Guide to Market Singapore - New Zealand Winegrowers June 2020
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Guide to Market Singapore New Zealand Winegrowers June 2020
FOREWORD Since this guide was commissioned, the world has changed: Covid-19 has wreaked havoc across the globe, and what was certain before is now much less so. While the information contained here is from the “before times”, we believe this guide will help you to understand the Singapore wine market and its unique characteristics. Despite the enormous upheavals in recent months, the fundamental information remains relevant while providing a useful benchmark for comparison and reference. As travel restrictions are likely to remain in place for some time, traditional market visits are no longer a viable option. We trust that this guide, and the regular market updates that will sit alongside, will help to fill in the blanks. Natalie Potts Market Manager - Asia June 2020 This guide was commissioned by New Zealand Winegrowers in 2019 and written by Nimbility in late 2019 and early 2020. All data, commentary, interviews, and references are pre-COVID, and do not take into consideration the impact of the virus on the Singapore wine market.
CONTENTS
1. SINGAPORE OVERVIEW 6. WINE MARKETING IN SINGAPORE
- Introduction - Market research
- Geography - Investment requirements
- International Hub - Intellectual Property
- Population - Marketing Materials
- Economy - Packaging
- Main Celebrations - Promotions
- Advertising
2. SINGAPORE WINE MARKET - Sponsorship & Co-branding
- Overview - Wine Dinners, Tastings, Masterclasses
- Import, export and consumption statistics - Winery Trips & Tourism
- New Zealand Wine Market - Events & Shows
- Critics & Competitions
3. SINGAPORE MARKET STRUCTURE - Local Publications
- Social Media
- Import tariffs and Free Trade Agreements
- Masters of Wine
- Taxation
- Sommeliers
- Pricing
- Labelling & Documentation
7. MARKET RESOURCES &
- Logistics & Storage
REFERENCES
- Re-Export
4. ROUTE TO MARKET &
KEYPLAYERS
- Overview
- Routes to Market
- Key Players
5. GETTING INTO MARKET
- Market & Brand Building Plan
- What to consider when seeking an importer/
distributor – avoiding pitfalls
- How To Find Importers
- Contracting with a Singapore Importer/
Distributor
- Business Etiquette in Singapore
- What to do if you want to change importers
- Getting wine into market – freight options
Disclaimer: Information in this document is prepared by New Zealand This information is provided strictly on the basis that New Zealand Winegrowers,
Winegrowers for use by its members only. Material may not be published or and its officers, employees and agents disclaim any liability of any kind for any
reproduced without the permission of New Zealand Winegrowers. inaccuracy, error, omission or other flaw in the information contained in this
All due care and attention has been exercised in the preparation of the document, and for any loss and/or damage that may arise from reliance on the
information contained in this document. However, regulations will change over information presented.
time, and interpretations may differ between regulators. We will endeavour to @nzwinegrowers #nzwine
provide regular updates as they come to hand. Nevertheless, this document is
@nzwine #nzwine
not intended to be the definitive source on exporting to Japan. Nor is it intended
to be a substitute for detailed legal advice in specific cases. nzwinegrowersSingapore Guide to Market 1
1. SINGAPORE OVERVIEW
SINGAPORE
5.639 MILLION (2018)
BURMA VIETNAM
LAOS
PULAU
UBIN THAILAND
TEKONG
ISLAND PHILIPPINES
CAMBODIA
MALAYSIA
BRUNEI
SINGAPORE
BUKOM ISLAND
INDONESIA
SUDONG ISLAND SEMAKAU ISLAND EAST TIMOR
INTRODUCTION
A Malay trading port known as Temasek existed on the island The main island has a very limited size, and most of the area is
of Singapore by the 14th century. The settlement changed used for urbanization with hardly 5% of the country covered
hands several times in the ensuing centuries and was in forest or agricultural land. The highest urbanization density
eventually burned in the 17th century and fell into obscurity. can be found along the southern coast. With remarkably
The British founded modern Singapore as a trading colony limited natural resources, Singapore depends on its neighbours
on the site in 1819. It joined the Malaysian Federation in 1963 for its water and food supply, but their proximity comes at a
but was ousted two years later and became independent. price with the country suffering regularly of water, industrial
Singapore subsequently became one of the world's most and air pollution.
