Chateau Tanunda wines picked up by Alibaba supermarkets

Supermarkets are where Australia can win the global wine war according to the head of Chateau Tanunda, which is now stocked in Alibaba’s Chinese grocery chain.

Chateau Tanunda’s Michelle and John Geber.

Supermarket shelves are where Australia’s premium winemakers can gain an unlikely advantage in the global wine wars according to the head of historic Barossa Valley winery Chateau Tanunda, which has struck a deal to stock its flagship shiraz at Alibaba’s Chinese supermarket chain Hema.

Already found in the stores of global grocery giants including Sainsbury’s and Waitrose in the UK, Chateau Tanunda is making an aggressive return to the Chinese market following the lifting of tariffs last March.

Managing director Michelle Geber said the company had built its brand globally through distribution via major supermarkets, and it was now looking to replicate that success in China.

“Our Grand Barossa Shiraz is one in a very fine selection of Australian wine that has been chosen to be in these Hema stores, and so we’re really excited about how that can grow brand perception in China for Chateau Tanunda,” she said.

“Around the world you have these supermarkets who focus on premium wines — like a Sainsbury’s or a Waitrose — and if you’re a Chateau Tanunda in there it’s an endorsement from a premium retailer who is absolutely focused on the quality of their produce in store.”

Chateau Tanunda in the Barossa Valley. Picture: Supplied

The latest figures from Wine Australia show Australian wine exports to China reached $902m in the nine months to December, almost achieving the $1.2bn in annual exports recorded before Chinese authorities slapped tariffs of up to 218 per cent on Australian wine in 2021.

While confident Chinese consumers will fall back in love with Australia’s premium labels — generally considered as bottles priced from $15-$20 and higher — Ms Geber said other export markets like the US and UK were proving a challenge.

Speaking ahead of her visit to the ProWein trade fair in Germany, Ms Geber said it was important Australian winemakers kept pace with changing trends in traditional markets, while also building its profile as a premium producer.

“There’s a lot of communication around the health trends at the moment, and the cost of living crisis that is affecting us,” she said.

“But, in terms of the global opportunity, there is an untapped pool of 160 million people who are drinking wine, but not Australian wine. I think that is where we have to focus — what are the opportunities within the current climate that we can make sure that we’re talking to those people?

“Australia has to lift its story on varieties like cabernet and chardonnay, which are on trend at the moment, and then talk premium to our buyers and show the success that we’re having in Asia.

“It’s a two-fold approach. We’ve got to continue to talk high (value) with our retailers, the gatekeepers, and then we’ve also got to present a story to the consumer as well. And I think that’s the way to shift the conversation.”

Chateau Tanunda, home of some of Australia’s oldest vines, marks its 135th anniversary this year, and the 27th under the ownership of the Geber family.

The winery’s historic, Bavarian-style chateau attracts more than 100,000 visitors annually.

Ms Geber said while exports currently made up around 40 per cent of the company’s total sales, with its flagship Grand Barossa wines sold in 35 countries, the business was also focused on the domestic market.