Reason to cheer as Hong Kong emerges as Asia's wine hub

PRLog (Press Release) - May 20, 2010 -
Hong Kong is on its way to becoming one of the world's biggest markets for wine-auction in close competition with New York and London. According to industry experts a quarter of the US$200 million to US$400 million worth of wine sold at international auctions is bought by Hong Kong residents. According to the December 2009 Wine Export Approval Report from the Australian Wine and Brandy Corporation, the value of exports of Australian wine to Hong Kong increased 22% i.e. by A$8million in 2009. During 2008-2009 Hong Kong hosted as many as 10 wine auctions. At present Hong Kong accounts for the highest per capita wine consumption in Asia, at around 3.3 litres.

The lucrative business potential of Hong Kong's wine industry together with the ease of Hong Kong company formation (visit http://www.guidemehongkong.com/company/c745-hong-kong-co ...) is attracting a number of wine establishments to the region. Today, a number of international wine establishments such as California Grape International, Vinx Asia, Zachys, Vinfolio, 8th Estate Winery, Sogrape, and Armit have established a presence in Hong Kong.

The main driver behind Hong Kong's wine industry growth has been the Hong Kong government's decision in 2008, to abolish wine duty. Other factors have also contributed to Hong Kong's wine industry. For instance, in recent times there has been a growing interest for wine from countries such as China and India. China and India as we know are witnessing robust economic growth. Increased prosperity and changing lifestyles has propelled a growing interest in wines.

The Hong Kong government has taken special efforts to promote its wine industry. For instance, it has aligned its customs procedures in tune with the needs of the industry. Customs inspections for wine are now conducted at the storage facilities in a temperature and humidity controlled environment instead of at the point of entry. Hong Kong has also built state-of-the-art facilities for wine storage and is considering the introduction of an accreditation system for cellars. This would help establish and raise standards for storage. Hong Kong actively promotes its wine industry by holding seminars, tastings and workshops at its 'Hong Kong International Wine & Spirits Fair' and  annual 'Wine & Dine Festival'.

Hong Kong has also signed MOUs on wine with France, Spain, Australia and more recently the US. According to Mr. Stephen Wickens, General Manager of Armit HK,"The Hong Kong government has given the industry lots of support, putting everything in place to be Asia's wine hub, including zero wine duty, excellent logistics and storage facilities and the ease of doing business. It's now up to the players in the market to build the wine business. As more companies and wine experts come to Hong Kong, the market will become self-perpetuating."