January 2016 F&B TRENDS FOR 2016. WHAT WE CAN EXPECT INSIDE WINE BUSINESS IN CHINA? Despite the crucial point in the Chinese economy, the prospective of growing are positive. Read more below! A study published this month by International Wine and Spirit Research based in London, says that in the medium term, consumption of imported wines should continue growing in a stable way. Even with the government's austerity drive, the wine industry will grow. E-commerce will play an important role in the market as one of the main targets will be the young people that acquire a taste for fine wines during the last few years. The expert opinion: Our Manager Director of Tianjin office says Although the economics seems not good in 2016, I still consider the import volume of wine will increase, because Chinese have been conditioned to drink wine. We can see more and more local Chinese drink wine in restaurants. Drinking wine becomes a symbol of health and fashion in our alcohol culture. The consumption habit is not easy to stand back only because of temporary economics difficulty. But the luxury wine should be consumed less not only due to the slowdown of Chinese economics, but also due to the anti-corruption campaign. All in all China is still a promising market for wine importer - Mr. Qu Hongtao ABOUT THE GRAPH. Wine demand in this market has grown in recent years and prospects, despite the economic turbulence of the moment, are attractive. In less than a decade, China moved from tenth to fifth place in the consumption of the beverage extracted from grapes and is expected in the coming years to reach the top of the podium, leaving countries with a long tradition in the cult of the drink, such as America, France, Italy and Germany, which currently top the list.
WINE - NINGXIA A NEW HUB FOR CHINA! Ningxia, a city on the edge of the Gobi desert, is becoming a hub for winemaking read more below! Ningxia currently has more than 70 wineries in the region, and 40 are being constructed. The local government expects to have 2,000 wineries by 2020. Moreover, they have been introduced sophisticated Western winemaking techniques to the country and improve their wine s quality. WINE -- BE AWARE OF THE SUGAR FREE EXTRACT WHEN EXPORTING TO CHINA! Wines with low sugar-free extract are being rejected in China. the OIV test method as the difference between the total dry extract and the total sugars. A recent report in the Chinese edition of Decanter identified sugar free extract as the leading reason for wine being rejected by Chinese Customs. China applies minimum standards for a parameter described as sugar-free extract. This is determined by subtracting the sugar content from the total dry extract. QUANTITY ALLOWED: White wines should meet the minimum of 16 g/l, rose wines 17 g/l and red wine 18 g/l. Usually this problem is more common in white wines or sparkling wines. IMPORTANT NOTE: China determines sugar levels in a manner that generally produces higher results than are obtained using the methods most commonly used in other. countries such as Australia or Spain. This partly explains why wines are being rejected for not meeting the minimum standard for sugar free extract. Moreover, sometimes it is difficult for the exporter and importer to gather the result of the exam from Chinese Authorities so, most of the times, they feel very frustrated. WHAT IS SUGAR FREE EXTRACT: Total Dry Extract (also known as Total Dry Matter or simply as Extract) is the amount of extract left when the content of all sugars (including sucrose) are subtracted from the Total Dry Extract. It is defined in WHY IS RELEVANT TO CHINESE AUTHORITIES? A low value of Sugar-free extract can imply that excess water was added when making the wine and it appears. So this is useful to detect wine adulterated with water or dissolved materials. RECOMMENDATIONS: 1. It is strongly recommended exporters get their wines screened for this test before attempting to export their wine. 2. To ensure the lab uses the most appropriate test methods so that the results are as comparable as can be to the Chinese test results (as we explained before the standards are not the same ). 3. Keep a safety margin in the Sugar-free extract result. If it is already 16 g/l in a white wine it is risky to export. Better to export wines with a result under the limit.
