2,200 Cases of Oregon Pinot to South Korea

Although Oregon wine has been shipped to South Korea for many years, there’s never been a shipment nearly as big as the latest: Two 40 foot containers, about 27,000 bottles, equaling 2,200 cases of Oregon Pinot Noir and Pinot Gris will be departing the Port of Portland this weekend. Being the largest shipment in Oregon’s history, it clearly opens the door for Oregon to a growing Korean market.

Gary Roth, the Oregon Department of Agriculture’s (ODA) Marketing Director said this kind of sale is extraordinary.

“What is unusual is the size of the retailer making the purchase and how quickly it happened. Korean buyers who visited our wineries last month committed to purchasing 2,200 cases almost on the spot. We don’t see those kinds of large purchase decisions made so quickly. They obviously like our wines.”

In late January, buyers representing Shinsegae, a company which owns a chain of high end stores that captures about 38 percent of the retail market in South Korea, visited 20 Oregon wineries. Of those 20, just four wineries were selected as part of this sale: Domaine Drouhin, Lange Estate Winery, Willakenzie Estate and Union Wine Company.

According to ODA Trade Manager, Amanda Welker, Oregon has gained itself a reputable name in the Korean marketplace.

“The Oregon name in Korea is gaining a lot of momentum. We have done well there with our berry products, cherries, and seafood. The name Oregon represents quality, clean, and green, and it does well in the Korean market. Oregon wine can be the latest to make a splash.”

Last month’s journey to Oregon by Korean buyers was the result of teamwork. A Korean wine expert tabbed to help with the Shinsegae promotion contacted ODA through the US Department of Agriculture in Seoul. ODA then worked with the Oregon Wine Board to set up meetings and tours for the buyers. A whirlwind one week visit payed off with a quick purchase of more Oregon wine than expected.

Dewey Weddington, Director of Marketing and Education for the Oregon Wine Board (OWB), also says that Oregon’s high quality reputation was confirmed by the representatives from Shinsegae.

“We’re thrilled with the support ODA provided both the Shinsegae team and our wineries. Oregon’s international reputation is growing on a foundation of high quality at all price points and this was echoed in the response from the Shinsegae representatives. Their initial intent was to purchase a value priced Oregon Pinot Noir, but we are very happy to exceed their expectations and they are now purchasing a broader selection to introduce to Korea.”

The elimination of tariffs on U.S. wine while bringng in free trade has played a big part in completing this entire transaction. The U.S. is now set up to compete more easily with wines from Chile, Australia, New Zealand and other countries that already had free trade with South Korea.

David Millman, Managing Director of Domaine Drouhin, is excited about the free trade agreement.

“There have been Oregon wines in South Korea for a few years now, but the free trade agreement makes this even more exciting. We’ve been interested in Korea for years, so when this opportunity came up, we were thrilled to be a part of it. Shinsegae is a very strong company with a great reputation. Part of their mandate has been to include Oregon wine in their assortment of products. Several years ago, the idea that people from Korea would be determined to buy Oregon wine would be mind blowing.”

Founded in 2006, and rapidly growing, Union Wine Company wines were about 75 percent of the total shipment. With a focus on export, Sales Manager, Justin Hoffman says they are already talking about a second shipment. Hoffman is optimistic the Koreans will be asking for more wine.

“It’s way too early to tell, but if I’m a betting man, I would say more Oregon wine– not just ours– will end up going to Korea as a result of this shipment and promotion. Shinsegae is the largest retailer in Korea and will give Oregon wines a lot of exposure. That should increase the demand in South Korea for Oregon wine.”

From Asia to the European Union, Oregon wines are making a name for themselves in the export market. A global image is being established as Oregon wines have created a brand awareness. The upcoming shipment to South Korea reinforces the notion that the industry’s efforts are paying off.

Millman from Domaine Drouhin believes there’s more work ahead.

“There is more work to be done and there is no victory lap yet. But it means that all the work done to promote high quality Oregon wines has resonated. The message
is finding its way out to the world, and the world is listening.”