The Wall Street Journal reports that China’s tighter official stance on alcohol, including restrictions on drinking at official events, is becoming another serious drag on the global wine trade. The paper says imported wine demand has weakened sharply, Treasury Wine Estates is sitting on about $150 million of unsold stock in Chinese warehouses, and the knock-on effects are feeding oversupply in places such as Bordeaux and Australia, which makes this less a single market story than a broader warning for producers already coping with weak demand.
China
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Mercian Recalls 620,000 Bottles of Chilean Rosé in Japan
Nippon.com, citing Jiji Press, reports that Mercian has recalled about 620,000 bottles of three Chilean rosé wines after finding they contain copper citrate, an additive not approved in Japan, with the company saying no health problems have been reported so far and that it will reimburse customers with Quo Card gift certificates, the notice also names the 280ml Frontera sparkling rosé among the affected products.
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China Warns French Wine Could Be Targeted in EU Tariff Dispute
Reuters reports that China has signalled French wine could face retaliation if France pushes the EU towards tougher tariff measures against Chinese imports, a warning that underlines how politically exposed premium wine and spirits exports can be when trade rows escalate, and comes as investors watch for knock on effects across French drinks groups and their Asian sales.