Chateau Changyu Moser XV and the Chinese Wine Chimera


China is a puzzle to me, at least when it comes to the wine industry there. Every time I think I understand what is going on it seems to change. My problem, I’ve decided, is that like many people, I like to put things (people, countries, wines) into neat boxes. And sometimes that works just fine. But often it is a struggle because people, places, and things are seldom just one thing. They have that chimera quality of simultaneously being many things at once.

The China (Wine) Syndrome

That’s been my experience with the Chinese wine industry. When my first wine business book, Wine Wars, appeared in 2011 many readers were drawn to the chapter on China because the very idea of Chinese wine seemed wrong.  My first experience with Chinese wine, for example, was so bad it was memorable. It was a bottle of 1999 Changyu Cabernet Sauvignon that one of my students brought back from a semester in Beijing. Aroma profile: ash tray, coffee grounds, urinal cake. Poor China, if this is the wine they have to drink!

The same chapter ended with a very different idea of Chinese wine. It was Open That Bottle Night and one of the wines was the Grace Vineyards Tasya’s Reserve Cabernet Franc. It was as delicious as the Changyu was disappointing and distinctive, too. Lucky China, if this is the wine they get to drink!

Which idea of Chinese wine was real? Both, of course. And every time I have circled back to the subject I have found another face, another contradiction. No wonder I keep coming back.

Chateau Changyu Moser XV

Recently Sue and I have been introduced to the wines of Chateau Changyu Moser XV, which takes  the “chimera” metaphor to a new level. The project, now more than 20 years old, is a Chinese-European partnership between Changyu wines, China’s oldest and largest winery, and Lenz M. Moser, a 15th generation Austrian winemaker. Chinese vineyards in the Ningxia region, European style.

Click here to view a 2018 promotional video about Chateau Changyu Moser XV that explains the project and shows vivid images of the winery and vineyards.

The wines, all Cabernet Sauvignon, also show some chimera DNA. They are, first of all, both reds (as you would expect) and whites. Moser is fascinated by the potential of Cabernet Sauvignon as a white wine and he goes to some effort to crush the grapes and then very quickly separate the skins from the juice before fermentation begins.

To take the chimera idea one step further, Moser makes two versions of each wine. The Chateau Changyu Moser XV Helan Mountain red and white wines see no oak at all. The Chateau Changyu Moser XV Moser Family red and white wines are oak aged. We also received a special wine called “Purple Air Comes from the East.”

Towering over the project is the final element: the chateau itself, which is quite a dramatic European chateau style building, but scenically set in Ningxia province, not somewhere along the Loire River as the photo shown here might suggest.

Variations of the Chimera Theme

How do chimera wines taste? In theory, I suppose, it could go either way. Some of those early Chinese wines we tasted were chimeras of sorts that didn’t work out very well. Since then, however, we have tasted many Chinese wines that could hold their own in any situation. How do the Chateau Changyu Moser XV wines stack up?

To find out we gathered a chimera sort of tasting group. Zari and Greg are experienced wine enthusiasts whom we have worked with before, but their experience with Chinese wines was limited to a few disappointing glasses during a visit to Beijing a few years ago.

Cynthia Howson and Pierre Ly, on the other hand, have  traveled to China many times doing research for their book, Adventures on the China Wine Trail. They could evaluate the wines both in general and in comparison to the many other Chinese wines they had tasted.

The tasting dinner was very interesting. The white Cabernet wines were different from what we expected and, because of the subtle oak treatment of the Moser Family wine, different from each other, too. They were an excellent match to a smoked salmon appetizer that Cynthia and Pierre contributed.

The two Cabernet Sauvignon wines were also very different and the consensus was that the richer Moser Family wine was more satisfying and a good match to our mushroom risotto entree.

The highlight of the evening was the limited-production “Purple Air Comes from the East” Cabernet, which Pierre was especially interested in tasting. We’ll probably never have the opportunity to taste this wine again, so we’ll never know how it might age, but it impresses at this point. Zari’s chocolate stout cake was the perfect pairing.

Good News / Bad News

So we get to report good news about the Chateau Changyu Moser XV wines. The bad news is that U.S. readers will probably have to take our word about the wines because they are not (for now at least) available in this market. They are distributed  in some European markets and, of course, in China.

