Beaujolais ‘has a big role to play in China’

China’s dwindling economy could help stabilise its wine market and see it being a new devotee of Beaujolais and white Burgundy according to Louis Latour’s export director, Mark Allen.

A new dawn for Henry Fessy vineyards in China?

Since Maison Latour acquired Brouilly-based Henry Fessy in 2008, the négociant has concentrated on making Beaujolais wines more recognizable in China as well as bolstering its portfolio of white Burgundy in the country renowned for its love of red, reported export director, Mark Allen.

“Beaujolais has a big role to play in China, he said. “You look at Chablis and Macon in Burgundy and they’re the wrong colour for China. The other big basin is Beaujolais and we’re working on improving the image. The wines are very approachable, they fit the Chinese palate and go with the cuisine.”

Henry Fessy has found surprising success in Japan which Allen credits with being the third biggest market in Asia, and through events such as Restaurant and Bar Week in Hong Kong and tastings organized through distributors, Links Concept, Allen says the brand is getting much closer to the customers.

“Our emphasis is building Henry Fassy and using it a big stepping stone we can build on and push out. We’re not a one size fits all – we have specialist brands in specialist regions.”

Turning to Louis Latour’s white Burgundy portfolio, Allen acknowledged it will take a little longer for consumers in China to embrace white wine in the same fever as it has red Burgundy.

“We are an up and coming player in Chablis but we’re very focused on what we have to do.  If we can replicate the success of Chablis in China that we’ve had in Hong Kong we’d laughing.”

Over the years there has been a steady rise in value of premium Burgundy from €15.8m in 2012-2013 to €19.3m in 2014-2015 but Allen remains cautious about the actual amount of wines that remain in China.

“Importers around China are stuck with the wines they imported on a whim when China was going mad for red wine and now they’re struggling to sell the stock from their warehouses.”

However, although China’s dwindling economy has seen a downturn in consumers investing in premium wine, the upshot is that they’re looking for more “everyday luxuries” to drink now – as echoed by Burghound’s Allen Meadows – a facet Allen says heralds a healthier wine market and a period of “relative stability”.

“The market is in better shape now than when there was the First growth gold rush. It’s more democratic and more affordable wines are available with people trusting brands that have been around for a while, like us. I believe there’s a big future for Macon, Chablis and Beaujolais in China as more and more consumers get acquainted with the wines.”