Issue link: http://read.dmtmag.com/i/89494
CHINA PRIMER Thinking of trying to break into the China market in 2013? Here's a tip from Joy Sterling, CEO of Sonoma County's Iron Horse Vineyards, which has been selling wine in China for more than a year. "As our key contact person put it, 'Don't try to tell the Chinese how to be Chinese.' " That means getting expert input on things like marketing and branding. One example: Some of Iron Horse's sparkling wines fea- ture the winery's logo, a proudly rearing horse, in a diamond at the neck of the bottle. But Iron Horse's importer, Jaguar Wine Inc., advised that it looked a bit like a shield that could come across with a war-like, aggressive connotation. So, they switched to a fan on the label, a milder symbol. Being thoughtful about brand- ing, as well as understanding con- sumer behavior, are key factors for success in the China wine market, according to Maria Troein, project manager for the global research firm Wine Intelligence, who gave insights on the China market at a recent Wine Institute export semi- nar in San Francisco. Language barriers are an obvious hurdle, but there are more subtle cultural approaches to be learned as well. Consumer research by Wine Intelligence found that "I like the taste" came in relatively low on a list of reasons to drink wine, as did the importance of food pairing. The No.1 reason? "Good for my health." Wine Intelligence research found there are about 19 million Chinese wine drinkers aged 18-49 who are part of the upper-middle class and drink imported wine at least twice a year. When choosing wine, brand awareness was important for both off- and on-premise sales. Troein cited three factors in getting brand- ing right: translation, label design and back-label language. Transla- tion can be quite complicated; not WWW.VWM-ONLINE.COM Pete Hou, Wine Institute's trade repre- sentative in China, says there isn't much knowledge in China about U.S. wines. Photo: Michelle Locke French wines have been embraced by the emerging China market , especial ly Bordeaux. According to conference presenter Pete Hou, Wine Institute's trade representative in China, French wines make up 49% of imports, putting France in the No. 1 spot. U.S. wines have a disadvantage in the market in that there isn't a lot of knowledge about New World wines, Hou pointed out. How- ever, there is some recognition of California and its wines; the Wine Intelligence surveys found that to participants, the Napa Valley was By Michelle Locke NEWS FLASH only does a winery have to make sure the name doesn't sound bad or strange in Chinese, there are more nuanced considerations to take into account. For instance, back-label copy that describes the wine as having notes of cherry and suggests pairing it with cheese would translate better on a cultural level by switching plum for cherry and swapping cheese for spicy Sichuan food. TTB Approves Vintage Dating for 'American' Wines The Alcohol and Tobacco Tax and Trade Bureau (TTB) will now allow wines labeled with a country appel- lation of origin, including American appellation wines, to disclose their vintage. Until the announcement of this new rule in September, TTB had long prohibited wines with a country appellation of origin from including a vintage date. Duncan Family Acquires Sausal Family Vineyard and Winery The Duncan family, owner of Sil- ver Oak and Twomey Cellars, has acquired Sausal Vineyard and Winery in California's Alexander Valley from the Demostene family. Silver Oak president David R. Duncan stated, "The Sausal Vineyard site presents us with an excellent opportunity to grow cabernet sauvignon with a variety of soils and conditions not previously available to us." International Wine Guild Partners with Walla Walla The International Wine Guild, with headquarters in Denver, has signed an agreement with Walla Walla Commu- nity College (WWCC) to begin teaching Guild programs at the WWCC Center for Enology & Viticulture. The Center provides students – both enthusiasts and professionals – with hands-on experience in winemaking, viticulture practices and wine sales. E. & J. Gallo Buys Snows Lake Vineyard Gallo has purchased Snows Lake Vineyard, a well-known cabernet sauvignon producer in Lower Lake, for an undisclosed sum. Gallo's first land acquisition in Lake County includes 2,000 acres, of which 800 are planted, as well as the Snows Lake cabernet brand. For more industry news briefs, visit the News Flash page on V&WM's website: www.vineyardwinerymanagement. com/magazine/web-exclusive1.asp NOV - DEC 2012 VINEYARD & WINERY MANAGEMENT 13