HK to make wine by importing grapes, already biggest consumer in Asia

HONG KONG is fast gaining a reputation for its wine industry with the United States reaping the benefits by exporting US$75.6 million of wine to the territory last year, an increase of 57 per cent from the $46 million worth of US wine in the previous year.

According to an annual survey for VINEXPO by International Wine and Spirit Research, Hong Kong has emerged as Asia's wine drinking capital. In addition to being a vibrant local market, Hong Kong also serves as a gateway to other wine markets in the region, especially mainland China.

Hong Kong Commissioner for Economic and Trade Affairs, Donald Tong, in the Washington, DC office of the Hong Kong Economic and Trade Office, attributes this to Hong Kong's prime geographical location, superior logistical infrastructure and sound legal and financial system. Surprisingly, while Hong Kong sits on the doorstep of one of the world's most burgeoning markets, 81 per cent of the wine imported stays within Hong Kong and 19 per cent is re-exported, The American Journal of Transport reported.

Those in the wine industry are exploring other ways to take advantage of the market while cutting transport costs dramatically. This is to produce wine in Hong Kong itself. While no one will see acres of vineyards popping up over the hillside of Hong Kong because of high property prices, some exporters are discovering the virtues of exporting frozen grapes.

The concept is inspired by the known principle that wine does not travel well. According to the US Department of Commerce, by processing the wine in Hong Kong, companies can reduce the effective tariff rate for exporting into mainland China from 48 per cent to eight per cent.

"They only have to pay for the tariff in mainland China," said Mr Tong. One company already doing this is the Estate Winery in Hong Kong, founded by Vancouver-born Lysanne Tusar in 2008. As stated on its website: "If one were to taste wine at its absolute best, one must go to the producing winery. Wine bruises in travel. By bringing people to the wine rather than wine to the people, we are offering the opportunity to taste wine at its optimum."

Master vintners at 8th Estate Winery travel the world to source and personally select the best grapes from each region. Once chosen, the grapes are harvested and frozen to preserve each grape at its highest potential.

Flash freezing has been proven to preserve grapes at their peak of winemaking potential and create spectacular vintages, the website says. "In a frozen state, the grapes are shipped to Hong Kong where they are allowed to thaw and then production begins as it would in any boutique winery in the world. The wine is left to age in our French and American oak barrels."