China's first traceable wine

A big step for an industry plagued with scandals.

I have been fortunate enough to be involved with the beverage industry across Asia over the past decade. In particular, China’s evolution into a global economic powerhouse has been nothing less than spectacular. Given the sheer geographic and population spread, China is too big to be considered as one country. For example, Guangdong province alone has a population of over 100m which itself is bigger than the Philippines (the 12th most populated in the world), therefore businesses should treat each province within China as a separate country.

Over the past few years, China’s food & beverage industry has been plagued by a number of scandals. The most famous of which has been the melamine contamination post Beijing Olympics in late 2008. The Associated Press back then reported that over 50,000 babies and children were affected with nearly a thousand being hospitalized as well as several deaths. There was a public and media outcry which resulted in several high profile arrests in the dairy industry as well as open apologies from the leading dairy companies such as Mengniu and Yili. Sales of dairy products declined sharply in the months following the scandal, but have since recovered as the industry continues to prosper and grow.

Despite the promise by the government to tackle and improve food safety in China, further scandals broke out in 2011 as Xinhua News Agency reported unscrupulous businesses collected used cooking oil from sewers and restaurants to process and repackaged as new cooking oil for sale. This type of dishonest practice continues to be the norm as businesses sidelines consumers’ health and safety for a quick profit.

Frustrated by the slow progress taken by the authorities, the industry has taken the matter into their own hands. Star Farm, which is a wholly owned subsidiary of the retailer Metro Group, was established in 2007. The company is committed to food safety and quality through a traceability system along the whole value chain. As of 2010, it has developed over 2,000 products with local producers resulting in RMB 700m (£70m) in retail sales in 2010.

One of the recent developments with Star Farm has been the collaboration with Beijing Summit Wines. The result is a brand called 1421, which is China’s first traceable wine. The cabernet sauvignon and chardonnay grapes are cultivated and grown in Xinjiang province by which Star Farm has maintained full records of the soil, fertilizers used as well as processing, bottling and distribution. Consumers can scan the barcode at the back of the bottle with their mobile phones as it directs them to Star Farm’s website, by which they will be able to access all relevant information about the ingredients and processes along the value chain for the brand.

The initiatives taken by the industry to provide food safety assurance to consumers represents a step in the right direction, but there is still a very long road ahead as consumers are becoming more knowledgeable, with health and safety becoming a key priority for their families. The central government needs to maintain a fine balance between consumers and businesses in order to continue its economic miracle.

Wine, China, Getty images

Phil Chan is Asia director for Canadean, the consumer market experts.

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To preserve the environment we hold in common, everyone has to play their part

The challenge of building a clean future based on the common good of Londoners demands that politicians, business, communities and individuals each take a share of the responsibility and of the benefits.

The environmental challenge facing our capital city can seem overwhelming. Our air is poisonous. Our infrastructure built for the fossil fuel era. The need to build a clean, low carbon future can seem incompatible with competing challenges such as protecting energy security, housing and jobs.

The way we tackle this challenge will say a lot about the type of city we are. We inherit the world we live in from the generations that went before us, and only hold it until it is time to hand it over to future generations. The type of environment we leave behind for our children and grandchildren will be affected by the decisions we need to take in the short term. Our shared inheritance must be shaped by all of us in London.

Londoners currently face some crucial decisions about the way we power our city. The majority of us don't want London to be run on dirty fuel, and instead hope to see a transition to a clean energy supply. Many want to see that clean energy sourced from within London itself. This is an appealing vision: there are upsides in terms of costs, security and, crucially, the environment.

Yet the debate about how London could achieve such a future has remained limited in its scope. Air pollution has rightly dominated the environmental debate in this year’s mayoral election, but there is a small and growing call for more renewable deployment in the city.

When it comes to cities, by far the most accessible, useable renewable energy is solar, given you can install it on some part of almost every roof. Rooftop solar gives power to the householder, the business user, the public servant - anyone with a roof over their head.  And London has upwards of one million roofs. Yet it also has the lowest deployment of solar of any UK city. London can do better. 

The new mayor should take this seriously. Their leadership will be vital to achieving the transition to clean energy. The commitments of the mayoral frontrunners should spur other parts of society to act too. Zac Goldsmith has committed to a tenfold increase in the use of solar by 2025, and Sadiq Khan has pledged to implement a solar strategy that will make the most of the city’s roofs, public buildings and land owned by Transport for London.

While the next mayor will already have access to some of the tools necessary to enact these pledges (such as the London Plan, the Greater London Assembly and TfL), Londoner’s must also play their part. We must realise that to tackle this issue at the scale and speed required the only way forward is an approach where everyone is contributing.

A transition to solar energy is in the best interests of citizens, householders, businesses and employees, who can begin to take greater control of their energy.  By working together, Londoners could follow the example of Zurich, and commit to be a 2,000 watt society by 2050. This commitment both maximizes the potential of solar and manages introduces schemes to effectively manage energy demand, ensuring the city can collectively face an uncertain future with confidence.

Unfortunately, national policy is no longer sufficient to incentivise solar deployment at the scale that London requires. There is therefore an important role for the incoming Mayor in facilitating and coordinating activity. Whether it is through TfL, existing community energy schemes, or through individuals, there is much the mayor can do to drive solar which will benefit every other city-dweller and make London a cleaner and healthier place to live.

For example the new mayor should work with residents and landlords of private and social housing to encourage the deployment of solar for those who don’t own their property. He should fill the gap left by national building standards by ensuring that solar deployment is maximized on new build housing and commercial space. He can work with the operator of the electricity grid in the capital to maximize the potential of solar and find innovative ways of integrating it into the city’s power demand.

To bring this all together London should follow the example set by Nottingham and Bristol and create it’s own energy company. As a non-profit company this could supply gas and electricity to Londoners at competitive prices but also start to drive the deployment of clean energy by providing an attractive market for the power that is generated in the city. Community schemes, businesses and householders would be able to sell their power at a price that really stacks up and Londoners would receive clean energy at competitive prices.

The challenge of building a clean future based on the common good of Londoners demands that politicians, business, communities and individuals each take a share of the responsibility and of the benefits. Lets hope the incoming Mayor sees it as their role to convene citizens around this aim, and create incentives to virtue that encourage the take up and deployment of solar, so that we have a healthy, clean and secure city to pass on to the next generation.