prosperous countries with strong international trading links (its
port is one of the world's busiest in terms of tonnage handled)
and with per capita GDP equal to that of the leading nations of
INTERNATIONAL HUB
Western Europe. Singapore is a multi-ethic society which coexists within a
western cosmopolitan metropolis. As a result, combined
with its location, skilled workforce, low tax rates, advanced
GEOGRAPHY infrastructure and zero-tolerance against corruption, Singapore
Singapore is a low-lying archipelago located in South East attracts a large amount of foreign investment. There are more
Asia, wedged between the Malay Peninsula and Indonesian than 7,000 multinational corporations from the United States,
Islands off Sumatra. With no land boundaries it is connected Japan, and Europe in Singapore. There are also approximately
by two bridges to the close by Johor Bahru city at the 1,500 companies from China and a similar number from India.
southernmost tip of continental Malaysia, and by boats to Roughly 44 percent of the Singaporean workforce is made up
nearby islands of Malaysia and Indonesia. of non-Singaporeans. Over ten free-trade agreements have
been signed with other countries and regions, and Singapore
Focal point for Southeast Asian sea routes the archipelago
is the 14th largest exporter and the 15th largest importer in the
consists of about 60 islands, by far the largest of which is
world.
Pulau Ujong. Land reclamation has removed many former
islands and created a number of new ones.
Due to its location at the equator, Singapore has a tropical
climate throughout the year, with two distinct monsoon
seasons from December to March and June to September.Singapore Guide to Market 2
POPULATION
At 5.7 million inhabitants, the country proves to be a world city and truly harmonious and peaceful melting pot:
Others 3.2%
(Caucasions & other Asians) Tamil 3.3% Others 2%
Indian
Malay None
9%
10.7% Other 18.5%
0.6% Buddhist
Malay English
13.4% 33.2%
Other 12.2% 36.9% Hindu 5%
Chinese Dialects
Chinese descent Taoist
74.3% 10%
Mandarin
34.9% Muslim Christian
14% 18.8%
ETHNICITY (2018 EST.) LANGUAGES (2015 EST.) RELGIONS (2015 EST.)
POPULATION GROWTH RATE: MAIN CELEBRATIONS
1.79% (2018 EST.)
Dynamic online sales, product rebates or bundles,
Note: in 2018, the net migration rate was evaluated at 12.7
hampers, gifting, travelling, company annual dinners
migrants/1,000 population, making it the 5th country in
and staff gifts, family and friends celebrations can be
the world.
expected during the below celebrations, and marketing
Highly developed, Singapore has among the 5th lowest activities, promotions and/or packaging should be
infant mortality rate, and the 3rd longest life expectancy. prepared in advance to maximize the sales during
these key festive periods. Due to its peaceful multi-
ECONOMY ethnic and multi-religion society, many celebrations are
happening every year:
Singapore has a highly developed and successful free-
market economy. It enjoys an open and corruption-free PONGAL
environment, stable prices, and a per capita GDP higher Pongal is a multi-day Hindu harvest festival in the
than that of most developed countries. Unemployment middle of January, which is originally celebrated widely
is very low. The economy depends heavily on exports in Southern India, particularly in the Tamil community.
and on Singapore’s vibrant transportation, business, and The Indians in Singapore also celebrate it with grandeur
financial services sectors. at the beginning of the auspicious month of Thai. This
festival is celebrated as a thank you to the sun god,
GDP (OFFICIAL EXCHANGE RATE)2 Surya, for the harvest and the riches of life. During
$323.9 billion (2017 est.) Pongal, Little India is lit up with various events and
competitions. People also exchanged gifts and wear
CURRENCY EXCHANGE RATE
new clothes during this festival in Singapore.
