REGIONAL ANALYSIS HONG KONG HONG KONG’S OWN WINERY 4/13 MEININGER’S WBI 4/13 MEININGER’S Hong Kong is the centre of the wine business in Asia. But it also houses one of only two wineries in the world where wines are made from snap-frozen grapes imported from major regions around the world. Stephen Quinn reports from Hong Kong. ew laws create opportunities. The conceived the idea over the family dining ta- banquets and wine-related events. Tusar Mainland and Hong Kong Closer ble in her hometown, Vancouver in Canada, chose the location because the warehouse N Economic Partnership Arrangement and spent much of 2007 researching the had reinforced floors needed to take the (CEPA) was the first free-trade agreement idea. “The idea came while we were drinking weight of hundreds of full barriques. “It also between mainland China and Hong Kong. good wine, which is appropriate.” helps that rents are lower here, even though Signed on 29 June 2003, it means all goods The winery opened in Hong Kong in Decem- we are only a 20-minute taxi ride from down- originating in Hong Kong and exported to the ber 2008. But not in a farmhouse surrounded town.” mainland enjoy substantially lower taxes. by vineyards. In a high-rise urban area. International appeal Foreign companies exporting wine to the The winery site, based in a converted Chinese mainland pay high taxes. A range warehouse on the peninsula of Ap Lei Chau, How does 8th Estate work? Tusar’s win- of duties on each bottle adds almost 48% to has 8,000 square feet in total. Half of that is emakers travel the world to source the best the original cost of that bottle. But for Hong for winemaking and the other half is venue grapes: Merlot and Cabernet Franc from Bor- Kong winemakers, CEPA means they pay space, including an outdoor terrace overlook- deaux, Shiraz and Grenache from McLaren only about half of those costs per bottle. ing the ocean. In crowded Hong Kong this Vale and the King Valley in Australia, San- Lysanne Tusar founded 8th Estate Winery amount of space is rare and the 8th Estate giovese from Tuscany and Nebbiolo from in October 2007, with CEPA in mind. She uses it for cocktail receptions, weddings, Piedmont in Italy. THE FLYING WINEMAKER address and skype handle. He launched his developments.” The show will look at the peo- own wine label, called Umami, in Australia in ple behind the vineyards, the travel involved Eddie McDougall is a flying winemaker based 2007, but rebranded it in 2011 as Eddie Mc- in getting to the country, and also the foods in Hong Kong, who has been making wines Dougall Wines. McDougall commutes regu- that match with the local wine. “The idea is for 8th Estate since 2010. He believes the larly between Hong Kong and Australia. for me to be sent in cold. My part will not be concept of sourcing quality fruit from the His Australian vineyard, in the King Val- scripted. I will turn up at the vineyards and world’s best regions and shipping it snap-fro- ley of Victoria, makes about 1,500 cases a react to what is presented to me. It’s also zen to Hong Kong works well both in theory year and focuses on Italian varietals such as about what kinds of Asian wines go with and practice. Sangiovese as well as traditional grapes like Asian food.” “The selection of quality fruit, the type of Shiraz. McDougall has made wine for Shad- He says the show will look at some of the grapes and the actual vineyard is determined owfax, Giant Steps, Clyde Park, more obscure foods from the re- by the winemaker,” he says. “The region is Wood Park and O’Leary Walker. gion. “In parts of Japan the local generally selected by the winery owner.” Mc- Soon the Eddie McDougall specialty is horsemeat, so it will Dougall also says the winery could potentially brand will be more recognised be interesting to find what kinds do several vintages a year, because “you could around the Asian region because of wine go with that.” hold the frozen fruit for a while. You could do he will present a 13-episode tel- Wines from all of the coun- a vintage from Australia, New Zealand and evision series about wine in the tries visited will be brought to South Africa, and keep the grapes frozen in region. Hong Kong for a major compara- storage when they arrive in Hong Kong.” Programmes will be made in tive tasting at McDougall’s shop, With red wines, grapes are usually shipped India (two episodes), Thailand, The Flying Winemaker. destemmed as individual berries, whereas Japan, Vietnam, Hong Kong, The series of half-hour pro- the whites are transported as whole bunches. mainland China (episodes in grams, to be called The Flying “With reds, the freezing causes a slight rup- both Yantai and Ningxia), Indo- Winemaker, will air at the start turing of the berries which releases slightly nesia and Bali, Taiwan and Aus- of Chinese New Year in January more tannin and also increases the depth of tralia (2 episodes). 