Sektkellerei Henkell & Co sees China as a huge market, but analysts say it may take a while for consumers here to acquire the taste.

Gourmedis (China) Trading Co Ltd, an importer of premium food, signed an exclusive distribution contract for the China market with Henkell during the 10th International Exhibition for Food, Drink, Hospitality, Foodservice, Bakery and Retail Industry in Shanghai over the weekend.

"In China, consumption of sparkling wine is only one drop out of a bottle but considering the size and population, future market potential is huge," said Henkell export director Klaus-Jurgen Kurten.

Japan is the largest market in Asia for Henkell, but Gourmedis general manager Herve Streifer expects China to take over within five years.

The Chinese market for sparkling wine is tiny and the total wine market much smaller than beer or liquor due to traditional drinking habits, said Fu Su, an analyst for international brand products from Xiangcai Securities. "They need to think more about targeting customers."

According to Wine China Website, citing a Euromonitor international report, sparkling wine is expected to be the frontrunner in the industry by 2010. Production of sparkling wine is forecast to grow a minimum 13 percent from 2005 to 2010, with a market value of US$33.7 billion by 2010.

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