Ventures Dialogue

A positive reaction to the wine duty exemption and various other wine industry supportive measures have seen Canada-based Wines to Go Ltd enter Hong Kong’s vibrant wine industry with the opening December 17 of its first retail shop in Hong Kong, located in the Mong Kok East MTR station concourse on the East Rail Line.

Wines to Go Ltd aims to bring a fresh and exciting selection of fine wines from around the world into Hong Kong and the Asia region. The company’s goal is to open up the market to wines other than Bordeaux and to let consumers discover other quality wines at competitive prices in an open and attractive space where wines are featured based on their style and taste profiles.

The company’s first wine shop in Hong Kong is the first such licensed premises to operate inside the MTR station. The wine retailer is endeavouring to present wine in a user-friendly location to capture passing young professionals who have a burgeoning interest in wine. The company plans to further expand its business in Hong Kong by opening several more shops along the MTR lines in the next 12 months.

President of Wines to Go Ltd, Mr Leo Baduria, said, “The trend in wine appreciation in Asia continues to grow and will affect the global wine industry in the coming decades. Our decision to expand Wine to Go Ltd into Hong Kong is the result of the rapid growth and promising prospects of the city’s wine industry. Hong Kong provides the best combination of efficiency, world-class infrastructure and sophisticated culture, the key determinants behind our investment in this city.”

Commenting on the strategic regional role of its Hong Kong operation, Mr Baduria said, “Hong Kong remains the best hub in Asia for the wine market because of its highly efficient systems and zero duty on wine. We will keep Hong Kong as our regional headquarters as we grow, enabling us to manage our business operations in other cities in Asia from our hub in Hong Kong.”

Officiating at the opening ceremony of Wines to Go Ltd’s first retail outlet in Hong Kong, Associate Director-General of Investment Promotion at Invest Hong Kong, Mr Charles Ng, warmly welcomed the company’s establishment in Hong Kong. He said, “We are delighted to have a Canadian wine retailer expanding its business into the Hong Kong market. The presence of Wines to Go Ltd not only enriches the portfolio of the wine industry in our city, but also enhances our position as a regional hub for wine-related businesses. Our investment promotion teams stand ready to provide further support and assistance to Wines to Go Ltd in its future business expansion here and regionwide.”

Mr Ng also said that since the exemption of wine duty in early 2008, many wine sector-related companies have set up or expanded their businesses in Hong Kong to provide support in areas such as trading, storage, distribution, auctions, etc. He noted that the new policy has also brought benefits to related economic activities such as tourism, catering and hospitality and exhibitions.

Photo by Robert S. Donovan

HSBC has decided to relocate the group’s Chief Executive Michael Geoghegan’s principal office from London to Hong Kong.  The relocation is a  significant move for the bank, highlighting Hong Kong’s position as the focal point in Asia for global finance.

Hong Kong’s Chief Executive Donald Tsang welcomed HSBC’s decision, and described it as “a clear and timely ‘thumbs-up’ for Hong Kong as a stable, reliable and vibrant base for the banking industry in the wake of the global financial tsunami.” He said, “I am encouraged by HSBC’s commitment to Hong Kong and its confidence in our city as the best platform for tapping opportunities in emerging markets in Asia and, in particular, the Mainland.”

The relocation reflects the focus of HSBC towards emerging markets, and it also strengthens the unique and enduring bond between Hong Kong and HSBC.

The Ontario Chamber of Commerce (OCC) is inviting all Ontarians to join in a grassroots movement to shift focus from today’s challenges to tomorrow’s potential by celebrating the advantages offered in the province.

Pointing to the many people who have come to Ontario from other parts of the world, to work or study, to invest, or to raise a family, the OCC has identified the various reasons why Ontario is a ‘magnet for the world’. 

It’s inviting all Ontarians to share their stories about Ontario on their website.  Stories are being gathered today in Toronto and at subsequent events throughout the province.

With the opening of its $90 million (USD) technology center in Shanghai on March 6, The Coca-Cola Company (Coke) also announced it will invest $2 billion in China over the next three years on bottling plants and distribution infrastructure, sales and marketing, and research and development. 

Over the past 30 years, Coke has invested $1.6 billion in the Chinese Market and has good reasons for doing so.  China is Coca-Cola’s fastest growth market and its third biggest market (after the US and Mexico) says Muthar Kent, Coca-Cola’s chief executive officer in the article “Coca-Cola to invest more than $2 bln in China over next three years” from SINA English.  The article noted globally, Coke posted a five per cent growth in the fourth quarter of 2008 with both sparkling and still beverages, but in China, it posted a 29 per cent gain (19 per cent for the year as a whole).  This represents the largest percentage increase in more than five years (21 consecutive quarters).  Compared to Coke’s North American market, their annual report showed that sales declined by 1 per cent in 2008.  

