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Improving With Age

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With no rolling hills covered in sprawling rows of grapevines, and no wine production whatsoever, Macau is certainly not a place you would expect to find a strong interest in wine.  And yet it has always stood out as an Asian city with a profound appreciation of wine, of course due to its European heritage.  However what was once a rather narrow focus on wine from Portugal, enjoyed by a small section of the population, is now expanding to include many more locals, and of course tourists from the mainland, with a passion to explore not just Portuguese wines, but the most famous French varieties and indeed a host of wines from the New World also.   

As with so many other things in Macau, the wine industry has experienced major changes in recent years, in terms of both consumption and trade.  In 2008, Macau eliminated its 15 percent duty on wine imports, and since then imports have more than doubled.   

An abundance of fine dining restaurants are seeking better quality and a wider variety for their wine lists, VIP gamblers demand only the very best, and traders and producers from around the world are viewing the city as a stepping stone into the booming and lucrative mainland Chinese market.   

This month’s Closer Look speaks to a number of traders and wine afficianados in Macau, and looks at some great vintages from Burgundy and Bordeaux, as well as the most prolific grape variety in Portugal, Touriga Nacional. 

Timothy Feather  |  for Summergate

The booming wine business in Asia and particularly Macau, offers a lot of opportunities, but it is not without its obstacles.    

“Nothing is easy, and nor should it be. There are always challenges, and challenges keep us fresh, but at the moment the biggest challenge is the mass of people trying to cash in on the wine boom by selling wine, who have no wine knowledge or experience at all,” comments Timothy Feather.   In terms of consumers, a whole new generation is now fascinated by wine not only for its taste but also for its history and traditions.    

“They are willing to try all kinds of new varietals and regions, unlike the older generations who are still very enamored with traditional French wines, which still very much lead the way here in terms of imports; almost 50 percent of wines imported into Macau are French.”   

Although there is a niche market for Portuguese wines, they aren´t the most sought after anymore, Feather says. “Last year, only 20 percent of all wine imported into Macau was Portuguese”.    

There is definitely a wider variety of New World wines on offer though, and this is greatly due to Western expats working here, from countries such as Australia, New Zealand, Argentina and the USA. It is also driven by changing local curiosity.  “There are a lot of people who self educate online and through wine literature. There is definitely a big boom going on,” explains Feather.   

To ensure quality, Summergate only works with family owned and operated wine estates: “People with a true understanding of and connection to the vines, the terroir and the wines they ultimately produce. Some of our producers have been making wines for hundreds of years and in one case over a thousand years.”    

Timothy´s career in F&B stretches back to 1989, when he started his hotel career, but it wasn´t until 2008 that he went into the wine business full time. He first became interested in wine during a trip to Burgundy and fell in love with Pinot Noir, “a grape I come back to again and again due to its elegance, perfume and delicacy.”   

Luís Herédia  |  for Vinomac Wine

Luís Herédia, has been advising wine importers and Portuguese producers in Macau, since he arrived in the 1989. A couple of years ago, he decided to really get into the local wine business, creating his own portfolio.  With the rapid growth over the last decade and the zero percent tax on imported wines, Macau has most definitely seen an increase in wine varieties and sales.    

“Before the market was dominated by Portuguese wine and today there are wines available from all the main producing countries. France dominates in volume and value, followed by Australia and Portugal,” he notes.   

Portugal is a big part of the local heritage and tourists will more often than not opt for Portuguese restaurants and wines, which is a great way of introducing products to a wider range of people.    

“Portugal as a wine producing country is still unknown in Asia. Promoting a new country with new regional names, new grape varieties and small budgets will definitely take time,” explains Herédia.  But there is now a lifestyle attached to appreciating wine, a lifestyle that is luring the younger generation in Asia.   

Luis is patriotic when it comes to his favourite wine. “Douro is without a doubt my favourite region,” he says.  “It is recognised by UNESCO as a World Heritage region and every time I go there I have a great experience. The quality of its Port wines and its still wines has reached the top in Portugal. A few Port Vintages obtained 100 points in the most distinguished magazines, and some of the red wines achieved over 95 points.”  

 

António Lobo Vilela for Universal Exports Limited   

When Portugues wine label Herdade de São Miguel first challenged the partners at Universal Exports to represent the brand in Macau, they didn’t hesitate.    
 
“Inside all Portuguese men there is a football coach and a wine connoisseur.  It´s a risk free business for us, because if we can’t sell it, we’ll just have to drink it”, jokes António Lobo Vilela.   
 
