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Monday, December 11, 2006

Outsourcing Wine to China?

Lowering the cost of production by outsourcing jobs to lower wage economies is nothing new in America and other parts of the developed world. According to the China Wines Information Website (Wines-info.com), the next industry that might see an impact is wine.

According to the website more than 10 foreign and domestic wineries have been looking at the region around Penglai City as a potential site for vineyard investment. Among the visitors have been Italian and French winemakers.

Penglai is a coastal region located at the same latitude as several prominent grape growing areas. The soil is said to be excellent for growing Cabernet Sauvignon, Cabernet Gernischt, Carignan, Riesling and Chardonnay grapes.

A number of foreign drinks industry companies, particularly brewers, have made significant investments in China in recent years. The investments in China are likely to initially go towards meeting the growing demand of the domestic market, but clearly for higher ticket wines the target markets will be outside of Asia.

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