Tuesday, September 14, 2010

Don't whine about the price of wine---It's China's fault---is this becoming a familiar refrain?

More evidence of the increasing purchasing power of the Chinese...For better or worse, this luxury good is in big demand, hence the world price will increase as well...

New Whine: China Pushes Bordeaux Prices Higher
""...But wine makers and merchants also credit booming demand from emerging economies, especially that of China, where labels like Lafite and Margaux have joined Prada and Hermés as badges of wealth. Last year, China passed the U.S. to become Bordeaux's biggest export market by volume outside Europe..."The pricing of the 2009 wines is way, way above what's been seen before for any previous vintage," Mr. Gearing says.  A big factor is China. The volume of Bordeaux bottled wine exported to the country last year was 39 times the volume in 2000, according to the Council of Bordeaux Wine. Exports of 2009 Bordeaux to China increased 97% by volume and 40% by value from 2008.  "China is now our most important market, even before France," says Paul Pontallier, general director of Château Margaux, which recently opened an office in Hong Kong. "It's really taken off over the past six to twelve months."
 
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