But the business has its challenges. “It is a trendy business, so you have to keep up with trends. If you stand still, you´ll quickly find yourself out of the race”.    
 
The partners made a decision to buy their own storage facility to guarantee the quality of their product, however one of the biggest issues has been escalating rents. Another factor is increasing competition. There are over 50 companies in Macau importing Portuguese wines due to the zero percent tax policy in both Macau and Hong Kong, “which given the dimensions of the market is absurd”.   
 
To deal with this, Universal Exports has a number of new projects including a joint-venture with Michelin recommended restaurant ‘Antonio’ in Old Taipa Village.    
 
“António selects wines from Herdade São Miguel which reflect his highest standards of quality, and we make him personalised labels where our brand also appears. It’s a perfect brand association”.    
 
Another project for the company is bringing Portuguese organic wines to a more mainstream audience, working with Portocarro and Aphros, the latter being the first and sole biodynamic certified wine in Portugal.    
 
“We believe organic wine is a trend that will soon pick up in Asia and we want to be in the front line.  At the end of the day, our philosophy is simple: we are our first clients, thus we only buy or represent wine we truly like and believe in.” 
 
 
Pedro Lobo  | for Palatium Fine Wines
 
Wine has been a part of the local culture in Macau for a long time, but nowadays, it has also become an investment. “We are seeing a growing number of mainlanders investing in private collections of rare and famous wines,” says Pedro Lobo, a partner at Palatium Fine Wines. 
 
Wine is also being introduced to the masses through television programs and competitions, as well as wine tastings and a growing number of wine courses taking place around town. “The local consumer is now much more aware and their knowledge regarding wine has increased substantially,” comments Lobo.
 
Palatium Fine Wines was created by a group of four investors in 2009, with offices in Shanghai and Singapore and selling all over Asia, including Japan. With the majority of the partners being Portuguese, they naturally focus on marketing wine from their home country.
 
“The biggest challenge we face is the lack of knowledge. There are so many more French and Italian wines. The biggest problem with Portuguese wines is definitely the lack of marketing,” assures Lobo.   “But we have been successful in China and Hong Kong as we only promote award-winning wines,” he adds.
 
“We look for three important factors: quality, consistency and price. Not cheap wines, but the right price for the best possible quality. We also look for wines that fit the Asian palate.”
 
 

Macau Wine Society

 

The Macau Wine Society was created in 1988, although only officially came into being in 1995, the same year the Macau Wine Museum opened its doors. Filipe Santos was the first president of the Society, and is still president today. The non-profit society has around 200 members, most of course working in the business, and almost half being women. It creates events to promote wines, and holds wine tastings and even short courses.    “Companies send us new wines daily, to promote at our events,” explains Santos.    
 
Having seen firsthand the evolution of the market to what it is today, the society’s president comments: “Before the internationalization of the local market, it was dominated by French and Portuguese wines. With the emergence of bigger international companies, they have introduced new wines into our market, however the more traditional Macanese companies have not been able to keep up.” A downside to the rapid growth of the sector. 
 
 
Educating Appreciation

 
In 2006, the Institute for Tourism Studies started its Wine Club, a gathering of wine loving students. Since then, every president of the club has gone on to a very successful career in the wine trade, be it as buyer, sommelier or trader.    
 
According to Dr. Baudouin Neirynck, an assistant professor at the Institute, students realise that there is a growing interest in wine in Macau, and find it a good career opportunity in the current booming local market, especially given the emergence of sommeliers in large hotels and casinos.   “The WSET (Wine & Spirit Education Trust) courses we offer at IFT are always oversubscribed meaning people in the trade and others wish to learn what has become the preferred social skill, even among our students,” says Baudouin.   
 
Originally from Belgium, Neirynck moved to Greater China back in 1987 after studying in Switzerland, the US and finally finishing his doctorate in Australia.    
 
He first became interested in wine growing up. “My grandfather had a very comprehensive cellar for the simple fact that he had seven daughters for whom he would buy bottles of wedding wine three to four years after each was born”.    
 
At 16, Baudouin did an internship in Beaune, in the heart of the Burgundy wine region and became hooked on wine.   
 
Burgundy remains a firm favourite. “It will always be close to my heart and I love the local grape varieties, Pinot Noir and Chardonnay”. 

 

Wine imports to Macau   

Red wines – 90% of the total volume  

White Wines – 6% of the volume  

The rest includes Champagne, other sparkling wines and Port    

In 2010, French still wines represented 35%  of the total volume and 83% of the value.  Portugal came next at 26% volume  but only 3.4% of the value.  Australia is third with 9.3% of the volume  and 4.5% of the value. 

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