One of Hong Kong's longest-running wine and spirits events finds a renewed push for Chinese spirits following major tax cuts.
Run by the Hong Kong Trade Development Council (HKTDC), the Hong Kong International Wine & Spirits Fair returns November 7-9, continuing a hybrid format introduced last year.
Now on its 16 edition, the wine and spirits fair will gather over 600 exhibitors from 20 countries and regions - with South African participants joining for the first time.
Alongside the showcase of a variety of alcoholic beverages from all over the world, the event will introduce a new panel and awards program and put a spotlight on Chinese talent
Masters of Wine, sommeliers, and industry experts are also expected to host conferences, tasting sessions, and seminars.
Boost to spirits trade
In the annual Policy Address of the Hong Kong chief executive in October, John Lee announced a significant import duty cut on high-end liquor priced above HK$200 (around US$26) from 100% to 10%. Meanwhile, the duty rate for imported liquor worth HK$200 and below will remain unchanged.
This decision, the chief executive said, referred to the success of exempting duties on imported wine, which began in 2007 and eventually made the city one of the world's most important wine trade centers.
In the decade ended 2018, Hong Kong's wine trade value increased by five-fold to HK$15 billion (US$1.9 billion) from around HK$3.5 billion (US$450 million). This growth, however, did not rub off as much in the spirits segment, which only grew by around HK$5 billion (US$640 million) in trade value to nearly HK$10 billion (US$1.2 billion) in the same period.
"The market for Chinese baijiu and wine is thriving, especially following the recent proposal by the Hong Kong SAR Government to reduce taxes for high-end liquor. This year's fair brings together more than 600 exhibitors, with a notable increase in those showcasing Chinese baijiu and spirits around the world," noted HKTDC deputy executive director Sophia Chong in a statement.
HKTDC's research arm estimates that the latest duty cut on high-end liquor will provide between 24% and 50% tax burden relief (particularly operating costs) for traders of brandy, whiskey, and other spirits in Hong Kong.
In 2023, Hong Kong spirits trade posted US$14 billion in total value, ranking third among Asian peers. Singapore led the market, posting total trades worth US$46.6 billion, followed by mainland China at US$40.6 billion - both capturing almost half of the regional spirits trade.
So far this year, spirits exports in Hong Kong totaled around HK$3.6 billion (US$460 million) in value, growing by 16% from the same seven months ending August last year. Spirits imports, meanwhile, increased by nearly 3% to HK$4 billion (US$500 million) in the same period.
A seminar at the HKTDC fair will further delve into Hong Kong's taxation system and outlook for the city's spirits market.
Capturing Gen Zs
The annual Wine Industry Conference - one of the many highlights of the HKTDC wine and spirits fair - is set to discuss consumption trends among the present generation of young drinkers.
Master of Wine Debra Meiburg will be hosting this year's conference, which will also explore ways to attract buyers among Generation Z and millennials.
Globally, fewer people are taking up alcoholic beverages, particularly among the younger generation. In China, in particular, legal-age drinkers among Gen Zs are shunning wine, according to findings from a recent IWSR and Wine Intelligence research.
These people, born between 1997 and 2012, tend to consume other beverages such as cocktails and ciders, that are often promoted online by influencers, according to the research.
This trend is also unlike what transpired among the millennials (born between 1981 and 1996) who helped boost wine imports to China a decade ago.
Baijius and table wine-in-can
The 2024 fair will highlight a diverse range of wines and spirits worldwide, including Chinese baijiu, Japanese sake, and Irish whiskey.
The spotlight will be on Chinese Baijius, including Zhenjiu from Guizhou and the sorghum-based Fenjiu from Shanxi.
Multi-awarded sake, the Ukishiro Sakitama Kodaishu by Yokota Sake Brewery, and a low-alcohol sake by the Hakutsuru House - the Hakutsuru Blanc - will be featured.
A highlight of the whiskey category is the globally recognized triple-distilled Clonakilty Single Pot Still Irish whiskey.
Additionally, Vinette Premium Canned Wines from South Africa will showcase their innovative and global award-winning table wine in aluminum cans.
Chinese trailblazers
HKTDC is debuting a new panel, "Sommelier's Picks," at this year's fair, with Reeze Choi, who came close to winning the prestigious 2023 Best Sommelier of the World contest. Choi was second runner-up and the first Chinese finalist in the contest organized by the Association de la Sommellerie Internationale.
Meanwhile, the first ethnically Chinese Master of Wine, Jennifer Docherty, will host a blind tasting of six fine wines at the event.
Stef Yim will also join the event, presenting his Azienda Agricola Sciara 760 Metri Etna Rosso. The Hong Kong-born winemaker set up a winery and vineyards at the active Mount Etna volcano in Sicily, Italy, earning him the monicker "Volcano Winemaker."
The international fair will also debut a new industry awards program, Hong Kong Best Spirits Awards 2024. The semi-final and final rounds of the inaugural Hong Kong International Mixology Showdown 2024 will also be hosted.
On the last day of the event, which will be made open to the public, Lan Kwai Fong vendors will offer a special cocktail - featuring passion fruit and the Japanese Akori Gin - at the dedicated Wine Fiesta zone.
Last year's HKTDC wine and spirits fair drew almost 10,000 visitors, mainly from Southeast Asia, and featured about 500 exhibitors from 17 countries and regions. "Overall, participation from mainland China has increased by 60% by scale compared to the previous year," HKTDC's Chong said about this year's event.
The event's 16th edition will be physically held at the Hong Kong Convention and Exhibition Centre while an online showcase will be shown live via Click2Match's EXHIBITION+ platform.
