John Kapon, chairman of Acker Merrall & Condit, said almost 50 percent of the auction house's revenue last year came from Chinese customers. (PARKER ZHENG / CHINA DAILY)
Chinese people are buying fine wines at auctions and setting the wine business in Hong Kong on fire, says American wine auction house Acker Merrall & Condit.
“It is a real boom for the fine wine market right now," said John Kapon, chairman of Acker Merrall & Condit. "The prices for the world's finest wines are getting higher almost every week. There are more and more people discovering how special and rare fine wines are,” explained Kapon during an interview before the company’s second wine auction in Hong Kong this year.
Obviously, there is a higher percentage in our Hong Kong auctions compared with the New York auctions
John Kapon, chairman of Acker Merrall & Condit
The latest sale by the auction house in the city in January set 113 world records. It fetched a total of HK$45 million - exceeding expectations. The company set the sales target of HK$40 million for this Saturday’s auction.
Almost 50 percent of the auction house’s revenue last year came from Chinese customers including those from the mainland, Hong Kong, Macao and Taiwan. US bidders accounted for 40 percent.
“Obviously, there is a higher percentage in our Hong Kong auctions compared with the New York auctions,” added Kapon. These two cities are now the most important wine auction markets globally; moreover, Hong Kong has become an import sourcing hub for Chinese consumers.
“The speed the market moves out here is very impressive. It does not take Chinese people long to decide to go all in. They are the quickest learners I have ever seen,” he added.
In 2017, the Chinese mainland imported 745.8 million litres of bulk and bottled wines worth US$2.8 billion, according to Chinese customs figures. This was a 16.9 percent increase in volume and an 18 percent rise in value over 2016.
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Kapon regarded the prosperity of the wine business as part of the wider evolution of alcohol, as a lot of people start to drink beer and “eventually they graduate to wine”.
To meet the growing demand, as well as to interact more with Chinese consumers, the company is planning to spend a weekend with 18 consumers in June - when over 100 vintage bottles will be provided.
The entrance fee is set as high as HK$208,888 per person, which means the door is obviously not open for everyone. Kapon said the price is based on the cost of wines and meals, but admitted it is a luxurious weekend for people who want to experience the absolute best.
“It is not really an event we are trying to make lots of money on. Some of the wines there such as the 1945 Chateau Mouton Rothschild is a bottle that by itself we have sold for the same price as the entire weekend,” he said.
Looking ahead, he believes the fine wine market will continue to grow in Hong Kong.
“It is a natural trend that more people will drink and discover wine and more wine will be shipped out here especially with the large population,” said Kapon. “Consumption can only trend up and it is always trending up.”
The company is now seeking opportunities to expand into the mainland market and is exploring different avenues. It prefers to establish a stronger long-term presence.
