Food
It is 10,000km from Bordeaux to Hong Kong but for two decades now English fine wine merchants have helped Asian wine lovers solve the problem of distance. Berry Bros & Rudd and Farr Vintners were among the earliest to establish full-time businesses in Hong Kong in the late 1990s, alongside a handful of Chinese merchants. A decade later, market deregulation and the abolition of duties were catalysts for other European merchants to set up shop.
Although relations have been convivial, competition is fierce. Some reported being disappointed by their entry into Hong Kong but those who endured were rewarded. Imports of wine in 2015 reached HK$10.8bn ($1.4bn), more than six times the value in 2007, according to research from the Hong Kong Trade Development Council. Euromonitor International forecasts the Chinese market will grow 7 per cent in volume each year to 2020. Today, well over a dozen of Hong Kong’s 350 importers are English and include some of the most prestigious brands.
This healthy market, bursting with skilled local merchants who have access to the world’s best wines, begs the question of whether Hong Kong still needs England’s experts.
For collectors, the argument for trusting the English is compelling. The top merchants have reputations and relationships that extend over more than 300 years. BBR, which was founded in 1698, holds royal warrants for supplying wine to the Queen and Prince Charles. Justerini & Brooks, founded in 1749, has an office in Hong Kong and holds a royal warrant. These merchants gain privileged access to wine at key times, such as when en primeur vintages (wines before they are bottled) are put on sale.
Amanda Longworth, BBR’s head of marketing and wine services in Hong Kong, says the company’s reach extends beyond en primeur campaigns to unique fine wine parcels (one-off sales): “BBR has more than 9m bottles in warehouses in the UK. This opens up a world of wines generally unavailable in Hong Kong.”
“Buying from a UK merchant is like being a kid in a candy store,” says Mathieu Thibaut, Asia general manager of merchants Corney & Barrow.
Hong Kong’s wine collectors are significant players in the global luxury market and, according to a survey for the Guide to the Hong Kong Wine Trade, they represent some 37 per cent of merchants’ sales. Jo Purcell, managing director for Asia at Farr Vintners, says collectors represent the bulk of her business: “Our private customers are big buyers in their own right, some bigger than many wholesale accounts.”
Private collector Roland Muksch buys more than half of his wine from English merchants. “The range of wines on offer is broad and there is a lot of depth in vintages,” he says. It is also an inducement to him that the merchants will keep his wines in their UK “cellars” (bonded warehouses) for years and that their online platforms, such as BBX (Berry Brothers Exchange), facilitate trading.
The weak pound makes it especially attractive to buy from Britain: “The UK offers a price advantage of around 20-40 per cent,” Mr Muksch estimates.
Ms Purcell concurs: “For volume buyers who are cellaring there, long-term, purchasing from an English merchant makes economic sense.”
Cru World Wine benefits from the buying power of its global network, which has its roots in England. “UK merchants bring rich history and depth of relationships that are very helpful to Cru when it comes to sourcing and allocations,” says Sabrina Hosford, Hong Kong-based global head of retail sales and marketing for the online platform.
Well-kept collections and access to en primeur wines are one thing but English merchants lack the advantage of speed. They can manage weekly or monthly air freights upon request and for a fee but sea shipments can take four to six weeks, a delay that deters some buyers. Hong Kong-based merchants have overcome this obstacle with local logistics and a wider selection of wines to hand.
Jason Ginsberg, director at merchants Ginsberg+Chan, says: “Almost all our customers work with the UK trade, but they come to us when they need wines to drink immediately.”
His clients appreciate the personal touch: “Local and regional customers like dialogue, tips on where to eat and what to drink and they are always looking for deals.”
