Wines & Vines

cover story "People are getting fooled into paying ridiculous prices for table wines from the rest of the world." Patricio de la Fuente-Saez, Links Concept "Rising consumer expectations will require even food and beverage players to raise their game on freshness and regulatory compliance, areas where China's standards still lag behind Western ones," states the report. That is why getting the message about fakes to consumers is important. "I think the country that is hit the hardest by fake wine is China itself. People are getting fooled into paying ridiculous prices for table wines from the rest of the world," says Fuente-Saez. "My humble assumption is that most of the fake wines are actually bottled wines bought from Spain, Australia, Chile and Argentina and then relabeled in China." The other part of the fake wine comes from China itself, 34 W in es & V i ne s AU G U ST 20 13 where bulk wines are re-bottled and relabeled. This is a powerful message for consumers who are highly skeptical about food and beverage safety, particularly since 2008, when tainted milk killed at least six babies and sickened thousands more. Growing consumer power seems destined to make opposition rather than resignation to the food safety situation the norm, and this will be of benefit to fighting fakes. This consumer and government attitude is evident from how many makers of baijiu, the potent white spirit drink with a far bigger market share than wine, have anti-tamper seals. "China has set a priority on food safety," says Sanchez. "I believe if someone is using the label of another winery or refilling bottles, (the authorities) could see that as a food safety violation and take immediate action." "I do not have any experience with pursuing someone on this basis, but I can assure you that the next time one of our food or beverage clients comes to us with a A selection of American wines are grouped together on a China counterfeiting concern that sales display in Shanghai, China. we will look into pursuing it as a food-safety issue, because that is cial for the association, which has 40-plus exactly what it is," Harris says. members and is preparing to open offices This reflects an earlier point by Sanchez, in the east, in Shanghai, and in the north, the need for wineries and distributors to in Shenyang. take the lead in terms of getting evidence "Our bottom line is all wines have to of fakes, especially in third- and fourthbe original labels from the U.S.," he says. tier cities where things can be more lax, "Anyone who joins us has to follow a cerand in educating not only consumers but tain kind of behavior; then we can guaranalso the police. tee a certain level of product to consumers." "Since wine can be a health risk if By doing so, they create a base for workincorrectly made, wineries and premises ing together to promote U.S. wines and licensed to bottle liquor are regularly visworking with the government to protect ited by public authorities. However, with their brands. Wen says the association is so many countries, regions, localities and already doing that. It has links to Customs wineries around the world, it is currently and IP authorities that can help deal with impossible for them to know fake from fakes, he says, and is planning a Thanksoriginal," says Bartman. giving party this year to further cement "The public authorities have to be those relations. We can safely assume guided and helped to identify fakes association members will take the occasion through seminars and regular hands-on to pair the turkey with American wine. assistance. Business is perceived to be big enough to look after itself to the extent Jim Boyce is a researcher and writer living that if they have counterfeiting problems, in Beijing, China. He is administrator of the then they should help and gather evidence wine blog, grapewallofchina.com, and and support the public authorities." author of nightlife blog beijingboyce.com. Getting these business to work together Boyce regularly interviews wine trade memmight be the most effective way forward. bers and has reported on counterfeiting and Tim Wen of the American Wine Importers authentication issues multiple times. Association says a code of conduct is cruUSDA CHINA deal) and how their brand is perceived (looking at everything from consumer surveys to social media coverage). The most noteworthy faked brands in China tend to be those that are linked to a lifestyle. Lafite is the star in this regard, with everything from apartment complexes to dive bars named after it, the appeal going far beyond those interested in wine. One benefit of the relative anonymity of California cult wines is they command high prices but are so far consumed by people who appreciate them and care about provenance. Attracting such highly informed consumers—and educating those who are not, whether via tastings, videos, social media or other means—will help maintain integrity among core buyers. Just as wineries should legally register their brands, they should also socially do so. A recent McKinsey report called "The New Era for Manufacturing in China" noted that the rapidly growing upper-middle class is demanding products that "require engineering and manufacturing capabilities many local producers do not yet adequately possess." That demand goes beyond smartphones and automobiles.

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