U.S. Wineries See Hope in Hong Kong

Hong Kong, China -- Hong Kong is fast becoming a major wine trading and distribution hub, and many North American wineries seek to expand into the Asian wine market. The second annual Hong Kong International Wine and Spirits Fair, held Nov. 4-6, drew 520 exhibitors from 34 countries and six continents -- more than double the attendance at the 2008 show. With the promise of a burgeoning Asian wine market, many growers made the trip expecting to find distributors anxious for their business: They quickly learned that patience and hard work are necessary to crack the Asian market.

Hong Kong’s position as a major wine center has increasingly solidified during the past few years. The Chinese government has taken an active role in making Hong Kong a wine-friendly region -- first by eliminating wine duties in early 2008, and also permitting wine to be transferred to storage prior to clearing customs (rather than sitting on the tarmac). Hong Kong cooperates with major wine-producing nations, already is the main distribution center for Asia and is set to become a wine auction center second only to London.

Understanding the Asian palate
As the wine industry in Hong Kong grows, so does the sophistication of the Hong Kong palate. Ross Chan of California Grapes International Inc., a Hong Kong-based distributorship specializing in California wines, described Hong Kong as having a taste for “premium red wines.” Conversely, he said, “less educated areas like the mainland want lower prices and sweeter wines.”

Korbin Ming, the marketing and sales director for Glen Ellen, Calif.-based Korbin Kameron Wines, noted that the Chinese “like to drink more” at a single sitting but “prefer less robust wines.” Ming’s display included a Best of Class medal won at the fair's associated wine contest, as well as a silver for its Cabernet, but he said that while the medals made potential distributors more likely to stop at the booth, in general competitions aren't that important to the local distributors. And though his family is originally from Hong Kong (Ming lived there until he was 5 years old and grew up speaking Chinese), Ming said, “Hong Kong is a confusing market. We came here to learn it, but it raised more questions than answers.”

Daniel Choy is the sourcing officer for San Castle Wines, a leading importer into the mainland, with offices in Guandong, China, and San Gabriel, Calif. San Castle has several U.S. clients and represents wineries from Europe and South America. Choy said it is looking for winemakers who believe in “taste, packaging and have a seriousness about the quality of the wine.” Equally important, Choy said, the wines must be competitively priced.

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