Hong Kong’s lower duty rate for liquor, and its expected impact on the spirits trade, was one of the main topics of conversation at this year’s International Wine & Spirits Fair.
“The slashing of liquor tax is excellent news, demonstrating to the world that Hong Kong is dedicated to establishing itself as a trading hub for premium wines and spirits in Asia,” said Michael Scully, founder of Irish whiskey maker Clonakilty Distillery Ltd, a first-time exhibitor.
Mr Scully was expecting an initial order of around €100,000 (~HK$822,000) from one distributor he met at the Fair, who operates in Mainland China and Hong Kong.
“We believe the tax reduction has significantly increased the interest of buyers,” Mr Scully said.
The lower liquor rate was announced in October as part of the Chief Executive’s Policy Address. The new initiative aims to boost the high-end spirits trade as well as the development of other related sectors, including logistics and storage, tourism and fine dining.
Speakers at one seminar on Hong Kong’s spirits market noted that many businesses lowered prices immediately after the lower duty rate was announced, stimulating demand for high-end spirits.
More than one quarter of exhibitors brought spirits to the Fair, said Sophia Chong, Deputy Executive Director of the Hong Kong Trade Development Council (HKTDC), the Fair’s organiser.
“We are glad to see that so many exhibitors and buyers interacted with other, seizing the opportunities brought about by the new policy,” Ms Chong added.
This year’s Fair showcased a wide selection of baijiu – including Moutai and Zhenjiu from Guizhou and Fenjiu from Shanxi – as buyers and exhibitors sought to make the most of the new policy.
Hong Kong distributor Wines up Shoppers Group reached a strategic agreement with high-end baijiu specialist Guizhou Jin Jiao Liquor Industry (Group) Co,. Ltd. at the Fair.
Baijiu holds significant potential in the global Chinese market, said Wines up Shopper CEO Matthew Lun.
“We plan to capitalise on the Government’s recent reduction in liquor tax to tap into this market and promote Chinese baijiu, a traditional cultural product, throughout Southeast Asia and beyond,” he added.
The Fair also featured a variety of other alcoholic drinks, including Old World wines from Europe as well as New World wines from Australia, South Africa and the United States.
Czech winery THAYA vinarstvi, spol. s.r.o., another first-time exhibitor, connected with buyers from ASEAN markets as well as Mainland China, Hong Kong, India and Japan at the Fair.
The company has just started exploring the Asian market, said THAYA's Chief Operating Officer, Ing. Vit Travnicek.
“We participate in eight wine exhibitions each year, and this one stands out as the most international,” he added.
This year’s Fair hosted more than 8,200 trade buyers from 61 countries and regions. This included increased participation from some large ASEAN markets – including Indonesia, Malaysia, the Philippines, Thailand and Vietnam – as well as Mainland China, Japan and Taiwan, among others.
A public day on the last day of the Fair – which featured master classes, training sessions and seminars – attracted more than 10,000 visitors.
