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JWE-Articles
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Journal of Wine Economics Volume 4 | 2009 | No. 1
»
Wine Markets in China: Assessing the Potential with Supermarket Survey Data

Wine Markets in China: Assessing the Potential with Supermarket Survey Data

Hyunok Lee, Jikun Huang, Scott Rozelle & Daniel Sumner
JEL Clasification: N55, Q13, Q19
Pages: 94-113
Abstract

The emergence of grape wine as a mainstream alcoholic beverage in China is relatively new. However, rapidly increasing wine consumption in China provides a significant trade potential for the United States and other wine exporting countries. This paper investigates the Chinese wine market using retailer data with a focus on imported wines. Supermarkets are identified as major retail outlets for foreign wines, and this paper uses data from a recent supermarket wine survey in China. Our data indicate that about half of our sample stock foreign wines. On average, 21 percent of total wine shelf space is allocated to foreign wines and larger stores are associated with larger shares of shelf space for foreign wines. Among foreign wines, French wine dominates. Of 31 supermarkets that sell foreign wines, 26 stores carry French wine, and in all but two of these stores more than half of the foreign wine shelf space is devoted to French wine. Australia, Chile, Italy and the United States follow in terms of number of stores carrying wines. Supermarkets in our sample allocate most of their shelf space to red wine for both domestic (93%) and foreign (82%) wines. The average median price for foreign wines (94 yuans per bottle) was more than double the equivalent price for domestic wines (42 yuans).

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