Ventures Dialogue

When Hong Kong announced in February that it was removing its 40 per cent wine tax, excitement grew.  It has since attracted auction houses such Christie’s, Bonhams, and Acker Merrall & Condit to flock to the island.  During Hong Kong’s first International Wine Fair, back in August, nearly 9,000 buyers from 55 countries were in attendance, and among them were 45 companies representing Canada.

The tax announcement is one point in a targeted effort to develop Hong Kong into a major wine hub.  Most recently, Rita Lau, Hong Kong’s commerce and economic development minister, said at a luncheon that she expects $1.5 billion USD worth of wine to be imported into Asia by 2017; $870 million USD of which is expected to be brought in by China. As well, the International Wine and Spirit Record predicts that from 2002 to 2011 wine consumed in Asia will rise by 80 percent.  Not bad for a region that already drinks 47 per cent of the world’s spirits, this from an interesting read in International Herald Tribune.

From Acker Merrall & Condit’s first auction in May — and first event in Asia — they sold $8.2 million USD worth of wine.  They returned in November, this time selling $6.7 million USD.  Three hundred collectors and traders were in attendance with 90% of the 950 lots sold.  Christie’s also recently held an auction, the first in seven years, with 245 lots of rare vintages up for sale, this brought in $4.07 million USD.   It was a success considering 94 per cent of the inventory was sold and sales were predicted to be only $3.2 million USD.  Among the sales, a 12-bottle case of 1959 Chateau Latour went for $900,000 HKD.  Another 12 bottle case of 1961 Chateau Latour went for $1.32 million HKD, a world record for the vintage.

Hong Kong has also been busy signing agreements to build up its wine center.  In August Hong Kong signed a Memorandum of Understanding (MOU) with France.  In October, a MOU was signed with the Bordeaux Chamber of Commerce and Industry of France.   This is Hong Kong’s first agreement with a wine-producing region.  Then, a similar pact was signed with Spain, the world’s third largest wine producer, which covers six areas of wine related businesses.  As a side note, since removing the tax, wine imported from Spain has increased 49 per cent.

So, don’t miss out on a chance at auction.  Acker Merrall & Condit is hosting another event in March.  Check out www.winesearcher.com for a listing of auctions, brokers, retailers and wholesalers in Hong Kong.

You may also want to start planning early for Hong Kong’s International Sprit and Wine Fair November 4-6, 2009.

Photo provided by katiew