Issue link: http://winesandvines.uberflip.com/i/437909
114 Wines&Vines January 2015 sales & marketing traders are exiting the market, and con- solidation is occurring in the supply chain. • More consumers are utilizing online channels to learn about and buy wine. • Wine growth trends include more younger consumers and female consum- ers. Noting that just 15% of the Chinese wine market by volume is white wine, St. Pierre said higher numbers of female wine consumers should increase white wine sales growth. At the end of 2013, ASC had more than 1,000 employees and offices in 20 Chinese cit- ies. St. Pierre said the company is in the process of consolidating offices to focus on a target market in about 10 of China's largest cities. With the government consumer market gone, St. Pierre said, "All our investment today is to bring wine closer to the end consumer." He also noted, "China is a great place to sell wine because people drink it at the dinner table." In some ways, the regulatory environment in China is more favorable than in the United States. "There is relatively little regulation as to who can sell wine," St. Pierre said. He contin- ued: "As an importer, I can set up a retail shop if I want. There is no three-tier system, so it's possible to be vertically integrated for sales." St. Pierre believes there is good opportunity for U.S. wineries in China. There are more Chinese tourists and investors visiting the United States, where they become familiar with American wines. San Francisco, Calif., is a popular destination for Chinese tourists, and Napa Valley is a side trip for many of them. St. Pierre summarized, "The opportunities for U.S. wines are tremendous in China, but there are also good opportunities for other wine-produc- ing countries." Ted Rieger, CSW, is a wine journalist based in Sacra- mento, Calif. He has written for wine industry media since 1988. 1650 Almar Parkway, Santa Rosa CA 95403 tombeard.com p: 707-573-3150 e: jmendoza@tombeard.com TBC-2STD Two-Barrel Washer Maximize Cleaning Minimize Water Use Durable Portable Ozone-capable Minimize Workplace Injuries HIGH-PERFORMANCE PROCESSING & WASHING SYSTEMS siX wine TrenDs in China 1 Wine buyers are now the wine drinkers. It's a more real market, and that's a good trend. 2 A much broader base of consumers are being exposed to imported wines, and the wines represent a broader range of source countries, styles and varietals. 3 Consumer knowledge levels are increasing. 4 Opportunistic and less successful wine traders are exiting the market, and consolidation is occurring in the supply chain. 5 More consumers are utilizing online channels to learn about and buy wine. 6 Wine growth trends include more younger consumers and female consumers.