Asia ‘pulling fine wine through recession’

“Explosive” demand for fine wine from the Far East has forced up the average case selling price for Morgan Classic Wines.

The trader, enjoying its tenth anniversary this year, recorded a £2,788 case average (ex VAT) for the month of September and company founder John Morgan believes turnover for the business will hit the £50 million mark this year.

Morgan told the drinks business: “While the average case sales price varies every month it has been creeping toward £2,000 and this September we had a good source of high value wines and demand has been explosive.”

Explaining the source of the sales, he added: “Demand has been ridiculously high out of Asia, the whole market is driven by the Far East.

“There is very little demand for the great wines of France in the UK or the US – where there is already enough stock in the pipeline,” he continued.

“And I see from the auction figures that as much as 98% of the bidding is done by Asians.”

He added that the world fine wine focus has “switched to Hong Kong”.

“Using the simple stroke of getting rid of duty it has become the fine wine hub for Asia.”

Concluding he commented: “Asia has pulled us through the recession.”

John Morgan’s son Tom has recently joined the company having spent 18 months at Majestic’s Fine Wine centre in St John’s Wood, London.

Morgan said, “Such is the speed of growth in Asia I may well consider putting Tom out there.”

Patrick Schmitt, 08.10.2009