Chinese eyes on fair share

Hong Kong is a major force in the wine trade.

IT wouldn't be difficult to build a theory of international power politics around wine. 

For centuries, England ruled the waves and London was by far the world's most important wine centre.

British aristocratic preferences for claret, hock and bubbles drove the successful wine industries of Bordeaux, Germany and Champagne.

The Brits were instrumental in the founding and growth of Portugal's port industry, the sherry industry in Spain and for the revival of the sweet, fortified wines of Sicily. Away from the gentleman's clubs, working-class tastes for port and sherry even had a major influence on the fortunes of the Australian industry until well after World War II.

Then, from the 1980s on, New York challenged London's pre-eminence as an international wine clearing house and American tastes and dollars had, and are still having, an enormous influence on the styles of wines produced and wine prices round the globe,

Now, it seems, it's China's turn.

Since abolishing wine duties last year, Hong Kong has taken over from London and New York as the top international wine market with English auction houses like Sotheby's and Christies and US wine merchants like Acker Merrall and Condit all vying for a piece of the Asian action.

Decanter magazine recently reported on a Sotheby's two-day wine auction in Hong Kong that fetched $US7.9 million, some 28 per cent above the highest pre-sale estimates.

At the auction, a world-record price of $US93,000 was paid for an Imperial (6 litres) of 1982 Chateau Petrus, $US93,700 for a 12-bottle case of 1995 Domaine de la Romanee-Conti and $US85,000 for a case of the DRC 2002.

They're prices that would relegate Penfold's Grange to a Hong Kong bottleshop's cheap-and-cheerful remainders bin.

The Decanter report quoted Serena Sutcliffe of Sotheby's: "Hong Kong has become Sotheby's most important wine centre, ahead of very successful auctions in New York and London".

This reflects the Hong Kong Government's determination to set the island up as Asia's leading wine import and re-export hub, not only for wines into mainland China but into the broader markets of Japan, Korea etc. As part of this strategy, they reduced the duty on alcohol imports from 30 percent to zero 18 months ago and last year hosted their first International Hong Kong Wine and Spirit Trade Show.

Their second show is being held this year from November 4 to 6 and reportedly has attracted double the number of international exhibitors, including a large contingent from Australia. For the first time, with the support of the Department of Economic Development, and under the banner of Wine Australia, seven vineyards from Tasmania -- Sugar Loaf Ridge, Spring Vale, Tamar Ridge, Pirie Estate, Frogmore Creek, Stefano Lubiana and Domaine A, for which China is already a major market.

Sharon and Michael Vischaki's Panorama Vineyard already exports substantial quantities of their top reserve wines to mainland China and, with Tasmanian truffles, oysters, crayfish, abalone and salmon also gracing restaurant tables in Hong Kong, the mainland and Macau, it's hoped the trade show will help grow and consolidate Tasmania's position in the region.

Another potential coup for the Tasmanian industry is for Launceston to host the 12th International Cool Climate Wine Show in 2011, a show that has been held annually at Red Hill on the Mornington Peninsula since its inception.

The show attracts about 600 entries from those Australian regions, New Zealand, France, Chile and the US which meet the show's cool-climate latitude and temperature criteria -- a minimum 37.5 degrees of latitude south (north) and a maximum mean January (July) temperature of 19C.

Tourism Tasmania has been one of the show's major sponsors for a number of years and the organisers last week held discussions on the 2011 event with the Tasmanian Wine Show Committee, Wine Industry Tasmania, the Launceston City Council and the Department of Economic Development, Tourism and Arts seeking funding of $20,000.

If they get it, the show is on and should prove a wonderful international lift for Tasmania's wine profile and a welcome tourism boost for Launceston.