When in China …

Located on the picturesque Stellenbosch wine route in the Western Cape, a prime tourist destination, Stellenbosch Vineyards is a 13-year-old company exporting its portfolio to 39 countries. The vineyard began to export to China from 2005, a year after its inception. It took part in the road shows in China last year and was back in March at the Chengdu promotion.

“We attended the road show to introduce our wines to local wholesalers and retailers who have an interest in buying from our agents,” said Guy Kedian, Sales Manager at Stellenbosch Vineyards. “I found the level of interest and the level of wine knowledge very high. In China last year we sold around 80,000 bottles.”

Stellenbosch Vineyards’ production in 2016 was around 8 million bottles, bringing in nearly $13 million. The top three destinations were the UK, Netherlands and Denmark.

Kedian outlined the challenges for his company in China: the long distance, language barrier and the emerging wine culture in China which he said requires an appropriate approach. However, there are substantial opportunities as well, presented by a relatively untapped market with a large number of potential consumers and different consumer behavior, “which is more focused on authenticity and quality than on price alone.”

To overcome some of these challenges, Stellenbosch Vineyards has modified part of its packaging and communication tools. More and more wineries are switching to Chinese labeling for China exports.

French wines have the lion’s share of the Chinese market with 40 percent, according to 2016 estimates by grapewallofchina.com, a portal on Chinese wine and spirits. So to grow the market share, South African agencies are making an integrated effort. Various organizations, from WOSA to the DTI, South African Tourism and the Western Cape Government, are working together to create a unified South African experience. Wine tourism is an important part of this.

In 2016, South Africa received over 10 million international visitors, according to the Department of Tourism of South Africa. China was the leading growth market, with a 38 percent year-on-year growth. To woo this burgeoning market, South African vineyard areas have road signs in Chinese while restaurants are serving food preferred by Chinese tourists. South African tourism operators are learning Chinese and undergoing cultural immersion in China.

Partnering these developments are two specific government projects with a focus on China, said Yvette van der Merwe of South Africa Wine Industry Information & Systems.

Project Khulisa is a Western Cape government initiative which, among others, focuses on job creation and opportunities to improve the province’s economy. Wine and brandy are a key segment in this strategy, and the government will assist exporters. China is a major destination market in this strategy.

WISE, a wine and brandy industry project, is intended to explore up to five individual markets in greater depth. China is the top market, followed by Angola and Nigeria in Africa, and the United States. Comments to sarkarbjreview@outlook.com