Grape expectations from Argentina

By Zhou Siyu in Mendoza, Argentina (China Daily) Updated: 2012-09-03 10:13

Despite not being one of the largest producers in volume among Argentine wineries, Rutini (owned by La Rural Vinedos y Bodegas SA) is currently the largest seller to China, with its sales far ahead of its nearest follower in recent years.

But the company's success in China not only relies on its wine's simple, inviting tastes but also on a number of marketing factors. "Rutini Wines is a well recognized brand among the Chinese circle in Argentina and was mainly sold to East China's Fujian province - where its members came from. The wine thrived based on that connection," said Antonio Mompo from Wines of Argentina.

In addition, the fact that the name "Rutini" is easy to pronounce and remember in the Chinese language helped the winery to establish its presence, enabling it to sell a lot of premium wines to the Chinese market, said Sol Asensio, Rutini Wines export manager for Asia and Latin America.

To consolidate its position in China, Rutini Wines intends to continue promoting its image as a high-end wine producer in Argentina. "We are trying to become the Chateau Lafite for Argentine wines," Asensio said.

Argentine winemakers are by no means shy of competing in quality with other foreign wine suppliers, including France. Unlike other countries, the climate in Argentina is very stable so the vineyards do not have distinctively good years or bad years, said Gonzalo Carrasco, winemaker at Terrazas de los Andes winery. Moreover, warm or cold years give different fruit profiles to the wines, he added.

"As a result, our wine's quality has been improving each year and it is easy for our customers to form a certain expectation before opening a bottle of Argentine wine," he said. "They seldom feel disappointed."

Terrazas de los Andes winery, owned by the French luxury group LVMH Moet Hennessy Louis Vuitton SA, exports 80 percent of its wine every year, its top three markets being the United States, the United Kingdom and Brazil. China is now indisputably the most important market, Carrasco said. "And we are confident of our own styles (in wine)."

Another advantage for Argentine wine is its reasonable price, which will help Argentine winemakers confirm their market position, many Chinese wine critics believe. "The Chinese will soon realize this is a good wine at a good price," said Tommy Lam, wine program director at Shanghai Jiaotong University.

'China, a continent'

Not all wineries in Argentina can draw on the connection among Chinese people like Rutini does to promote their images. One big challenge for the South American country's winemakers is to find a reliable partner and establish distribution channels in China's complicated market.

Sheltered by the Andes Mountains and fed by its melt water, wineries in the Mendoza area - the winemaking area in the center of West Argentina that produces 70 percent of the beverage in the South American country - command a breathtaking view of leafy green vineyards growing against a background of snow-capped mountains. [Photo/China Daily]

"We are constantly looking for new opportunities to develop the Trapiche brand in China," said Ramiro Eduardo Barrios, area export manager at the Trapiche winery. Owned by Argentina's largest wine producer Penaflor SA, Trapiche is the country's largest exported premium brand.

Barrios also expressed concerns about the popularity of premium Argentine wine in China's gift market. "The numbers are good but you just don't know whether this will help promote the brand," he said.

Another concern for the winemakers about China's market, Barrios added, is its slack regulation. This has led to numerous fake and counterfeited premium wines, causing quite a stir in the international winemaking industry. French wines suffered the most. The situation came to a head this year as Chateau Lafite was pressed to launch a campaign to fight fake products in the country.

"All in all, China is definitely a core market for Trapiche and we envision big growth rates over the next few years for Trapiche and Argentina as well," Barrios said.

A reliable and capable Chinese partner becomes all the more important against this background. Catena Zapata, the winery owned by Nicolas Catena's family, is a case in point. "We wasted a few years, but we finally found a good partner," said Jorge Crotta, export manager at the winery.

Catena Zapata is now in an exclusive partnership with a Chinese company Beijing BETC Group, which owns two high-end restaurants featuring Argentine food, one located in Beijing and the other in Shanghai.