There is one final chimera situation to report. Much of the news we heard about the Chinese wine industry is depressing. Wine consumption in China has fallen dramatically from its pre-pandemic peak. Wine sales have fallen around the world, but nowhere, I think, as much as in China. So China wine is in crisis.

But, while there is no denying this fact, it is also true that Chinese wine is thriving in terms of quality, and there are some segments of the industry that seem to be thriving. At least that’s what we found in the case of Chateau Changyu Moser XV.

Note: By coincidence, the top image on the cover of Cynthia and Pierre’s book is a photo that Pierre took when he visited Chateau Changyu Moser XV!

New Jersey’s “Open Source” Cabernet Franc Project

Recently, Sue and I had a virtual meet-up with a group of winemakers who want to raise New Jersey’s profile on the U.S. wine industry scene and are working together to make that goal happen. Winemakers tend to be very competitive, so finding a group of them who want to play the team game is noteworthy.

It shouldn’t come as a surprise that New Jersey has an active wine industry with 76 wineries in 2026 according to Wine Business Monthly. After all, New Jersey sits comfortably between the well-respected wine regions of New York (450 wineries in 2026) and Virginia (395 wineries) with Pennsylvania (401) and Maryland (105) next door.

The Rodney Dangerfield Problem

New Jersey wine suffers from the Rodney Dangerfield “respect” problem. Grapes have been grown and wine made in New Jersey since colonial times, but the shift towards quality wine is relatively recent. New Jersey’s wineries have big ambitions in terms of quality, but small scale in terms of production as is often the case in states where a farm winery act shapes distribution channels. You might think of them as the Garden State’s hidden germs.

A small group of these wineries formed the Winemakers Co-Op in 2015 aiming to both improve the quality of New Jersey wines and to further its reputation. The member wineries are

According to their website their goals are:

Member wineries aim to produce benchmark dry wines from estate‑grown vinifera (European) varieties that illuminate the differences in soil and climate that exist throughout the Garden State. Through a series of intimate tasting events, industry outreach and communication with the press, these wineries have established themselves as leaders of fine wine production on the East Coast. By spearheading essential industry research and development, Co-Op members are striving to push the boundaries of quality with each new vintage.

Sue and I got involved when we were invited to sample the Winemakers Co-Op “Open Source” wines. The Open Source project is such an original idea that we just had to say yes. Here’s how it works.

Common Base, Individual Vision

Each year since 2016 the Co-Op members have chosen a winegrape variety that they all produced as the object of a project to showcase the group’s work. Each winery contributes half a ton of grapes, which are combined and redistributed, providing the “open source” or common base of the wines that each individual member makes.

The source material is the same, but of course each winery chooses what to do with it and so a variety of types and styles of wines result. Most winemakers are a bit competitive in my experience, so I imagine there is some effort to make wines that are distinctive while advancing the collective goal.

Certainly that is the case with the current release, which is made from Cabernet Franc grapes harvested in 2022. This is the first time for Cabernet Franc in the Open Source program. Chardonnay was the focus of the early years of the program. Bordeaux and Pinot Noir blends appeared in 2023 and 2024.

It is interesting to see how different winemakers have responded to the Open Source Cabernet Franc challenge. William Heritage Winery, for example, made a white wine by gently pressing whole clusters and fermenting and ageing in stainless steel with six months of lees contact. Unexpected!

Vive la Difference?

The other wines are red, as  you would expect, but differ in all sorts of other ways. Variations on a theme and an opportunity for each winery to experiment and explore. But, since we have no previous experience with New Jersey wines, we were sometimes left scratching our heads.  The first wine we tasted, for example, reminded us a little of a Napa Cab Franc we tried recently while the second was closer to a Loire style of wine. Are these wines typical of Cab Franc from this region? Or are they more about exploring differentiation?

I’m not sure we’ve seen a project like this before although it reminds me a bit of the Coro Mendocino project. The Coro Mendocino wineries make distinctive wines from a common blend, but not from the same actual grapes.

Production of the Open Source is obviously limited. Each winery makes only about 23 cases of Open Source wine each year. The wines wear special Open Source labels and this year’s Cab Franc wines sell for $45 per bottle. Sue and I were fortunate to be invited to taste through the Cabernet Franc lineup.

