuine global competitor, the vast potential of China’s wine market is finally coming into focus.
The inception of China’s modern wine industry dates back to the founding of the Changyu vineyard on Shandong’s Penglai peninsula more than a century ago. Today, according to the International Organisation of Vine and Wine, the Middle Kingdom is the world’s sixth-largest producer and fifth-biggest consumer of wine. With nearly 500 vineyards, China’s primary growing region stretches from coastal Shandong westward to the steppes of Xinjiang. Over the past 15 years, production output has steadily increased at approximately ten to 15 per cent per annum. Ronald Brown, a 26 year veteran of the wine import market, says that China’s time to shine on the world wine stage is nigh. “We are finally seeing the first stirrings of a credible wine market and the eyes of the global industry are turning toward China,” he says. “It’s the only market to experience growth in production and consumption over the last few years.”
While the increasing productivity of the country's vineyards is impressive, fine wine production still accounts for less than one per cent of total output. Arguably the biggest hurdle is land management and viticulture issues – wine is only as good as the grapes that go into it. Current government regulations mean that many small vineyards do not have direct control over a large majority of their grape-growing vines. Instead these plots are owned by different families, each with their own ideas about which grape varietals to plant, how to nurture their growth and when to harvest. Vineyards are thus forced to expend large amounts of time and energy educating these farmers and enforcing stringent vinicultural practices in order to obtain the best yield of fruit.
Compounding this problem is a shortage of local winemaking talent. “Given that the wine industry is still very new, there aren’t many experienced people in this industry,” notes Judy Leissner. “For the locally trained talents, the main issue is their exposure – not many can afford or have the opportunity to try a wide range of wines.” Emma Gao echoes this sentiment. “While much progress has been realised in winemaking over the past 20 years, China still lacks the depth of winemaking experience witnessed in more developed production areas,” she says. Fortunately, a recent trend has emerged of more foreign-trained Chinese, including Gao herself, returning from Europe, Australia and North America with much needed education and experience.
The immaturity of China’s wine consumer market is another major hindrance to development – most buyers tend to purchase based on image or brand, rather than taste. “It’s a really tough market to be honest,” Leissner admits. “Grace was lucky as we had a head-start. It’s definitely not easy for small wineries to survive in China given that the consumers are so brand-driven.” Education is the key – over time, with a greater understanding of wine, consumers will evolve more discerning tastes. Lu Yang, the award-winning Penfolds' Sommelier Champion who practices his trade at The Peninsula Shanghai, is sanguine. “With more and more sophisticated Chinese wine lovers, they will crave more high-quality Chinese wines,” he says. “The market is there, but it would be a mistake to rush into it in the hopes of making instant profit. Patience is a virtue.”
The list of challenges ahead for the industry is clearly daunting, but the potential for reward is equally immense. It’s these opportunities that have been attracting wineries from around the world. Torres of Spain was one of the first to dip their toe into the terroir of China, experimenting with a tiny vineyard in Hebei back in 1997. That project was abandoned after only one year, but by 2008 they were back in the local winemaking game after Torres China General Manager Alberto Fernandez discovered Grace wines in a Beijing restaurant and immediately travelled to the vineyard to develop a partnership. The resulting collaboration is the ‘Symphony Series’, praised by Jancis Robinson as “a minor miracle”. Fernandez personally believes that both local and foreign investment is set to explode, “We’ve opened the door with the success of Grace,” he says.
The highest profile addition to the market came early last year with the announcement that Château Lafite Rothschild, with backing from state-owned investment company CITIC, would open a vineyard in Shandong Province – ambitiously promising a future ‘Chinese Grand Cru’. While this move was shocking to some segments of the industry, Decanter magazine’s Steven Spurrier says, “Lafite would be crazy not to do what they are doing, the opportunities in this market are simply too vast to ignore.”
There’s a long way to go before 2058, when we will know whether the Future of Wine Report's predictions come to fruition, or are ultimately dismissed as fiction, but regardless of the outcome the Chinese industry is ready to make its mark. As Lu Yang assuredly predicts, “I am confident that we will find magical patches of land somewhere that can and will produce world-class wines from China.”
The Best of Chinese Wine
Alberto Fernandez, General Manager of Torres China
Red:
Silver Heights, ‘Family Reserve’, Ningxia, China 2008
This blend of three Cabernets has aromas of red currants with a hint of cherries and spice. Good fruit structure with creamy characters from aging 12 months in American oak.
White:
Grace Vineyard with Torres, ‘Symphony Series’, Shanxi, China 2009
This 100 per cent Muscat wine exhibits immense floral aromas with firm acidity and an off-dry finish, which pairs well with Chinese cuisine, especially spicy dishes, and is also enjoyable when consumed on its own.
Lu Yang, Award-winning Sommelier
Red:
Silver Heights, ‘The Summit’, Ningxia, China 2008
This 2008 vintage is more focused and robust than 2007, showing dark cherry, blackberry, spices and floral aromas. Medium to full body, juicy acidity and persistent tannin, the wine is well-structured and consistent on mid-palate. This great effort shows the world what Chinese wine is capable of – Silver Heights is definitely the leading light for small wineries in our industry.
White:
Grace Vineyard with Torres, ‘Symphony Series’, Shanxi, China 2009
The name 'Symphony' tells the story of this wine, the choice of variety is clever and brilliant. This kind of aromatic variety is perfect to introduce wines to people. It has an attractive and clean nose, with aromas of melon, grape juice, peach, lemon and light floral notes – very refreshing and juicy palate, with crispy acidity and light structure. Well-made and balanced, by no means is it a complex wine, but by all means enjoyable and lovely.
Jim Boyce, Editor-in-Chief of www.grapewallofchina.com
Red:
Grace Vineyards, ‘Tasya’s Reserve’, Shanxi, China 2003
One of my favourite Chinese wines is Grace Vineyard's Tasya’s Reserve Cabernet Franc 2003, made when Gerard Colin was still at this Shanxi operation. While it might be too funky for some people, I like it.
White:
Grace Vineyards, Chardonnay, Shanxi, China
The premium Grace Vineyard Chardonnay is better, but the entry-level version is good to try because it costs around RMB 60, close to the price of entry-level wines from Chile, South Africa and elsewhere. It's good for a comparative wine tasting.
Please visit www.everwines.com to purchase the above wines.
