Hong Kong - Asia's Top Wine Centre

The Hong Kong SAR Government completely removed wine and beer tax from the Budget released in February, which creates a strong foundation for Hong Kong to emerge as an international wine centre. The local wine and beer industry has reacted very positively to the news. Some wine retailers such as Park'n' Shop have already reduced the price of red wine by up to 80%. A spokesman for Wellcome Supermarket said that Wellcome will also lower the price of its wines and spirits. Likewise, Beer Alliance, which represents 80% of the local beer market, anticipates that beer prices in Hong Kong will be cut by about 30 cents per can.

The majority of trading in premium red wine is conducted in London and New York, where transactions are worth some HK$9.03 billion and 20% to 25% of transactions are now from the Greater China region. In England, there are currently about 500,000 bottles of red wine owned by Hong Kong in warehouse storage.

Mr. Tse Ho Yu, Marketing and Operation Manager of Chateaux Management Group, a wine investment management company, explained that the demand for red wine in Mainland China has soared in recent years, where more and more people are now investing in red wine. He predicts that red wine consumption could rise from 2 million bottles this year to 50 million in 2017. Mr. Tse also said that the recent tax cut could help establish Hong Kong as a wine warehousing and auction centre.

The local wine industry will soon meet with the Government to discuss how to position Hong Kong as an Asian wine centre. To support this goal, the Government will dedicate resources to promote the local wine industry and encourage wine-related enterprises to start new businesses in Hong Kong. Industrial experts are predicting that 3 years after Hong Kong has become an Asian wine centre, it even has a chance to overtake Europe and America. Following the recent tax cut, prices for fine wine in Hong Kong are 30% lower than London. At the same time, as the Renminbi gains value and Hong Kong continues to gain prestige as a place for branded products, more customers from Mainland China will come to Hong Kong to buy wine.

This new policy will not only benefit the local beverage industry and tourism, but also the wholesale and retail industry. Barriers to entering the industry have been lowered. Now, opening a wine-related business only requires applying for a business registration certificate. It's likely, then, that many foreign wine traders will use Hong Kong to test the China market, which will further contribute to a vibrant and competitive industry.

Sims will spare no effort to select fine wine for local customers.

Source: http://hm.people.com.cn/BIG5/42273/6882409.html