Singapore Dollar (SGD) NZD 1 = 0.89 SGD
CHINESE NEW YEAR
AGE % MALE FEMALE
The first day of Chinese New Year, also known as the
0-14 years: 12.77% 391,714 373,766
Spring Festival in Singapore, is of great significance to
15-24 years 16.05% 473,012 489,553
the Chinese community of Singapore who celebrate
25-54 years 50.61% 1,476,528 1,558,179
the Lunar New Year for 14 days. During this time, the
55-64 years 10.53% 316,001 315,648
Chinese locals visit their families and decorate their
65 years & over 10.03% 274,863 326,727
homes with red and gold colours. They also exchange
gifts and give kids Hong Bao (red envelopes).
Singapore has attracted major investments in advanced Chinatown comes to life through the celebration of
manufacturing, pharmaceuticals, and medical technology festivities. Lion and dragon dances are performed as a
production and will continue efforts to strengthen part of the celebration. Gifting, be it person-to-person,
its position as Southeast Asia's leading financial and corporate, and as a means to facilitate business, is
technology hub. a huge opportunity for imported wine, particularlySingapore Guide to Market 3
from the traditional prestige origins. Gift boxes, The festival is also called the Double Fifth Festival as it
bags, or hampers are an essential tool to access this falls on the fifth day of the fifth month of the Chinese
opportunity. Banquets and annual dinners at this time calendar, usually end of May. During this festival,
of year also represent a significant opportunity for dragon boats compete in races all over the world
imported wines. where Chinese communities are present, including
Singapore. The boats compete at the Bedok Reservoir.
YEAR DATE CHINESE ZODIAC People consume rice dumplings (zhongzi) and realgar
2020 January 25th (Saturday) Rat wines during this day.
2021 February 12th (Friday) Ox HARI RAYA PUASA
2022 February 1st (Tuesday) Tiger Hari Raya Puasa marks the end of Ramadan - the
2023 January 22nd (Wednesday) Rabbit
month of fasting by the Muslims. Hari Raya Puasa
means 'The day of Celebration'. During this festival
2024 February 10th (Saturday) Dragon
in Singapore, people visit the mosques and then
the graves (to greet any family that passed away).
THAIPUSAM They celebrate by wearing new clothes and visiting
Thai is a month in Tamil calendar, and Pusam is the their families along with reciting takbir in mosques
name of a star. During the month of Thai, usually in in the evening. Oil lamps are also lit up. The festival
around February, Pusam star is at its highest point symbolises purification and renewal of an individual.
in the sky. Thus, the Thaipusam festival is celebrated
during the full moon day. In Singapore, devotees DIWALI
walk from Sri Srinivasa Perumal Temple to the Sri Deepavali or Diwali marks the day Lord Rama returned
Thendayuthapani Temple. The celebration continues to his kingdom. It signifies the victory of the good over
for two days, the eve of the day, and the day itself. It's the bad. During this day end of October or beginning
a festival for the devotees to fulfil their vows. Some of November, Little India is lit up with lights and the
devotees carry spiked Kavadis (altars) that pierce skies are filled with dazzling fireworks in the night.
