A wine merchant in Hainan, China’s southernmost province, has been fined more than 100 times the retail price for selling expired Moscato from Accolade Wines, Australia’s second-largest wine producer, amid ongoing struggles to deplete aging inventory.
The case underscores the lingering impact of punitive tariffs on Australian wine, which have led to a significant buildup of old vintages in the Chinese market.
According to Hinews (南海网), a local news platform in Hainan, the expired wine was a sweet, low-alcohol Moscato from Banrock Station, produced on May 9, 2019, with a five-year shelf life.
It is important to note that under Chinese law, alcoholic beverages with an alcohol content of 10% or higher are not required to display expiration dates. However, the Moscato in this case, with less than 10% alcohol, is subject to expiration date regulations.
Local reports indicate that four bottles of expired Banrock Station Moscato were sold in July for CNY 108 (US$ 15.39) each. Law enforcement confiscated one remaining bottle and the illegal proceeds of CNY 432 (US$ 61.55). The merchant was fined CNY 50,000 (US$ 7,124.13)—a penalty far exceeding the revenue from the sale.
China’s Food Safety Law stipulates that selling expired food or food additives valued between CNY 5,000 and 10,000 (US$ 712 to 1,425) can result in fines ranging from CNY 50,000 to 100,000 (US$ 7,124 to 14,248). For sales exceeding CNY 10,000, fines can be as high as 10 to 20 times the value of the goods, and serious violations may lead to license revocation.
The Moscato involved in this case is produced by Accolade Wines, which has seen extensive stockpiles of old vintages in China. Vino Joy News observed that some of these wines, such as an old vintage Accolade dry red, were sold at half their original price in small supermarkets, while 2018 Banrock Station reds are still listed on 1919.cn, China’s largest online drinks retailer.
China’s three-year punitive tariffs on Australian wine, lifted only this March, played a key role in the buildup of unsold inventory. Wang Wei, a Banrock Station wine seller in Fujian province, said he stopped stocking the brand after the tariffs were imposed, as they significantly increased import costs and discouraged further purchases.
This situation is not unique to Banrock Station. A sluggish economy and the lasting effects of tariffs have left China with vast inventories of unsold wines. Industry insiders estimate that more than 100 containers of Australian wine remain in bonded warehouses. Yuan Jianmei, founder of Huanbo Wine Culture, a distributor in southwestern China, noted, “Wine inventory is easily accessible now. Our suppliers have plenty of stock, so we don’t need to import ourselves.”
Pan Liu, Marketing Director and Chief Taster at Wintek (Shenzhen) Import & Export Ltd., echoed these sentiments, confirming that his company has ample wine supplies. “We haven’t imported a single container this year, and given the current market conditions, we won’t need to import any next year to meet demand,” he said.
As a result, wine merchants in China are actively seeking ways to offload their old inventory. One of the platforms capitalizing on the large oversupply of wines is Vinehoo.com, as we have previously reported. Its flash sale model has offered a lifeline for cash-strapped merchants while simultaneously posing challenges to wineries’ financial health and sustainable growth.
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