Prologue: In the ever-evolving world of wine, few names stand as tall as Familia Torres, a fifth-generation family-owned Spanish winemaker with over 150 years of history.
Familia Torres Global Travel Retail Director Bruno Teixeira recently embarked on a journey to China, with a clear mission: to deepen the house’s ties with key partners and explore burgeoning opportunities within the country’s duty-free market.
Teixeira visited Beijing, Shenzhen and Hainan along with Familia Torres Regional Export Consultant Salim Frederic Isler and the company’s distribution partners from Links Concept. They met with a series of influential players, including China Duty Free Group (CDFG) and Wangfujing Duty Free.
In this interview, Teixeira tells Lara Netherlands that Torres is well-positioned to capture the attention of the Chinese consumer, particularly in Hainan, due to the brand’s focus on innovation and sustainability and an unrelenting commitment to quality.
It sounds like you have had a productive time in China. What were the main objectives of your trip?
We had a wonderful week, ending our trip on a high in Hainan where we scheduled meetings with China Duty Free Group and Wangfujing Duty Free. Our visit was part of our goal to ensure we not only meet but exceed the expectations of our partners and the travelling consumer. After TFWA in Singapore, it was key for us to visit the island to understand more about its business potential in the channel.
Torres has been active in China’s domestic market for almost 30 years. We currently have a fantastic partner based in Hong Kong, Links Concept – a family-owned business just like Torres. They manage the duty-free business for us in China, with a small yet dedicated team that truly understands and seizes the market potential.
How do you view the evolution of the wine retail industry in China, particularly in Hainan?
The retail environment within China’s wine industry is amazing and has recently seen significant improvements.
We were keen not only to meet the decision-makers in Hainan but also to engage directly with the store staff, gaining a first-hand understanding of the market’s potential. Being on the ground with our distributing partners and having the opportunity to interact with the personnel was invaluable.
What impressed us most was how eager and ambitious the store staff were in learning more about wine. Despite the initial perception that wine might be an intimidating subject, the staff demonstrated a decent level of knowledge already and were keen to deepen their comprehension of Spanish wines. We conducted training sessions, and it was gratifying to see how engaged they were.
Familia Torres has an extensive portfolio. Tell us more about the wines you plan on bringing to the Chinese market.
We were very happy to see our wines prominently featured in the stores, especially Grans Muralles, the high-end segment of our portfolio. Torres has an extensive range of wines covering various price points. This expression really captures what Torres is all about: a delicate balance between nature and savoir-faire, featuring typical Spanish and ancestral varieties.
Our focus at Torres has always been on innovation and excellence, and our wines reflect this philosophy. The family business, founded over 150 years ago, has a rich history that we continue to express through our wines today.
We have an initiative which began over 40 years ago aimed at recovering ancestral grape varieties lost during the Phylloxera disease outbreak, which devastated European vineyards in the 1800s. Two of those revived varieties, Garró and Querol, are featured in Grans Muralles, embodying our commitment to quality and heritage.
Sustainability is a core value for Torres and an important principle for the new generation of consumers. Could you share more about your initiatives in this area?
Absolutely. Sustainability is deeply ingrained in the winery’s DNA. Familia Torres President Miguel Torres Riera is one of the most influential figures in the wine industry today, particularly in the realm of climate action. He was the only representative from our industry to be included in TIME Magazine’s list of the 100 most influential leaders driving business to real climate action in 2023.
Torres, together with Jackson Family Wines from the USA, founded the International Wineries for Climate Action. The initiative is focused on educating wineries about the impact of climate change and providing them with the tools to mitigate these risks. Our goal is to achieve net-zero emissions by 2040, a commitment that reflects our dedication to preserving the environment for future generations.
How has the pandemic influenced your views of travel retail in China, particularly in Hainan?
Hainan has indeed taken centre stage, especially since the pandemic began. With outbound travel still recovering, Chinese consumers have increasingly turned to Hainan for their shopping needs. This shift has made it essential for us to establish a strong presence here, as we have in other key markets like London, Paris, Frankfurt, Amsterdam and Istanbul.
We’ve observed that Chinese consumers are more focused on ecommerce compared to global passengers, with a significant portion of this demographic being Millennials. These consumers are looking for unique products that offer quality and a sense of place.
Although the purchase quantities for wines & spirits in the channel might be lower compared to other categories, the focus on premium expressions remains strong.
What challenges and opportunities have you identified in the Chinese duty-free market?
The market presents both challenges and opportunities. On the one hand, duty free remains one of the few trusted channels for accessing legitimate fine wines, which is crucial in a market plagued by online counterfeits.
Chinese travellers – often business-oriented and quality-conscious – value authenticity and craftsmanship, making duty free an appealing option.
We’ve also noticed a shift in consumer behaviour from hard liquor to wine, driven by a trend towards healthier social lifestyles. Additionally, we’ve seen an improvement in the retail quality, with temperature-controlled areas and well-maintained products becoming more common.
This focus on quality and customer engagement is a key aspect of the market in Asia, and particularly in China, where conversion rates are higher than in other regions.
How does Torres differentiate itself in a highly competitive wine market, particularly in travel retail?
Torres takes a unique approach to the wine market. For us, it’s not just about telling our story, but also about providing consumers with the tools to understand and appreciate wine based on style and quality. During our trip to China, we trained around 120 people in just five days, including category managers, merchandisers and store staff.
We recognise that wine can be an intimidating subject for many, which is why our training focuses on building confidence in approaching wine, rather than just imparting technical knowledge. We want our partners and the store staff to have the right tools to cater to the specific needs of the region.
How do you see Torres’ future in China, especially in Hainan?
The potential in China, and specifically Hainan, is immense. We see huge opportunities for growth, particularly through online platforms and in-store experiences. Personalisation, exclusives and benchmarking domestic prices are key elements that will drive success in this fast-changing environment.
Our partnership with Links Concept is crucial as we navigate this new territory. We are already seeing strong listings and positive trends in the market, which gives us confidence in our strategy. The government’s policies encouraging domestic spending have also been smart, capturing business that would otherwise go to Korea or Europe.
At the end of our trip, we concluded that our expectations were not just met but exceeded. Duty free offers an incredible opportunity for Torres to establish a strong voice, presence and experience in the market. The channel allows us to amplify our brand image and showcase part of our portfolio.
We believe that our fine wines, which we liken to jewels, have found the perfect case in the travel retail environment.
Any final messages you’d like to convey to your audience in China?
We are excited to continue building our presence in China, with Links Concept as our distributing partner in the channel. Our commitment to sustainability and our care for the earth are central to our philosophy. We believe that this approach not only betters our wines but also ensures that the land we cultivate will continue to thrive and express itself for future generations. ✈️