through their torso while other devotees carry pots of YEAR DATE DAY
milk that are later poured over the Vel (a divine javelin). 2020 October 1 Thursday
MID-AUTUMN FESTIVAL 2021 September 21 Tuesday
A lunar harvest festival, held on the 15th day of the 2022 September 10 Saturday
8th month of the lunar calendar with a full-moon at 2023 September 29 Friday
night, that celebrates three fundamental concepts
2024 September 17 Tuesday
that are closely related: gathering, thanksgiving and
praying. Traditionally mooncakes, a rich pastry typically
filled with sweet bean paste or lotus seed paste, are HUNGRY GHOST FESTIVAL
given as gifts, lanterns are lit and dragon/lion dances The Hungry Ghost Festival is a festival celebrated by
performed. The gifting of wine and spirits has also now the Buddhists and the Taoists on the 15th night of
become common and retailers will commonly plan the 7th month of the Chinese calendar (usually end
promotions around this time. of August or beginning of September). It is believed
that the ghosts come out during this period from the
VESAK DAY lower realms. During this festival in Singapore, people
Vesak Day is celebrated all over the world by followers visit the graves to meet their ancestors and deceased
of Buddhism. It marks the enlightenment and death members of the family and offer them food. Offerings
of Buddha. During this festival in Singapore, devotees are made to the spirits of the deceased to take care
are often found meditating and doing a significant of their materialistic needs even in their afterlives. It is
amount of charity work. This day also allows people to said that the ghosts make mischief if they are ignored.
self-reflect. Vesak day falls on the full moon during the What's unique about the ghost festival in Singapore is
month of Vesak, usually in May. that there are many entertainment sources available for
the people. Large tents are set up during the festival,
DRAGON BOAT FESTIVAL
and many live performances are also conducted. The
The Dragon Boat Festival (also known as Duanwu festival is also called Zhongyuan Festival or Yulan
Festival) or the Zhongxao Festival is a cultural festival Festival.
of China that originated thousands of years ago.Singapore Guide to Market 4
2. THE SINGAPORE WINE MARKET
OVERVIEW
A small city-state with a strong British influence, wine being consumed here but on the flip side savvy
Singapore can generally be considered a mature, consumers will know that the fixed excise duty rate
sophisticated and open-minded wine market, particularly (SGD 88 per liter of pure alcohol) and GST of 7%
in an Asian context. The range of wines on offer here means getting more bangs for one’s buck as prices
stretches far beyond super premium Burgundy and increase. In fact, prices for super premium wines here
Bordeaux for which Asian consumers are often famed to can look relatively competitive when compared to
covet, with the likes of generally more obscure offerings, markets like the UK. According to a recent report by
such as premium English sparkling wine or Vin Jaune, for Fitch Solutions, the country’s alcohol spend per capita
example, relatively easy to find. is set to increase by 2.7% per annum from 2019-2023,
with per capita consumption set to grow by an annual
This level of diversity, coupled with the fact that English
average of 2.4% over the same period.1
is an official language here, perhaps explains in some
part why the 2019 ProWein business report found the Conversations with local importers show a mixed view
top emerging market in the world for export within the of the overall state of the market with some citing the
next 5 years to be Singapore. US-China trade war as influencing a slowdown across
the region as a whole. Others are more positive and
SINGAPORE 37 see a steadily growing, buoyant market, albeit small
and highly competitive due to the sheer numbers of
TAIWAN 33
importers (obtaining an import license here is both
CZECH REPUBLIC 30
easy and cheap!). The transparency and stability of the
VIETNAM 22
market, coupled with plenty of Government support,
INDIA 21 continues to attract investment into a thriving and
THAILAND 17 highly dynamic food and beverage sector.
UNITED ARAB EMIRATES 15
Generally red wine is the preferred choice and
MALAYSIA 14 Cabernet Sauvignon the dominant variety, despite the
PHILIPPINES 12 hot, humid climate. White wine, driven by Chardonnay
INDONESIA 11
and Marlborough Sauvignon Blanc, is growing along
with Rosé which is particularly popular amongst the
NONE OF THE ABOVE 30
expat community and found in no short supply in
% potential in the following export markets for their Singapore’s many rooftop bars and outdoor dining
company within the next 5 years. spots. France and Italy dominate as the countries of
Indicates change from 2018 report choice for the majority of importers while Australia
source: ProWein 2019 Report dominates sales from the New World, particularly in the
off-trade. One of the biggest areas of growth is South
America.
