CHINA'S TASTE FOR CAL WINE GROWS

California-based vintner Bronco Wine has forged a deal with Legacy Wine and Spirits International to export a selection of its varietal Hacienda label wines to China.

The first container of 750ml bottles of Bronco's Merlot, Cabernet Sauvignon, Chardonnay, Sauvignon Blanc, Riesling, Gewurztraminer, Viognier, White Zinfandel and Brut Sparkling Wine reportedly left the Port of Oakland last week.

Legacy Wine and Spirits is based in Tianjin, China and is one of that country's largest importers of alcoholic beverages. Bronco Wine, a private grape grower, cultivates more than 8,000 of vineyards in Sonoma County in cooperation with five other California wineries.

According to Bronco, the exports are aimed at the mid-price point and will be distributed and retailed in China via wholesale retailers and Legacy's own outlet showroom, which caters to the retail buyer as well, in Teda, Tianjin, a second tier city of over 10 million people just outside of Beijing.

California wines have remained somewhat impervious to the ongoing economic downturn and sharp overseas competition with the demand for California wines on the upswing in many global markets, especially China.

According to the California Wine Institute (CWI), US wine exports, 95% of which were produced in California, reached a record high $951 million in 2007, an 8.6% jump from the previous year.

About half of US wine exports are currently shipped to the European Union, accounting for $474 million, followed by Canada, $234 million; Japan, $63 million; Switzerland, $26 million; and Mexico, $24 million. Other major growth markets include: South Korea, up 60% to $18 million; China, up 74% to $16 million; and Singapore, up 50% to $9 million.

"It is very encouraging to see China setting a solid, consistent growth pattern year after year. Despite the known challenges of the Chinese market, the ongoing opportunity this market represents now must not be overlooked," said Eric Pope, the CWI’s regional director – emerging markets.

"The strong growth of the emerging and newly-developed markets throughout greater Asia makes this one of the most attractive regional wine markets worldwide," he said.