JIangLU_Grape Wine Today in China 3-26 UC Davis

8/18/2019 JIangLU_Grape Wine Today in China 3-26 UC Davis

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Grape Wine Today in China

Jiang Lu, Ph.D.

Professor, China Agricultural UniversityBeijing. P.R. China

UC Davis, 3/26/2015


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1. The grape wine production in ChinaThe wine grape being planted: acreage and varieties

The challenge of Wine Grape Production in China

The major wine regions in China

The styles of wines being made

2. wine distributing and consuming in ChinaThe importance and factors influencing grape wine

consumption in China

Imported vs domestic wine consumed in China

3. The future of grape wine production and consumption


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Annual production of grapes in China

Acreage：1,492,250 acres,; Yield: 9,607,500 tons

~ 80% for table

grapes

~15% for

wine making

~ 5% for raisins

2008 2009 2010 2011 2012

P r o d

u c t i o n ( m i l l i o n

t o n n e s )

6

7

8

9

10 9.60

9.17

8.65

7.94

7.15

Rank the 1st in the world (OIV

Data)


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The wine grapes: ~300,000 acres, ~1,400,000 tons

Top five varieties：

Cabernet Sauvignon 49.6%，Carmenere 9.6%，

Merlot 8.5%, Syrah 1.8%, Chardonnay 1.7%Other V. vinifera cvs.

Cabernet Franc, Carignane, Pinot Noir, Italian Riesling,

Sauvignon Blanc, Chennin Blanc , Mashelan, Petit Verdot

V. amurensis and hybrids, French hybrids (e.g. Vidal for ice wine)

Wine Grape Production in China


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Wine Production in last 30+ Years

1978~1985：steadily increase: 100,000 to 200,000 tons

1986~1993： stable: ~ 200,000 tons

1994~2000：turbulent:200,000~300,000 tons

2001~2012：rapidly increase: 200,000~ to 1,380,000 tons

10,000 tons


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Source: OIV, October 2014


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1. North West

Xinjiang, Gansu, Ningxia

2. Loese Plateau

Shannxi and Shanxi

3. Bohai Bay Area

Changli, Huai-Zhu,Tianjin,

4. Jiaodong Peninsula

5. Northeast

6. Old Yellow River

7. Southwest

Major Regions of Wine Grape Productions in China


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Two Distinct Areas for Grape Production in China

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Buried area

Non-buried area

-17℃ isotherm

in winter


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Grapevines are

buried in the winter


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Grapevines are

buried in the

winter


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1. The grape wine production in China

The wine grape being planted: acreage and varieties




2. wine distributing and consuming in China;The importance and factors influencing grape wine

consumption in China;

Imported vs domestic wine consumed in China;



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Monthly Rainfall

R a i n f a l l m m

Huailai

Changli

Bordeaux

Jiaodong


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Monthly Average Temperature

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25

30

1 2 3 4 5 6 7 8 9 10 11 12

月份

每月平

均温度（ ℃ ）

泽山2013

泽山往年

Bordeaux

Burgundy

Napa (CA)

Jiaodong 13Jiaodong Ave.

monthly


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白粉病 Powdery Mildew)

and霜霉病（Downy Mildew)


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Trellising system


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The trunks / canes were dig out in the spring

Ripening

Blooming


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Northwest Region (Xinjiang, Gansu, Ningxia)

- an arid or semi-arid region


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Xinjiang is China's largest administrative area, located in the north-westcorner of the country. A significant wine industry is springing up here in

the dry, desert-like terroir.

Xinjiang covers 640,000 square miles (1.6 million sq km) and is larger

than the US states of Texa and California combined. Much of this area is

either desert or mountain.

http://www.wine-searcher.com/technical-wine-terms-q-t.lmlhttp://www.wine-searcher.com/regions-texashttp://www.wine-searcher.com/regions-californiahttp://www.wine-searcher.com/regions-californiahttp://www.wine-searcher.com/regions-texashttp://www.wine-searcher.com/technical-wine-terms-q-t.lml


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Xinjiang is cut neatly in two, North and South Xinjiang, by the Tian Shan mountain range.

