Fake wines in China may be on rise

Fake wines in China may be on rise

20130718.162602_china-wine-reuters

Mr Charles Gaudfroy, a manager of a French restaurant, showing a bottle of fake Romanee-Conti which was found at a wine shop in southern China. According to Mr Gaudfroy, “Vin Blanc” (white wine) and “Vin Rouge” (red wine) should not be printed on the same label.

Liquor stores, restaurants and supermarkets in China wage a constant battle against fake wines. -TNP

Fri, Jul 19, 2013
The New Paper

CHINA – The cellar master at a vineyard in China can’t stop laughing while describing a bottle of supposedly French wine a friend gave him two years ago. It’s white wine, with a label proclaiming it is from the vineyards of Romanee-Conti, the bottle bearing the logo that is on bottles of Chateau Lafite-Rothschild. It declares its origin as Montpellier in southern France. Domaine de la Romanee-Conti, better known for highly prized and highly priced vintages from France’s Burgundy region, makes only a tiny amount of white wine, labelled Montrachet. It has nothing to do with the equally prestigious Lafite, which is from the Bordeaux region, and neither brand is produced anywhere near Montpellier.“It’s the most magnificent example of a hijacked brand of wine I’ve ever seen,” Mr Bruno Paumard, who works with Chateau Hansen in China’s Inner Mongolia autonomous region, told Reuters. “It doesn’t get better than that.”

Liquor stores, restaurants and supermarkets in China, the world’s most populous nation and fifth-largest wine consumer, wage a constant battle against fake wines. The amount of knock-offs on the market may increase as Beijing investigates wine imports from the European Union, threatening anti-dumping tariffs or import curbs.

“More expensive wine is okay, I just don’t want any fakes,” said Ms Helen Nie, a Beijing housewife sharing a bottle of the Italian house white at a restaurant with a friend.

Nobody knows how much of the market is cornered by fakes and copycats, said Mr Jim Boyce, who follows China’s wine industry on his blog, grapewallofchina.com

“Things that are faked tend to be things that are very popular,” Mr Boyce said.

Meanwhile, Chinese authorities have closed a museum which contained scores of fake exhibits, including a vase decorated with cartoon characters billed as a Qing dynasty artefact, state-run media reported yesterday. The facility, built in Hebei province at a cost of 540 million yuan (S$110 million), has “no qualification to be a museum as its collections are fake”, a local official told the Global Times

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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