Wine market sees diversified growth

▶ Europe, South America expect to gain as Australia loses ground

Winemakers from Europe and South America may enter a golden period of development in the Chinese market, the fifth- largest wine consumer in the world and the largest in Asia, after China imposed antidumping duties on Australian wine, leaving a 40- percent market gap to fill.

Since March 28 when China’s Ministry of Commerce imposed anti- dumping duties of 116.2- 218.4 percent on Australian wine for a five- year period, imports from France,

Italy, Chile and other markets into China have accelerated significantly, with imports of Italian wines even doubling as consumption picks up, media reported.

The growth of wine imports from other sources after heavy duties were imposed on Australian wine in response to Australian government subsidies has disrupted the level playing field in the market, several wine traders and industry representatives told the Global Times.

“It’s an industry- wide competition,” a source with the wine branch of the China Alcoholic Drinks Association told the Global Times, referring to the market share lost by Australian wine.

China has been Australia’s largest foreign wine market, purchasing nearly 40 percent of its wine exports, according to Wine Australia.

“Australian wine had a big share in China, and there is surely a gap to fill after the sanctions. This offers scope for other wine- exporting countries to increase their shares in the Chinese market, including New Zealand, Bulgaria and Georgia,” said the source.

Australian wine was supported by dumping and subsidies, which caused substantial damage to China’s wine industry, according to the ruling.

Australian wine saw declines of up to 20 percent in market share starting last November when the preliminary anti- dumping rate of up to 212 percent was announced.

Some traders who used to handle Australian wine have found bigger opportunities with other sources.

Chen Wei, manager of the Shishun International Trade Co, told the Global Times that his company has implemented a shift to wines from other countries.

“The mid- level niche market, formerly predominantly occupied by Australian wine, is being coveted and grabbed by competitors from other countries,” Chen said.

“As far as we are concerned, our shift to replace Australian wine with Chilean wine is going well. The process takes several months and our first container just arrived at Chinese customs,” Chen said, predicting the shift would be a smooth one as their pick enjoys a similar niche market with that of Australian wine – which has also seen a decline in stockpiles.