In the information era, we often hear a lot of news about wine from overseas chateaus, wine associations and media. For example, some wine receives a certain reward; some chateau is purchased; some renowned winemaker dies; some producing area encounters a mountain fire or frost, which results in low yield; some customs captures certain fake or shoddy goods. How to interpret the influence that such information exerts on domestic importers and the Chinese wine market plays an important role in wine import business. Below are several case analyses which may bring along some inspiration.

Awards

Awards are important means to increase brand awareness, market exposure and brand value. We are often dazzled by various selections and awards. First, we need to be clear which award and in which category a certain wine has won and if there are any certificates or credentials. Low-value awards would not bring much appreciation to the brand. Sometimes, even relatively high-value awards would be granted to some mediocre wines because of high winning rates and the small pool of candidates. The key is to taste carefully without caring too much about bubble reputation. Second, in which year is the award granted? Sometimes, a wine wins an award in a year it performs especially well. The chateau or wine dealers would exaggerate the honor and raise price constantly afterwards even in years it performs not so well. So special care needs to be paid to the year of awards to avoid being fooled.

Purchase and Sell

Chateau acquisitions are frequent in recent years. Sometimes it is due to bad management or financial problems; sometimes, the vineyard or the brand is purchased because of their good performance. We need to know more about the buyers. For example, when a movie star purchases a chateau, it is the stardom not the quality of the wine which attracts the consumers. If the purchase is by a famous vintner or a wine group, we need to know more about the development direction of the group. Is the chateau still be managed by the original team, or by the new boss after the purchase? Is the style the same as before or does it cater to the route of the new boss? Is the quality improving or declining? To know the answer, we need to taste and evaluate ourselves.

Death of Chateau Owners or Winemakers

This may seem a little sad. The results actually are the same as the above, but they often happen to famous chateaus. The price of the wine the deceased chateau owners or winemakers make in their final year would rise accordingly. For such rare wine, we need to be careful about the source in case of fake products. the succeeding chateau owners or winemakers are a turning point for the brand and the quality. It remains to be seen whether the new products would maintain the standards and even become better, or just be inferior replacements. In such cases, it is not advisable to bring in too much stock.

Low Yield

There are usually two reasons for low yield: artificial production control and natural disasters. Growers can artificially reduce yield by means of plant density, pruning, and juice yield control to increase maturity, sugar content and enrichment of wine. Low yield because of the above reasons can improve wine quality. So an appropriate rise in price is reasonable. But you need to inspect the whole process of yield control first, including visiting vineyards, participating in harvest and wine-making, checking and tasting wine, to make sure the quality has been improved.

Natural disasters are uncontrollable, including villainous weather, such as spring frost, summer hail, autumn rain and mountain fire, which will affect yield in varying degrees. Severe cases would cause substantial decrease in production. We need to know exactly when and where the disasters happen, what measures the vineyard take, and what the actual impact is, lest that the chateau exaggerates the impact of the natural disaster and seize the chance to raise price. Sometimes, natural disasters only affect certain varieties, which should not lead to an overall rise in price. Sometimes, natural disasters may unintentionally help artificial yield control, which decreases quantity and raises quality at the same time. Further information is needed to figure out the specific circumstances.

Customs Interception

Italian Customs intercepts a batch of champagne which is actually Prosecco. French Customs intercepts a batch of bulk wine shipped from Spain. The information may show that there is a lot of fake wine in the market, but it also indicates that the quality of Prosecco and Spanish bulk wine has been improving constantly so that they can be used as substitutes for high-quality and famous wines. This may also mean that it might be a good choice to do Prosecco or Spanish bulk wine business.

Wine Futures and Auction

Wine futures and auction are mainly for high-end chateaus and famous producing areas. Good choices can bring you considerable returns in the foreseeable future. But you need good vision and sufficient capital, because the profits are not immediate after the purchase. It usually takes several years or even dozens of years for wine appreciation. Before purchase, you need to gather a lot of information on wine futures and the auction market, gain full knowledge of the price, the year, renowned wine critics’ comments so as to buy the best wine with the best price. Additionally, how to preserve wine is also very important. Inappropriate preservation may cause damage to the quality. Before making investment, you need to be especially careful about the source. Is it from chateaus, collectors, renowned auction houses, or wine dealers?

Surrounded by large amounts of information, practitioners in the wine industry need to understand the true meaning of such information and make better judgments in product selection to avoid unnecessary loss.