Wine in Hong Kong, China

PROSPECTS

Sake sees growing popularity

There was increased demand for sake in 2018 with consumers becoming more aware of the varieties, with unit prices going up due to the introduction of premium sake. Premium sake is sold increasingly in higher end supermarkets and food/drink/tobacco specialists, with products with a good Chinese translation of the product name proving popular.

Despite the popularity of French wine other wine origins gaining ground

According to trade interviews, French wine is of a reasonable quality for products priced above HKD400, but the quality is not consistent below that price. Therefore, most consumers prefer other regions when it comes to lower priced wine, with consumers looking for value for money.

Internet retailing gaining momentum

Internet retailing is gaining popularity in Hong Kong for wine with HK Liquor store and The Bottle Shop being examples of successful online stores. These retailers have a cost advantage over store-based retailers which are faced with spiralling rental costs.

COMPETITIVE LANDSCAPE

Martini Vermouth Dry extends lead in fortified wine and vermouth

Vermouth is the largest category in fortified wine and vermouth due to its widespread application in cocktails. Martini Vermouth Dry extended its lead in the category in 2018, which was partly due to its widespread usage in cocktail bars which has helped to increase brand awareness among consumers.

Moët Hennessy leads Champagne

Despite the fragmented nature of the competition within Champagne, leading player Moët Hennessy Diageo Hong Kong Ltd continued to record solid growth in 2018 with its Moet & Chandon and Dom Pérignon brands attracting casual drinkers. The strength of Moët Hennessy Diageo is mainly due to its alliances with a variety of bars and restaurants in Hong Kong, and its wide range of events, while its products are also popular through the off-trade too with its brands being well-known to consumers.

Gallo retains lead despite challenges for Californian wine

In October 2017, severe wildfires swept through California’s wine-producing regions and this was followed by further wildfires in 2018, which has had a negative impact on wine production in the region. Replacement vines will not produce for several years and the soil quality has also been affected.

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