Wine travelling well Japanese market

Business Asia, Oct 26, 1998

Sales of red wine to fashion-conscious young Japanese women are creating a profitable market for prominent South Australian producer, Orlando Wyndham.

Mr Andrew Cudmore, the company's regional manager for the Asia-Pacific, said well-travelled Japanese women were acquiring a taste for quality foreign wines.

He said Japan and Singapore were Orlando Wyndham's two biggest growth markets in Asia.

The region's financial crisis meant that business in Thailand, South Korea and Indonesia was "in a rapid state of decline".

Mr Cudmore said taxes on wine in Thailand had increased three-fold, setting the market back about five years.

However, wine was still seen as an affordable commodity in Japan and Singapore.

In Japan, tasting programs to introduce consumers to Orlando Wyndham's focus brand, Jacob's Creek, are driving sales.

Mr Cudmore said Jacob's Creek labels were selling for about 1000 to 1200 yen (A$11.50 to A$13.80), which positioned them well for sale in supermarkets and chain stores. Wyndham Estate labels sell for between 1450 to 1500 yen.

Since 1996, Orlando Wyndham's stock depletion rate in Japan has increased by 70 per cent.

Mr Cudmore said red wines comprised about 65 per cent of sales, up from about 55 per cent 18 months ago. The health benefits of red wine have been well publicised in Japan.

Orlando Wyndham is also heartened by increasing sales to non-expatriate consumers in Singapore.