This $2 billion investment is not the only big move Coke is pursuing in China.  Last September, Coke announced its intention to purchase China Huiyuan Juice Group Ltd, China’s leading pure juice maker. China Huiyuan captures about 42 per cent of China’s fruit juice market. The offer is not final, as according to Anti-Monopoly laws, the deal has to be approved by the Ministry of Commerce.  While there are some tensions rising due to nationalistic pride, because if this deal goes through, it would be the largest acquisition of a domestic company by a foreign firm, a decision is expected by the end of the month.

Coke is not the only beverage giant to show an interest in China. Continue reading ‘Chinese drinks market a big draw for Coke, Pepsi and other foreign firms’

French fries smothered in cheese curds and gravy … aaahhhh … poutine, a Canadian classic.  And now available in Hong Kong thanks to a Canadian company and four ambitious Canadians.

Despite what its name may suggest, New York Fries is 100% Canadian.  With the head office in Toronto, the company has franchise locations throughout malls in Canada, as well as in Korea and the U.A.E.

Partners Ricky Takasu, Thomas Lau, Ray Fung (on Right) and Ricky Lau have high hopes for their first store and big plans for the region.  The maiden store is in Harbour City, a posh shopping mall in Kowloon which caters to tourists and ten attached office towers.  Located just down the hall from a Roots store, New York Fries offers a view of the harbour, a private seating area, and poutine that looks and tastes just like the poutine at home.

Ricky and Thomas told me that they expect many of their customers will be like them:  return immigrants from Canada who enjoyed New York Fries in places like Vancouver and Toronto, and who will be excited to have a taste from home right here in Hong Kong.  In their 30’s, they explain that many people in their generation left Hong Kong, the place of their birth, before the handover to China in 1997, but have since returned.  As a cross-Canada brand, no matter where they lived, they’ll know New York Fries.

“Canadian products mean a sense of quality to people in Hong Kong,” adds Ricky.  With the economic growth in Hong Kong and mainland China, people here have raised their expectations for food according to Ricky and Thomas.  They want western style food and are willing to pay for it.  The origin of ingredients then is a fair question.  The cheese curds make the trip from Quebec while the potatoes are grown in the United States.  Ricky and Thomas explain that they tried to source Canadian potatoes but were not able to achieve the volumes they require.  They plan to try again. 

Ricky and Thomas add that for them, still Canadian passport holders, it’s “nice to have a connection to home” in their business.

Plans for the company are ambitious.  They expect to open two or three more locations in 2009, and up to 10 in five years.  The stores will serve the 7 million Hong Kongers as well as the 29.5 million visitors to Hong Kong each year, mostly from mainland China according to figures from Invest HK.  Having succeeded in a bid for the franchise over roughly 6 other groups, Ricky and Thomas are confident they have the skills and commitment to meet these targets.  The partners also have the rights to Macau and the option for China and Taiwan.

From across the table at the Lobster Lounge in my hotel over a cup of tea, Duncan Mavin, National Post’s Asia Business Correspondent, found himself on the other side of the questions for a change.

Businesspeople in Canada interested in learning more about the region, need only read Mavin’s articles to learn about the latest economic news in Asia, business people or politicians in the news, or cultural insights.  VENTURES has linked to his stories many times and so I thought it a good opportunity to meet the guy behind the byline.

Hong Kong’s distance from the National Post head office in Don Mills, Ontario changes the way Mavin works.  On one hand, it means that Canadian stories that wouldn’t catch the media’s interest at home, are newsworthy simply because they’re happening on this side of the world.  That’s great for Canadian companies whose corporate announcements often earn more ink here. Continue reading ‘Canadian reporter talks about filing from afar’

“Canadian products mean a sense of quality to people in Hong Kong.”  Ricky Takasu and Thomas Lau (L to R), two of four Canadian partners who’ve opened the New York Fries franchise in Kowloon at one of the highest profile malls in town, Harbour City.

Watch for their full story in the weeks to come.

Every Hong Kong resident likely eats Canadian food every day and doesn’t even know it.  That according to The Canadian Chamber of Commerce in Hong Kong.  Canadian beef is visible on the shelves, having never been subject to a ban in Hong Kong.  And one of the up-and-comers is ice wine.  On a quick foray into a wine store I spotted two Ontario wines:  Mission Hill and Pillitteri.  Grocery stores here are filled however with staples of the Hong Kong diet stamped with the maple leaf – vegetable and canola oils, ginseng, and soy sauce and tofu made from Canadian soya beans, to name a few.

In fact, Amoy, the number one selling soy sauce in Hong Kong, uses Canadian soy beans and is planning to market this advantage according to John Zimmerman, Consul & Senior Trade Commissioner with the Consulate General of Canada.  As Zimmerman explained, Hong Kong people know that they “can trust our water, air and soil” and are willing to pay extra for a safe, high quality product.

The significance of our relatively strong safety record hasn’t been lost on the Canadian government.  Federal Minister of Agriculture and Agri-Food, Gerry Ritz, will visit Hong Kong on Thursday this week to further promote Canada’s commitment to food safety.

