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Canadian Ice-Wine in China

Canadian Ice-Wine in China

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Cover Letter

From (student’s name)

Address

December 16, 2017.

To (tutor’s name)

Address

Institution

Re: Canadian ice-wine in China

The report brings to your attention the escalating of demand for the Canadian ice-wine by the Chinese market. The analysis shows how Canada emerges as a leading producer of the non-alcoholic drink and how China has a high demand for the commodity. The report identifies why the Chinese consider the wine to be suitable, and also looks into how the Canadian manufacturers strive to venture into the aspiring market. The analysis shows that even though the market in China seems open and easily exploitable due to lack of stiff competition in the region, the sellers have to consider their strategies and come up with ways of appealing to the buyers. The paper seeks to show that sellers who wish to introduce their products into foreign markets need to be considerate of their approaches to fit well into the new markets that adhere to different culture and lifestyle. Performing a study with the objective of finding how the product might perform in the new market as well as knowing the features that may inhibit proper selling further provides details that help to understand the topic with clarity.

Yours Sincerely,

(Student’s name)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table of Contents

Executive summary…………………………………………………….….4

Introduction………………………………………………………….…….5

Background………………………………………………………………..5

Business opportunity………………………………………………………5

Research objectives……………………………………………………….6

References…………………………………………………………………8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Executive Summary

Canada takes advantage of the ideal climatic changes to venture into the production of ice-wine which appears as a unique product. The world leader in the production of ice-wine uses the best grapes to come up with high-quality products that are likely to attract buyers. The manufacturers also use advanced production methods to come up with wines that would appeal to buyers. Fortunately, the producers are identifying foreign markets other than the local demand which keeps the spirit of production going. China emerges as a suitable marketing place for the product with the country being the largest consumer of the Canadian product. The manufacturers in Canada strive to attract the Chinese buyers by developing quality goods and by offering education on how to identify genuine products. The opportunity in China appears to be growing which is a good indication for the producers. The Canadian sellers, however, must recognize and deal with some of the challenges that may make it difficult to enter the market and to perform well.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Canadian Ice-Wine in China

Introduction

Ice-wine is a type of wine that is made from frozen grapes that are still on the tree. The water in the grapes is the only thing that freezes, but the sugars and other solid materials remain intact giving manufacturers the chance to press the more concentrated fruits. The process results in the production of a more saturated and sweet wine which is referred to as ice-wine. The freezing process when producing ice-wine takes place before the fermentation process. Unlike other dessert wines such as Tokaji and Sauternes that can be created from grapes that have defects, the fruits used to manufacture ice-wine should be free of any blemish. The harvesters only pick healthy grapes that are left to mature to the right time of harvest.  Canada emerges to be a suitable seller for the wine because of the availability of numerous wineries in the country, particularly in the Niagara region that is famed for producing ice-wine of high quality (Aspler, 2013). The producers hope that China will continue to be a suitable hub for the selling practices while the Chinese look unto the Canadians to proceed with the supply of products that would satisfy the consumers.

Background

Canada is unique for its production of ice-wine which makes it the leading producer of the product globally. The producers in the region attribute the booming area of business to the favorable climate that alternates between the cold winters and the hot summers. The Canadian producers became aware of the idea back in 1794 when a wine producer decided to press frozen grapes with the aim of avoiding loses only to realize that the product is appealing to the consumers (Aspler, 2013). The increased awareness of the innovation motivated other farmers in regions such as Quebec, British Columbia, and Ontario to harvest frozen grapes who sell them to wineries before they defrost. The Vintners Quality Alliance now takes charge of regulating the production of ice-wine while assuring that the product meets the required standards (Aspler, 2013). Even though companies such as Hillebrand and Pelee Island Winery entered into the area of production much earlier, manufacturers such as Inniskillin Wines and Pillitteri Estates Winery are making grand entries into the line of work and are striving to introduce the drink into foreign markets. The escalated numbers of producers in the region now focus on ways of appealing to buyers in other nations and seek to establish a long-lasting relationship with the prospective buyers. Nowadays it is common to find ice-wine made from tropical fruits such as pineapple and papaya which give consumers a broader option to choose.

