Thursday, April 30, 2009

Wine markets in Southeast Asia

Southeast Asia is home to many consumers with rising levels of income. When income rises and a given society modernizes or evolves so do its tastes and preferences.

This is currently going on in the greater Asia region as we speak. Add the extra element of a ever more interconnected global economy and the pace of change is truly incredible.

Singapore, Malaysia, Thailand and Vietnam have a combined population of roughly 180 million people. These countries represent a diverse mix of different elasticities, levels of development and traditions.


Malaysia -- For instance the majority of Malaysians are Muslims who in accordance with their religious practices do not drink any alcohol. However even in this context a great potential wine market exists.

For starters Malaysia is home to about 28 million people, of which 2/3 are Muslim and therefore do not drink alcohol. The remaining 1/3 still presents a sizable market of about 8-9 million people, greater than the combined markets of Singapore and Hong Kong, two already very developed wine markets.

Second, ethnic Chinese in Malaysia are unarguably one of the wealthier segments of Malay society and are also coincidentally the largest consumers of wine in Malaysia. As members of the upper-echelons of society they unknowingly serve as status symbols for people to emulate as they aspire to move up the social latter.

This great article I have just stumbled upon at the China Wines Information Website, shares some good statistics.

Singapore -- Wine market breaks down as follows: 10% sparking wine, 65% red wine, 25% white.

Thailand -- According to the New Zealand government which published these statistics, consumers in Thailand lack detailed knowledge about wines and have a unfounded, preconceived notion that the only "real" wine is red wine. At the moment wine makes up about 20% of the alcohol consumed in Thailand every year. About 83% of the wine consumed in red. A major challenge for those trying to break into the Thai market will be educating the consumer about white wines, which in many instances would accompany Thai foods better than red wines.

Vietnam -- Most Vietnamese do not drink grape wines because they have yet to acquire a taste for it. Wine is a relatively new product to the average Vietnamese person. Therefore most wine demand within Vietnam comes from expatriates, tourists and a few Vietnamese of the upper classes who have acquired a taste for it.

The importance of using Singapore as a hub for serving all these wine markets is highlighted in this article from New Zealand.

"It is important for New Zealand wine exporters to consider leveraging on Singapore's position as a regional distribution hub for wines by developing partnerships with distributors who have strong regional distribution networks."

Wednesday, April 29, 2009

Hong Kong - Asia's Wine & Gourmet Center Event, April 30, 2009

In February 2008, the Hong Kong Special Administrative Region Government waived duties on wine and beer. With the scrapping of wine duties, Hong Kong becomes the first free wine port among major economies and is fast developing into a wine storage and distribution hub in Asia.

The total value of wine imports from around the world reached US$370 million in 2008, representing a year-on-year increase of almost 80 per cent. According to the US Department of Commerce, the total value of US grape wines exported to Hong Kong had increased by more than 500% in January 2009, when compared to the same period in 2008.


On April 30, 2009, the Hong Kong Economic and Trade Office in San Francisco will host a luncheon event at Wine Spectator Greystone Restaurant, the Culinary Institute of America. Hong Kong Financial Secretary, John Tsang will be the keynote speaker to give an update on the development of this exciting and flourishing business in Hong Kong and the business opportunities available to the American wine industry.

Date: April 30, 2009 (Thursday)

Time: 12:15 -2:15pm

Venue: Wine Spectator Greystone Restaurant,
the Culinary Institute of America
2555 Main Street, St. Helena


[Accessed from: http://www.wines-info.com & www.calwinexport.com]

Sunday, April 26, 2009

Wine producers pin hopes on China in tough times -- AP


Wine producers are pinning their hopes for growth during the financial crisis on a country that only recently entered the ranks of the world's top ten wine drinking countries -- China.

Wine bars and specialty wine stores have flourished in Shanghai, which prides itself of being the nation's most cosmopolitan city, and have quickly become part of the landscape.

"More and more people are coming through the door, especially after a dinner with friends," said Marc-Antoine Malia, head of sales and marketing for Enoteca, a small chain of wine bars in Shanghai and Beijing.

No longer a luxury just for foreigners, wine has become a status symbol among China's fast-growing middle class.

"China was one of the ten biggest wine consumers in 2008 and should be ranked number seven by 2012," said Xavier de Eizaguirre, president of Vinexpo, the world's biggest wine and spirits exhibition, which takes place in Bordeaux in southwest France.

Friday, April 24, 2009

Wine for Asia (WFA) 2009 -- Singapore wine exhibition from Oct 22-24

Wine For Asia (WFA) 2009, the most comprehensive international wine exhibition in the region, returns to Singapore from 22 – 24 October 2009 with the promise of another bumper event.

An exciting exposition that help you expand your footprint into Asia’s burgeoning wine market, WFA 2009 offers a one-stop opportunity to keep abreast of the latest wine offerings, complete with a myriad of first-class business, educational and networking opportunities and lifestyle pursuits. Exhibitors and visitors can look forward to three days of non-stop business, networking and learning opportunities.

Come feel the pulse of wine business in the fast-changing wine scene in Asia!

Click here for more information on Wine for Asia 2009!

Interview with Pierre Castel -- The man at the helm of France's wine industry

INTERVIEW with Pierre Castel.

Sums up the current preoccupations of his company, which celebrates its 60th birthday this year. The accent is on investment overseas.

Sud Ouest : Two thirds of your activities are based in France, but you now wish to develop your export business. Why?

Pierre Castel : Business is difficult in France at the moment and potentiel development now lies outside of our borders. In 2008, due to the global economic crisis, our activity will be on the decline. Wine sales to the hotel/catering business have dropped by 20%. Luckily, our merchant brands, which are important reference points for consumers, are still selling well on the French supermarket shelves. I have been in the wine and beer business for sixty years and I have always adapted to suit the market.

S.O. : Where do your priorities lie in the exportation market?

P.C. : Definitely in China and Russia. We have a small office in Shanghaï which works with five distributors. With the 10 to 20 million bottles we hope to sell there in 2009, China will become our number one export market. Hypermarkets, restaurants, bars and night clubs….all these market niches need to be developed. In Russia, the situation is different because we possess our own bottling centre just outside Moscow, which has a capacity of 300,000 bottles per day. The authorities are setting the market in order and it’s expanding. However, I do not believe India is a viable export market. I have had dealings with Indian businessmen in my activities in the African beer market and I do not intend take it any further with them….

Click here to access the full interview