A new chapter for Margaret River wines

October 13, 2024 BY

Chinese delegates visiting Lenton Brae for the first time since trade tarrffis lfuts in April. Image Supplied.

In a promising development for the Western Australian wine industry, Chinese delegates recently toured our renowned wine regions for the first time since trade tariffs were lifted in April.

This visit marks a significant step toward rebuilding trade relationships and exploring new opportunities in the Chinese market.

The tour concluded last Saturday, bringing 11 premium wine buyers from 10 Chinese companies to our shores.

Their focus on premium wines and specific interest in Western Australian varieties signals a positive shift in the market.

Tony Fletcher, TradeStart Advisor and Principal Business Development Officer at the South West Development Commission noted a marked change in demand.

“There’s less focus on bold red wines and the high-volume orders that we saw in the past. Instead, there’s a growing interest in more premium quality wines suitable for personal and social consumption,” Mr Fletcher explained.

“This visit is the first essential and significant step in rebuilding our connection with the Chinese market.”

Andrew Moore from Lenton Brae also observed a positive change in the market.

“What was most interesting and promising was their interest in white wines,” he said.

“In the past, the Chinese market was very red-focused.

“This shows development in their palates and the potential for our premium Semillon Sauvignon Blanc blends and Chardonnays to find their place in the Chinese market.”

Christian Zhang, a Wine Lane Trading Company representative, echoed the change in consumer preferences, explaining how “consumers’ palates in China have evolved, with more people enjoying white wine.”

This shift aligns well with Margaret River’s strengths.

As Ms. Liu Xi from Post 90’s Fine Wines in Shenzhen explained, “In China, Burgundy wines are very popular, but prices are rising, and consumers are looking for comparative wines at a better price.

“There is a great opportunity for Margaret River wines as they are premium wines without the exceptional price tag.

“With the growing demand from younger people enjoying white wine, I think the Margaret River Chardonnay and Great Southern Sauvignon Blanc are exceptional, and this is where the opportunity lies for our company.”

Zac Webb welcoming the visitors to Country and our region. Image Supplied

The tour wasn’t just about tasting wines; it also aimed to educate the buyers about the qualities of our regions.

Zac Webb welcomed the visitors and provided insights into the cultural history, landscape, and terroir that make our region unique.

This deeper understanding will help them educate buyers about what makes Margaret River an incredible wine region.

“By showcasing the natural beauty, clear air, culture, and geographical uniqueness of the region, we have an opportunity to show why our wines deserve the reputation they hold,” Mr Fletcher said.

“With the groups able to visit wineries and meet the makers, we had the opportunity to increase buyers’ personal attachment to the region, hopefully resulting in a greater desire to purchase compared to our competitors.

“After all, nothing beats a personal touch, and the Margaret River region excels in these factors.”

While the Chinese market has evolved during the four-year hiatus, our region’s focus remains on quality over quantity.

As Mr Fletcher pointed out, “China is an extraordinarily large market, but Margaret River is a small region, accounting for less than 1 percent of Australia’s wine exports.

“We’re not looking for high-volume results but high quality, retaining our focus on offering premium wines to customers prepared to pay for the privilege of enjoying some of the world’s best wines.”

The visit has left local winemakers feeling optimistic.

Dario Sirotti, sales and marketing manager at Fraser Gallop, described the delegates as “high calibre, engaged, interested, and on a buying mission.”

He noted their interest in both Chardonnay and Cabernet, reflecting their awareness of Margaret River’s reputation for world-class wines.

Looking ahead, Mr Fletcher expressed hope that participating wineries will establish ongoing connections with the visiting buyers, leading to consistent sales to China and potentially more inbound trade missions in the future.

“We’ll be working closely with Austrade and WA Invest & Trade teams in China to monitor results from this visit and assist wineries in developing connections with interested buyers,” he said.

As we look to the future, this visit represents a crucial first step in rebuilding our connection with the Chinese market. While it may take time for consumer appetites to return to pre-COVID levels, the signs are encouraging.

Our region’s focus on premium-quality wines, combined with China’s changing tastes, positions us well for this exciting new chapter in wine exports.

For wineries looking to enter the Chinese market, an additional opportunity is on the horizon.

The ProWine event in Shanghai, which will take place from November 12th to 14th, offers another platform for showcasing Margaret River wines.

Interested wineries can find more information on the Wine Australia website: https://www.wineaustralia.com/whats-happening/events/prowine-shanghai