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All hail the modern-day conquistadors

By Dong Fangyu ( China Daily ) Updated: 2016-01-23 06:56:36

Vinexpo, founded in 1981, will hold its fair in Hong Kong from May 24 to 26, which is expected to attract at least 1,300 international exhibitors from 34 wine-producing countries. Italy, will be Country of Honour at the upcoming Vinexpo Hong Kong with a showcase putting Italian production in the spotlight.

The fair alternates each year between Bordeaux and Hong Kong. The French edition last June drew 48,500 visitors from 151 countries including President Francois Hollande, who became the country's first president to open the show, Vinexpo says.

China was the fifth largest red wine market worldwide in 2014, and the world's largest spirits market.

The Vinexpo/IWSR report says the economic slowdown in China, the government's anti-corruption measures and the stock exchange collapse in August had affected China's wine consumption last year, a period in which Chinese consumed 131.9 million cases of red wine, 7.24 million cases fewer than in 2014.

However, it says consumption of imported wines was continuing to rise, as was the wine-drinking population, and that the lower end of the foreign wines market had recovered.

Consumption of Champagne has not been affected by the anti-corruption campaign because the market is still largely concentrated in first-tier cities, with little exposure to gifting and banquets, the report says.

Consumption of sparkling wines, which accounts for a very small percentage of wine consumption in China, is rising even more quickly than that of Champagne.

Italian sparkling wines are doing particularly well in second and third-tier cities, due to low pricing, the study says. Since sparkling wine still represents a very small percentage of wine consumption in China there is clearly room for growth in the future.

For domestic Chinese wine production, the report forecasts a continued but moderate increase up to 2019. "Wine production is being encouraged by the Chinese government, looking to encourage the population to switch from baijiu to wine, which has lower alcohol content."

Baijiu, the world's largest-selling spirit, is going through a transformation, the report says.

High-end baijiu was exposed to the anti-corruption campaign, resulting in a drop in sales, so prices have decreased. The category is growing mostly at the lower end, the report said, mostly in rural areas and third- and fourth-tier cities among males aged 40 and older. Conversely, young urban residents are opting for wine over baijiu.

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