Category: Food

Retail News Asia is committed to providing both local and global retailers with the latest Food and Food & Beverage news throughout the Asian market. This on a daily base.

  • V2Food launches Taste-a-tarian campaign with 1000 free burgers

    V2Food launches Taste-a-tarian campaign with 1000 free burgers

    Hero has released its first major work for plant-based meat company V2Food since winning the creative and strategy back in April this year, which is also the brand’s first campaign.

    The ‘Taste-a-tarian’ campaign presents V2Food as the option that satisfies every dietary requirement, as well as launches V2Food’s new brand platform ‘We agree to V2’.

    The just over a minute spot shows a family sitting down for dinner, with each member having a specific diet that needs to be catered for. At the end of the spot, it is revealed that V2Food will satisfy everyone as everyone is a “Taste-a-tarian”.

    There is also a 30-second cut of the video.

    V2Food’s chief growth officer Andrew May said: “As Australians, we cherish meal-times and social occasions and it’s our goal at v2 to deliver great tasting food that satisfies every palate. Our ‘Taste-a-tarian’ campaign shows that v2’s range of plant-based protein products deliver that same meaty taste and makes meals easy, no matter your dietary preference. We can’t think of a better campaign launch to kick off our partnership with HERO, who delivered a fully integrated campaign across strategy, creative, media planning and media implementation.”

    Hero’s managing director, digital Adam Beaupeurt added: “We’re thrilled to launch our first major campaign with V2food. By recognizing that there is a need for a version 2 of the food system, v2food plays a pivotal role in changing the way we all think about meat consumption and food sustainably. This is another brilliant example of media and creative integration delivered by Hero’s Borderless Creativity process – paramount to ensuring the brand entertains and connects with the 50% of Aussies who are looking at reducing their meat intake.”

    The campaign premiered during Ten’s Celebrity Masterchef finale last night.

    The campaign, as well as TV, is on out-of-home, retail proximity, BVOD, social, digital, and electric car charging station Jost.

  • Japanese beer brand Yebisu launches in Australia

    Japanese beer brand Yebisu launches in Australia

    Premium Japanese beer label Yebisu Premium Beer has been launched in Australia, through Coopers Brewery.

    Coopers will be the exclusive distributor of Yebisu under its partnership with Sapporo. The beer is now available in packs of four 350ml cans from First Choice Liquor stores and selected Liquorland and Vintage Cellars outlets nationally. It will join the shelves of independent retailers and on-premise locations from early next month.

    Founded in Tokyo in 1890, Yebisu (which is pronounced ‘Ebis’ in English), has drawn the praise of beer drinkers both domestically and internationally, with awards including the gold prize at the Paris Expo in 1900. It is brewed exclusively in Japan.

    Yebisu brand manager with Coopers Brewery, Chris Levey, said Japanese beer is proving popular with Australian consumers.

    Sapporo Premium Beer achieved double-digit volume growth in the year to August.

    “Yebisu is a symbol of Japan’s unwavering commitment to quality and craft, meeting the intersection of Australian drinkers’ desire for exploration and discovery and their attraction to true originals and authenticity,” he said.

    “We expect the introduction of Yebisu will drive further interest in the Japanese beer segment, appealing to a broad range of discerning beer drinkers seeking discovery, quality and authenticity, and a richer, more rewarding flavor experience.”

  • French wine lovers wash away climate and Covid-19 worries with new Beaujolais

    French wine lovers wash away climate and Covid-19 worries with new Beaujolais

    French wine lovers washed away the misery of months of coronavirus social distancing and a wet summer that weighed on wine output, welcoming the new Beaujolais in bars across the country.

    Every autumn on the third Thursday of November, winegrowers from the Beaujolais region market the first bottles of the year’s harvest in the annual “Le Beaujolais Nouveau est arrivé” campaign that started in the 1960s.

    “If there is one day we can call a day of renaissance, after all the crises we have lived through, it is today,” said Le Mesturet owner Alain Fontaine as he served free glasses of Beaujolais on the sidewalk in front of his Paris restaurant.

    Parisians loved the free wine, even if Beaujolais – a light red wine that is just a few weeks or months old – struggles to overcome an image of being cheap plonk.

    “It’s a nice little wine. It’s not the biggest grand cru, obviously, but it is pleasant and not very expensive,” said Felix, an employee at the French national library.