2014 on the Discovery Channel. the colour and flavours.” “We will explore countries McDougall runs a wine store in Hong Kong like Japan, Vietnam and Taiwan, called The Flying Winemaker and the flying where wine has not been tradi- winemaker concept continues via his e-mail tionally made, and look at recent Wine from 8th Estate Winery 28 HONG KONG at Vintessential Labo- ratories in Australia. Fermentation takes about a week. Each 4/13 MEININGER’S WBI 4/13 MEININGER’S winemaker stays for three weeks during vintage, and then returns every three months during the next year to check the wine’s progress. To date, the 8th Es- tate Winery has creat- ed a dozen wines, de- signed to “fit a range of taste buds”. Nine are 8th Estate Winery is located in an urban area. red, with two whites and a rosé. The reds spend a year in barrel. Wines in Bali in Indonesia. McDougall has The cost of oak barrels remains an issue for visited this property, which also imports Tusar, just as it does for many wine compa- must from Australia. “By importing international wine nies around the world. “We get visits from lots Not only is the venture unusual, but CEPA of coopers who are always flying into Hong requires a three-year waiting period before making talent along with excepti- Kong, on their way to the mainland.” goods qualify, so Tusar had to wait until ear- onal grapes, our formula produces The vineyard has only entered a handful ly 2011 before the benefits started to show. of wines in shows and all have won medals. Today, however, the 8th Estate Winery sells spectacular wine.” The 2010 Shiraz won a bronze at the 2011 to Japan and Taiwan as well as Hong Kong Cathay Pacific Hong Kong International and the mainland, where the main markets Lysanne Tusar, Wine & Spirit Competition. The 2010 Viog- are Beijing and Shanghai. “We get lots of re- founder, 8th Estate nier won silver at the 2011 Shanghai Inter- peat business, which is a good sign.” Winery national Wine Challenge, the 2010 Grenache Lucky labels got a bronze at the same event, and the 2010 Grapes are flash-frozen straight after being Shiraz Viognier a silver. A lot has changed since Tusar first conceived harvested at minus 18 degrees – just like Eddie McDougall describes himself as her idea. In April 2008 the Hong Kong gov- frozen peas – before being shipped to Hong Hong Kong’s “flying winemaker”. He made ernment cut all tax on wine imports to the Kong. Tusar said flash-freezing preserves the 2010 Shiraz at 8th Estate. McDougall city to zero, which boosted the number of grapes in peak condition. The frozen grapes believes frozen grapes can make fine wine. wine importers and effectively made Hong thaw at the winery as a flying winemaker “Great restaurants like Robuchon serve Kong the wine capital of Asia. Ali Nicol, a arrives from the same region as the fruit. meat that has been snap-frozen overseas journalist who runs the wine blog Wine Production begins as it would in any bou- and brought into Hong Kong and Macau,” he Times HK, has been based in Hong Kong tique winery in the world, and the wine then said. “The food the restaurant creates is still for more than 20 years. He calculates that ages in French and American oak barriques. wonderful. I think the same thing applies after the zero-tax regime started, the num- “Our concept is simple,” says Tusar. with frozen grapes.” ber of wine importers soared from about 300 “Source the best ingredients and make In July 2013 McDougall was preparing to to more than 5,000. the best wine. We have done this by creat- film the first episodes of a television series Tusar has been appointed an ambas- ing something no one else has in Asia – a about winemaking in the Asian region. He is sador for InvestHK, the investment arm of fully functional urban winery. By importing the presenter. the Hong Kong government, and also sits international winemaking talent along with The 8th Estate Winery currently makes on the academic committee for the MBA in exceptional grapes, our formula produces between 30,000 and 45,000 bottles a year wine marketing launched by the University spectacular wine,” she said. but has the potential to double output be- of Hong Kong – the first in the Asian region Buying grapes also has the advantage cause of separate vintages in each hemi- – in 2011.