Boosts Hong Kong as a Regional Trading Hub for Wine and Spirits
– The three-day Fair concluded yesterday, attracting some 8,200 trade buyers from 61 countries and regions – 50 events and conferences held during the Fair helped facilitate trade and business networking – A lower duty rate for liquor, announced in the latest Policy Address, helps promote emerging Chinese baijiu to the international market
HONG KONG – (NewMediaWire) – November 11, 2024 – The 16th Hong Kong International Wine & Spirits Fair, organised by the Hong Kong Trade Development Council (HKTDC), concluded yesterday. The three-day Fair attracted some 8,200 trade buyers from 61 countries and regions. Yesterday’s public day attracted some 10,000 visitors aged 18 and above, who enjoyed fine alcoholic beverages from around the world and participated in master classes, tasting sessions, and seminars in the Wine Fiesta zone. This reflects the Fair’s important role as a trade and promotional platform.
Sophia Chong, Deputy Executive Director of the HKTDC, said: “This year’s Fair has attracted more than 8,200 trade buyers. The number of buyers from some countries and regions increased, including ASEAN countries such as Indonesia, Thailand, Malaysia, the Philippines and Vietnam, as well as Japan, Taiwan, Mainland China and more. Global buyers are keen to come to Hong Kong to participate in the Wine and Spirits Fair, promoting Hong Kong as a regional trading hub for wines and spirits.”
Ms Chong added: “The latest Policy Address announced a lower duty rate for liquor, which is expected to enhance the trade of high-end spirits. More than one quarter of exhibitors at the Fair brought spirits from around the world, including Chinese baijiu, whisky, vodka, brandy and more. We are glad to see that so many exhibitors and buyers interacted with each other, seizing the business opportunities brought about by the new policy.”
Importers, wholesalers, retailers and e-commerce buyers who attended the Fair included: Awin Barratt Siegel Wine Agencies from the United Kingdom; Grupo Alpom Importaciones SL from Spain; Le Clos (MMI) from the United Arab Emirates; ASC Fine Wine (Shanghai) Ltd, Beijing WJ E-Commerce Co, Ltd. and Vinehoo (Chongqing) Co. Ltd. from Mainland China; Mercian Corporation from Japan; Thevincsr from Korea; Luen Heng F&B Sdn Bhd from Malaysia; Wine Creek Pte Ltd. from Singapore; Thai Beverage Distribution Co Ltd from Thailand; Phu & EM Group from Vietnam and more.
Trading and marketing opportunities for spirits exhibitors
This year’s Fair showcased a wide selection of Chinese baijiu from various regions, including Moutai and Zhenjiu from Guizhou, Fenjiu from Shanxi and “Zhongmao” from Sichuan. Exhibitors are capitalising on the Government’s reduction in liquor duty to expand their business opportunities.
Guizhou Jin Jiao Liquor Industry (Group) Co,. Ltd which specialises in high-end Chinese baijiu, reached a strategic agreement with Hong Kong distributor Wines up Shoppers Group. Guizhou Jin Jiao Liquor’s CEO Xu Xinzhou said that the anticipated collaboration amount is expected to reach at least RMB10 million in one year, helping the company expand its overseas market. Matthew Lun, CEO from Wines up Shoppers, said, “Chinese baijiu holds significant potential in the global Chinese market. We plan to capitalise on the Government’s recent reduction in liquor tax to tap into this market and promote Chinese baijiu, a traditional cultural product, throughout Southeast Asia and beyond.” Guizhou Jin Jiao also identified another Hong Kong buyer through the Fair, aiming to distribute its baijiu in Hong Kong. The two parties will negotiate a first-year business agreement valued at around RMB2 million.
Irish whiskey exhibitor Clonakilty Distillery Ltd made its first appearance at the Fair. Company founder Michael Scully said that they have identified about 30 potential buyers from around the world within a day and a half. “The slashing of liquor tax is excellent news, demonstrating to the world that Hong Kong is dedicated to establishing itself as a trading hub for premium wines and spirits in Asia,” he said.