You probably want to know which wine we like best. Too soon to tell, because we haven’t tasted them all yet, and in any case taste is very personal. But the most important thing about the Open Source project is something bigger than the individual wines. The most important thing is that the members of the Winemakers Co-op are working together to take their wines and their reputations to the next level.

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About William Heritage Winery
A fifth-generation family-owned and operated estate vineyard and winery located in Mullica Hill, in the heart of the Outer Coastal Plain American Viticultural Area. Bill & Penni Heritage began cultivating grapes on their 150 acres of apple and peach orchards in 1999, realizing the potential of the Garden State wine industry and starting a new chapter for the next generation.

About Beneduce Vineyards
Founded in 2012 in Pittstown, NJ, Beneduce Vineyards is a sustainably-minded, 4th-generation farm on a mission to prove the potential for world-class wines exists in the soils of Hunterdon County. Focusing on small lot production, creating unique wines from 100% estate grown grapes.

About Hawk Haven Vineyard & Winery
Established in 2008 on land in Cape May that has been in the Wuerker family since the 1940s; Hawk Haven is owned and operated by husband and wife team Todd & Kenna Wuerker. Todd is a self-taught winemaker, crafting a diverse set of wines from 16 acres of estate-grown grapes. He has his sights set on becoming the first Garden State sparkling specialist.

About Unionville Vineyards
Set on 89 acres of preserved farmland in Hunterdon County, Unionville Vineyards comprises  five estate vineyards spread over three counties, allowing for unique, expressive wines to be crafted from fruit grown in the varying terroirs of central and northern New Jersey.

About Working Dog Winery
Established in 2001 by a group of friends with a shared passion for winemaking, Working Dog Winery has grown into a nearly 20-acre vineyard producing over a dozen vinifera varietals. After 23 years of dedication, the founding members entrusted the winery’s future to Carlee Ludwig, Sharon Kyle, and Kevin Kyle as they entered retirement in December 2024.

About Auburn Road Vineyard & Winery
Founded in 2003 by former Philadelphia-based lawyers Scott & Julianne Donnini, who left the corporate world and never looked back. Jules is a self-taught winemaker, and Scott runs the marketing and operations – together they create old-world style wines with a keen sense of balance that frames the beauty of the fruit.

U.S. Wine Industry by the Numbers

I am always excited to receive the annual “Review of the Industry” issue of  Wine Business Monthly because it is so jam-packed with data and analysis. The 2026 issue (which was distributed at the Unified Symposium’s State of the Industry Session) is especially welcome because it effectively captures major shifts in the U.S. wine industry today. Here are some key takeaways of the WBM report.

Disappearing Wineries

Winery openings often get a lot of attention. Winery closings, not so much. Doors close, equipment is sold off, inventory is quietly liquidated, and memories fade.

If it seems like the number of wines and wineries is always growing it is due in part to the fact that openings are so much more visible than closings. But new wineries enter the market and existing ones exit every year.

Winery closings  were impossible to ignore in 2026, according to WBM. The total number of wineries in the U.S. declined by 3% from 11,450 in 2025 to 11,107 at the start of 2026. That’s a decrease in the net number since there are always some openings to offset closings. The winery count has fallen by 512 since the 2024 data were released according to WBM.

The drop in winery count is widespread. There are wineries in every U.S. state and there were winery closings in every state but one: Missouri (253 wineries). Among the states experiencing losses, California (which has the most wineries) experienced the largest drop in winery count, Pennsylvania had the lowest, with the number falling from 402 to 401 according to the WBM data.

Overall, about one winery closed its doors each day of the year in 2025. That’s a lot of wineries, but not necessarily a lot of wine simply because most wine is made by a few large wineries (see  below) but most wineries are relatively small.

WBM also provides data for Canadian wineries. Canada can count 831 wineries in 2026, according to the WBM data, down from 860 in 2025. Wine is made in every region except the Yukon Territories. The largest number of producers are located in British Columbia (317 wineries down from 329 in 2025), Ontario (284 down from 292), and Quebec (163 down from 170).

Clash of the Titans

The largest U.S. wineries are very large indeed and many of them are privately owned and do not release production figures. WBM profiles the top 50 wineries and estimates production when published data are not available. I thought it would be interesting to compare 2026 data for the top five wineries with the numbers from 2025 and 2016. Here’s what I found.

