China's Imported Wine, Spirits Market Gains Momentum

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Last updated at: (Beijing Time) Thursday, February 07, 2002

China's Imported Wine, Spirits Market Gains Momentum

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One of world's three leading operators in spirits and wine said China's imported wine market isexpected to grow by another 10 percent this year, with the market expanding across various social classes.

Lim Heng Seng, general manager for the China market of Pernod Ricard, the top producer in the Euro Zone in the spirit sector, told Xinhua Thursday that with China's population becoming more affluent, the company saw the mainland market grow by 10 percent last year.

Also with China's tariff for wine and spirits having been cut down to 37.5 percent recently, the imported beverages had become more accessible to the general public, Lim said, adding that more white collars were joining the businessmen in enjoying the beverages.

"The white collars who are earning about 2,000 Renminbi (240 U.S. dollars) per month are able to afford our wine," he said. The cognac market remained steady last year, while the whisky market grew by about 8-10 per cent, Lim said.

Martell, a cognac, and Chivas Regal, a Scotch whisky are the most popular brands on the mainland, with the cognac and the Scotch whisky selling at a 3:2 ratio, he said.On red wine, Lim praised the quality of contemporary red wine brewing in China.

According to China's agreement with the World Trade Organization, the tariff for imported wine and spirits is expectedto be adjusted down to 10 percent in 2005.

Pernod Ricard held a news conference Wednesday to announce its recent acquisition of Seagram's spirits division, and thereby doubling its size in the spirits industry.

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