New Zealand Wine sales to Hong Kong jump

New Zealand's wine exports to Hong Kong grew 30 per cent in the six months to June, despite the global gloom, and the region has huge potential for further growth, says a Hong Kong trade executive.

"Even last year, when everywhere was suffering from the financial crisis, New Zealand wine exports to Hong Kong rose 8 per cent amounting to US$5.4 million (NZ$7.4m)," said Benjamin Chau, deputy executive director of the Hong Kong Trade Development Council.

Hong Kong could provide the springboard Kiwi winegrowers needed to significantly boost wine sales in the region, he said in Auckland last month.

Since the Hong Kong government abolished duty on wine in February 2008, its wine imports have risen 80 per cent. That figure includes a sharp rise out of New Zealand.

Central to growing the Kiwi trade has been attendance at the annual Hong Kong International Wine & Spirits Fair. In 2008, eight Kiwi wineries attended; last year that number had grown to 40.

Wine exported to Hong Kong is not just for local consumption – some is re-exported to other Asian countries, particularly China.

"Among all Asian regions and countries, [our] per capita consumption of table wine is highest," Mr Chau said.

"Annually, every person in Hong Kong consumes 3.7 litres of table wine."

By comparison Chinese consumers drink 0.38 litres of wine a year a head, but China is the world's fastest-growing market and every year a further two million people reach middle class levels of disposable income.

"Chinese used to be heavy drinkers – we consumed more beer and strong liquor – but now people are more health conscious and there is exposure to the Western World.

"They would like to adopt the foreign way of life so this is why more table wine is being consumed, particularly red wine." Total wine consumption in China would double within three or four years, Mr Chau predicted.

"For the entire Asian market we expect the market will grow at a rate of 10-20 per cent every year."

New Zealand Winegrowers chief executive Philip Gregan said there had been a lift in total Kiwi wine exports to Asia – increasing from less than $10m annually five years ago to more than $60m today.

"It wouldn't surprise me if they were $100m during year end next year."

Another advantage to selling into Asia was that consumers preferred a slightly different mix to the sauvignon-dominated markets elsewhere.

"We can sell more red wines in there, more pinot noir, more syrah, more merlot, more cabernet sauvignon. It's a great opportunity for some of our other producers."