  1. Gallo is #1 in 2026. It is the largest wine company in the U.S. and in the world by volume. Gallo produced an estimated 90 million cases of wine in 2026, down from 94 million in 2025 but higher than the 75 million it produced in 2016. Gallo’s portfolio grew when it acquired a host of wine brands from Constellation a few years ago. It has retrenched more recently and pivoted to other beverages such as the hot-selling High Noon vodka-based RTD brand.
  2. The Wine Group: 43 million cases in 2026, 40 million in 2025, but 57.5 million in 2016.
  3. Trinchero Family Estates: 17 million in 2026, 19 million in 2025.  It was #5 with 18.5 million in 2016.
  4. Delicato Family Wines: 16 million cases in 2026, 16.3 million cases in 2025. It was #8 with 8 million cases in 2016.
  5. Deutsche Family Wine & Spirits: 12 million cases in 2026, #7 with 13 million cases in 2025. Not listed in the top 30 wineries in 2016.

The rest of the top ten for 2026: Jackson Family Wines (6), Treasury Wine Estates (7), Ste Michelle Wine Estates (8), Bronco Wine Company (9), WX Brands (100).

Constellation Brands, once the largest wine producer in the world, ranks #28 with 750,000 cases of wine produced. It was #3 with 50 million cases in 2016. Although it has retained a number of prestige wine brands such as Robert Mondavi, Constellation is now much more focused on its Mexican beer portfolio.

Bottom Line: The largest wineries are very large indeed, sell wines at many price points, and have considerable resources to deal with the current down market. But even they are not immune to the problems that plague the industry today. The fact that Gallo is down “only” 4 million cases in the last year sort of takes my breath away.

Distribution Bottleneck

It makes sense that WBM’s Review of the Industry issue includes an analysis of wine distributors. In my studies of different industries I have observed that there tends to be one or two major inefficiencies (I call them bottlenecks) in the value chain. Successful firms and even whole industries organize themselves around the problem of breaking through the bottleneck problem.

What’s the bottleneck in U.S. wine? It isn’t growing grapes or actually making the wine. It is getting it through the three-tier system into the hands of those who can sell it.

The two critical features of U.S. wine noted in the WBM report are, first, distribution remains highly concentrated in a few large firms and there is little top line change to report. Even though Republic National pulled out of California last year, for example, it still ranks as the #2 national wine distributor after Southern Glazer’s.

WBM reports that the  distribution bottleneck is getting even narrower, driven by declining demand and narrowing margins. Retailers increasingly focus on a smaller number of SKUs that can generate reliable cash flow, which means that distributors must do the same.

As WBM reports,  “… there are 1,061 unique wine distributors that operate across the United States. That’s slightly fewer than this time last year and roughly one-third of the number of wine distributors in business a few decades ago. … “It’s not a time for great variety, not a time to drive a thousand different things,” said Southern Glazer’s chief marketing and sales officer Gene Sullivan. “Customers are saying ‘Give me that stuff that matters.'”

Pareto and the 80/20 Rule

The great Italian economist Vilfredo Pareto observed the 80/20 phenomenon in 1896 and it has become a classic management principle reminding us to focus on what’s most important. The rule shows up in many ways. For example, according to my AI intern,

  • Business: 80% of sales often come from 20% of customers.
  • Productivity: 20% of your tasks produce 80% of your meaningful results.
  • Customer service: 20% of issues generate 80% of complaints.
  • Wealth distribution: Pareto originally observed that 20% of Italians owned 80% of the land.

The WBM report presents a variation on the  80/20  rule when it comes to distribution. Twenty percent of wines produce 80 percent of sales. The remaining 80 percent of wines face an uphill climb on their path to market. That’s not really new, to be honest (and maybe it is more like 90/10 in some cases) but it is maybe even more important now in a shrinking market.

Anatomy of Wine’s Triple Crisis

Recently, I’ve noticed that Wine Economist posts and pages that reference my book Wine Wars II: The Global Battle for the Soul of Wine (2022) (such as “Countdown to Wine Wars II and Wine Wars II) are getting a lot of attention.  I think I know why.

The biggest updates in Wine Wars II is a new closing section called Wine’s Triple Crisis. As I re-read this section (and reflect on current wine market conditions), I see why current readers might be especially interested. I’ve pasted below a very brief summary of this part of the book (clipped from the introductory chapter) so that you can see what it is about.