Traditional viticulture in Xinjiang are famous for table and raisin grape production. It is

along the southern edge of these mountains that most viticulture takes place, particularly

surrounding the cities of Turpan and Yanqi.

The wine grapes industry, developed in recent years, are located in the northern side of

the mountains, where the climate is cooler and slightly more precipitous


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Shihezi

Turpan Shanshan

Yili River Valley

Yanqi

Kashi

Hetian

Wine Grape Regions in Xinjiang


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Wine Grape Production in Xinjiang

A vineyard at foothill of

Tian- Shan Mountain

Harvesting

Zhangyu Baron Balboa in Shihezi


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Gansu, China. Gansu adjoins the Loess Highland, and Inner Mongolia, andQinghai-Tibet plateaus, averaging 1,000 - 3,000 meters in elevation.

A natural passage from the heartland of China to Xinjiang and

Central Asia in ancient times.

Although the greater part of the corridor are deserts and semi-

deserts with an arid climate, they have the benefit of the melt-water from the

Qilian Mountains for irrigation


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Gansu Hexi Corridor Wine Region

Gansu is a premier wine grape growing province, planting mostly common

varieties. Producers are mainly located in Hexi Corridor

There are eight key producers, including Zixuan, Mogao, Weilong, Qilian,

Guofeng, Huangtai and Dunhuang, makes 46,000 tons of wine per year


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Mogao Winery

Mogao Caves with colorful Buddist

Art, Dunhuang


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Ningxia Yinchuan Wine Production Region


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Ningxia

There is increasing consensus in the wine industry

that Ningxia is the place to go for top-quality

Chinese wines

The government ambitious plan is to plant 1

million mu (67,000 hectares) of vineyards in theHelan Mountain East appellation , building 100

estate wineries in the region by the year of 2020

However, some industry commentators are

worried that this is ‘too much too soon’, due inpart to the general lack of water in the infertile

area, and the general slowing down of the growth

in the Chinese wine market.


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Ningxia Beats Bordeaux. Or Does It?

In a blind taste test held in Beijing, a group of 10 experts, half

Chinese and half French, compared wines from China’s remote

inland province of Ningxia with those from France’s famed

Bordeaux region. The judges sipped and swished five wines from

each region for nearly an hour before reaching a verdict: Ningxia

dominated.

Of the top five favored wines, four were from Ningxia, an arid,

landlocked region where some of China’s best wines are emerging.

The top-ranking one was the 2009 Chairman’s Reserve fromChina’s Grace winery, a Cabernet Sauvignon with a bold, oaky

flavor. Its retail price is between 450 to 500 yuan, or roughly $70 to

$80. The only Bordeaux was a 2009 Saga Medoc from the Barons

de Rothschild Collection, a lighter, fruitier red


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Ningxia Beats Bordeaux. Or Does It?

Agence France-Presse/Getty Images Philip Osenton

samples a glass ahead of the tasting in Beijing.


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Loess Plateau

Part of Shannxi and Shanxi Prov

There are about 3,400 acres wine

grapes in Shanxi province,

Total annual wine production is about 6,000 tons.

Top wineries: 1) Grace（2000 tons); 2) Rongzi (1500 tons); 3)

Geruite（800 tons)


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Chateau of Grace

Vineyards in Shanxi


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Chateau of Shanxi Rongzi


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An important wine production region

which is accounted for over half of totalwine output of China

All big four wine companies have their

main operation in this region

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Large Bohai Bay Region


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• Bohai BayArea (Hebei and Tianjin)

Semi-arid region;

Rainfall mainly in summer-autumn and rarely in winter-spring;

Annual effective accumulated temperature is 3000 to 3500 oC;

Annual sunshine is 2600 to 2800 hours


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Centered in Changli County，Located in Northeast

of Hebei Province , Costal areas of the Bohai Bay

Large Changli Region


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• Wine Grape

11,000 acres, produce 98,000 tons of grapesRed 97%， White 3%

• Varieties: C.S.93%，Cabernet Franc 1%,

Marselan 1%, ‘Yan73’ 1%, Chardonnay 3%,

Others 1%

• Annual Wine Production 40,000 tons

• There are 53 wineries in this region

‘Marselan’

Changli Include Luning Funing Counties）

‘Yan73’

C.S.


