Nicholas Pegna of UK wine merchant Berry Bros and Rudd says business has boomed since its opening in Hong Kong

Business is booming in Hong Kong for UK wine merchants Berry Bros and Rudd, with bulging order books for its fine wines.

The company came to Hong Kong four years ago, aiming to capitalise on the passing trade it had built up from its sales outlet at Heathrow airport in London. Wine sales to Hong Kong-bound passengers were brisk, leading Berry Bros executives to think there could be potential for a bigger slice of business.

There was. Nicholas Pegna, in charge of building up the Hong Kong operation, estimates that the average transaction for Berry Bros is around HK$10,000 (US$1,285) per buyer. At the top end of the market, it seems Hong Kong's wealthy consumers are as free spending as ever - the most expensive wine sold to date being the rare 1996 Burgundy from Romanee Conti, priced at over HK$380,000 (US$48,843) per case.

Mr Pegna and his colleagues are also on hand to give advice to clients on building up a wine cellar, by selecting vintages that are suitable for ageing. Some buyers keep their wine to drink in Hong Kong, while others store it in Berry Bros' cellars in the UK.

"There are three main reasons why people invest in wine," said Mr Pegna, the company's Hong Kong director of sales. "They want to own their own wine because it is a favourite of theirs; they buy it because they think the price will go up; and because they think it is the cheapest way to accumulate a wine cellar, over a period of five years, with red wine, white wine champagne and port. 

"Demand is always there because it is a product with finite production every year. Once it is drunk, it can never be produced again."

Mr Pegna says Berry Bros now has a client base of more than 4,000 regular customers in Hong Kong. The company, which has offices and storage space in Wanchai, also has a regular core of corporate clients keen to source special wines for dinners and other important functions.

"Hong Kong is an exciting place to do business," Mr Pegna said. "It is such an international place and you make all kinds of contacts."

Related link:
Berry Bros and Rudd  www.bbr.com