MARKET TRENDS 2016 GROWING MARKET THE CIDER The Cider segment is growing in many of the world markets, in part because this lowalcoholic beverage attracts a younger, more affluent consumer. GIA - Global Industry Analysts, Inc - announced that the global cider market is projected to reach US$12.9 billion by 2020 (growing in 2015 the total of US$2.6 billion) led by increased demand for low-alcohol containing beverages. Why not to diversify into cider? 1 brief case study to think Australian wineries are starting to consider this option due to two reasons: 1. Have half of the necessary equipment (pumps, tanks, filters & refrigeration) to start processing apples and pears for cider. Brewers embraced cider to capture a new market and appeal to changing consumer tastes in alcoholic beverages. 2. Location of wine regions around Australia are quite often in close proximity to apple and pear orchids (Yarra Valley, Adelaide Hills ); meaning the sourcing of fruit is easy and because the processing starts in winter and it does not clash with grape harvesting. Some of the biggest groups in the global market are: The Boston Beer Company Inc, Aston Manor Brewery, Heineken UK Ltd, Distell Group, Carlsberg, Halewood International Holding or C&C Group plc. FRUIT LOGISTICA GERMANY 2016 DO NOT MISS OUR STAND FOR PERU Are you attending the Fruit Logistica 2016 in Berlin? If yes, we invite you to visit our stand inside the Peruvian Pavilion!. This oncoming February more than 2,700 companies from across the entire fresh produce sector will again be present in Berlin at Fruit Logistica. DATES: 03-05.02.2016 LOCATION: Berlin, Germany It is time to make contacts! this is a wonderful chance to meet all the potential producers, either global players or small and medium-sized companies. As well, you will be able to find importers looking for new items to develop and make a good profit on them! Contact now our colleagues in Peru/Germany for gathering more information about this big event in Europe! Office in GERMANY Michaela Neubauer Team Leader FBLOG (+49 40) 2390 1331 michaela.neubauer@hartrodt.com Office in PERU Nicky Corrochano Managing Director (+511) 614 90 90 nicky.corrochano@hartrodt.com
VINEXPO FOOD & BEVERAGE LOGISTICS GERMANY ONCE AGAIN IS APPOINTED OFFICIAL FREIGHT FORWARDER! Again we have been nominated as official freight forwarding agent for the trade fair deliveries from Germany for Vinexpo Hong Kong. DATES: 24-26.05.2016 LOCATION: Hong Kong Vinexpo is one of the largest exhibitions for wine and spirits professionals from all over the world, held in Bordeaux in uneven years. The first event dates back to year 1981 gathering 524 exhibitors from 21 countries 11,000 professional visitors from 50 countries. In 2015 it grew to 2,350 exhibitors (2,400 in 2013[1]) from 42 countries. For us it is an important date in our calendar as these days all the spirits producers, merchants and key decision-makers from all the world come to Hong Kong to share experiences and launch new businesses. And this year, as happened also in 2014, we will have the pleasure to handle the trade fair deliveries from Germany to Hong Kong. Hundreds of companies will place their trust in us for having the wines ready on this date! If you need to know more information about this exhibition please do not hesitate to contact us either in Germany or in Hong Kong. We will be more than able to assist and support you and your participation in this huge event. GERMANY Michaela Neubauer Team Leader food & beverage logistics - Germany a. hartrodt Deutschland (GmbH & Co) KG Phone (+49 40) 2390 1331 michaela.neubauer@hartrodt.com HONG KONG Teddy Leung Team Leader food & beverage logistics (hk) ltd. Phone: (+85 2) 3423 5613 Teddy.Leung@hartrodt.com
CHINESE NEW YEAR! FESTIVITIES ARE COMING! One of the most important celebration in Asia is coming very soon: CHINESE NEW YEAR! Please have a look to the dates to be aware that your shipping can be affected during this time of the year. 2016 DATES: New Year s eve Feb. 8 th China vacation: from Feb. 7 th to 13 th. Taiwan vacation: from Feb. 8 th to 12 th. Hong Kong vacation: Feb 8 th, 9 th and 10 th Singapore vacation: Feb. 8 th and 9 th companies), product suppliers & most importantly loading/unloading labor at the port as well as truck drivers. Fur further information please contact your closest office, they will advise you properly how to avoid the delays during this time! We want to remind you Chinese New Year can lead to severe delays inside the operation s key parties: importers, shipping lines, service based companies (i.e. forwarding companies like us, China customs brokers, sourcing & quality control FROM FBLOG WE WANT TO TAKE THIS CHANCE TO WISH YOU A HAPPY CHINESE NEW YEAR! HAPPY YEAR OF THE MONKEY! We appreciate your feedback, ideas and input on our newsletter and industry. Please send your e-mails to: Daniela.gracia@hartrodt.com