(Newswire:  businesstimes.com.sg)

When Hong Kong slashed its alcohol taxes to zero last year, it put a dent in Singapore’s attempts to grow as a wine business hub of Asia. Without the huge mainland Chinese market in its backyard, wine businesses have also found it a challenge to grow the local industry, even as Singaporean palates become more sophisticated and the demand for more variety increases.

However, recent activity has shown that the industry is not being stymied by Hong Kong. It has instead found several niche areas that are showing some promise.

Wine conferences and fairs

This is turning out to be an area of growth as organisers see greater interest from consumers in learning more about wine while distributors, retailers and restaurateurs reap benefits from visibility, networking and co-operation.

This week, for example, sees the International Congress of Chinese Cuisine & Wine (ICCCW) and Wine For Asia (WFA), running back-to-back, while the Singapore Wine Fiesta starts at the end of the month.

The ICCCW conference was founded last year by local publisher and columnist Ch’ng Poh Tiong, and it’s a feather in Singapore’s hat that after its first year in Beijing, he brought it here instead of tax-free Hong Kong, although it will be touring there next year.

‘The choice of venue is not dictated by local tax regimes vis-a-vis wine,’ explains Ch’ng. ‘Our goal is to spread the concept, and culture, of wine with Chinese cuisine wherever Chinese cuisine is highly appreciated.’

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[Source] – Businesstimes.com.sg Written by Christopher Lim and additional reporting by Melissa Lwee

Hong Kong is on track to become the premier wine hub of the Asia-Pacific region, thanks in large to the elimination of import duties last February, 2008.

The Special Administrative Regional Government of Hong Kong decided to do abolish the duty in hopes of encouraging wine imports and creating jobs in sales, marketing, storage and logistics.

Singapore which can be argued currently holds the title as Asia’s wine hub is going to have to adapt to the arrival of new comer, Hong Kong, which has aspirations develop its own capacity to serve countries throughout the region, including countries in SE Asia which Singapore currently serves.

Since abolishing the duty, U.S Department of Commerce figures show that wine exports from the U.S alone rose by more than 500% year-on-year (Feb 2008-09).

Global wine imports reached $370 million in 2008, also clocking in impressive year-on-year growth of nearly 80%.

“Hong Kong has been a top three export market for U.S. wines ever since,” California Wine Institute regional director for emerging markets Eric Pope said while speaking during an event held at the Culinary Institute of America in Napa Valley where John Tsang, Financial Secretary for Hong Kong’s Regional Government had gone to promote Hong Kong as a wine market hub.

He added that their vision was to make Hong Kong the platform for getting wine into other regions and for promoting wine market growth throughout Asia (click here to access a great article on this topic from the Indian Wine Academy).

It is clear global trade patterns in the wine industry have changed dramatically over the past few years. The simple scratching of duties in Hong Kong alone has had a dramatic effect on the wine markets in Asia. As India and China work to develop their own wine industries, as more places like Hong Kong open up to making trade easier and as the United States, Australia and New Zealand work to increase their market share–wine markets will again change quite dramatically.

As professionals in the industry it is up to us to keep up to date with the changes that and to constantly adapt our business plans and marketing strategies to cater to the ever changing tastes of consumers around the world.