60 : ACROSS THE DITCH ACROSS THE DITCH : 61 The bar at Strata in the Bitexco Financial Tower in Ho Chi Minh City. e land. It’s my second trip in 18 year ago. There’s one up north that’s now taller – 70 Graham Sims, New Zealand Consul-General and believes these small importers are fragmenting the months. Within hours I’m whisked storeys. Where am I again? Trade Commissioner in Vietnam, estimates the market and confusing on-premise buyers as well as off to meet the CEO of a restaurant Ho Chi Minh City, or Saigon to those who live growth in wine consumption at 8-10% per year and consumers. However he says there are four to six group – an expat Kiwi who’s lived there, is one of the newest hot spots in the South-East says it’s been growing at that same pace over the major wine importers who are very professional. here for most of his working life. Asian region. How did that happen? Or rather, when past few years. “Total wine imports into Vietnam Finewines is another Vietnamese distributor who He’s now running the highest restaurant in town. did that happen? Well it’s the largest city in Vietnam from all exporting countries stood at about US$50 established their operation in 1996 “starting from Misha Wilkinson W We sit on the lowest rung of a three-level wine and at around six million, (compared to the capital Hanoi million in 2012 and New Zealand wine was about the passion and the purpose of increasing the wine- dine extravaganza perched on the top floors of the at 2.7 million) in a densely-populated, developing 1.4 percent by value share of that,” he says. drinking culture for Vietnamese” according to Ta city’s newest skyscraper. I gaze out of the window nation of over 90 million – 60% of whom are under Michael Doyle, group general manager of Hoang Son, managing director. He sees great while sipping Pinot Noir from beautiful glassware the age of 30 – and a country that’s averaged annual distributor Fine Wines of the World, is even more potential in the market as drinking wine is and try to assimilate the incongruous juxtaposition GDP growth of 7% for the past five years. positive. “The market is growing at over 20% per becoming more popular, especially to the young of this shiny glass tower with its spectacular vista Of course there’s a large gap between the wealthy year,” he says. “We see young Vietnamese drinking generation who previously drank more beer and and the teeming city below – its streets jammed urban population and the low income, rural more and more wine. While they lack wine spirits. “The wine drinking culture certainly started with motorbikes, open-air markets and food stalls population, but it’s in these cities with their higher knowledge, many are trying to learn. We also see with the French colonisation, but nowadays, with tucked into every alley – and all of this urban chaos income levels that consumer spending on food and young women drinking wine, especially whites.” increasing household income, it’s not only the amidst a backdrop of a gently winding Saigon River beverages is growing as increasing westernisation He says New Zealand wines are well-known in the expats but also the local Vietnamese that have and the fading remnants of a French colonial past. makes its impact. In November Riedel flew tenth- market – especially Marlborough Sauvignon Blanc. begun to enjoy wine,” says Son. I switch back to the present with talk of the new generation company president Georg J. Riedel from “Wines from Central Otago are starting to get Although French wines are still the dominant 170-seater restaurant that is a week or two from Austria to host a comparative glass tasting at the noticed and we have moved into that segment player in the Vietnamese wine market, he believes opening right above us. We’re invited on a tour. Urged city’s leading international five-star hotel. It was a already,” he says. Not surprisingly, Doyle thinks there is an opportunity for more New World wines to take our libations along with us, we head upwards sell-out with 120 people paying US$110 a seat. I that “for this market, Rieslings should be great, from Chile, Australia and New Zealand. He also says to explore the higher levels carefully avoiding armies can’t think of too many places in the Western world with a low alcohol and good food pairing “many people know about New Zealand as a famous of painters and carpenters. The ‘theatre kitchen’ with where it would be that easy to get a (paying) opportunities – but this has yet to happen”. I don’t producer of white wines, especially Sauvignon its own chef’s table takes shape before us – amazing. audience of that size along to a product think Vietnam is on its own in that respect – most Blanc. Lately, more and more drinkers are paying We pass a promising walk-in wine cellar and then demonstration – albeit a luxury product and of the world is lagging in Riesling appreciation. attention to the Pinot Noir from New Zealand.” climb higher. The next level comes complete with its featuring “fabulous Robert Parker 90+ wines”. Although Doyle is optimistic and sees good Prior to Sims, Peter Healy was New Zealand’s own helicopter pad jutting out from the tower like a Over the past year, New Zealand’s wine exports opportunities for wine producers, he warns that of Consul General and Trade Commissioner (2005- pouting lip. The bar is designed like an airplane to Vietnam have increased 64% (year ending June the “hundreds of small importers – 99% do not 2009) but left to become export director of New cockpit – the views are out of this world. We’re in the 2012), although that increase is from a small base have any formal training and frankly do not Zealand’s Ohau Wine Group. He has some tallest building in the country ... well it was until a with Vietnam at 29th place in wine export rankings. understand what they are trying to sell!” He interesting thoughts as to why Vietnam is a good 62 : nEW zEAlAnD nEWS WBM Dec 2012 /Jan 2013 WBM Dec 2012 /Jan 2013 nEW zEAlAnD nEWS : 63 French with no regard for price, or the cheapest is one of our three growth regions”, but when possible wines on the menu,” he says. “The mid- questioned further, the Asian markets he’s focused range is somewhat difficult for consumers to glean on (and the ones driving the exports) are China, value and by this I mean they can’t determine for Hong Kong, Japan and Singapore. Although he says themselves why they should pay the higher price he’s “keeping a watching brief on the next level of compared to the entry level pricing – this is where markets” he admits markets like Korea and India education is really needed.” are much higher up the pecking list than Vietnam. Although he sees strong recognition of New There are an estimated 25 New Zealand brands in Zealand Sauvignon Blanc and Pinot Noir, and sees Vietnam but Shadwell says he doesn’t see New further brand opportunities by leveraging New Zealand wine brands visiting very often. “Visits are Zealand’s clean and green reputation, which he sporadic at best from New Zealand – I haven’t seen Georg J. Riedel conducting a believes would enhance the attractiveness of the New any educational work apart from an organised tasting in Vietnam recently. Zealand wine category overall, citing the success of event a couple of years ago – organised by a wine New Zealand Natural ice cream which he says distributor,” he says. In fact Sims agrees and says “boomed immediately simply because of its name”. of the brands in the market, he sees “just a couple In May New Zealand wines will once again be in a year only.” showcased at the annual New Zealand Wine and So for those considering entering the market, Food Festival – it will be the 14th time this event Shadwell warns not to expect miracles in year one – has been held. It’s organised by the New Zealand “building up a new brand takes time” – and also urges Chamber of Commerce in Vietnam and sponsored wineries to find distributors that don’t just ‘sell’ wines by New Zealand Consulate General and the NZTE. but ones that know how to market and build brands “It is the premier outdoor festival of its type in and who can help educate the market. He quotes an place for business. “I prefer to do business where I wines rather than choosing New Zealand wines.” He Saigon with 1,000 participants – it sells out every example of one New Zealand brand who, with regular like the people and the country... Vietnam and its also says the strong ties to both France and the US year,” says Shadwell, who has been involved with it visits, has built “probably the most recognised brand people are emerging from over 100 years of war (ironically) are enduring relationships and there is a and hard times. Their youth and optimism is a natural tendency for the local population to select delight to share and work with.” Healy also points French wines above all others. When faced with a “Following the implementation of the AANZFTA agreement in out that the wine market is not just the 90 million choice of New World wines, he says Chile has Vietnamese that are there but also the five or six enjoyed the position of the best value-for-money in 2010, Vietnam is now probably an easier place than China for million tourists visiting each year.