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Line of Duty: the HKTDC Wine & Spirits Fair in review

Announced just weeks ahead of the event, Hong Kong’s relaxation of its spirits taxes provided the organisers of this year’s HKTDC Wine & Spirits Fair with some well-needed pep in their step.

Line of Duty: the HKTDC Wine & Spirits Fair in review

For a number of years the pressure has been mounting on Hong Kong and its role as the drinks hub for Asia.

The Covid-19 pandemic, as well as political tensions in the region, shifted some attention to Singapore in Southeast Asia, with some key players suggesting that it could become the new wine-and-spirits hub for the wider region. But 2024’s HKTDC fair highlighted Hong Kong’s resilience in the face of it all. The HKTDC has calculated that 8,200 trade buyers from 61 countries and regions were present at the Wine & Spirits Fair, up from 7,000 from 49 countries in 2023.

The buzz was palpable in 2024; the fair took place just weeks after Hong Kong announced a reduction in taxation on spirits imports. Chief executive John Lee Ka-chiu announced the tax reduction on 16 October, and the impact of the move could be a huge boost for drinks brands and distributors operating in the region.

Spirits tax will be slashed to 10%for the portion of the bottle price over HK$200. Until now, Kong Kong has had one of the highest spirits duties of any territory in the world, as drinks with an ABV of 30% or higher are taxed at 100%.

Hong Kong’s leader said he had taken the unusual measure to “promote liquor trade” as part of a broader drive to “explore new growth areas” for the territory, which is facing lower tourism numbers and foreign residents.

The policy change provided a boost for the fair, which took place between 7 and 9 November.

High-end spirits

Sophia Chong, deputy executive director of the HKTDC, said it is “expected to enhance the trade of high-end spirits”.

More than a quarter of exhibitors at the fair brought spirits from around the world, including Chinese baijiu, whisky, vodka and brandy.

Chong said the organisersof the exhibition were “glad to see that so many exhibitors and buyers interacted with each other, seizing the business opportunities brought about by the new policy”.

Chong noted the particular increase in buyers from ASEAN (Association of Southeast Asian Nations) countries including Indonesia, Thailand, Malaysia, the Philippines and Vietnam, suggesting that buyers in Southeast Asia still see Hong Kong as the market hub. Japan, Taiwan and Mainland China were also well represented.

Line of Duty: the HKTDC Wine & Spirits Fair in review

“Global buyers are keen to come to Hong Kong to participate in the Wine and Spirits Fair, promoting Hong Kong as a regional trading hub for wines and spirits,” she said.

Winemakers from Eastern Europe made up a significant presence at the HKTDC Wine & Spirits Fair, with stands from the Czech Republic, Belarus, and Georgia, an EU member state, all in Hong Kong.

The Czech wine industry had the largest stand of all of the Eastern European nations, and producers were keen to develop business relationships with Asian buyers and distributors, using Hong Kong as a hub.

Filip Lutzky, executive manager and winemaker at Czech winery Obelisk, told db Asia that while Czech wine’s presence in Asia before the Covid-19 pandemic was significant, since then it has “not been easy for us”.

Obelisk wants to be visible in Hong Kong as a “gateway for Asia”. Lutzky noted interest from buyers in Hong Kong, Taiwan, Mainland China, and Thailand. “We are here to be discovered,” he said.

The country has 17,000 hectares of vineyards, similar to that of France’s Alsace region. Its winemaking areas are made up predominantly of small growers and family winemakers, with more than 19,000 registered growers in the country, according to national statistics.

The Wine & Spirits Fair also featured the Friends of Wine zone, showcasing a variety of foods designed to complement the wines.

Conferences, tasting sessions and seminars hosted by Masters of Wine, sommeliers and industry professionals, analysed trends in various markets, while offering attendees an opportunity to sample fine wines from around the world.

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