David Chow – CEO of Altavis: “In China, a medal is very effective”

David is Parisian. French-born Chinese, his involvement in wine came almost by accident. After studying finance and attending HEC and Sciences-Po, his impressive CV brought him into contact with French and international corporations such as Procter, L’Oréal and Pernod-Ricard, which took him to China. His work experience includes running Pernod-Ricard’s Chinese subsidiary for 21 years and launching brands such as Dragon Seal and Jacob’s Creek in the Chinese market.

Altavis Fine Wines specialises in the restaurant and hotel trade and in specialist wine stores. It also boasts a clutch of top-end private customers. It supplies an impressive portfolio of French and international brands which include Bordeaux great classified growths, Burgundy houses and a comprehensive range of wines from around the world (Italy, Spain, Germany, the United States and South America).

CMB – China is undeniably fashionable, everybody is talking about it – dreaming about it even. Your dual culture and experience make you a privileged observer. What is your opinion?

“China is gradually becoming more educated about wine. After the 80s, which were a wilderness in terms of wine, China is now fascinated by France. French wines were pioneers in China and benefited from the image and strong presence of Cognac. Made in France is a real selling point, particularly the Bordeaux provenance which for many Chinese people is synonymous with France. It benefits from the prestige of the great growths which has a positive impact on all wines using the provenance.

The Chinese market still has its idiosyncrasies. There is strong demand for premium wines, the mainstream categories are struggling, whilst sales of entry-level wines are soaring at rock-bottom prices. In this respect, the market lacks maturity. Growth is fuelled by the emergence of a ‘nouveau riche’ type middle class which buys primarily on label."

Because of the Icelandic volcano, you were unable to attend last year’s Concours Mondial. This year, though, you will be tasting with us in Luxembourg. What advice would you give a winery in terms of road to market?

“China shows huge diversity. There are pockets of extreme sophistication in the large cities like Beijing, Shanghai and Canton. These are the most westernised cities where wine is hugely popular though there is still a patent lack of knowledge.

A medal here is very, very effective. The market is fragmented. A wine sells on its label. The consumer needs a purchasing cue and a medal has an undeniable multiplier effect. It guarantees the wine will be easier to sell. The consumer needs something to cling to and in this respect, besides provenance, a medal is very reassuring.

One final factor which is important for accessing the Chinese market is taste. The Chinese are not necessarily fond of the international blockbusters. Although the Anglo-Saxons like oaked tones and lively, tannic wines, the Chinese find these characteristics off-putting. Yes they want powerful wines, but they also want roundness, no tannins and wouldn’t say no to residual sugar!"

Is China a fad or a long-term trend?

“I am convinced that the trend is irreversible and long-lasting. Make no mistake, the new Chinese middle class also wants to forget about their everyday routine and wine is perceived here as a sophisticated, western ritual for cultured people, allowing them to get together and have a good time. Aspiring to individualism and hedonism are deep-rooted trends in Chinese sociology and work in wine’s favour here”.

Interview by Frédéric Galtier – This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

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