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Xinhua Insight: Chilean wine reaches China's doorsteps

Xinhua, May 15, 2016 Adjust font size:

Chilean wine has become a favorite of more and more Chinese wine lovers in recent years.

Even though wines from Old World countries like France and Spain still dominate the market, the future of Chilean wine in China should not be underestimated.

According to Tmall, Chilean wine now ranks fourth in China following France, Spain and Australia. Figures provided by the Central Bank of Chile confirm that wine exports from Chile to China doubled from 2012 to 2015, reaching 165 million dollars.

"Wine is like an 'ambassador,' introducing our country and other Chilean products to the world," said Andreas Pierotic, commercial counselor with the Chilean Embassy in China.

WINE IN CHILE

Chile has good geographical conditions for wine production. Varied climate and soil in different regions allow many varieties of grapes to grow there. The mountains, desert and ocean are natural barriers, preventing pests from coming to Chilean territory and protecting the vines.

In the eyes of Philippo Pszczolkowski, professor with the faculty of agriculture and forestry of the Catholic University of Chile, professional training and education have helped Chile's wine industry.

"Wine-making is a five-year major in many Chilean universities," said Pszczolkowski, also a wine-maker.

Most Chilean wine is exported, with China being one of the most popular destinations. Over 270 wineries sell their products abroad, including the world famous brands Concha y Toro and Montes. Last year, 209 Chilean wineries export wine to China, with 23 having set up offices in Shanghai.

CHILEAN WINE IN CHINA

Over the last decade, as the Chinese became familiar with imported wine, the way people spent their money on wine changed.

"Blind worship of appellation and price is a thing of the past," said Li Zhishuo, president of the China Wine Platform, importer of Montes.

As people in their 20s or 30s have started drinking more, wines from the New World have gained popularity, said Li. E-commerce has also helped, with wine now often delivered directly to the customer's door.

Chilean wine is generally cheaper than its competitors. A 2005 free trade agreement between China and Chile granted a lower tariff to wine from Chile.

According to the Chilean Embassy, although Chilean wine accounted for 9.1 percent of all imported wines in China in 2015, it has a long way to go to catch up with French and Australian wine, with 46.2 percent and 23.4 percent respectively.

"Due to the lack of promotion, Chinese consumers still don't know Chilean wine very well," said Pierotic.

Fake Chilean wine on the Chinese market concerns importers. "Better regulation is needed," Li said. Endi