While Barossa reigns as Australia’s best-known wine region in China, a recent tour took a delegation of Chinese wine buyers off the beaten path to uncover Western Australia’s hidden treasures. From September 29 to October 6, 2024, a delegation of Chinese wine buyers embarked on a discovery tour of Western Australia including the famed Margaret River and the lesser-known Great Southern Wine Region, home to Albany, Denmark, Frankland River, Mount Barker, and Porongurup.
This marked the first visit by Chinese buyers since the removal of high tariffs on Australian wine in late March, generating widespread interest from both sides of the pacific. Don Punch, Western Australia’s Minister for Regional Development, personally welcomed the delegation, underscoring the significance of the visit. But how did these emerging wine regions fare in capturing the buyers’ interest?
Efficient Tour with Valuable Insights
Speaking to Vino Joy News, which recommended the candidates for the trip, the buyers expressed high satisfaction with the overall experience.
Sylvia Li, Deputy General Manager of Direct Wine Limited, which operates in Hong Kong, mainland China, and Taiwan, remarked, “The entire itinerary was meticulously organized. From the Great Southern region to Margaret River, every destination we visited was personally hosted by the head of the regional wine association.”
These high-level receptions proved especially valuable for the buyers, facilitating direct conversations with decision-makers and making the tour efficient for serious commercial discussions. Wen Wei, founder of Au-Ton Wine Trading PTY LTD, which specializes in Australian wines, shared with Vino Joy News: “At each winery, we were greeted by the owners and winemakers, which enabled us to quickly gather key details, such as product pricing and export availability to China. We could directly ask questions to the decision-makers, and all the materials provided were translated into Chinese, which was a nice touch.”
The culinary experiences integrated into the tour further strengthened buyers’ appreciation for Western Australian wines. Powell, the head sommelier at Guangzhou’s Song’s Group, which operates a Michelin-starred restaurant along with cafes and bars, described the visit as an unforgettable tasting journey: “We toured over a dozen wineries, sampling hundreds of unique wines, alongside fresh seafood and traditional Australian barbecue. Coupled with the stunning natural scenery, it gave me an in-depth and comprehensive understanding of Western Australia’s wine culture.”
Ronald Khoo, a wine buyer for a major airline, expressed his enthusiasm for Great Southern’s wine offerings, particularly noting the diversity of terroirs. “I was pleasantly surprised by the diversity of terroir, the size of the appellation and the high quality of the wines produced. It’s refreshing to see that most producers there are focused on getting the best fruit and ensuring that site specific flavours are represented in the bottle hence oak usage is very carefully planned with many opting for larger size barrels and less time in new oak.”
Beyond the immediate impressions, the tour left buyers with a sense of Western Australia’s long-term potential in the Chinese market. Xu Xiaotong, General Manager of Dijon Wine Cellar, a premium wine retailer in Northeast China, saw great growth potential in Western Australia: “Western Australia’s production is small, focusing on boutique wineries. They are shifting towards high-end winemaking techniques and moving away from Australia’s traditional ‘fruit bomb’ style, aiming to develop more refined expressions of Shiraz and Cabernet Sauvignon,” he said, recognizing the shift toward a more nuanced style that appeals to China’s emerging market for complex, refined wines.
However, Xu also saw hurdles in its entry into China: “The market environment is challenging, with high inventory levels, and Western Australian wines will face intense competition.”
Despite these challenges, Xu expressed strong purchasing interest, stating that he plans to return to Western Australia for further exploration of potential partners. “Western Australian wines are well-suited for long-term business, and their limited production helps avoid putting too much pressure on sales,” he said.
Khoo also noted the food friendly wine styles also meant the wines from Western Australia including Margaret River and Great Southern will earn a place in Hong Kong and mainland China. “In my opinion, there is good potential for growth of these wines as they are stylistically very appealing and food friendly. The move to a more elegant oak treatment and a focus on single site terroir is also what wine lovers in these markets would enjoy. It would be great if consumers would be able to experience comparative tastings like what I have experienced as this is the best way to communicate the beauty of this region’s wines.”
Chardonnay in the Spotlight
With demand for white wine growing in China, Western Australia’s Chardonnay, which already has a foothold in the market, drew significant interest from the buyers. Powell commented, “I look for wines with a distinct regional identity, something that can’t easily be replicated elsewhere,” says Powell, “Margaret River’s Chardonnay fits that description. Most of the wineries here use the Gingin clone, which is highly aromatic with refreshing acidity. The FOB price range of AUD 30-50 is also well within my expectations.”
Sylvia Li echoed these sentiments: “Western Australia’s Chardonnay and Riesling are both impressive, especially the Riesling from the Great Southern region, which was a delightful surprise,” adding that her company is particularly considering wines with unique label designs within the AUD 15 price range.
In addition to their high quality, Wen Wei highlighted the strong value proposition of Western Australian white wines that trump Bourgogne. “Some of the Chardonnays we tasted rival the character of premier and grand cru Burgundies. I specifically checked their FOB prices, and they offer excellent value. With the removal of tariffs on Australian wine entering China, Western Australian wines are even more competitive now.”
Wen also noted that Western Australian white wines already have a market presence in China: “Before this trip, we were already selling a Western Australian white wine, and customer feedback has been very positive. Through this visit, I’ve connected with several wineries via WeChat and email, and I’m hopeful we’ll secure some exciting new products to expand our portfolio.”
Learn more about China’s top wine buyers in our China’s 50 Top Wine Importers Report here.
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