TRADE MISSION TO CHINA CRAFT BEER, SPIRITS AND BEVERAGE ROADSHOW 2017
Build business relationships and brand awareness across four key cities
ABOUT THIS EVENT Important information
Chinese hospitality entrepreneurs are moving beyond traditional mass-market Date: brands and seeking unique and affordable luxury beverage offerings to better 3-10 March 2017 serve discerning consumers in China’s first-tier cities, where the number of affluent households is set to reach nine million within the decade. Locations: Guangzhou, Kunming, Austrade’s Craft Beer, Spirits and Beverage Roadshow 2017 is the first Shanghai, Beijing – China Australian trade mission designed to showcase premium Australian beverages to select importers, distributors, traders, media and corporate Apply by: buyers, together with top ranking hotels, bartenders and restaurants. 16 January 2017 The program in each city will begin with an educational seminar/masterclass to demonstrate the attributes of exhibitor’s beverages. Product displays will be Who should attend? set-up for business discussion between exhibitors, potential buyers and local media. Each day will end with a cocktail function at a premium venue to Australian manufacturers of craft creatively sample the best that Australia has to offer while networking with and premium beverages, both participants. alcoholic and non-alcoholic, or their approved agents. The mission timing also allows delegates the option to participate in: Beijing International Craft Beer Festival, 9-12 March (see Appendix) Places are limited to 20 Chengdu China Food and Drinks Fair, 19-25 March (visit www.cfdf.org for companies. more details).
www.austrade.gov.au/chinabeverageroadshow2017
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WHY YOU SHOULD PARTICIPATE
Showcase your products to importers, distributors, retailers, food service buyers and industry professionals. Identify and explore business opportunities and/or increase your export sales under the China-Australia Free Trade Agreement (ChAFTA). Promote your product and brand image under the Australia Unlimited national brand. Gather insights directly from local experts and develop an understanding of regional Chinese markets. Receive on-the-ground assistance from Austrade, including advice on how to get started.
MARKET INSIGHTS
China is the world’s largest food importer, with total imports valued at $30 billion in 2015. Total food imports from Australia, valued at $6.7 billion, have grown fourfold since 2010, while proportion of fresh, chilled and frozen products has tripled to 33 per cent over the same period. In 2015, China’s whisky imports increased by 19.8 per cent to 15.77 million litres. Sales of imported beer, which are positioned in the premium segment of the market, increased by 58.9 per cent to 538.5 million litres during the same period. In the 2016 China Consumer Report by McKinsey & Company, 36 per cent of respondents indicated they were looking to trade up to higher priced spirits brands, while 22 per cent of respondents expected to ‘trade up’ to premium beer. At the luxury end of the market, Chinese traders and collectors pay up to A$20,000 at auction for rare and unique international whiskies. Increased interest and demand for Australian products is being driven by more than 1.1 million annual visitors to Australia, our established reputation for quality and safety and the signing of the ChAFTA, which will eliminate the 10 per cent tariff on Australian distilled spirits and 20 per cent tariff on juice and mineral water by 1 January 2019. China currently does not have an import duty on beer. Online retail of beverage products is growing at up to 50 per cent per year. Cross-border e-commerce has additional benefits that simplifies procedures to sell bottled juice and water.
SELECTION CRITERIA FOR PARTICIPANTS
To be eligible to participate in this premium product mission, the following criteria applies: Branded Australian-made craft beer, boutique distilled spirits, bottled water and premium juice products available for retail sale in Australia. Table wine will not be included in this mission Product samples must arrive in the consolidator’s Adelaide warehouse by 3 February 2017. Delegates are responsible for costs associated with local shipping and clearance in Australia and China. International airfreight for this mission is supplied courtesy of Qantas Freight Companies must be licensed manufacturers (or their agents) and able to demonstrate a long-term commitment to the China market.
Selection of participating companies and products is at Austrade’s sole discretion.
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PACKAGE SUMMARY
The total cost per company includes direct costs and an Austrade service fee.
Total Cost Direct Costs Austrade service fee
A$5,950 A$3,750 includes: A$2,200 (8 hours @ A$275 per hour for four per company Premium venue hire (display and cities in total) includes: seminar) Mission coordination Stand to showcase your products Logistical support Trade seminar in each city Production of mission booklet Cocktail function with local major Inviting qualified buyers, visitors and importers/distributors/media in four cities media Press kit and social media content in Arranging seminars with major simplified Chinese importers/distributors.
Optional orientation tours in Beijing and Not included Shanghai. Cost of shipping and clearing samples to collection point in Adelaide and onwards to four venues in China. Note: International airfreight for this mission is provided courtesy of Qantas Freight.
Payment Terms: Full payment is required with payment terms as per the invoice provided upon receipt of the acceptance letter. Please refer to the event Terms & Conditions for further detail. Note: The direct cost and Austrade service fee form part of the total package and you cannot purchase one without the other.
Financial Assistance: You may be eligible to claim some of your marketing and promotion costs associated with this mission through the Export Market Development Grant scheme. For more information visit www.austrade.gov.au or call 13 28 78.
APPLY BEFORE 16 JANUARY 2017
In order to provide the highest level of service to delegates, places are strictly limited. Apply online at www.austrade.gov.au/chinabeverageroadshow2017 to secure a place on this mission. Following review, successful applicants will be sent an acceptance letter with our standard terms and conditions and an invoice for the deposit payment. An Event Participation Kit with all the information you need will also be sent to you once your deposit is paid.
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IMPORTANT INFORMATION
If you are considering participating in this trade mission, Austrade strongly recommends that you consult ‘Smartraveller’, the Australian Government's travel advisory service, which is available at www.smartraveller.gov.au. Travel advice is updated regularly on this site.
