In 2013 China surpassed France as the world’s biggest consumer of red wine and the second biggest consumer of high-end wines, but a government anti-corruption campaign to cut away graft and excessive gifting has created a decrease in wine consumption – especially high-end premium wines. The China Alcoholic Drinks Association (CADA) reports that the decrease in sales has caused a 14.6% drop in wine production to 117.8 million liters between 2012 and 2013 as sales fell 8.5% to US$6.55 billion over the same time period. During this time China’s largest winemaker, Changyu saw a 23.4% decrease on sales and a 38.4% decline in net profits from 2012-2013. The decline follow quickly on the years 2011-2012 where Chinese wine production increased 16.9% and sales grew 14.4% and CADA’s Li Mei believes that the government’s campaign will not damped the country’s wine industry long-term.
To receive relevant news stories with summaries provided by GAI Research & Insight, subscribe to Global AgDevelopments, our free weekly enhanced eNews service