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NEWS IN FOCUS them there or expanding the brands themselves. Asked about possible layoffs, Matz said, "We have hired a good team of people for Accolade Wines North America, of which many were previously employed by the former company." Geyser Peak, currently pro- ducing approximately 250,000 cases a year, was founded in 1880 by Augustus Quitzow, an early Sonoma County winemaker. It COURTING THE DRAGON Nineteenth-century Chinese called California the Gold Mountain, the land of opportunity. Now, Gold- en State winemakers are reversing the trend, heading east to seek their fortunes in Asia's burgeoning wine market. "It's a very exciting market for us," said Linsey Gallagher, inter- national marketing director for the Wine Institute, which led its larg- est-ever delegation to the Vinexpo Asia Pacific trade show in Hong Kong this year. More than 120 winery principals with 250 brands were represented in the California Wines Pavilion, and more than 25 delegates represent- has had a few owners since the 1980s, including Fortune Brands, Constellation and the Ascentia Group. Steve Dorfman, a partner in the Ciatti Company wine broker- age, sees the fact that Geyser Peak has weathered those transi- tions as a testament to the brand's strength. The new ownership looks "good for the people who are there because they'll get some ing more than 100 brands contin- ued on with a "Discover California Wines" tour of China, stopping in Shanghai, Wuhan and Beijing. U.S. wine exports, 90% of which are from California, soared in Hong Kong after restrictive tariffs were dropped there a few years ago. For 2011, Hong Kong was California's No. 3 export market by value with revenues of $163 million. Exports to Japan were up 39% to $105 mil- lion and China had 42% growth with $62 million. Of course, a lot of the news coming out of China has been the interest in Bordeaux reds, espe- cially first growths, making it more of a challenge to market lighter reds and white wines, even though those styles tend to pair better with the spicy, flavorful dishes common in China. But Kerry Manahan-Ehlow, vice new energy in there and good for the Accolade group because they wanted to make some inroads to having U.S. brands," he said. Dorfman is optimistic about Geyser Peak's potential. "I don't put anything past that brand to do some great stuff," he said. "It's going to take a lot of work, obvi- ously, but I think that the group there is very much behind it." president of global sales for J Vineyards & Winery in Sonoma County and a member of the Cali- fornia delegation to Asia, was pleased to see that all of the wines she took, which included sparkling wine, pinot gris, chardonnay, pinot noir and a pear liqueur, got equal attention from tasters. "People gravitated to a little bit of every- thing," she said. Wine is produced domestically in China and is on the increase, according to a recent report from Rabobank's global Food & Agri- business Research and Advisory department. Chinese domestic wine companies were largely caught off-guard by the competi- tion from abroad, although they are restructuring to meet demand. The supply of wine in China rose 14% year over one year to about 1.4 billion liters in 2011, of which 17% was foreign – a 65% increase, according to the report. It also found that wine is well- positioned for the future, with a growing number of younger (between 20 and 39 years old), more affluent consumers increas- ingly exploring wine. But domestic and foreign companies have to nav- igate the hazards of a diverse and unfamiliar consumer base. In the marketplace, the report predicts that brands will become increas- ingly important to consumers. With a fruit-forward style, Cali- Vinexpo Asia Pacific in Hong Kong attracted its largest-ever California delegation in 2012. 14 VINEYARD & WINERY MANAGEMENT SEPT - OCT 2012 fornia wines looking to be part of that market have an advantage, Gal- lagher said. The delegation played up that connection, presenting food pairings including zinfandel, the sig- nature California grape, which com- WWW.VWM-ONLINE.COM