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Changli Wine Production Area

Great Wall Wine Company


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p y


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Dynasty Wine Company

Tianjin wine region

Huizhuo Basin Wine Region


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Huilai

Zhuolu

Wine grapes：

15,000 acres

Wine production: 50,000 t


Yan mountain in the North Taihen Maintai in the south，

a“V”shape valley (basin)，

with a “Sanyang”river

flow through the middle, North – south = 30 Kilometer

wide，and east – west about 100 Kilometer in length

Huai – Zhu Regions


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Huai – Zhu Regions Huailai, Zhulu and Xuanhua Counties

North of Great Wall, cool climate

Long History of Table

Grape Production


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长城桑干酒庄

Chateau of Rongchen China – French Demonstration Winery

Great Wall


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Wine Grape Production in Shandong Province

(Jiaodong Peninsula)


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Jiaodong Peninsula

Penglai


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Trellising Systems in Yantai Area


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No need burying in the winter

Too much rainfall in the summer


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History of Jiaodong Wine Grape Production

Yantai is the original place for modern wine production

in China

In 1892, Mr. Chang brought in 120 varieties from Europe

and established the Changyu Wine Company, which isthe largest wine producer in China today

There are more than 50 wineries in Yantai area, which

used to produce ¼ Chinese wine


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Changyu Pioneer Wine Co Ltd, China's oldest and largest winemaker,

announced recently it will undergo a massive expansion of its existing

\vineyards and build another 20 high-end chateaus across the world's

top grape-growing regions in the next five years.

Chateau Changyu-Castel, China's first

chateau built according to

international standards, was

established in 2002 in Yantai,Shandong province.

The Changyu Kely Estate of New Zealand

was built in 2006 to increase sales of its high-end wines overseas

Northeast Wine Region


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Tonghua

Jilin

Wine grapes ~20,000 acres

Varieties V. amurensis and hybrids

Produce Amurensis andhybrid wine, ice wine

Northeast Wine Region


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Wine produced in the Northeast using V. amurensis and V-A hybrids

V Amurensis


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ZuoshanyiZuoshaner

Shuangqing

ShuangyouShuangfeng

V. Amurensis

and hybrids

S h Wi R i


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A high altitude and low latitude region; The average elevation

of vineyard is over 1500 m. Annual wine production is about 70 kilo-tons.

Combination of plateau climate and dry valley climate

characteristics

No need burial in winter.

Southwest Wine Region

5 000 Acres of wild clone selectionsV. quinquagularis


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5,000 Acres of wild clone selections

are planted

Interspecific hybrids


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The styles of wines being made in China





Most Chinese wineries have been built according to French style


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Most Chinese wineries have been built according to French style

and the wines are made using the French methods

Wines are made with either single variety or mixed ones (blend)

Dry Red: 80％，

Dry white ~ 10%

Others: ~ 10% (semi – dry , sweet, ice wine)

French Oak barrels are commonly used for aging

Some old Bordeaux Varieties are doing well and getting popular

in China (e.g. Carmenere, Mashelan, Petit Verdot)


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Several minor French varieties are getting popular in China

Petit Verdot

A red French wine grape variety

that is a cross between Cabernet

Sauvignon and Grenache.

Marselan

Petit Verdot is a variety of red wine grape,

principally used in classic Bordeaux

blends. It ripens much later than the

other varieties in Bordeaux

It d th t f th fi t ti i th


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It was announced that for the first time in the

history of the Decanter World Wine Awards a

Chinese wine won at the highest level. The wine was

the Winery He Lan Qing Xue’s Jia Bei Lan 2009

http://www.decanter.com/news/wine-news/529090/chinese-wine-wins-top-honour-at-decanter-world-wine-awardshttp://www.decanter.com/news/wine-news/529090/chinese-wine-wins-top-honour-at-decanter-world-wine-awards


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What is 蛇龙珠 ?

DNA finger printing revealed that“蛇龙珠”is aBordeaux variety ‘Carmenère’, the same one that has

also been widely planted in Chile

（ 14 Sep 2012 by Jancis Robinsonhttp://www.jancisrobinson.com/）

The Carménère grape is a wine grape variety originally

planted in the Médoc region of Bordeaux, France,

where it was used to produce deep red wines and

occasionally used for blending purposes in the same

manner as Petit Verdot.

