Wineries optimistic on China, Hong Kong markets after delegation visits

The region has welcomed a big Chinese wine delegation to the Capes as part of State Government measures to help Margaret River producers re-enter what was once a key market.

The delegates toured the Margaret River and Great Southern wine regions last week under a program announced in April, which saw local vignerons open their cellars to Chinese buyers for the first time since the sector was thrown into turmoil early in the pandemic.

The region’s exports to China were derailed with steep duties on wine following a political stoush during the early days of COVID-19.

Margaret River producers have since poured their energy into other markets to make up for the loss with the Chinese market representing 26 per cent of the local exports in 2019.

The tough days of the pandemic were largely forgotten during last week’s trade mission which saw the delegates visit wineries and key attractions to highlight the region’s tourism and trade strengths.

Visits included breakfast in Margaret River’s town centre as well as Gnarabup’s White Elephant, an electric quad bike tour of the Boranup Forest, beach walks and a chardonnay masterclass at McHenry Hohnen’s Forest Grove holdings.

It also saw a visit to Lenton Brae, as well as dinners at Leeuwin Estate and Howard Park Wines.

Delegates included buyers for exclusive wine brands including Cathay Pacific Airways, Shanghai’s Little Red Book and Beijing’s Wine Gallery.

China-based buyer Ronald Khoo told the Times the visit was eye-opening and refreshing.

“It was fascinating to learn about Margaret River’s varied biodiversity hotspots with the region’s terracotta soils being suitable for producing fine wines,” he said.

“The wines tasted were world class and have the capability to age well. It was definitely a real find for me.”

WA Wines to the World program manager Liz Mencel said the 11 key buyers represented important interests in China and Hong Kong and the visit had sparked strong interest from local producers keen to re-engage with those markets.

“The results were very positive, with several importers committing to bring in new brands and planning under way to develop ongoing promotions with the e-commerce players and Cathay Pacific,” she told the Times.

“We expect positive and material commercial benefits as a direct result of this visit.”

MRWA chief executive Amanda Whiteland said the three-day visit to the Margaret River region provided an “immersive experience”.

“It was an invaluable opportunity for them to deepen their appreciation of the region’s distinctiveness and what sets Margaret River apart on the global wine stage,” Ms Whiteland said.

“Equally, we benefited greatly from their insights into the evolving Chinese market, which has undergone significant shifts over the past five years.

“Notably, Margaret River chardonnay emerged as the standout favourite during the visit, further dispelling the common misconception that China is primarily a red wine market.”

Regional Development Minister Don Punch said the program was devised to help producers face the “challenging prospect” of getting back into the market.