China’s wine imports in April failed to reverse a downward trend, deepening fears that the country’s wine market this year will get worse before it gets better.According to latest data released by the Chinese customs, wine imports in the first four months of the year contracted 30.6% in volume to 76.19 million litres over the same period last year. In value, it came down to US$354 million, representing a 21% year-on-year decrease.To put it in perspective, the drop recorded from January to April this year is all the more worrying considering it’s comparable based on the same period when Shanghai, the country’s wine capital and headquarters for many of the country’s leading wine importers, started to be paralyzed under a 60-day lockdown last year.The worsening downturn was also recorded even months after China had reopened, which quickly resuscitated the country’s tourism and dining sectors but failed to revive wine consumption.Earlier as we have reported the country’s top drinks official confessed that wine among all beverages was hit the hardest during the pandemic and there’s “no more retreating ground”, signalling challenges with market recovery.The overriding mood in the trade is still reigned by caution. Despite brisk foot traffic and large turnout at the country’s largest wine and spirits fair in Chengdu in April, business was slow as we have reported, as many merchants reporting overstock and cash liquidity problems as main reasons for withholding orders.According to Wu Yunping, President of the Shenzhen Alcoholic Drinks Association, merchants at the moment are mainly concerned about depleting old stocks that have accumulated in the past two years. The stocks if not cleared, he warns, would severely impact their cash flow and their eventual survival.Zhang Xinchun, deputy general manager of Jiangsu Shengguo Wine Company, attributed the gloom to a result of both domestic and external factors. “Domestically, distributors are not too optimistic about this year’s market forecast. They’d rather have no wines to sell than piling up wines because cash flow is critical. Additionally, consumers in the post-covid era are cautious with spending. Externally, Ukraine war has caused price hikes in dry goods, energy, glass bottle, deterring importers to overstock,” he explains. (ICE PECHINO)

Fonte notizia: Vinojoynews