Argentina targeting Chinese epicures

On a sunny Thursday in mid-April, Jevgenils Suscinskis sprang a surprise on wine fans in Shanghai with several bottles of Argentina's world-famous Achaval Ferrer.

The treat was to celebrate the brand's launch in China.

Suscinskis, the regional director for Bodega Achaval Ferrer in the Asia-Pacific, says he is confident the wine, which can sell for more than more than $150 a bottle, will be welcomed by Chinese consumers. What he is not certain about, however, is which of the company's wines will sell better.

"Tasting wine is an extremely personal experience, so you really need to rely on your own judgment. Drinking it is the only way to tell if you like it," he says.

Supplies of Achaval Ferrer in China are limited, so only higher-end consumers may get to savor it. The wine will be sold to fine-dining restaurants, fine-wine importers and private clients.

The company and other vineyards have been trying to change the notion that Argentina is a source of inexpensive wines with a "jammy taste". They have been growing malbec, a premium purple grape used to make red wine, taking advantage of the country's geographical features, such as high altitude, its soil and the ready availability of high-quality water from the Andes mountain range.

For vineyards, stony, sandy and relatively infertile soil, like that of Argentina's Mendoza region, is considered better because such conditions encourage vines to grow stronger. Vines have to work hard to absorb nutrition. In fertile soil, they get spoiled and grow "lazy" and weak, experts say.

Bodega Achaval Ferrer is not the only Argentine vineyard seeking to reach out to Chinese consumers. Others, too, are targeting China, which has become one of Argentina's top 10 wine export destinations.

Last year, Argentina exported almost $20 million worth of wine to China, up from $9 million in 2010.

"The potential for Argentina's wines is great considering that China has 20 million frequent wine consumers," says Mao Yufen, a wine trader with Qin An Wine Trade Co Ltd. "Their number is expanding fast. If each consumer spends 100 yuan ($15; 13.5 euros) on Argentina's wines each year, the market size will be 100 times its current number."

As Chinese consumers become more savvy, they will likely buy more quality products. In this context, he says Argentina's wines will likely stand a good chance to gain market share because they are considered affordable quality products.

In recent years, New World wine regions have been increasingly popular among Chinese consumers as they get to know more about the culture and heritage of the countries concerned, including Chile and Argentina. Some wine consumers have even visited these regions.

"In January 2015, I was in Argentina for the first time for a business trip, and was deeply impressed by the wines produced in Mendoza," says Yang Peng, a food importer in Shanghai. "When I returned to China, I became a frequent drinker of Argentine wine."

(China Daily Africa Weekly 05/20/2016 page27)