‘Thirst for knowledge’, new money and greater accessibility driving rapid growth of wine market in SEA

12-Nov-2024 - Last updated on 12-Nov-2024 at 02:37 GMT

Berry Bros. & Rudd's revenue for the South East Asian region has doubled in the past three years. ©Berry Bros. & Rudd

London-based Berry Bros. & Rudd says that the increased accessibility, spending power, and “thirst for knowledge” about wine among South East Asian (SEA) consumers have contributed to the company’s growth in the region.

The fine wine and spirits merchant entered Hong Kong 25 years ago, and set foot into Singapore in 2012 before venturing into other SEA markets.

In the past three years, the company has doubled its revenue for the SEA region, with a target to attain 15% year-on-year growth for the next few years.

“While SEA wasn’t ignored, it was definitely overlooked in favour of Hong Kong by a lot of global merchants until 15 to 20 years ago. Hong Kong’s wine market is hyper-competitive — there’s a wine merchant or retail shop on every street. They won’t have guarantees around provenance, history, storage and tracking, but in terms of accessibility, the level of competition is unbelievable.

“Then, the industry started seeing opportunities in SEA, especially Singapore, which is an affluent nation with easy import-export access. Singapore has been very much the hub for wine in the region, and it’s still a young, growing market,” Charlie Rudd, Regional Manager – SEA, Hong Kong and China of Berry Bros. & Rudd, told FoodNavigator-Asia.

Speaking to us at a media event to commemorate the company’s 25th anniversary in Asia, Rudd shared that the rapid growth in SEA can be attributed to the “thirst for knowledge” from new consumers and collectors.

“SEA is comparatively new to the wine world. The region is far from source, and people here are so interested to learn, versus countries such as the UK or France, where the industry has long been established. The collectors whom I’ve spoken to had asked some amazingly technical questions because fine wine is a new asset and it’s exciting for them.

“Also, because everything is about trust in Asia, we focused on building a physical presence and fostering personal relationships with our customers here. We are a merchant, not brokers. That is why we are doing more public events and letting people know that we have a fantastic team that knows exactly where a wine comes from and how it’s going to get to your door. This trust is important as the wine has to travel a long way, and one error in the process would render it worthless.”

In addition, another key contributor to the company’s growth in Asia is said to be the access to a wide range of wine.

“Berry Bros. & Rudd has, by far, the largest Bordeaux allocations in the world. We travel to visit producers every year to gain access and build a portfolio. We are now at the forefront of English sparkling wines through our new partnership with Hambledon Vineyard.

“We recently had an event with Dominique Lafon, whose second vintage is now available in Hong Kong and for the first time in Singapore. Being able to bring new producers and access to wine is exciting for both our customers and us.”

Opportunities for growth

Due to the influx of wines into SEA, Rudd believes that the region could be “spoilt for choice” in the coming years.

“Because the emerging markets are so hungry for knowledge, we expect to see a much greater focus on new regions. Bordeaux, Burgundy, Champagne, and Tuscany have typically been staple wine regions for decades. But in Singapore and Thailand, we are getting more questions about Grower Champagne, Loire Valley, Oregon Pinot Noir, and wines from China.

“In particular, Thailand has a lot of new-generation wealthy consumers who are enthusiastic to collect a new asset and learn about wine. For people who are spending and learning now, they haven’t had a service to gain assurance previously, and that’s what we can offer.”

Notably, these consumers are also looking for value, in terms of how they can be different from other collectors.

“Labels don’t matter as much to them. For example, an Oregon Pinot Noir could be a tenth of the price of a Burgundy Pinot Noir but is just as great. Having the right understanding of who’s making great wines and having access to these wines are what people in this part of the world are most excited about.

“Singapore has been an amazing market to watch grow. We will build on the success that we’ve had here to further expand in SEA, including markets like Malaysia, Thailand, Indonesia and Philippines, through licensed partners over the next couple of years.”