    Wine growers were less upbeat as France is set to produce its lowest wine output since records began, after vineyards were hit by spring frost, hail and disease.

    The farm ministry has forecast total production a quarter below the average of the past five years with the Burgundy-Beaujolais region’s output among the worst hit, seen down by nearly half.

    “The year has been quite hard weather-wise and the grapes have required more manual work than usual, only for us to end up losing around 30% of the harvest. That’s too much work for such meagre results,” said Beaujolais Nouveau winemaker Julien Revillon in Villie-Morgon, north of Lyon.

    Revillon said that even though output has been disappointing, people are more than ever attached to the Beaujolais tradition, seeing it as an opportunity to get together with friends and colleagues after months of isolation.

    “In difficult periods, people hang onto traditions. Even during a war, we want to celebrate Christmas, even during a pandemic, we want to celebrate the Beaujolais Nouveau,” he said.

    Ninety-year-old Parisian Marie-Francoise, who initially found the new Beaujolais too tart, changed her mind after a second tasting.

    “It’s a good wine, a very good wine. There is no better Beaujolais!” she said.

  • Unilever sells 34 tea brands

    Unilever sells 34 tea brands

    Unilever has sold its global tea business – including T2 – to private equity company CVC Capital Partners, for €4.5 billion ($A7 billion)

    The business, called Ekaterra, owns 34 brands including Lipton, PG tips, Pukka, T2 and Tazo and turned over €2 billion ($A3.1 billion) last year. The company has 11 production factories on four continents and tea estates in three countries.

    “The evolution of our portfolio into higher-growth spaces is an important part of our growth strategy for Unilever,” said CEO Alan Jope of the reason for the divestment. “Our decision to sell Ekaterra demonstrates further progress in delivering against our plans.

    “We are proud of the place that our tea business has in our company’s history. We look forward to seeing Ekaterra, with its strong brands and global footprint, prosper under CVC’s ownership.”

    The sale is scheduled to be settled during the second half of next year and is subject to receipt of regulatory approvals. The deal excludes Unilever’s tea business in India, Nepal, and Indonesia, as well as its joint venture with Pepsi Lipton covering ready-to-drink teas, and any associated distribution business.

    Pev Hooper, a managing partner at CVC Capital Partners described Ekaterra as “a great business, built on strong foundations of leading brands and a purpose-driven approach to its products, people and communities”.

    “Ekaterra is well-positioned in an attractive market to accelerate its future growth, and to lead the category’s sustainable development. We look forward to working with the team to realise Ekaterra’s full potential,” said Hooper.

    Inside FMCG understands rival private-equity firms Advent and Carlyle unsuccessfully bid for the business.

  • Treasury Wines shuffles US wines with acquisition of Frank Family Vineyards

    Treasury Wines shuffles US wines with acquisition of Frank Family Vineyards

    Australian vintner, Treasury Wine Estates Ltd. said it will buy U.S. luxury winemaker Frank Family Vineyards for $315 million, saying the deal offered a rare opportunity to bolster its high-end wine portfolio.

    Treasury said Napa Valley, California-based Frank Family Vineyards is highly complementary to its Americas business and fills a key portfolio gap for luxury chardonnay. Treasury said it is well placed to grow the business given its leading luxury sales credentials, national distribution network and California asset base.

    “This is a compelling strategic and financial investment, comfortably meeting our investment criteria and one we expect will deliver attractive growth and financial returns for TWE’s shareholders over the long-term,” Treasury Chief Executive Tim Ford said.

    Analysts have expected Treasury to make acquisitions as winemakers focus more on the lucrative higher-end parts of the market. Treasury has been selling off some of its downmarket U.S. brands and assets and it said Thursday that process was largely complete, with total net cash proceeds of about 300 million Australian dollars (US$218 million).

    It said it is using those proceeds to help pay for Frank Family Vineyards. Treasury added that Frank Family Vineyards has a long-term track record of delivering strong revenue and earnings growth, as well as earnings margins in the range of 35%-40%.

    The acquisition is expected to be completed in December.

