Vines take root in the mainland
Wine producers around the world are closely watching China. With a population of 1.3 billion, 60 per cent of whom are of drinking age, they realise this will probably be their next big growth market. Although per capita consumption is presently only 0.2 litres of grape wine a year - the world average is seven litres - most observers are confident this will increase.
The Chinese government is actively encouraging the consumption of fruit-based wines over traditional higher-alcohol rice wines. They are keen to protect rice supplies as a food source and encourage awareness of the health benefits of red wine. Indeed in 1996, Politburo member Li Peng decreed that state banquets should be washed down with wine instead of spirits.
Along with rising average incomes and the development of Western eating and drinking habits in China, grape wine is now considered sophisticated and continues to gain acceptance as a 'hip' beverage for wealthy young city dwellers.
When China joined the World Trade Organisation, it cut import duty for wines from 60 per cent to 20 per cent. Of the wines imported into China, Spain represents 27 per cent of the volume, followed by Chile (26 per cent), Italy (20 per cent), France (15 per cent) and the United States (nine per cent). However, in terms of the value of imports, France is the clear winner.
Since the 1980s, long-term strategists have considered it important not to sell wine to China but to make wine in China. Wine has been made on the mainland since the second century but for the past 15 years, global wine and cognac producers, such as Remy Martin, Pernod Ricard, Allied Domecq and the Torres family, have been busily teaming up with joint venture partners to create brands such as Dragon Seal, Dynasty and Great Wall.
Remy Martin initiated the first collaboration, starting Dynasty wines in Hebei province, where 15 per cent of all Chinese vines are grown. The first wine used the local varietal, longan (dragon's eye), blended with muscat which was produced from cuttings imported from Bulgaria in the 1950s.
In 1980, its first year of operation, 100,000 bottles were produced. By 1996 this had increased to 18.6 million bottles a year, earning it the title of the largest winery in Asia. Its range includes red, white and sparkling wines. If you prefer a red wine, you can choose between an aged red, a dry red or a 'medium-sweet red'.
Great Wall was established in 1983, also in Hebei. The joint venture partner is Michael Torres of Spain. The company has invested in modern winemaking technology and among others, uses dragon's eye, chenin blanc and some Russian varietals to produce more than 40 wines.
Together, Great Wall and Dynasty boast 65 per cent of the domestic market. Patriotically, they are served at state banquets and in more than 170 Chinese embassies and consulates around the world.
Most industry experts agree the best wine producer in China today is the Huadong Winery. Located in Laoshan in Qingdao, this is the first vineyard to produce varietal-specific wines. Australian winemaker Steve Chapman is hard at work producing a riesling, an oak-matured chardonnay and a cabernet sauvignon.
Marc Bratland buys all the wines for the Grand Hyatt in Shanghai. The hotel is generally acknowledged as having an excellent selection of Chinese wines. He says the Great Wall Cabernet Sauvignon 1992 is the pride of the hotel's Chinese wine selection. At 480 yuan (HK$455) it is not cheap, especially when compared with, for example, Campo Viejo's Rioja Gran Riserva 1994, which sells for 460 yuan.
Asked about the overall quality of Chinese wines, he says: 'Quality is improving with each vintage, but it's not yet comparable to Bordeaux.'
What about the tales of drinkers in China downing top-notch claret mixed with soft drinks? 'I've not witnessed it,' Bratland says, 'but it happens - perhaps not so much with the best chateaux , but with good wines nevertheless.'
He's planning a blind tasting among his colleagues: the aim is to establish how the likes of Huadong, Great Wall and Dynasty compare with Chianti, California and the Cape wines. 'I'm sure to catch a few out,' he says.
