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.

Photo: Getty
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What Jeremy Corbyn gets right about the single market

Technically, you can be outside the EU but inside the single market. Philosophically, you're still in the EU. 

I’ve been trying to work out what bothers me about the response to Jeremy Corbyn’s interview on the Andrew Marr programme.

What bothers me about Corbyn’s interview is obvious: the use of the phrase “wholesale importation” to describe people coming from Eastern Europe to the United Kingdom makes them sound like boxes of sugar rather than people. Adding to that, by suggesting that this “importation” had “destroy[ed] conditions”, rather than laying the blame on Britain’s under-enforced and under-regulated labour market, his words were more appropriate to a politician who believes that immigrants are objects to be scapegoated, not people to be served. (Though perhaps that is appropriate for the leader of the Labour Party if recent history is any guide.)

But I’m bothered, too, by the reaction to another part of his interview, in which the Labour leader said that Britain must leave the single market as it leaves the European Union. The response to this, which is technically correct, has been to attack Corbyn as Liechtenstein, Switzerland, Norway and Iceland are members of the single market but not the European Union.

In my view, leaving the single market will make Britain poorer in the short and long term, will immediately render much of Labour’s 2017 manifesto moot and will, in the long run, be a far bigger victory for right-wing politics than any mere election. Corbyn’s view, that the benefits of freeing a British government from the rules of the single market will outweigh the costs, doesn’t seem very likely to me. So why do I feel so uneasy about the claim that you can be a member of the single market and not the European Union?

I think it’s because the difficult truth is that these countries are, de facto, in the European Union in any meaningful sense. By any estimation, the three pillars of Britain’s “Out” vote were, firstly, control over Britain’s borders, aka the end of the free movement of people, secondly, more money for the public realm aka £350m a week for the NHS, and thirdly control over Britain’s own laws. It’s hard to see how, if the United Kingdom continues to be subject to the free movement of people, continues to pay large sums towards the European Union, and continues to have its laws set elsewhere, we have “honoured the referendum result”.

None of which changes my view that leaving the single market would be a catastrophe for the United Kingdom. But retaining Britain’s single market membership starts with making the argument for single market membership, not hiding behind rhetorical tricks about whether or not single market membership was on the ballot last June, when it quite clearly was. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to domestic and global politics.