NEWS
WINES OF CHILE WILL GO ALL OUT TO DIG DEEP IN CHINA AND ASIA
By Siulan Law Mathews DipWSET
24-8-2022
Source: Wines of Chile
Wines of Chile will continue to dig deep in China while seeks to expand into other Asian markets including South Korea, Japan and Southeast Asia in the months to come.
The Chilean wine marketing board said in its Wines of Chile Summit 2022 that China and Asia represent the greatest opportunities for Chilean wine exporters.
Chairman of Wines of Chile, Aurelio Montes, said in the meeting that despite of the current difficult conditions faced by the industry, he is confident that Chilean wines will continue to gain recognition in China and Asia with their continuous efforts.
Wines of Chile Summit is one of the most important meetings for the Chilean wine sector, during which wine markets around the world are being analysed, to come up with ways to further promote the image of Chilean wines.
According to Montes, about 30 percent of Chile's wine exports now head to Asia, mainly to China, South Korea and Japan. He can see huge potential in these markets and will allocate more resources to foster growth.
"The population in Asia is big and consumption is barely a litre per capita per year, there is a lot of room to grow, with significant resources allocated to these markets, we can see a great future," Monte told Chilean news media AméricaEconomía.
Benefiting from the punishing tariffs imposed on Australian wines by China, Chilean wine has moved to become China’s second biggest source of imported wines, only after France.
Chilean wine exports to China has returned to pre-pandemic values, having grown 14 times in eight years. Export volume to China reached 3.68 million 9-litre cases in the first half of this year, representing a 114 percent increase compared to the same period last year. By value, the trade was worth USD140m in the first half.
Fernando Díaz, Asia Director for Wines of Chile, said Wines of Chile is currently very focused on China’s Tier 1 cities like Beijing, Shanghai and Shenzhen, that only covered about 5 percent of China’s population.
Díaz said more efforts will be needed to reach the consumers in cities in interior China, whom Wines of Chile cannot reach through traditional channels like trade fairs.
In Japan, Chile has overtaken France as its leading wine source, export volume reached 2.15m 9-litre cases in first half of 2022, an increase of 5.48 percent. By value, the trade reached USD175.5m, representing an increase of 5.48 percent compared to 2021.
Montes said that premiumisation is an important strategy in a market like Japan where consumers are more prepared to pay for quality.
Wines of Chile will also put more efforts in exploring markets in Southeast Asia in the near future.
With economies like Singapore, Thailand, the Philippines, Malaysia, Vietnam, and Indonesia where population are huge but wine consumption is still very low, Southeast Asia is believed to be an area with high potential for future growth.
(the writer can be contacted at: info@thewinechronicle.com)
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