The environmental and economic crises are clear (and I hope I did them justice), so I want to draw your attention to the third issue, wine’s identity crisis. What is wine (is it just alcohol)? Who is it for (just for boomers or just for the wealthy or just for elites)? What does wine do to us (does it make us happy or does it make us sick)?

The identity of wine has changed dramatically in the last 100 years. No wonder the wine business has changed, too. Here’s that excerpt from Wine Wars II.

WINE’S TRIPLE CRISIS
The global wine industry is in the midst of a triple crisis, and I am not really sure how it will end. The climate change crisis comes first. It affects everything if we consider both direct and indirect effects, so it may seem odd to think of it as a wine crisis. Wine grapes generally can be made to grow under quite extreme conditions; in some colder regions, they actually bury the vines in the winter to protect them and unearth them each spring so that they can come back to life (you might call this Lazarus viticulture). But specific wine grape varieties thrive in only very narrow bands of average temperature, and wine regions defined by particular grapes or wine styles are threatened by relatively small changes in environmental conditions. Wine is, therefore, the canary in the coal mine when it comes to climate change. It will feel the impacts before many other industries, and so it is not a surprise, as I explain later, that wine businesses are among the strongest advocates for progressive environmental action.

The climate change crisis dwarfs everything else in the long run, but because the long run can seem far away and we often misjudge how fast it is approaching, climate concerns do not get the attention they deserve. Indeed, as the global reaction to the coronavirus pandemic crisis has demonstrated, climate change generally isn’t treated with the “drop everything” or “operation moonshot” urgency that real crises warrant. But even if the climate change threat were to disappear tomorrow, wine would still be in trouble.

The second crisis is economic. Wine is a magical beverage, but it is a crazy business. Wine’s economic environment is characterized by cyclical, structural, and “wild card” forces that make it difficult to prepare for or successfully execute a business plan.

Global wine consumption grew steadily for the twenty years that ended in about 2008, the date we associate with the global financial crisis. Rising wine sales were important because they slowly soaked up a surplus of wine. Too much wine? Well, for many years the European Union in effect subsidized wine
production to stabilize agricultural economies, especially in France, Italy, and Spain. Wine farmers were paid to grow grapes and to make wine that could not be sold, so some of it was distilled into industrial alcohol. Yuck! Those policies are history, and European winegrowers turned from government subsidy wine to wine aimed at global markets. This is a good thing, but it happened just as wine production increased in other parts of the world, too. The result: a lot of grapes, a lot of wine, and a lot of jobs and incomes at risk.

Rising global wine sales were most welcome in this context, and when sales dropped a bit in 2008, no one was very concerned. “It’s just the economy, dummy,” they said. “Wine will spring back when the economy improves.” But it didn’t, and the next ten years were what I have called “wine’s lost decade.” Why did wine lose its mojo? There are many possible reasons (I explain them later), but the sudden loss in momentum changes the nature of the game from a positive-sum fight, where a rising tide raises all ships, to a zero-sum fight for market share. And the battle isn’t just between Old World and New World or among the growers and producers in these regions; the opponents are now more diverse and unexpected than ever before.

The reason? Wine’s identity crisis. Wine has never been just one thing. It is, after all, both that fancy French Champagne at the top of the wine wall and that big box of Franzia at the bottom. Wine is healthful (think Mediterranean diet) and dangerous (read the government required warnings on wine labels in the United States). It is culture to some and just another commodity to others.

The cartoon character Pogo famously said, “We have met the enemy, and he is us,” and this is true in a way for wine. The biggest threat to wine’s identity is something inherent to wine’s existence: alcohol. You might think that wine is just grape juice with alcohol, but wine doesn’t taste much like the grapes it is made from except in a few specific cases. Fermentation doesn’t just add an alcoholic kick; it transforms the product in complex ways. It’s the same with the way that fermenting yeast makes bread different from flour and water. So wine as we know it is impossible without alcohol, but it may also be impossible with it if antialcohol forces have their way.

Wine’s identity crisis is significant because it seems like those who see wine as a social or health problem, not an essential element in our culture, have seized the momentum. If wine doesn’t know who it is and what it is and cannot tell its story to the world, then how can it survive?