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Go for Russia, Not China, Wine Experts Say

are only selling to 10 percent of the Indian population, that equals Europe." Bordeaux winemaker Bernard Magrez agreed about being careful in China, having owned a vineyard there for 10 years. "I have done China," he said. "I was there starting from 1991 and I did not make a profit. It was too soon, and it is still not very developed today."

"Wine is not a priority for the Chinese, they do not have a wine culture," Magrez said. His advice to French winemakers was to beware of diversification and concentrate on business that is an hour and a half away. "Fifty five percent of business is nearby, and French wine businesses are small.

The intelligent strategy is not to disperse resources. I paid for that in China," he warned. "We are doing more business in Spain and Italy now, than in Moscow for example." Magrez, who was in Russia for many years with his wine and spirits business, William Pitters, shut up shop when he sold the business in 2005. Now, despite his reservations, he will soon start again with a new distribution partner. A good partner, he stresses is the key.

Skalli also favours Russia over any other emerging market. "For one thing," he said, "the food is European in style. Shashlik and rice is the Russian steak and chips and there is no spice. Chinese food is not made to go with wine, and nor is Indian at the moment." And whereas in China wine sales are driven by a culture of giving or serving a high status gift, Russians like wine for itself. "Russia is the market of the future. They love the good life," he said. "They are the Italians of eastern Europe. And right now, since the problems with Moldovan and Georgian wines, which were 55 percent of the market, the place is wide open." "I wouldn't disagree about going for Russia at the moment," Singh said.

Levels of imported wines in Russia, which fell to 241 million litres of bottled wine in 2006, from 379 million in 2005 -- due to the banning of Moldova
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