Sunday 29 December 2013

Towards a Hong Kong wine culture

I believe Hong Kong has great potential. However, although we drink the most wine in Asia (an annual 5 litres per capita), which is double that of the Japanese and five times as much as the Mainland Chinese, we are still trailing far behind other countries—only half of what the Americans drink (and 50% of Americans do not drink alcohol at all for religious and other reasons). Wine consumption in Hong Kong has been increasing ever since our Government abolished wine duties in 2008 but the growth rate is not fast. I, and most of us in the wine industry, drink over 100 litres per year, meaning that each of us is drinking for 20 people! I see two issues in Hong Kong: there are not enough real consumers, and those (I mean real consumers) who drink do not drink enough. The challenge to wine producers, therefore, is how to persuade the average Hong Kong consumers to drink more.

From a marketing perspective, Hong Kong is different from other countries. Whereas in most markets the entry level segment is the biggest, that is not the case in Hong Kong. We have a disproportionately big luxury/investment wine category at 28% by volume. And the biggest market by far is the mid-market, from HK$120 to HK$600 per bottle retail, with 60% (Debra Meiburg MW 2012 Hong Kong Wine Trade Guide). So for consumers who are interested in wine, price seems not to be a major concern. This might be explained by the ‘work hard, play hard’ altitude of most Hong Kong residents. We reward ourselves. Just look at the number of Michelin-starred restaurants in the city, and they are always full.

It seems that, unlike in other cash-strapped cities, Hong Kong people are willing to spend.  So why don’t more people drink? What it boils down to is that people just don’t understand wine. And, we in the industry don’t make it any easier for them. We talk technical stuff like tannin and acidity and we make them feel stupid if they can’t pronounce ‘terroir’ properly. In other words, we put consumers off wine by being too professional.

To make wine truly popular, we need to make it enjoyable. Coke is a highly precise drink with the exact same amount of syrup and pressure in every can, but the company doesn’t bother consumers with this. Consumers enjoy Coke because it is refreshing and they explore the different flavours and brands of soft drink to find their favourite. Starbucks didn’t lecture us about the correct temperature at which to drink coffee when they first came to Hong Kong, and now see how many coffee bars there are here! Wine may be slightly more complicated because of the many grape varieties and producing countries but it’s not impossible to make it simple and accessible. How about light and refreshing, soft and fruity, chewy and spicy, bold and savoury? These are descriptors that any consumer can grasp and imagine.


We don’t have a wine culture but we can develop one. We love food and we understand flavour pairings—look at all the different kinds of chilli sauce we have. So food is the logical key to introduce wine to consumers. But not those stiff, technical pairings that again put people off. Fongyee Walker, a friend and wine consultant based in Beijing, says that the Chinese always describe a meal as being comfortable or uncomfortable. They like enjoying food with friends and without worrying too much about manners. Food and wine pairing gives an excuse for consumers to try wine in a relaxed environment and build their confidence. A Chilean Pinot Noir can be just as good as a Barossa Shiraz to match with stir-fried beef with noodles in black bean sauce. It all depends on the individual consumer’s preference.

We eat Chinese meals most of the time but, sadly, not many mid-market Chinese restaurants offer wine. I hear lots of excuses, but I wish and hope that Chinese restaurateurs will one day soon realise the potential of having wine on the menu. The wine list doesn’t need to be long and winding—six to eight is adequate to start with—but the wine must be of good quality. People may not be able to tell the difference between wine varieties, but they know when a wine is not good. For me, a wine by the glass programme is the ideal way to start. It’s all about quality, not quantity. And in fact a few pioneer outlets have already demonstrated that having wine available not only increases their turnover but also customers’ loyalty.

We didn’t drink cappuccino 20 years ago, yet now the espresso machine is a trendy home appliance. I believe it’s only a matter of time before wine will be a normal item on the dinner table. After all, it’s a much better match for food than lemon tea!

The industry must unite to develop the wine culture. This is the only way to sustain a heathy market, benefiting everyone from producers and importers to restaurateurs and consumers.

7 comments:

  1. I don't think a culture can be developed. I think it is an organic thing that happens over a long time. I also think that wine culture is a broad term which encompasses a wine-producing culture, a wine drinking culture, a wine distribution culture, etc. In my view, the only real modern wine drinking cultures were European and they were tightly tied to wine as a food component. The young Italians, French, and Spanish are deserting that culture in droves. I do not think that wine will ever gain that broad adaptation that coke and beer, for example, have but will always be a beverage for a small, but hopefully, growing segment of the population. The growth ink the US is being driven by young people and I think that is the best long term focus for people who are engaged in selling wine.

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  2. Hello wineORL, Thanks for your comment. I don't want to drill too deeply into the definition of wine culture but I totally agree with you that we should engage the younger consumers in this part of the world so as to expand and build a sustainable wine market. You are right that wine will never be like Coke or beer, but I am confident it could be as popular as latte and cappuccino one day - if we do things right. In Hong Kong 20 years ago, we only had Nestle instant coffee at home and 5-star hotels served only low quality robusta filtered coffee (for a fortune). Now, Starbucks and numerous Italian-style coffee bars can be found on nearly every street corner and the espresso machine is a must-have household appliance. This is what I mean by 'developing a culture'.

    I appreciate your thoughtful comment.

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    1. By the way, I enjoy your writing very much. you can view my writings on wine culture at mowse.blogspot.com

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    2. Many thanks. I read a couple of your articles and they are very informative. I like the charts which are easy to understand, and I'm glad to know that you are a TONG reader! Have a great 2014!

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  3. Hi there, much of what you both say is very true. We export wine to China and Hong Kong and whilst the market was previously either LUXE or real bottom end the consumers are definitely waking up to the huge variety of aromas, flavours and experiences that regional wines have to offer. There will always be a place for top end wines for special occasions but there is also a case for wines at other price points to enhance and complement the amazing diversity of Chinese cuisine. I think the future will be very exciting

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    1. Thanks Nickie, and you are right that there are endless matching of wine and various Chinese cuisine. We are trying our best here to encourage consumers to experiment and more important, to enjoy!

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  4. What I will remember most from this day is the true hospitality that we were shown. While it was great being taken out to nice restaurants and elaborate dinners,
    For more info visit: Your Place to Discover the Worlds Wines

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