China | retail stores | Stephen Reiss | Shanghai | author

Uncorking China

by Joseph Guinto
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Image about China
Fu Hongbing, though, is an exception to that rule. He's an executive in Shanghai working with Cooper Industries, a diversified Houston-based manufacturing company with facilities in China. Fu, like a growing number of middle- and upper-class Chinese, has developed an appreciation for tasty wine. He drinks "foreign wines," he says, especially "French wines, German wines, and Canadian ice wines."

Canadian ice wine? Canadian ice wine isn't even that easy to find in U.S. retail stores and restaurants. Plus, it's an expensive product. To make it, the grapes are picked immediately after the year's first frost, and, as such, 375-milliliter bottles of ice wine can fetch more than $60 in a wineshop. So how does Fu get his hands on the stuff? Well, that's the big surprise behind those per capita numbers. China as a whole is not yet a big market for wine, but thanks to importers catering to the newfound good tastes of the few by stocking big-city retail stores and high-end restaurants with fine wines, hundreds of thousands of Chinese are becoming consumers of some of the best wines in the world. And this new consumer interest, in combination with the government's backing of wine's health benefits, may spur the entire nation to follow suit.

"A rising upper middle class is embracing wine as they embrace all Western consumer items," says Stephen Reiss, an author, a blogger, and a certified wine educator (yes, certified) based in Aspen, Colorado. Reiss, who was a member of an influential 1996 U.S. wine delegation to China, says this upper middle class is driving the development of the wine market - albeit in an awkward way. "Many Chinese people are willing to buy expensive wines, but many have no appreciation for what they are buying. Right now, they are mostly label drinkers, trying to score a taste of any well-known wine so they can check it off their list."

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ISSUE: Dec 1, 2007
American Way Cover - 12/1/2007