Img: Business Week

For all the toothsome crabs and delicate siu mai that make Hong Kong one of the world’s best places to eat, until recently wine was largely enjoyed more as a marker of status than as a complement to a meal. Wine programs and shops in the city’s main district catered to local tycoons and expatriates with a taste for Bordeaux and expense accounts to match.

But venues for wine—shops, tasting bars and even a winery—now flourish in the city, thanks to a happy convergence of factors that includes reduced taxes and a government mandate declaring 2009 “Food & Wine Year”. Auction houses are clamoring to sell fine Bordeaux, Burgundies and Barolos and ever more restaurants are hosting dinners with wine makers flown in for the occasion. Tasting events, trade shows and oenology courses abound. A recent Sotheby’s auction of two American-owned wine collections raised $7.9 million, almost 30% more than estimated.

Still, many of the best and most interesting sites are tucked away, often a short taxi ride out of central Hong Kong.

Click here to access the complete article from the WSJ

[Source] – The Wall Street Journal, by Jake Lee

[Source] – AFP

Hong Kong overtakes NY, London in wine auctions
Hong Kong has overtaken New York and London as the largest wine market for two of world’s biggest auction houses, the firms said Tuesday, highlighting a trend spurred by surging demand from China.

Sotheby’s said its wine auction held in the southern Chinese city over the weekend, together with another one in April, have raised 14.3 million dollars.

The figure surpassed those of New York and London, which respectively recorded sales of 10.5 million dollars from four auctions and of eight million dollars from seven auctions held this year, the auction house told AFP.

Christie’s also said that its recent auction results have also shown that Hong Kong is taking over New York and London as its largest wine market.

“In Sotheby’s first year of selling wine in Asia, Hong Kong has become (its) most important wine centre, ahead of very successful auctions in New York and London,” said Serena Sutcliffe, head of Sotheby’s international wine sales.

“Sotheby’s have exciting plans to build on this momentum to bring to the market top collections in 2010,” she added.

Sotheby’s and its rival Christie’s began to hold regular wine and champagne auctions in Hong Kong after the city’s government abolished duties on wine imports in 2008 in a bid to establish the city as a regional wine hub.

China’s economic boom and growing demand for top French wines has become the key driver of Hong Kong’s wine market, as can be seen from the increasing number of mainland Chinese bidders at the auctions.

At Sotheby’s weekend sales, a Chinese bidder splashed out a record 93,077 dollars for a bottle of 1982 Chateau Petrus Imperial.

Sutcliffe said 99 percent of buyers in the two-day auction were Asian buyers, including those from China, Hong Kong, Taiwan, Singapore, Indonesia and the Philippines.

The latest auction fetched almost 30 percent more than Sotheby’s estimate of 6.13 million dollars.

David Elswood, head of Christie’s international wine department, said its Hong Kong wine auctions had the highest average lot values among its global sales, at 150,000 dollars per lot.

“Asian buyers are very active not only in Hong Kong, but also in the international wine market,” Elswood told AFP.

This spring, Asian buyers accounted for 61 percent of Christie’s global wine sales in New York, London and Hong Kong, whereas they made up only seven percent of global buyers in 2005, he said.

“Buyers from Hong Kong, Taiwan and mainland China also grew substantially between last autumn and this spring at our auctions. We expect this trend to continue.”