Wine continues to flow in Hong Kong despite economic downturn, festival exhibitors say

Consumers are defying the city’s retail woes to show a strong appetite for wine and liquor, according to sellers at the city’s largest ever Wine and Dine Festival on Friday.

The event, which popped open on Thursday and will end on Sunday, has seen Hongkongers flock to the Central harbourfront after knocking off work and ­exhibitors report steady growth in their business.

Analysts say alcohol historically has held up well in weaker economic times, as gloomy employees keep drinking in the face of an uncertain outlook – though they might settle for cheaper brands and drink at home instead of while dining out.

“People will tighten their belt by reducing their discretionary spending, which includes things like clothes and big ticket items, but they tend to maintain spending on food and drink although they may trade down in terms of brands and price,” said Jon Copestake, chief retail and consumer goods analyst at the Economist Intelligence Unit.

The wine trade in the city has been thriving despite the steepest retail downturn since 1999 and sluggish economic growth.

According to the Census and Statistics Department, wine exports grew 38 per cent in the first seven months of this year in terms of value, while imports increased 24.2 per cent. The strongest growth has come from the mainland, where wine imports from Hong Kong jumped 50.5 per cent during the same period.