Wine bottles are placed inside beautiful boxes

http://blog.farehamwinecellar.co.uk/http://www.jancisrobinson.com/http://www.jancisrobinson.com/http://blog.farehamwinecellar.co.uk/


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Wine bottles are placed inside beautiful boxes


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Grape Wine Distribution and Consumption in China


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Where can someone buy wines?

Most of the medium to larger restaurants will sell wine by

the bottle

Small retail outlets

Specialty wine shops

Major supermarkets

Online sell is getting more and more popular

Wi C ti i Chi


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China, drinking 181 million cases of wine in 2013, is the fifth

largest wine- consumed country in the world, behind US,France, Italy and the U.K

And most of them (155 million cases,1.87 billion bottles) are dry

red, more than France’s 150 million and Italy’s 141 million, asthe world’s largest consumer of red wine

However, on a per capita basis, wine consumption in China

remains far lower than the others. E.g. China drank 1.5 liters per

person in 2013, far less than the 51.9-liter average in France

Wine Consumption in China


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Domestic vs imported wine

The vast majority of wine consumed in China – 83%, is produceddomestically.

The country is now the world’s sixth-largest wine producer, with

Shandong, Hebei, Xinjiang and Ningxia provinces developing asthe country’s main areas for viticulture.

The Chinese market for imported wine is worth some $1.6bn a

year, according to the UN’s Comtrade database.

http://online.wsj.com/news/articles/SB10001424127887323296504578396131833363780http://online.wsj.com/news/articles/SB10001424127887323296504578396131833363780


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Wine imported and exported volume in China

Wine production in China is far from enough to satisfy domestic demand. In

2013, the production was about 1.17 billion litres, and the consumption

added up to 1.3 billion litres.

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1.821.921.821.361.405.039.133.732.501.961.772.08


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A winery is being built

In China byChâteau Lafite


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The consumers

There are now 19m drinkers of imported wine in China’s majorurban areas alone, according to data from specialist research

firm Wine Intelligence. That’s more than the entire population

of the Netherlands.

China’s fixation on wine remains squarely focused on one

type: red. Chinese drinkers have long believed red wine aids

their health, and also associate it with good fortune since red

is considered a lucky color.

In recent years, red wine has emerged as a popular alternative

to baijiu

Who are the wine consumers?


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Two main types of Chinese buyer. “The first is the traditional consumer,

who is purchasing very high end / expensive wine, especially foreign wine

for show face,”

These consumers have historically dominated the market and still account

for the lion’s share of spending on imported wine – nearly half. They often

choose well-known French bottles such as top-end Bordeaux…



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The second category that is really driving import growth volumes – the

emerging young middle class. They’re 20 to 30-somethings and are

starting to feel their way into wine because it’s part of being aninternational, modern Chinese person.”

A quarter of all Chinese imported wine drinkers now fall into this

category. They choose cheaper bottles and are more adventurous about

origin, branching out into Italian and Spanish brands but also developing ataste for New World products. As a result, Australian wines are now the

second-biggest imports by volume.


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Wine consumed in China is still small portion of

total alcohol consumption in China

The economic value reaches about 40+ billion (RMB).

However it is just about equivalent to one large

Chinese liquor (Bai Jiu) producer

Chinese people enjoy drinking Chinese liquor , and

drinking plays an important part in Chinese social

events


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The Future


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The wine market is getting more mature, and the consumer

base has been established, will continue to grow

Domestic production and importation will co-exist

Wine other than dry red will be expanded

The domestic wine production will continue facing the

challenge of natural climate conditions (Continental

Monsoon Climate): cold and dry winter, and hot and wet

summer

Driven by consumers, the grape wine industry will pay

more attention to quality rather than quantity, which

means small chateau style production will be increased

Great Wall


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Great Wall


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Wine of Sangen Chateau (Great Wall) was served in the “National Banquet”


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Thank you for your Attention

JIangLU_Grape Wine Today in China 3-26 UC Davis

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Transcript of JIangLU_Grape Wine Today in China 3-26 UC Davis