  • Lyre’s latest fundraising round values company at $500 million

    Lyre’s latest fundraising round values company at $500 million

    Fast-growing non-alcoholic spirits brand Lyre’s, has raised $37 million in a round that values the business at A$500 million less than three years after it launched. The funding round was led by a new investor, D Squared Capital, alongside existing investor, Morgan Creek Capital Management, which has also backed Alibaba, SpaceX, Lyft, and Allbirds). Other previous investors joining the fresh round include DLF Venture, VRD Ventures, and Maropost Ventures.

    The Sydney-based business previously raised $16 million in a seed round in September 2020.

    Co-founders Mark Livings and Carl Hartmann launched Lyre’s in April 2019 with the goal of creating non-alcoholic versions of the world’s most popular spirits. It now produces 14 non-alcoholic spirits with the distinct flavors of gin, whisky, vermouth, amaretto, absinthe, rum, and others, as well as a range of ready-to-drink pre-mixed non-alcoholic cocktails, from an Amalfi spritz to and rum and cola and G&T.

    With around 20% of the population not drinking alcohol, consumption trends heading down among existing drinkers, and an emerging, liberated middle class in Muslim countries looking to have fun and socialize while eschewing alcohol.

    CEO Mark Livings said the latest capital injection will be used predominantly for marketing, and create more than 50 new jobs in sales and marketing, production, logistics, finance, and e-commerce.

    Lyre’s products are now available in more than 60 countries, up 50% in 2021, including in the Middle East and China. This year also saw the business manufacture its one-millionth bottle, and develop six new product variations including Classico, their first no-alcohol Prosecco-style sparkling which launched to market in early November. The company now has production facilities in the UK, Germany, Australia, and the US.

    The drinks startup has also established an R&D division in partnership with beverage technology giant Döhler.

    Livings said range now covers more than 90% of the world’s best-selling cocktails.

    “Millennials and older Gen Zs are drinking less alcohol than any generation before them, but the mindful drinking movement transcends generations and cultural borders. We’re not only growing our business – we’re expanding the whole category, entering territories like the Middle East and Far East virtually uncontested,” he said.

    “The pace of growth we’re seeing is exceptional. We sold our first bottle in 2019 and today we’re selling one at least every 30 seconds. On our current trajectory, Lyre’s is set to become the fastest independent beverage brand to reach Unicorn status.”

    Off-premise sales of low-alcoholic and non-alcoholic drinks have jumped in 12 months from $291 million to $3.1 billion. In Australia, the category is expected to grow by 16% over four years to 2024.

    D Squared Capital Managing Director Daniel Grossman said the company is forging a new path in a critical category.

    “The no/low alcohol beverage market is one of the fastest-growing markets in F&B and is showing similar characteristics to plant-based milks, meats, and other mindful consumer categories,” he said.

    “Lyre’s leading product, brand, and range of award-winning SKUs have proven that they are the industry leader and we are excited to be backing the best in class company.”

  • Hey! Kafe ramps up local expansion plan

    Hey! Kafe ramps up local expansion plan

    Indonesia-based digitally-native beverage startup, Hey! Kafe, is expanding its local footprint with 300 stores by the end of next year.

    According to the company, the brand’s expansion plan will be supported by an asset-light model backed by technology. That means a majority of its outlets will be compact booths that minimize capital expenditure and facilitate Grab & Go delivery service.

    Online delivery orders are projected to account for 70 percent of the brand’s sales.

    Founded by Edward Djaja, who is also the founder of Seven Retail, Hey! Kafe has opened 60 stores across the country since its launch in June last year.

    Focusing on the product development process, Hey! Kafe tests more than 20 product concepts each month, targeting the young customer segment with more than 12,000 cups of beverages sold daily.

    “Here in Hey! Kafe, our north star metric is same-store sales growth, which enables the brand to achieve stellar unit economics,” said Djaja. “We are proud to say that our strategy has resulted in a payback period of under 12 months, which is a key milestone for us to scale rapidly in a sustainable manner in the coming years.”

    The beverage retailer is supported by several investors, including Trihill Capital, which backed the company in the seed round. Besides its expansion plan, Hey! Kafe also plans to launch an in-house mobile application next year.

  • Vietnam gold prices reach another year’s peak

    Vietnam gold prices reach another year’s peak

    Vietnam’s gold prices hit another high this year of over VND61 million ($2,677.51) per tael as global prices soared to a five-month high.