Andrew Work of The Canadian Chamber in Hong Kong emphasized that Canadian success in the food and beverage industry doesn’t end there.  As he gave me a tour of the SoHo district in Hong Kong (SoHo stands for SOuth of HOllywood Road although you have to walk ‘up’ to get there from Hollywood Road or use the covered escalators called by the Guinness World Records the world’s longest covered escalator), he explained that Canadians are strong players in every level of the food and beverage industry. 

From agri-food supplies, to restaurants and hotels, Canadians have a very strong presence in Hong Kong.  Later this week I’ll report on my exploration of the lively Lan Kwai Fong district but in the meantime, Work pointed out a few of the Canadian owned restaurants in his neighbourhood. 

Some of them are fairly obvious ( ie. Canucck) while others prefer to be ingognito (ie. Soho Spice).  In fact, in our tour of just a few short blocks, Andrew was able to point out more than half a dozen Canadian eating hotspots and the journey had just begun!

Stay tuned as the Canadian taste tour continues in Hong Kong later this week.  Tomorrow in fact, I’ll be speaking with an entrepreneur whose fast food restaurant just opened to great acclaim in the city.  Any Hong Kong resident who has ever lived in Canada, knows this chain well from its faithful position in malls from Pickering to Timmins.  You’ll never guess who ….

My first full day in Hong Kong has been a busy one.  Shuttled from one interview to the next, I’ve had the fortune of meeting many nice people, all of whom wish to see a greater number of Canadian businesses active here in Hong Kong.  Over the next few days I’ll share some of their insights.

But first, I’ve just come from the Hong Kong Young Fashion Designers’ Contest 2009 and what a show it was!  New and innovative designs presented by young local talents to a symphony of lights and music – it was an amazing show.  19 finalists were selected from nearly 200 entries to showcase their collections in front of a star studded group of judges from the industry and the media.  There was much awe among fashion officionados that organizer, the Hong Kong Trade Development Council (HKTDC), was able to entice Ennio Capasa, a well known Italian fashion designer, and Japanese fashion designer Keita Maryama, to join the panel.

The show was divided into three categories:  Casual & Jeans-Wear Group, Contemporary Day-Wear Group and Party & Evening-Wear Group.  In addition, a special presentation was made by ex-winners and finalists of the Hong Kong Young Fashion Designer’s Contests from previous years.

It was a lavish display of texture, colour and sensuality and unlike anything I’ve seen before.  It had every element of a professional runway show that you might find in any of the fashion capitals of the world. It’s hard to believe that most of the designers are students just at the beginning of their careers.  If the excitement on the faces of tonight’s winners is any indication, these talented young designers hope the ranks of past winners who have created their own labels or become leading designers in the local fashion and garment industries.

HKTDC World SME Expo and Inno Design Tech Expo (IDT Expo), two international shows organized by the Hong Kong Trade Development Council (HKTDC) and designed to provide insight and information for small and medium-sized enterprises, were held successfully at the Hong Kong Convention and Exhibition Centre (HKCEC) last week.

The two expos attracted some 600 exhibitors worldwide, including the Chinese mainland.

Under the theme of “Supporting SMEs, Creating New Opportunities,” SME Expo featured a wide range of practical services at its Solutions Hall. Prominent business leaders and academics were invited to speak at a series of SME forums on topical issues related to the current economic crisis. One of these experts was from Canada — Susan Sheehan, vice president of client business and sustainability for motum b2b.

Chinese Mainland and Hong Kong entrepreneurs must strive to lead in sustainable development and corporate social responsibility if they want to develop global brands, said this Canadian brand development specialist.

“It is not about talk. It is about actions and the time to get serious is now,” Susan Sheehan told an audience of 200 international businessmen at World SME Expo 2008 here Friday. “Brands that align with sustainable development have to build or rebuild the way they do business from the ground up, not simply plant trees. That is the basis of building a genuinely great brand.”

“Asian leaders view brand building as strategically critical to moving up the global value chain and increasing either revenues of profitability,” she said. “They are right but future brand building will not be business as usual. The party is over. Focus on substance: develop brands based on customer needs and tastes, and ensure the goods and services are safe, durable and reliable. Lead by associating yourself only with things that harm neither people nor the natural environment at home or abroad.”

“New public policy approaches are emerging in the United States, Europe and possibly globally to advance sustainability in new ways.”

To request a copy of her speaking notes and accompanying PowerPoint^TM presentation, please email.

About motum^® b2b

motum b2b is a strategic and tactical business-to-business and sustainability marketing firm, acting as a gateway between North American and Asian markets. Based in Toronto, Ontario, Canada, the company has a proven track record working with global brands such as BASF, Toyota Industrial Equipment, Fluke Electronics, Tembec, Canadian Standards Association and BPA Worldwide, as well as helping smaller brands to establish themselves in new markets where they thrive.

Photo – Susan Sheehan, Vice president, Client Business and Sustainability, motum b2b presenting her insights at the World SME Expo 2008 in Hong Kong

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