Business Opportunity

Ice-wine which emerges to be a unique form of production appears to be appealing to some of the major buyers in Canada and beyond. Compared to all the nations that import the Canadian ice-wine, China emerges as the leading consumer thus providing a promising market for the product. Currently, the Asian-Pacific country acquires up to 72,422 liters of ice-wine every year which amounts to $8.6 million, representing fifty five percent of all the Canadian exports (Acheson & Canada, 2016). The growing market in China makes the producers optimistic that their activities will satisfy the escalating demand for the products (Acheson & Canada, 2016). Hopefully, the increasing demand for the product in the Asian nation will provide a long-lasting business opportunity that would have beneficial economic gains.

The business opportunity in China appears to be attracting prominent officials to China who seek to find out the treasure beneath the unique type of wine. Ed Fast who acts as the Minister of International Trade and Minister for the Asia-Pacific Gateway, for example, visited Beijing in 2013 where he held a meeting with three distributors of the product in China (Global Affairs Canada, 2016). The Minister who was on a two-week visit to Asia noted that the inhabitants of the region are highly in need of the Canadian-product and that there is need to develop proper ways of fostering the connection between the dealers.

The Canadian producers have realized the high demand for the product in China and are coming up with measures that will further attract the consumers. The Canadian ice-wine sector, for example, has now embarked on educating the purchasers on the importance of recognizing the authentic logo when buying the product to avoid being victims of counterfeit items. The producers sensitize the consumers to look out for the Quality Alliance (VQA) label that identifies good wine from unauthorized production (Global Affairs Canada, 2016). Other than educating the largest consumers about ways of detecting genuine wines, the producers are striving to stress on the quality by adopting machines and production methodologies that are up to standard.

Several Canadian investors have already entered China and are making huge profits from their operations, an indication that the Asian-Pacific nation is an excellent hub for the sales. The Pillitteri Estates Winery, for example, entered the Chinese market in 1999 and as one of the best producers of ice-wine in the globe it considers the Chinese market as a promising area for sales (Pillitteri Estates Winery, 2017). The company realizes that even after exporting to the region, there is much room for growth. The success of the Canadian firm in China is a good indication that other companies that wish to invest in the area will record positive outcome, particularly concerning profit-making. The company, for example, has put up multiple channels of sales which include a significant distribution channel that caters to wholesalers and retailers (Pillitteri Estates Winery, 2017). The company has also put up a customization initiative for new distributors who seek to establish their brand of the product and has initiated a shipping program that gives Chinese buyers who visit Niagara to get the products shipped to their destination. The Paradise Ranch Ice Wines that moved into the Chinese market in 2001 is also another Canadian producer whose success indicates possibilities of performing well in venturing into the fast developing market.

The Canadian producers who wish to enter China ought to understand that even though the market may appear attractive, success relies on determination and commitment to gain an understanding of the new environment. Allison Boulton who is a renowned global trade advisor who centers on the exportation of agri-food products to the Asian market mentions that exporting into foreign markets requires a lot of time and entails many things (Leigh, 2016). The advisor mentions that moving into China comes with adopting a new culture and language which might pose significant challenges to international companies. Even though the competition from local manufacturers might not be a significant issue, the change in environment and culture come with major organizational transformations that require additional cost and workforce.

Research Objectives

The investigation seeks to investigate several issues about the market opportunities available for the sale of ice-wine. The study shall look into the factors that make the Canadian product suitable for the Chinese market. The analysis, in this case, shall consider the factors that the producers include in their products to make it appealing to the target destination, and will also consider the features in China that increases the probability of the product doing well. The study will also look into the strengths and the weak points of the Chinese market and how the factors may influence the selling of the product into the flourishing market. The analysis shall focus on the high points evident from different angles and will also consider how the weak points from different areas are likely to influence the marketing and selling of the wine in China. The study will also look into the possible threats and risks that may affect the venture as well also compare how the adversities contrast with the positive aspects.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References

Acheson, J., & Canada. (2016). Sector trend analysis: The wine market in China. Ottawa:

Agriculture and Agri-Food Canada.

Aspler, T. (2013). Canadian wineries. Firefly Books.

Global Affairs Canada. (2016). A Canadian success story: Ice-wine exports to China. Retrieved

from

http://www.international.gc.ca/media_commerce/release_photo_distribution/2013/04/16b

.aspx?lang=eng

Leigh, T. (2016). The challenges of selling wine to China. Retrieved from

http://www.orchardandvine.net/articles/the-challenge-of-selling-wine-to-china/

Pillitteri Estates Winery. (2017). Pillitteri China office. Retrieved from

China

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