    Saigon Jewelry Company (SJC) sold its gold for VND61.1 million per tael Tuesday morning, up 0.49 percent from Monday. A tael equals 37.5 grams or 1.2 ounces.

    DOJI sold its gold at VND60.9 million, up 0.33 percent.

    This means there is now a VND9.8 million gap between Vietnamese, and the global gold rate.

    Gold prices are now at $1,862.81 per ounce after rallying to a five-month peak in the previous session, as concerns over broadening inflationary risks kept bullion’s safe-haven appeal intact in the face of a stronger U.S. dollar and elevated bond yields.

    Some analysts anticipate further increases, while others remain conservative about the $1,870 resistance.

  • Bulla range hits 7-Eleven freezers

    Bulla range hits 7-Eleven freezers

    The Bulla Choc Top is launching into the freezer section of 7-Eleven outlets from this month and in time for summer.

    The new 86ml snack-sized Bulla Choc Tops can be enjoyed as an after-school treat, midnight snack, or Choc Top fix this summer.

    Flavors include Vanilla Choc Top, Mint Choc Top, and Boysenberry Choc Top.

    Family-owned and operated dairy company Bulla has been in the Australian market for 111 years. Bulla Choc Tops are made in Victoria with the fresh milk and cream used in the ice cream sourced from “the rich, fertile soil of Colac,” 150km from Melbourne.

    “We know that Australians love our Bulla Choc Tops, and now it is even more convenient for them to enjoy them. We can’t wait for our three most popular flavors to hit the freezer section of a 7-Eleven near you,” says Bulla General Manager of Marketing & Innovation Jane Wyatt.

    The snack-sized Bulla Choc Top 86g (RRP $5) is available at 7-Eleven nationally.

  • Hendrick’s super-premium premixed cocktail helps Covid-19 hit bar trade

    Hendrick’s super-premium premixed cocktail helps Covid-19 hit bar trade

    For the first year on the market, William Grant & Sons will donate $1 from each bottle sold to the company’s StandFast fund that supports the hospitality industry struggling through Covid-19 trading restrictions.

    The range comprises Monkey Shoulder Lazy Old Fashioned, Reyka Rhubarb Cosmopolitan, Glenfiddich Scotch Manhattan and the Gin Martini.

    Teams from each of the five participating bars developed three variations of Hendrick’s Martini using ingredients often unique to their location. Gracie, Hendrick’s master distiller together with global ambassador Ally Martin, drew from the best of the different flavour elements that were presented and developed the Batch & Bottle Hendrick’s Gin Martini, seeking feedback from the bars at every step.

    “I worked closely with some of the very best martini-making bars in the world, taking inspiration from what they do and translating it into something you can easily pour at home that’s fresh, floral, round and smooth like Hendrick’s,” said Gracie. “Each bar had a wildly different take on what made the perfect martini. It sent me down a rabbit hole of flavour discovery, experimenting endlessly with different ingredients and flavour combinations.”

    To create the final martini, each bar worked alongside Gracie and Martin to hone and develop the recipe with ingredients that inspired them.

  • Jollibee takes stake in Milkshop

    Jollibee takes stake in Milkshop

    Jollibee Foods Corp has acquired a majority stake of Milkshop International, operator of Taiwanese milk tea chain Milksha, through its subsidiary Jollibee Worldwide.

    The acquisition deal, equivalent to 51 per cent ownership, is valued at approximately US$12.8 million. Meanwhile, one of the co-founders of Milkshop will retain the remaining 49 per cent.

    “This gives JFC the opportunity to participate in this fast-growing beverage category and together with Milkshop’s Founder, grow the Milksha brand globally,” the Philippine multinational company said in a disclosure statement.

    Founded in 2008, Milkshop International is primarily involved in the development, operations and franchising of specialty tea shops under the trade names Milkshop and Milksha (for international markets). Currently, the company operates more than 250 outlets, with 231 stores in Taiwan, four in Hong Kong, two in Melbourne, two in Vancouver and 12 in Singapore.

    Despite the pandemic, the chain generated $47.7 million in system wide sales, higher than the year before when the sales amounted to $66.5 million.

    “Milkshop is generating modest net income and positive earnings before interest, taxes and depreciation,” the company said.

