Spaniards ready to fill mainland's wine glasses
It's cheaper, just as tasty and complements Xi's squeeze on spending perfectly, says official
Spanish wine traders are eyeing the mainland market thanks to the crackdown on extravagance at official banquets, claiming their products are cheaper but just as good as those produced elsewhere in Europe.
The value of wine that Hong Kong re-exports to the mainland has plunged 25 per cent since President Xi Jinping ordered officials to stop their free-wheeling lifestyle. But the volume has dropped just one per cent, to 10 million litres.
"Mainland buyers are opting for cheaper varieties out of fear of being labelled a big spender, which has led to a drop in value," said Doris Leung Lan-ching, senior fine wine consultant of quality French wine trading company, 5S Wine.
Since Xi announced "eight rules" on official behaviour to streamline bureaucracy and cut waste, Leung said, the company's sales had dropped more than 40 per cent.
"High-end wines like Lafite selling for some tens of thousands have immediately lost their popularity," she said. "Mainlanders now opt for wines which only cost about HK$5,000 a bottle."
Javier Sanz Munoz, senior trade commissioner at the Spanish consulate, said he believed Spanish wine would have a major place in the mainland in three to five years.
"Mainlanders are looking for cheap but quality wine for their banquets, and Spanish wines are competitive in terms of cost," he said. "But it will take time for the mainlanders to get to know more about Spanish brand names. To them, French and Italian wines are better known."