SA wine exporters tap into lucrative Asian market

South African companies are increasingly tapping into the lucrative Asian wine market, with last year’s Hong Kong International Wine & Spirits Fair attracting 19 local companies. According to Benjamin Chau, deputy executive director of the Hong Kong Trade Development Council, since the removal of all duty-related customs and administrative controls for wine import in February 2008, Hong Kong has developed into a wine trading and distribution centre for the region, particularly the Chinese mainland. “And Hong Kong is the springboard to the larger China and Asia markets.” According to Euromonitor International, wine sales in Asia amounted to $70.7 billion or 5.9 billion litres in 2012, up 64% and 45% respectively compared to five years ago. For 2013-2017, wine sales are forecast to grow 11% per annum in value terms and 8% per annum in volume terms. Sales in China are more spectacular, with an amount of $40.5 billion or 4.3 billion litres in 2012, up 125% and 55% respectively compared to five years ago. For 2013- 2017, sales are forecast to grow 17% per annum in value terms and 10% per annum in volume terms. Chau said last year just over 50 companies from across South Africa had taken part in the various fairs and shows in Hong Kong but he was hoping this figure would grow. “We are working hard to grow the number of participants from South Africa at the fairs and we are definitely seeing an increased interest as exporters realise the value of Hong Kong in accessing China.” INSERT & CAPTION Hong Kong has developed into a wine trading and distribution centre for the region. – Benjamin Chau