WineHubHongKong

Source:http://destinations.flysaa.com/photos/hongkong1.jpg

Worldwidewineconsumptiongrows…

Between2008and2015,worldwineconsumption,increasedby3.26%in

volume,reaching2.667billion9Lcases attheendoftheperiod.

Forecastsshowthatbetween2013and2017,thisgrowth shouldaccelerate to

reach4.97%ofgrowth.

Source:TheVINEXPO/TheIwsr marketstudy

WineMarketinAsia

In2013,Asianconsumersdrank289.71million9Lcases (i.e.3.476billionbottles)of

stillandsparklingwines.

Between2013and2017,Asia’sconsumptionforecastedtogrow by22.84% toreach355.89

million9Lcases.

Incomparison,Europeanconsumptionisexpectedtofallby0.14%,whileinthe

Americasconsumptionshouldgrowby9.05%inthesameperiod.

Source:TheVINEXPO/TheIwsr marketstudy

GreaterChina• In2013,ChinaandHongKongtogetherconsumedmorethan155

million9Lcases (1.865billionbottles)ofredwine,up136%comparedto2008.

• Chinaisnowthelargestredwinemarketworldwide,followedbyFranceinsecondplacewithnearly150million9LcasesandItalywith141million9Lcases.

• Chineseconsumershavebecomeincreasinglyattractedtoredwinesince2005.Between2007and2013,theVINEXPO/IWSRstudyrevealsthatredwineconsumptionwasmultipliedby2.75 inChina.

• Atthesametime,consumptiondroppedinFranceby18%andItalyby5.8%.

5

Forecast Forecast

HKWhiteWineImportsvs.Re-Exports

White Wine Import QuantityImport (L) Re-Export (L) Retained (L)

2013 5,056,901 812,980 16% 4,243,921 84%2014 4,940,585 874,652 18% 4,065,933 82%2015 5,085,048 611,773 12% 4,473,275 88%

Forecast 2016 4,553,604 820,400 18% 3,733,204 82%

White Wine Import ValueImport (HK$) Re-Export (HK$) Retained (HK$)

2013 $336,320,000 $44,867,000 13% $291,453,000 87%2014 $328,979,000 $56,972,000 17% $272,007,000 83%2015 $380,412,000 $94,841,000 25% $285,571,000 75%

Forecast 2016 $370,906,000 $170,512,000 46% $200,394,000 54%

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Red Wine Import QuantityImport (L) Re-Export (L) Retained (L)

2013 41,900,836 16,195,87539% 25,704,96161%2014 44,689,314 19,214,29343% 25,475,02157%2015 54,415,961 25,315,43547% 29,100,52653%

Forecast 2016 55,045,494 28,910,72253% 26,134,77247%

Red Wine Import ValueImport (HK$) Re-Export (HK$) Retained (HK$)

2013 $7,130,844,000$1,442,265,00020% $5,688,579,000 80%2014 $7,563,997,000$2,252,132,00030% $5,311,865,00070%2015 $9,820,207,000$4,572,854,00047% $5,247,353,00053%

Forecast 2016 $11,745,736,000$5,945,984,00051% $5,799,752,00047%

Forecast Forecast

HKRedWineImportsvs.Re-Exports

ParallelTradeImpacttoASCHK

7• 15%ofRetailSpendinginHKestimatedtobefromPRCdaytrips• 28.2Mdaytripvisitors2014(47mvisitorsfromPRC- 60%daytrips)

HongKong’sHubStatus• Dutyfreeportforwine• StableEconomiclandscapeandgovernmentprocesses• Stablecurrency– lessexposuretoRMBcurrency

fluctuations• Professionalstorageandlogistics

PhotoSource:http://www.isp-industrial.com/index.php/logistics_isp_en.html

• Maturemarket– trustworthypurchasingsources• Professionalbodiesforqualityassurance

– i.e.HKQAA• Numeroustradingcompanies– choicesareplenty• Ontrade/Offtrade/DirectSales/E-commerce

ForthoselookingtoentertheHongKongandChinamarkets…

(1)Knowyourgoals– Supermarketsorcasinos?– Pricepoint?Volumes?

(2)Youmustfindtherightpartnerordistributor– Dotheyhavethesamegoalsasyou?– Cantheyofferwhatyouneedtoreachyourgoals?– Cantheyopendoorsforyouwhichyoucouldnot?

(3)Fullyunderstandthebusinessclimateandmarkettrends.– Planahead,watchthemarket– HongKongisanexpensive,competitivecity