Please note that Austrade will only work with clients that maintain appropriate business ethics, and demonstrate a commitment to legal obligations including anti-bribery laws, both in Australia and overseas markets. Review further information on anti-bribery at http://www.austrade.gov.au/Australian/Export/Guide-to-exporting/Legal-issues/Bribery- of-foreign-public-officials.
KEY AUSTRADE CONTACT
If you would like to discuss participating in this trade mission, please contact:
Australia China
David Jamieson Stephanie Zhou Team Leader/Senior Trade Adviser Business Development Manager Austrade Melbourne Austrade Guangzhou T +61 3 9648 3132 T +86 20 2887 0121 E [email protected] E [email protected]
Brent Moore Trade Commissioner Austrade Shanghai T + 86 21 6103 5614 E [email protected]
LOGISTICS SUPPORT GENEROUSLY PROVIDED BY
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CITY INTRODUCTION
Guangzhou Guangzhou is the capital city of China’s Guangdong Province. This region, encompassing the Pearl River Delta area, has long been regarded for its business-friendly environment and as a gateway for trading imported brandy, whisky, craft beer to inland China. Guangdong is China’s largest province by both population (around 106 million) and GDP. Higher salaries from growing number of value added service industries are offset by higher costs of living. Consumption habits are influenced heavily by neighbouring Hong Kong. With the development of modern Zhujiang New Town, Guangzhou’s international dining scene is beginning to take flight, thanks to the efforts of a new band of young restaurateurs returning from overseas.
Kunming Kunming, nestled between scenic Lake Dian and limestone mountains, is the political, economic and cultural centre of Yunnan and is ranked as the second most liveable city in China. The city serves as a trade and transportation hub between China and Southeast Asia, and is the service centre for Yunnan’s thriving tourism economy which includes luxury resort destinations of Dali, Lijiang and Shangrila. As a second-tier city, it is relatively underserved by international brands. The local food service and catering sector grew 6.3% in 2016 - 17.6% food, 11% tobacco and alcohol 5.9%, making Kunming a future hotspot for premium imported beverages.
Shanghai Shanghai is the gateway to the Yangtze River Delta and has been the economic powerhouse of China since the 10th Century Song Dynasty. Today, it is China’s largest commercial, financial, trade and shipping centre. At the end of 2015, Shanghai had 24.15 million permanent residents. Shanghai has the highest foreign population in China, with more than 200,000 medium to long-term foreign residents. It is home to the regional headquarters of 535 multinational companies, and is a major hub city for imported food and beverage. The food scene is the benchmark for the rest of the China to follow, with more than 100 five-star hotels and thousands of bars, creating significant demand for imported liquor, beer and beverages.
Beijing Beijing is the capital of the People’s Republic of China and one of the most influential cities in the world. With a population of 19,612,000, Beijing has emerged as one of the world’s largest markets for food and beverage. Its vibrant after hours scene has undergone a renaissance in recent years, moving away from large clubs and hotels towards smaller and more intimate venues within Beijing’s famed hutong alleys. Beijing is home to China’s liveliest bar district, Sanlitun, the world’s largest luxury whisky club outside of Scotland, and is considered the birthplace of the craft beer movement in China.
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APPENDIX Invitation for craft beer delegates to attend the 3rd Beijing International Craft Beer Festival
The organiser of the festival is Great Leap Brewing, a famous local brewery and restaurant. This year’s festival will be held at TRB Copper - a formerly state-owned copper wire factory, which has been transformed into a versatile and contemporary culture and event destination.
The festival will be a door ticketed event where guests can meet the brand creators and brew masters, and will be provided a 150ml branded glass for sampling free-flow beers as well as taste the exclusively paired canapés provided by TRB Copper during seven two-hour sessions over the course of the weekend.
Each session will be limited to 240 people, which will give guests plenty of time and space to sample beers from a variety of international breweries and get valuable insight from the visiting brewers about their different beers.
“The BICBF (Beijing Invitational Craft Beer Festival) was a great opportunity for me to learn about China’s growing craft beer industry and meet the awesome, passionate people behind it. As a direct result of our experience at the BICBF we decided to peruse exporting our beer to China, and since then have partnered with an importer we met at the festival.” Josh Uljans, Co-Founder, Moon Dog Brewing, Melbourne Australia
What you get from Great Leap Brewing: › Complimentary accommodation (valued at US$500) for the duration of their stay in Beijing from 7-12 March 2017 › Cost of shipping your beer from Australia to the festival in Beijing › Transportation to and from your hotel to the beer festival location › A private tour of Tiananmen Square, the Forbidden City, and Jing Shan Park lead by one of Beijing’s leading Chinese historians.
What Great Leap Brewing requires to participate: › Approximately 100-150 litres, or 12-15 cases, of the finest craft beer from each brewery; whichever brands you believe represents each brewery best Note: Beer should not be widely distributed in China and looking for distribution partners › We ask that you bring between three and seven different brands of your beer. The beers can be sent via kegs, key kegs, cans and bottles › All beer needs to transported and delivered to Beijing by a date of one month prior to the festival (7 Februrary 2017) in order to ensure enough time for clearance and inspection with China customs › Great Leap Brewing will assist in the shipping of beers from a consolidated point within Australia › All required documents and labelling requirements need to be met in accordance with Chinese customs regulations › If you are interested in more information on specific requirements and the import/export process, please see: https://www.ttb.gov/itd/china.shtml › Further information in regards to Australia specifically can be found here: http://www.austrade.gov.au/Australian/Export/Export-markets/Countries/China/Industries/Food-and-beverage
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