Opportunity uncorked as Asian market booms (hktdc.com)


	The Asian wine market is booming, rising at an average of 4.5 per cent per year

Some of the biggest names in the global wine and spirit industry will raise their glasses in Hong Kong in May at one of the most important trade fairs of the year.

Vinexpo Asia-Pacific 2006 will be held at the Hong Kong Convention and Exhibition Centre from May 23 - 25, with major companies from all over the world rushing to book space.

Last year, Vinexpo was held in Bordeaux, France. The return to Hong Kong of this prestigious industry event recognises the city's pivotal role as a distribution and trading centre in the Asia-Pacific.

"Hong Kong was chosen in 2005 by Vinexpo Overseas Board because this city was perceived as a hub for the Greater China market, and as the busiest and most attractive of the world's capitals," said Robert Beynat, Vinexpo Chief Executive.

"A lot of importers, wholesalers, retainers and renowned restaurants - with great and very well known chefs - are based in Hong Kong. At this time, it appeared that Hong Kong was the right choice for the worldwide wine and spirit sector."

Strong growth


	Robert Beynat, Chief Executive of Vinexpo, says Hong Kong is "the right choice" for the worldwide wine and spirit sector

The Asia-Pacific represents a fast developing market for the wine and spirits industry. The consumption of still and sparking wines in Asia is on track to rise by 45.8 per cent between 2000 and 2010 - an average of 4.5 per cent per year. Retail turnover for wine sales in Asia in 2004 amounted to HK$37 billion (US$4.8 billion) and should grow by 30.5 per cent between 2004 and 2010, reaching HK$48.641 billion (US$6 billion) in 2010, a Vinexpo study has shown.

Asia is also the world's leading consumer of spirits. Western brands represented 47 per cent of spirit sales in Asia in 2004, with sales totaling HK$79 billion) US$10 billion.

The data shows why international trade should "jump at this opportunity", Mr Beynat said. "Competition is growing for this vast consumer market. Those who can find the right marketing strategy will win a profitable share."

Riche Monde Hong Kong, a major exhibitor at Vinexpo, describes China as "a massive opportunity" for the luxury brands it represents. "China is the playing field now for brands like Louis Vuitton and Christian Dior, and this is very much the case for wines and spirits as well," said Boris de Vroomen, Managing Director.

He said the Chinese spirits market is "extremely dynamic" with a trend towards high-end brands like Hennessy, Johnny Walker and Chivas Regal.

"The market for premium brown spirits is expanding enormously, representing a total market share of 1.2 - 1.5 million cases per year," Mr de Vroomen said. "Five years ago, it would have been a quarter of that. All the main players are putting a lot of investment behind expanding that market."

Ideal platform


	Boris de Vroomen, Managing Director of Riche Monde Hong Kong, says Hong Kong is an ideal hub for growing luxury brands in the region

Hong Kong makes the ideal platform for servicing these expanding markets, Mr de Vroomen added. "Our regional team operates from Hong Kong because we find it a convenient place to do business and an ideal regional hub. We would not consider moving to Shanghai, for instance, because the infrastructure works so well here in every respect - from booking a flight, to lifestyle enjoyment, to finding good, qualified people to work for you."

He added that it's great for the industry that Vinexpo Asia-Pacific is returning to Hong Kong. "Clearly this is the most important international wine and spirits trade fair."

Over half of the Vinexpo exhibition area will be occupied by a "French area" including a large pavilion set up by Sopexa, the organisation which promotes French food and wine overseas. Other countries participating include Germany, Argentina, Chile, California, Romania, Spain, Italy and Australia.

The Chinese mainland, emerging as an important consumer and producer of wine, will also be strongly represented. "We'll be exhibiting in Hong Kong this year as we believe it will be a great opportunity to make contact with major distributors and sell more of our wine throughout the region," said Louise Jin, Director of Public Relations for Beijing winemaker Dragon Seal.