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China's wine industry sees opportunity amid global downturn

(Xinhua)
Updated: 2010-01-30 14:10

China's wine industry is having a golden opportunity to boost export as consumers worldwide are seeking wine that tastes fine but costs less, Chinese wine expert said Friday.

"The year 2010 can be a golden opportunity for China's wine export as less expensive wine products are becoming more favored by the international consumers as a result of the global economic downturn," said Wang Yancai, president of China Alcoholic Drinks Industry Association (CADIA).

Winery is a sunrise industry in China with steadily rising domestic and world demand, Wang added. China's wine production in the first 11 months of 2009 grew to 812,200 kiloliters, a year-on-year rise of 21.8 percent.

In contrast, some of world's major wine hubs including Italy and Spain saw slumps in wine production in 2009, according to statistics of International Office of Vine and Wine (OIV).

"Currently, China's wine export, although growing steadily, is still very small in scale. We hope it can expand more rapidly by bringing the favorable market climate into full play," Wang added.

As the link between the Chinese and world wine industries, Yantai in eastern Shandong province is to take this opportunity to boost China's wine industry by holding an international wine festival.

The Fourth Yantai International Wine Festival will be held between September 23 and 30 in Yantai, China's largest wine production city, local official told a news conference on Friday.

A total of 50,000 people in the wine industry, including 2,500 people from foreign wineries, are expected to showcase their products in the festival.

"The festival has been and will continue to be the bridge between Chinese and international wine industries," said Long Yongtu, secretary general of Boao Forum for Asia.

"Hosting the festival amid the global economic downturn is of great significance not only to the domestic wineries but also to the world wine industry as a whole," Long added.

Yantai is the only Asian city named "International Vine & Wine City" by OIV. The city became the birthplace of China's wine industry after Changyu Pioneer Wine Company Ltd, China's first winery, was set up there in 1892.

The wineries in Yantai annually produce 250,000 tones of wine, accounting for one-third of China's overall production.

The festival is jointly hosted by CADIA, OIV, China National Association for Liquor and Spirits Circulation and Shandong Provincial People's government and sponsored by winery associations of Germany, Chile, Portugal and Spain.

More than 100,000 participants of wine companies and organizations from 20 countries took part in the previous three festivals as of 2007.