Sales of counterfeit Canadian icewine have been growing in China, the Canadian Embassy in Beijing said recently, warning that a 375 milliliter bottle of icewine sold for less than 500 yuan ($80.60) is probably counterfeit. The situation is much like several years ago when 70 percent of the bottles of Chateau Lafite sold in China were phony. The Canadian government wants to warn more Chinese consumers to be wary when purchasing icewine and protect the interests of Chinese icewine importers and Canadian wineries.

Photo: CFP

Li Yuan, the Chinese Canadian CEO of G.Mantra Trading Co, an icewine trading company based on Central China's Henan Province, has been importing Canadian icewine since 2009.

"It is estimated that 80 percent of the icewine sold in China is counterfeit," Li told the Global Times Thursday.

Li's comments indicate the icewine market needs to be regulated.

As the largest icewine producer in the world, Canada is eager to educate more consumers how to distinguish the genuine icewine.

A 375 milliliter bottle of Canadian icewine sold for less than 500 yuan in China is probably counterfeit, the Canadian Embassy in Beijing said during an event in Chengdu, Southwest China's Sichuan Province at the end of March.

Nonetheless, many consumers in China have been misled. A bottle of counterfeit Canadian icewine sells for a few dozen yuan to 200 yuan in the current market.

"As is the case with so many quality and marquee products, protecting the authenticity of icewine is an important issue," the Canadian Embassy in Beijing said in a statement e-mailed to the Global Times Thursday.

"The presence of these inauthentic products not only costs vintners financially but also deceives consumers who are seeking an authentic icewine experience," the embassy said.

Shifting to icewine

In recent years, many bottles of counterfeit wine have been made on boats moored in international waters off the coast of the Chinese mainland, where low-end wines are bottled with high-end labels, media reports said.

"Chinese consumers are becoming more knowledgeable and cautious in choosing red wine. There's limited market for counterfeit red wine makers," Li said. "So, many counterfeit wine makers have shifted to icewine because many Chinese consumers lack the knowledge to distinguish genuine icewine from the fake stuff."

In order to promote Canadian icewine in China, many icewine importers like Li need to sell their products through every available channel, such as supermarkets, to educate consumers about genuine icewine.

"At the supermarket, however, consumers tend to go for the product with the lowest price," Li said.

It costs counterfeit wine makers 20 yuan to 50 yuan to produce a bottle of phony icewine, which can then be sold for hundreds yuan, Li said.

Importers like Li spend money to promote the genuine product, but consumers still choose cheaper knock-off at the supermarket.

Li said it's discouraging to see counterfeit icewine sold in China.

"It's also unfair for consumers. They buy what they think is authentic icewine, and then feel disappointed when it turns out to be fake," Li said.

A low price does not always mean a bottle isn't genuine. It could be a sweet wine or late harvest wine or in some cases a deeply discounted bottle, the Canadian Embassy said.

"If the price seems very low, it may not be authentic Canadian icewine … icewine is a premium product," the embassy said.

Why the high price?

There are strict regulations to ensure the authenticity of genuine icewine. Grapes have to be kept on the vines until harvest. They must be harvested at temperatures below -8 C, and have to be pressed and harvested in a continuous process while they remain naturally frozen.

Due to the strict rules for making icewine, the production is limited.

"A bottle of Canadian icewine priced at 500 yuan in China is sold around 80 Canadian dollars ($66.92) in Canada," said Zhang Rui, a marketing specialist in Shanghai-based Yisen International Trading Ltd, whose primary business is importing wine.

Compared to red and white wines, Canadian icewine is more expensive on average due to its limited production capacity and strict manufacturing rules, said Zhang, who had lived in Canada for eight years and now lives in Shanghai.

Market potential

In 2014, Chinese consumed about 1.94 billion bottles of wine, roughly 1.43 bottles per person, according to a report released by the Wine Academy at Northwest Agriculture and Forestry University in late March. And the market still has great growth potential.

"But only a small group of people know about icewine. It would be a good idea if governmental departments such as the Canadian Embassy to introduce more ordinary people to icewine. People will trust them," said Liang Weiwei, a small-scale wine importer based in Beijing.

Canada exported 54.4 million Canadian dollars worth of wine around the world in 2013, with icewine accounting for about one-third of the total, according to the Canadian Embassy.

Currently, China is the largest market for Canadian icewine. It imported 6.6 million Canadian dollars worth of icewine in 2014, 8.06 million Canadian dollars worth in 2013, 8.57 million Canadian dollars worth in 2012 and 5.06 million Canadian dollars worth in 2011.

Experts said sales fell in 2014 in part because of the slowing economy in China.

Regulations and guarantees

Most Chinese regulations for wine come from the Food Safety Law, which took effect in 2009. Currently, the standards for verifying genuine icewine in China are still vague, Li noted.

"We indeed hope the government to adopt more measures to regulate the market and crack down on counterfeits," Li said.

"It's better to provide consumers with better understanding of the qualities of icewine, including the background of icewine production as well as how to recognize authentic icewine," Liang said. "I always invite my consumers to taste wine and share my knowledge about wine with them."

For instance, all bottles of Canadian icewine bear the Vintner's Quality Alliance label, which consumers should check before they buy.

The industry is also looking at ways to address the counterfeit problem, such as publishing a list of Canadian wineries on social media.

"One Canadian company is labeling each bottle of icewine with a quick response code between the cork and plastic cover. Consumers can then scan the code with their mobile phones to access the unique product information," the embassy said.
Newspaper headline: Wine undermined