    JFC and its subsidiaries, Fresh N’ Famous Foods and Mang Inasal Philippines, now have the exclusive rights, through a licensing agreement with Milkshop, to sell and market products under the Milksha brand in their stores. Jollibee said Milksha products will be sold in Chowking stores soon.

  • Haidilao to close 300 restaurants as Covid curbs eating out

    Haidilao to close 300 restaurants as Covid curbs eating out

    China’s biggest hot pot chain Haidilao is slowing its rollout of new restaurants and increasing diversification of its fare, tempering its rapid expansion during the coronavirus pandemic to cope with a subsequent slump in consumer spending.

    Haidilao, which became so popular in recent years that it appeased customers in hours-long queues for its soups by providing free manicures, snacks and shoe shines, is at the forefront of reckoning in China’s restaurant industry post-pandemic.

    The chain has seen falling table turnover rates and profits as consumers dine out less and new stores cannibalize business at older locations.

    “We will open stores based on market demand, and compared to before, will appropriately slow down our opening pace,” the company said in a written response to Reuters’ questions about its strategy.

    China’s catering industry shrank 4.5% in August, before recovering for growth of 3.1% last month. Analysts said it will likely remain volatile for some time amid the country’s broader patchy economic recovery.

    “This year, fresh waves of the epidemic happened repeatedly, and passenger flow in commercial areas is volatile, affecting the recovery of core business indicators,” Tianfeng Securities wrote in a research note last month.

    Haidilao was initially undeterred by the pandemic, embarking on an expansion drive in early 2020 that has doubled its outlets since then to almost 1,600 currently. It did so by snapping up sites left behind by vacating weaker players, often helped by deep discounts offered by landlords.

    But that expansion pushed Haidilao’s table turnover rate down to 3.0 – or three sets of customers per day on average – in the first half of this year, from 4.8 in 2019.

    Xiabu Xiabu, another Hong Kong-listed Chinese hot pot chain, has said it plans to shut 200 of its 1,010 stores after losing 50 million yuan ($7.76 million) in the first half of 2021.

    Haidilao’s share price has fallen to around HK$30 from a record high of HK$86 in February.

    “The company will need to create demand going forward, which is more challenging than fulfilling demand,” China Renaissance analysts wrote in an August note.

    to turn its fortunes around, Haidilao has opened more than 10 outlets specialising in fast food such as noodles and dumplings, moving beyond the hot pot, the signature dish of southwestern Sichuan province where the company was founded 27 years ago.

    However, with a maximum of just five stores each and an average spending per guest of 10 to 20 yuan – versus 107.3 yuan for the Haidilao restaurants – the sub-brands contributed just 0.5% to first-half revenue.

    Haidilao last month closed a potato noodle restaurant less than a year after opening it in the central city of Zhengzhou, without publicly citing a reason.

    In other diversification attempts, the company has opened bars in three of its Beijing restaurants and is promoting its delivery service, a unit where revenue initially rose during the pandemic.

    However, delivery revenue dropped from 409.6 million yuan, or 4.2% of total revenue, in the first half of 2020 to 345.7 yuan, or 1.7% of total revenue, in the first half of 2021.

    “(Eating) hot pot has a strong social feature so people are less likely to order hot pot at home,” said Zhu Danpeng, an independent food industry analyst.

    Haidilao opened a store on Alibaba’s marketplace Tmall several months ago to sell items including lipsticks inspired by its soup bases with names such as “capsicum rouge” and “summer tomato”.

    Zhu said Haidilao’s multi-brands strategy was the right move but the company did not have a lot of room for growth: “Haidilao has reached a certain phase with its development, as a man has reached his middle age.”

  • Nestlé calls on FMCG companies to help end recycling confusion

    Nestlé calls on FMCG companies to help end recycling confusion

    The Flexible Plastic Fund is a UK industry first and is being led by producer compliance scheme, Ecosurety, with support from the environmental charity, Hubbub.

    In collaboration with manufacturers, retailers and recyclers, the fund intends to improve flexible plastic recycling and reduce plastic pollution by giving the material a stable value. This will in turn increase the supply of recycled plastic enabling the industry to become more ‘circular’ and meet the forthcoming UK plastic packaging tax obligations. The fund should motivate investment in much-needed jobs and infrastructure to make flexible plastic recycling a financially sustainable system in the UK.

