Asia is fast becoming the new frontier for the global wine industry, and the entire wine world is sitting up and taking notice. Grape-based wine has never been a large part of Asian drinking culture with preferences leaning to rice based wine, strong white sprits and beer. However with greater exposure to Western cultures and tastes, along with increased global trade, wine is now big business in Asia and only continues to grow.

 

[yellow tail] is Australia’s largest family owned wine brand and makes up 15 percent of Australia’s total wine export each year. It can now be found in nine Asian countries and despite the recent financial crisis, sales and interest in our products has never been stronger.

 

In February 2008, Hong Kong scrapped duties on wine and today there is more fine wine auctioned there than anywhere else in the world. Singapore is also driving scene with more people that ever taking time to wine and dine. Wine has almost become a compulsory part of any good meal.

 

Touring the various Asian countries, it is amazing to see how important wine has become in the modern retail environment. Most supermarkets now have dedicated sections devoted to wine from all corners of the globe and this trend is only going to increase the awareness and drive wine sales to the Asian consumer.

 

[yellow tail], like many Australian wine brands, is enjoying healthy growth in Asia, but that is not to say the next few years won’t be without its challenges. The barriers to entry and acceptance in many Asian countries are still high.

 

Many countries have very high duty rates making wine only obtainable by more affluent consumers. In addition, WITH such a large number of wines available, it is very difficult to maintain a strong shelf presence and stand out from the competition. The consumer faces a very difficult task to choose the right bottle at the right price.

 

Also there is often not an ingrained food and wine culture and consumers in Asia tend not to drink wine with their meals.

 

[yellow tail] has made many inroads to overcoming some of these hurdles. The nature of the [yellow tail] brand and the wine demystification strategy is perfect for Asia as well. It provides strong recognisable shelf presence, and by having such a strong global brand, we can provide the consumer with confidence in the product they are buying and ensure they will be satisfied with the quality and consistency of our product. We also encourage consumers to drink the wine whenever they feel like it, in any way and with any food – in other words, the can make up their own rules and not be governed by the traditions usually associated with drinking and enjoying wine.

 

I have only briefly touched on the intricacies of the wine in Asia. There is plenty more to discuss about the emergence of wine and the challenges the industry faces in these exciting new markets. I would welcome any comments you may have on this topic and until next time, Yum Sing!