China’s leading wine importer slashes En Primeur purchases by half

Posted by Rachel England on 26 June 2017 |

China’s leading wine importer slashes En Primeur purchases by half

China’s leading wine importer COFCO has reduced 2016 En Primeur purchases by 50% compared to last year, due largely to price increases and reduced demand from domestic consumers.

While the pound’s depreciation has created a favourable buying market, Chinese yuan has itself experienced several periods of depreciation since last year, leading to caution among merchants.

“China is not a vintage-centric market,” Aline Bao, fine wine purchasing director of COFCO Wine & Wine, told thedrinksbusiness.com. “Most consumers are more sensitive to price than vintage quality.

“For us, we think the prices for some of the châteaux are already too high for the China market. In addition, some wineries have cut down allocation as well,” she added, which means “profit for importers is not going to be high.”

However, she added that some wines still have great value, and that the Chinese market is moving towards a focus on quality. “We cut down our volume and made adjustment to our portfolio and structure. This helps us to provide our clients more choices for grand cru classé château and services, while avoiding high price risks.”

Related link:

https://www.thedrinksbusiness.com/2017/06/cofco-slashes-2016-ep-purchases-by-half/

 

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