[Source] – The Indian Wine Academy

After partnering with France during this year’s show, the 3-day Hong Kong International Wine & Spirits Fair that concluded successfully last week, the Hong Kong Trade Development Council which organises the show has announced that Australia will be the partner country next year.

An agreement between the Australian Trade Commission (Austrade) and the HKTDC was signed last week, following the number of exhibitors taking part this year. Australia was the country with the largest representation at the show with 65 participants.

Fred Lam, executive director of the HKTDC, said: “It seems fitting that when it comes to announcing our partner country for next year we are passing the baton from the Old World to the New World,” France was the partner country during the second edition.

Australia is Hong Kong’s fourth-largest supplier of wine and the value of imports from Australia to Hong Kong between January and September this year increased by 22% compared with the same period last year, according to Drinks Business.

India also showed a decent presence with ten wineries present- Sula, Grover, Indage, UB, Vintage, Big Banyan, d’Ori, Deccan Plateau, Renaissance, and Empire. Mrs. V. Kotwal, CEO of the Indian Grape Processing Board which organised the producers, was very satisfied with the response and hopes that next year will see a bigger participation at the show. The constant stream of people at the Indian stand was quite encouraging.

A group of importers had also visited the show under the banner of Indian Wine Academy and most were pleasantly surprised by the quality of the show, the seminars, amount of wineries present and the business possibilities that came up.

Next year’s Fair will be a big test of the prowess as the Vinexpo Hong Kong also lands up during the same year.

An Australian Wine and Brandy Corporation report released this weekend states the value of Australian wine exports declined 14% in the year ending April 2009.

The report highlights that despite overall pressure from the global financial crisis, which has strained many traditional export markets, growth in Asian markets remains robust.

The report says that more than half of the industries export decline originated from the United Kingdom. Export growth came from Hong Kong, China and Japan. China recorded the largest growth in value, with a increase of $30 million.

Another trend also highlighted in the report was a move towards lower-prices bulk wine shipments. It seems the greater market is cutting back on higher end wines in exchange for “bang for your buck.”

Good news for South American and other low cost producers making quality wine which tend to struggle to break into Asian markets where consumers are VERY brand consciousness and prefer French, Italian and more recently Australian and Californian wines.

Excepts have been obtained from this ABC-Australia article

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.“