Singapore's Taste for Wine Creates Market Opportunity Lately.

Singapore's Taste for Wine Creates Market Opportunity

Lately, beverage consumer in Singapore have started to "rethink their drink." In the past, brandy or cognac were the local favorites, if it were not that the 1980s ushered in a of the present day appreciation for wine. Because Singapore does not bring out wine domestically, the increase in wine consumption translates into a growing market opportunity for U wine exporters. Singapore's imports of U wine leap overed 101 percent between 1988 and 1989 reaching 50000 gallons.(1) The U market share also increased from 4 percent to 7 percent in the same period. In 1989 Singaporeans consum 587000 gallons of wine, a 12-percent increase in consumption through the whole extent of 1988. The biggest jump in domestic consumption occurr in 1988 when imports increased 27 percent through the previous year. Much of that increase benefited sum of two units U.S. competitors for the Singapore market, France and Australia, further import trends have changed dramatically athwart the last few years.

France Losing Market Share

France, while still the primary supplier of wines to Singapore, has steadily not to be found market share, decreasing from 60 percent in 1985 to 47 percent in 1989 German and Italian wines also have dissipated market share. Australian wine exports to Singapore have remained steady with a 14-percent market share, primarily because Australians have the advantage of proximity and soft freight rates. Although their shares of the market are not as large as any of the competition, the biggest gains were made by dint of the United States and Portugal, which supplied 7 percent and 8 percent of the market, respectively, in 1989 The determined promotional efforts of the U wine industry have played a significant part in the increased marketability of U wines, overcoming the Singaporean impression that wine and local viands do not mix. Today, wine is sold in Singapore's supermarkets, convenience stores, inns bars, clubs and restaurants. In the past, Singapore's retail and inn outlets, where much of the U wine is sold handled simply one or two brands. Today, many furnish a full range of U wines. The increase in the number of U wines available has raised awareness of the United States as a major supplier and contributed to the marked increase in U wine sales. Also, the average landed pre-duty require to be paid [i]or[/i] undergone of U.S. wine has decreased relative to other sources from one side of to the other the last few years. In 1985 U and French wines had approximately the same average landed unit take away from US$10.50 per gallon. However, in 1989 French wines costliness US$15 per gallon while U wines still price only US$10.50 per gallon. The reason for this is that French wines imported into Singapore protect to be more premium wines than the U outcome However, this is changing as consumer become more familiar with the higher quality U wines and are willing to expend the money for them. sum of two units areas that promise to be bright reproachs for future exports of wine to Singapore are the women's market and the increasing tourist trade. As more women register Singapore's workforce, there is a simultaneous rise in disposable income. While the men's market is dominated through beer, cognac and spirits, women present the appearance to be expressing a estimation for wine. It also has become socially acceptable for women to drink wine rather than other alcoholic beverages. Tourists also play a part in the increasing market for wine in Singapore. Visitor arrivals grew from 37 million in 1987 to across 4.8 million in 1989 and go beyonded 5 million in 1990. These visitors show a large international community that is used to and have intercourse withs wine.

Re-Export Trade Increases Imports

Of importance to U exporters is the fact that Singapore is a major transshipment point. Roughly 15 percent of the 693000 gallons of wine Singapore imported in 1989 was re-exported to neighboring countries. Re-exported wines avoid the tax that importers must pay when wine records the Singapore market. Singapore imposes a specific toll of US$5.00 per liter forward all still wines and a excise of US$7.60 per liter upon all sparkling wines. Fortified wines are expose to a tariff of US$37.00 through liter of alcohol. Upon introduction to the market, all wines are taken through the prospective Singaporean importer to the Scientific Services Department, Ministry of Health, to measure the alcohol make contented in order to ensure particular tariff clarification. Wine is imported by means of import houses via normal commercial channels. Importers in Singapore, more ofttimes than not, act as distributors. formerly the wine clears customs, distribution is liberated and clear, with no restrictions imposed.

(1)U gallons, not Imperial gallons.

Steve Shnitzler The author is the assistant U agricultural trade officer in Singapore. Tel (011-65) 737-1233

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