China Flashcards

1
Q

History

A

Modern industry late 19th century. 150 v. vinifera vines imported by Zhang Bishi who founded the Changyu Winery in Yantai (Shandong Province).

Really began in 1980’s when People’s Republic opened to international development. CITC (gov foreign investmen arm) partnered with French gov and Remy Martin to create a JV in Huailai (near Beijing) with wines under Dynasty Label. Pernod Ricard formed a JV to develop Chinese brand Dragon Seal. Now LVMH has sparkling operation in Ningxia Province.

Encouraged by gov in 1990’s to replace cereal based spirits with wine and fruit based drinks. Party for health and partly for grain shortage.

Total vineyard area devoted to wine is only 10% of all vines. Most for table grapes which produces a higher return as fruit is a gift.

Also slowing due to Xi Jinping’s anti extravagance measures where gov officials gifting is curbed. Now need to target consumers.

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2
Q

Climate

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Nearly all regions are continental with very cold and arid winters. In most, vines must be buried sometimes as early as November to survive low winter temps and very arid conditions (buried vines retain water). Heavy summer rains impact most regions though in some, total rainfall is low.

Regions can have very diff climates

Heilongjian and Jillin Regions: In the far north east of China; subject to extreme cold, winter burial is essential

Beijing and Hebei regions: Humid continental climate with warm humid summers and cold winters, often torrential rain in August and Sept, but overall low at 200 - 300mm. Cool Pacific breezes moderate temps and reduce humidity, but still fungal disease is a constant challenge. Older vineyards on flat land with poor drainage and fertile soils are excessively vigorous and high yielding with poor quality. Newer on better. Vines near the ocean don’t need burying.

Shandong: Warm maritime climate on the eastern coast. Considerably wetter with rain in Aug and Sept before or during harvest. Rot a persistent problem.

Shanxi and Shaanxi: Inland central regions with a dry continental climate (<500mm). Humidity is higher in the more southern Shaanxi, raising risk of fungal disease.

Ningxia: well inland with arid continental (200mm) and monsoon rains. Very windy which coupled with dryness makes irrigation essential (Yellow River). Best is Helan Shan (Helan Mountains) which protect from north west desert winds.

Xinjiang and Gansu: Far northwest, Xinjiang is very dry (80mm) and snow can arrive in October for a short season. Also very windy; frost an issue in spring and autumn (espec in southern Xinjiang where vines are at 1,100 and higher). Despite this, dry conditions (no spraying), avail of water from melted snow in the Tian Shan (Heavenly Mountains) and warm climate enable high vol production. Much is sold to wineries in the east. Gansu also very dry with short season, but slightly cooler than Xinjiang.

Yunnan: Far south, sub tropical humid climate. Vines on slopes at high altitudes (1,600 - 2,900m) including in foothills of Himalayas for moderate temps and reduced humidity. Long frost free season for one of the few inland areas where burying isn’t necessary.

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3
Q

Vineyard Management

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Traditional vineyards planted with ungrafted vines (phylloxera not present). Trained either Multi Cordon Fan System (multiple cordons grown from a very low trunk, popular in table grapes) or Single Dragon System (single trunk at a slight angle, as a spur pruned cordon). Both for carrying high yields and without a single fruiting zone which can lead to uneven ripening.

Newer vineyards and those developed by international investors (espec French) are spur pruned Chang system (trunk trained in a bended form for easier burial with a unified fruiting zone.

Dense canopied, extensive irrigation and excessive fertilization can be issues contributing to poor quality. Leaf Roll Virus is present (leading to under ripe fruit). Popularity of Cab Sauv and Carmenere is an issue as both are green when under ripe. Relative lack of training and quality planting material.

Gov owns all land in China and determine viticultural practices. Site specific changes in the vineyard is difficult without official sanction.

Vines are buried in Nov and dug out in March / April. Requires advanced skills and adds 20% - 30% to costs. Cost and avail of labor are an issue. Younger generations do not want to do the work and older want higher pay. Particularly felt in Huailai near Beijing due to other options.

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4
Q

Grapes

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90% are table grapes or raisins. Figures treated with caution as data collection is variable.

Cab Sauv: 70%
Carmenere: 9% (Cabernet Gemischt) 
Merlot: 8%
Cab Franc: 3%
Chard: 3%
Riesling: 2%

China also has its own indigenous species v. amurensis (named after Amur Valley of Liaoning Province) that is resistant to cold. But unusual inferior aromas.

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5
Q

Winemaking

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Bordeaux red wine is the model. Prem and super have prolonged maturation (18 mo) in French oak barriques.

Standards improved sig in the last decade with big reduction in technical faults (Brett or VA). Better wines have riper tannins due to better canopy management and more attention to picking dates for ripe skins and pulps.

A Chinese wine won top international award for a Cab blend.

Some white (Chard) and rose made, they are very small given pref for red.

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6
Q

Wine Laws and Legislation

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All wine, Chinese or imported, is treated as a food product. Must declare that it is 100% fermented grape juice with an indication of alcoholic strength, production date, and shelf life indicators.

Taxed as an industrial product adding 10% to price.

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7
Q

Business

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Domestic market growing as affluent middle class increase buying. Grew 70% in decade to 2017. But expensive compared to other alcoholic drinks and crackdown on gifting has hurt the industry. Per capita consumption is low at 1.5L vs 12 in US and 20 - 60 in EU.

Domestic dominated by three co: Changyu, Great Wall (owned by gov agriculture arm COFCO), and Dynasty. Mainly bulk producers. Also rely on blending with imported wine given difficulties of producing high vol wines cheaply and increasing demand. All have diversified portfolios with prem and super offerings (COFCO’s Chateau Junding) and foreign wineries. Smaller wineries with an increased international reputation: Grace Vineyard (Shanxi), Silver Heights (Ningxia) and Ao Yun (Yunnan).

Online sales are increasing (TMall) and Alibaba. Fraud through counterfeits of top Bordeaux and Aus, and China is an issue. Nearly all Chinese wine consumed domestically.

Wine can be bought nearly everywhere at any time of day.

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