    New research from the University of Sheffield suggests there is strong consumer demand for recycling flexible plastic with 95% of participants saying they would be willing to recycle their flexible plastics1. Sainsbury’s and Waitrose have already signed up to support the initiative by hosting flexible plastic collection points in selected stores across the UK. Several other major retailers are set to follow suit. As a result, recycling this material will become increasingly accessible to consumers, as they will be able to recycle all types of flexible plastic packaging with participating retailers.

    With just 16% of UK local authorities2 currently offering a household collection of flexible plastics, the amounts of this material collected for recycling are low. Flexible plastics include plastic bags, wrappers, films, pouches, packets and sachets and is described as ‘plastic bags and wrapping’, ‘soft plastics’ or ‘flexible plastics’. The fund will guarantee a minimum value of £100 per tonne of recycled product to incentivize recyclers to process flexible plastic.

    The long-term ambition of the fund is to drive progress towards creating a circular, UK-based flexible plastic recycling market that allows flexible plastic recycling via household collections. As part of the UK’s drive to boost recycling, WRAP recently announced new recommendations to support flexible plastic recycling.

    Flexible plastic represented 22% of all UK consumer plastic packaging in 2019 but only 6% was recycled. This type of plastic must be processed in a different way to other plastics due to its unique properties – it often contaminates rigid plastic recycling and clogs up machinery – something that could be overcome by creating a separate flexible plastic recycling stream.

    The initiative will provide fully audited transparency – at least 80% of the plastics collected will be recycled in the UK – rising to 100% by 2023. Until 2023, where there are currently limits in UK capacity and technology, up to 20% could be exported to qualifying facilities in Europe only. All material will be fully traceable and tracked from the collector through to new products. Unlike many other schemes, recyclers will only be paid if the plastic is definitely recycled. The manufacturers contributing to the Flexible Plastic Fund will then be able to access the Packaging Recovery Notes (“PRNs”) generated by this high-quality, tracked recycling scheme.

    The recycled plastic will be turned into a range of products including non-food-grade plastic, non-food-grade film and food-grade film. Through its graded payment hierarchy, the Flexible Plastic Fund is actively incentivizing the development of a circular model of production where flexible plastic packaging can be recycled into plastic packaging, including food-grade, again and again.

    The Flexible Plastic Fund is calling for recyclers, manufacturers and retailers to get in touch to play their role in this vital scheme that is driving solutions to flexible plastic waste in the UK.

  • Red China – up-and-coming wineries gain recognition

    Red China – up-and-coming wineries gain recognition

    Chinese winemaker Legacy Peak, which started producing grapes more or less by accident in 1997, symbolizes the rapid growth of an industry that now wins accolades in global markets, but it once came close to giving up.

    “We wanted to pull out all the vines and call it quits,” said Liu Hai, its second-generation owner, recalling early struggles to cultivate a barren plot received from a local government in payment for construction work.

    His family knew nothing about farming when they got the land in the arid north-central region of Ningxia on condition that it be devoted only to grapes, but they started making wine a decade ago, after wineries that used their fruit won several awards.

    Since then, Liu says the winery has won awards and found export markets in France, Germany, and Southeast Asia, despite the annual output of fewer than 100,000 bottles.

    From the rolling hills of coastal Shandong province to the desert heights of Ningxia and the deep valleys of southwestern Yunnan, Chinese vineyards and wineries are winning recognition.

    “China is an up-and-coming fine wine producer, and its best wines can compete on the world stage,” said wine educator Edward Ragg, who is a reviewer for the influential Robert Parker Wine Advocate.

    The products of wineries such as Chateau Nine Peaks in Shandong, Silver Heights and Grace Vineyard in Ningxia, and Ao Yun in Yunnan, are rated as “outstanding wine of exceptional complexity and character” by Parker’s newsletter.

    Some, such as Nine Peaks and Legacy Peak, are finding export markets in Asia and Europe.

    China’s wine market is the sixth-largest in the world, with event organizer Vinexpo saying it consumed $14.8 billion worth of wine in 2018, and forecasting sales of $18 billion by 2023.

    But domestic wineries must battle an image problem, as consumers at home can be suspicious of their quality and often put off by high prices.

    “It was always easier to sell to foreigners because they are more open-minded, but it has been a tough sell with Chinese customers,” said Liu.

