China Is 'Bulking'Up As Bulk Wine Imports Surge In Q3
Date£º
2017-10-30 13:21 Source£º
www.thedrinksbusiness.com Author:
Natalie Wang Translator:
China¡¯s bulk wine imports witnessed a sharp increase in both volume and value during the third quarter of the year, following overall price increases in bottled wines and the surge of lower-end wine sales on China¡¯s sprawling e-commerce marketplace.
From July to September, the country imported about 56.29 million litres of bulk wine worth about US$47.17 million, representing a 92.92% increase in volume and a 100.74% increase in value compared with the same period last year, according to the latest figures released by China Customs, obtained by Chinese media WBO.
The impressive growth in part is attributed to last year¡¯s smaller base, but it also reflects a gradual market shift in consumer preference and purchasing channels, wrote WBO, citing China¡¯s e-tailers and rising bottled wine prices as main causes.
The article states that as prices for bottled wines continued to rise, companies turned to bulk wines, where they can bottle the wines for higher profits, a category of wine commonly known as OEM wine. The wines sometimes called ¡®one euro¡¯ wines are legally imported in bulk, then bottled in China with companies¡¯ own labels. But once a Bordeaux label or a French label is slapped on the bottles, it can often fetch higher prices on supermarkets shelves.
In addition, the increase of bulk wine imports could be a result of growing wine consumption among consumers in villages, counties and townships spread out across China where their sources of wines often come from e-commerce websites, TV shopping, supermarkets where OEM wines dominate.
In terms of origin, Spain remains China¡¯s biggest bulk wine source with close to 52.45 million litres of wine worth about US$39 million shipped to China from January to September this year, followed by Chile, Australia, France, South Africa, Italy, US, Portugal, Moldova and Germany.
Bulk wine in particular is an important source for Chilean wine exports to China, which accounts for about two thirds of shipments to China.
Despite bulk wine¡¯s growth, bottled wine imports still dominate with 153 million litres of wine worth about US$691 million imported during the third quarter of the year.
Sparking wine import value during the period grew 39% to US$21.2 million.
Altogether, the country imported 212.7 million litres of wines in Q3 worth about US$759.6 million, representing a 29.68% jump in volume and another 29.24% jump in value year-on-year.
(https://www.thedrinksbusiness.com/2017/10/china-is-bulking-up-as-bulk-wine-imports-surge-in-q3/)