Back to thread topic, one question I've always wanted to ask, or maybe I've asked this one way or another: About our local wine scene, I've always been puzzled by the high ratio of distributors and shops to actual wine drinkers. Is there a re-export market? I'm sure there's economic sense here - otherwise they won't be around - but I'm not seeing that many serious drinkers. Of course there's the restaurants and pubs, driven by our high expat population and middle-class, but for the rest, I can't quite explain the large amount of wine displays in the supermarket, where if anything doesn't sell and stock doesn't move, won't be able to justify its presence. Or is everyone stocking up and consuming at home? Still don't see that many, apart from ang mohs, drinking beyond a glass each at most restaurants. Pardon the ignorance, just clue me in if it's all out there, just that I haven't seen enough.
[MY TURN TO RANT]
well i did speak with some of the larger distributors here in SG before and our wine market is very saturated upstream. There are many importers, distributors, retailers and some are all 3 as well.
Considering the still growing wine market of Singapore, there is opportunity but we are not a Japan and HK or China which have a far greater wine consumption vs SG for an Asian country.
a large proportion goes to restaurant and hotel sales. and i guess the plus point for wine is that it's shelf life is much longer compared to the average consumer product. so they can hold their stocks for a bit while their main revenue (i think) comes from selling their more expensive wine to the usual group of collectors who have the cash to blow on cases of Burgs or Bords with every new vintage.
I see 2 main revenue streams: sale to restaurants/hotels & rich man sales.
we do not have a developed wine culture as yet where every other person can pop into a wine store to pick up a $20+ - $30+ wine (some people here think $30 for a wine is ex) and the retailer gets to enjoy the volume sales. Hence they are dependent on the volume sales to food services and high margin profits from rich case buyers.
As for supermarkets, they go by volume and from retail audits, their wine sales do grow year on year. They have a constant supply from many of the bulk producers. There is a big market for the under $25 wines in SG as many people who are just starting out with wine are usually not confident enough to pay more than $25 to their wines.
Some restaurants charge ridiculous markups as well. Usually 2-2.5X the retail price is understandable to me but if i'm going to pay that price at least give me something interesting that i can't find outside. I can easily go to the retailer on hand, buy the exact same wine and pay the corkage and still pay less than the menu fee. But then again, the wine culture is still not big enough for mainstream consumers to do it.
Imagine if it was more mainstream and consumers were more educated on the wine and their pricepoints, this would make the market more competitive and restaurants to reconsider their wine program. There are only a few restaurants with a decent to good wine program (usually limited to the higher end restaurants); again mainly because consumers are still not fully educated on it. IMO, a good indication of a restaurants wine program is their 'by-the-glass' list.
A good 'by-the-glass' list shows how much effort an establishment puts into their wine program insteading of choosing the usual suspects and typical flavour profiles. if anything, glass pours are potentially the most profitable part of the wine menu and so many things can be done to make it more robust and interesting
Thank goodness there are still some BYOB joints with reasonable corkage.