    Other problems are high production costs and erratic weather that can hamper efficiency and quality, while a slowing economy and the COVID-19 pandemic have hit China’s wine consumption since 2018.

    Modern winemaking in China dates fromg the 1980s, when French firms, such as the precursor of Remy Cointreau, began investing after the door was opened to foreign businesses by then-leader Deng Xiaoping.

    While the French influence persisted in a market dominated by reds and a glut of Bordeaux imitations, quality began improving in the early 2000s.

    That was a time when vineyards focused on growing healthier grapes just as incomes grew sharply, with more people traveling abroad and drinking more wine.

    Now home-grown wineries can allay the suspicions of some consumers, such as Yang Lu, who owns a restaurant in the Chinese capital.

    “I was amazed by how the aroma was full of nice fruits and flowers,” said Yang, describing her experience last year of first sampling the Mountain Wave label produced in Ningxia.

    “It had a nice color and was smooth with a long finish.”

    Until then, Yang, who is in her 30s, educated overseas, and widely traveled, had almost always ignored domestic wines, uncorking only imports such as New Zealand wines made from pinot noir.

    Some winemakers, such as Ian Dai, 33, who is behind the Ningxia brand Xiaopu, priced in the range from 168 yuan ($26) to 300 yuan ($47), are turning away from industrial methods in the search for a Chinese signature variety.

    Dai said he was looking to more natural methods, such as fermenting without commercial yeast or leaving acidity and tannin levels unadjusted to “let grapes express themselves”.

    An independent with no vineyards or winemaking equipment of his own, Dai is in his fifth year of winemaking after dropping out of college in Sydney and spending a decade in wine sales.

    Dai hopes to find grape varieties for a wine that represents China.

    “As a winemaker I should have the ego to make the best wine in this climate with grapes grown here,” said Dai, who expected it would take two decades to produce such a wine in China.

    Chinese wineries are also experimenting with alternative grape varieties, such as marselan, aglianico and saperavi. Marselan, a cross between cabernet sauvignon and grenache embraced years ago by Legacy Peak and others, offers high yields and a fruitiness much needed by Chinese reds, experts say.

    “Marselan could one day become China’s signature wine grape, like malbec is to Argentina,” added Ragg, a holder of the Master of Wine qualification

  • HCMC restaurants reopen with caution

    HCMC restaurants reopen with caution

    HCMC restaurants and coffee shops are resuming on-site dining with caution due to concerns of staff contracting Covid-19 and post-social-distancing tightened spending. Starting Thursday, over 20 outlets of bubble tea chain Gong Cha started resuming on-site services after five months of suspension.

    As the city allows food and beverage facilities to serve 50 percent of their capacity and close before 9 p.m., the Cong Coffee chain is also testing the waters with five outlets reopening.

    aCoffee-Bike also reopened five stores on the same day. On Friday, Japanese-style hotpot chain Kichi Kichi will resume dining for customers who have made reservations.

    Some companies, however, choose to delay their reopening to be better prepared.

    Dau Homemade, which sells traditional Vietnamese food, needs another two or three days to get ready.

    Lagom Cafe won’t open for another two weeks, as its CEO Do Thi Ly Na said the store needs more time to observe market reactions and to complete a new look.

    The cautious decisions of food and beverage facilities in Ho Chi Minh City came as shop owners are concerned their staff might be infected with Covid-19 as the city still recorded over 1,000 new cases in the last seven days.

    It would be dangerous to immediately bring back business to pre-pandemic status as the coronavirus is still spreading, said Hoang Tien, founder of Coffee Bike.

    Dau Homemade, which is offering take-aways and deliveries, is still testing its employees once every three days even though the city does not require it.

    A spokesperson for the company said another concern is tightened spending as consumers have grown used to five months of staying mostly home.

    Sales are not likely to cover costs as the company will have to spend big on marketing to urge customers to return.

    Deliveries will continue to be the life source of the company, the spokesperson said.

    Tran Ngoc An, a spokesperson for Gong Cha, expressed optimism as the city has decided to live with Covid-19 and authorities vocalized not imposing another citywide social distancing campaign.

    This will give food and beverage businesses confidence to offer services amid the remaining months of the year.

    “We really want to see the city become vibrant again in the upcoming holidays.”