“We met a major buyer who distributes alcoholic beverages in both Hong Kong and Mainland China, and we expect him to place an initial order of around EUR100,000 in which some of the high-end whiskies will benefit from the new taxation and enjoy a lower tax rate while being imported to Hong Kong. We believe that the tax reduction has significantly increased the interest of buyers.” Mr Scully also estimated that he could secure orders worth approximately EUR1 million within a few years through the Fair.
50 events were held during the Fair, with 12 of these related to spirits. At a seminar themed “A Review and Outlook of the HK Spirits Market (Taste Changes and Taxation)”, speakers noted that Hong Kong’s reduction of duty on high-end spirits has prompted many businesses in the industry to immediately lower their prices, which helps stimulate demand for spirits.
The Fair also presented fine wines from Mainland China, including wines from Ningxia, Yantai in Shandong, Xinjiang and Yunnan, as well as yellow wine from Shaoxing. Chateau Xianghai, a wine exhibitor from Xinjiang, connected with potential buyers from the United States as well as Malaysia and Vietnam from the ASEAN Region. The company’s General Manager Guo Cong said, “The Fair is an international platform providing us with numerous opportunities to expand into overseas markets.”
Diverse fine wines and spirits to meet buyer demand
To meet consumers’ and buyers’ diverse preferences for alcoholic beverages, the Fair presented an extensive selection of global offerings. These included Old World wines from the Czech Republic, France, Germany and Italy, and New World wines from Australia, South Africa and the United States, as well as whiskey from Ireland. There were also dedicated buyers for sake, gin, plum wine and shochu from Japan, along with tequila from Mexico.
Participating for the first time in the Wine and Spirits Fair, Czech exhibitor THAYA vinarstvi, spol. s r.o. engaged with around 50 buyers in just one day and a half, with over 10 showing potential for collaboration. THAYA’s Chief Operating Officer, Ing. Vit Travnicek said, “The Sommeliers’ Picks is a great initiative. One of our white wines is featured on the list, and several buyers came specifically to source based on the list.”
He also mentioned that the company has just started to explore the Asian market. They have successfully connected with potential buyers from Mainland China, Hong Kong, India, Malaysia, Japan, Singapore and Vietnam during their very first time at the Fair, “We participate in eight wine exhibitions each year, and this one stands out as the most international.”
Sambath Sothea, CEO of Auskhmer Import Export Co., Ltd, a buyer from Cambodia, stated that he has a fruitful experience at the Fair and has identified four potential suppliers. He plans to purchase products worth approximately US$50,000, including Japanese sake and wines from Italy and Georgia.
Seminars explored consumer demands and sustainable development
A seminar hosted by Master of Wine Debra Meiburg explored consumption trends and preferences among Gen Z and millennials, an emerging consumer group. Industry representatives speaking at the event noted that young adults have a strong preference for cocktails. The vibrant colours of cocktails are perfect for sharing on social media, allowing the industry to achieve significant promotional results.
Lan Kwai Fong (LKF) Concepts crafted a special cocktail, HK & Suit, for yesterday’s public day. Many visitors tried it, fostering a lively atmosphere.
Sustainability has become a significant industry trend. At a seminar on promoting sustainable wine, a renowned sommelier and alcoholic beverage manufacturer emphasised that providing information on sustainable wine and spirits-making would enhance consumer confidence in the market.
Under the EXHIBITION+ hybrid mode, buyers could use the Scan2Match function of the HKTDC Marketplace App to scan exhibitors’ unique QR codes during the physical exhibition. They could also bookmark favourite exhibitors, browse product information and continue discussions with exhibitors online after the show. Exhibitors and buyers can also engage in online business negotiations and matching through the Click2Match smart business matching platform until 16 November.
About HKTDC The Hong Kong Trade Development Council (HKTDC) is a statutory body established in 1966 to promote, assist and develop Hong Kong’s trade. With 50 offices globally, including 13 in Mainland China, the HKTDC promotes Hong Kong as a two-way global investment and business hub. The HKTDC organises international exhibitions, conferences and business missions to create business opportunities for companies, particularly small and medium-sized enterprises (SMEs), in the mainland and international markets. The HKTDC also provides up-to-date market insights and product information via research reports and digital news channels. For more information, please visit: www.hktdc.com/aboutus.