Despite a population of nearly six million, however, the
number of people who regularly drink wine is reckoned Current trends include anything linked to sustainable,
to be pretty small, with some estimates as low as organic and biodynamic practices, with restaurants
400,000 people. Per capita consumption is currently and hotel groups regularly asking for proof of
also low, somewhere between 2.7-3L. This, coupled with certification for these, even at a house pour level.
approximately 500 companies with import licenses Grower Champagne and clean, well-made ‘natural’
serving approximately 330 wine shops and countless wines, as opposed to the more ‘funky’ versions that
bars and restaurants - not to mention a thriving craft were common here 3-5 years ago, are also on the up
beer and spirits market - means competition for a piece in the on-trade. As is anything that is more obscure
of the pie is rife. or unusual such as wines from the Middle East,
feeding into Singaporeans’ lust for exploring and
Although disposable incomes are relatively high,
experimentation when it comes to food and drink.
punitive taxes mean wine is generally considered
Most of all, however, value for money was cited by
expensive, particularly amongst expats and tourists
importers. Singaporeans love a good deal and look for
who can’t help but compare prices to those back
good quality at a keen price point.
home. High costs certainly limit the overall volume of
1 sbr.com.sg/food-beverage/news/singapores-alcohol-industry-ranked-10th-most-attractive-in-asiaSingapore Guide to Market 5 IMPORT, EXPORT AND CONSUMPTION STATISTICS Total wine import volumes (still and sparkling) over a IMPORT, EXPORT AND CONSUMPTION OF WINES six year period (2014-2019) have remained relatively (STILL BOTTLED
Singapore Guide to Market 6 AVERAGE PRICE/9LC (US$) STILL BOTTLED WINE (
Singapore Guide to Market 7
3. SINGAPORE MARKET STRUCTURE
NEW ZEALAND WINE MARKET IN SINGAPORE
TOTAL IMPORTS - VOLUME AND VALUE TAXATION
New Zealand wine accounted for 4.39% of total Wine in all its forms - from dry to sweet, sparkling and
imported wine volume into Singapore in 2019 and is the fortified - falls into the dutiable category of intoxicating
fifth ranking country in terms of value imports behind liquors and thus has an excise duty of SGD 88 per litre
France, Australia, Italy and the USA. of pure alcohol levied on it. On top of this there is a
Goods and Services Tax (GST) of 7% levied on the CIF
2019 saw overall volume, value and average pricing
(Cost, Insurance, Freight) + duty.
all decline but in a year of few winners as the overall
market slowed. This system should in theory have two consequences:
The majority of volume imported and indeed 1. Encouraging the consumption of lower alcohol wines
consumed within Singapore itself is entry level 2. Encouraging the consumption of higher priced wines
Marlborough Sauvignon Blanc (FOB NZD5-6.5 per
However, in practice, many consumers still seek
bottle), popular in both the on and off-trade channels,
out wines at the cheaper end of the scale, with
however, many importers are trying to diversify and
supermarket offerings of wines under 30 SGD not
expand their ranges with different varietal and regional
uncommon.
offering Import Tariffs & Free Trade Agreements
The high price of wine in general no doubt impacts
on volumes of wine consumed here and wine
VOLUME
businesses have their work cut out for them in terms of
encouraging consumers to trade up.
2018 171,000 9L cases
A helpful calculator for Singapore tax can be found here:
14.04%
www.singaporewinevault.com/duty-gst-calculator/
2019 149,000 9L Cases EXAMPLES OF CALCULATION:
VALUE SCENARIO 1:
Average price per 9L case 2019 to 89.80 USD from bottle at landed cost of 10 SGD with
92.31.60 USD in 2018, a decline of 2.80%. 14% alcohol
Duty =
88 SGD x 14% x 0,75 L = 9,24 SGD
2018 2019
15.95%
GST =
15,740,000 USD 13,230,000 USD (landed cost + Duty) * 7% = 1,35 SGD
TOTAL tax amount =
10,58 SGD ≈ 100% of the landed cost
IMPORT TARIFFS & FREE TRADE AGREEMENTS
Singapore is generally a free port and an open economy. SCENARIO 1:
More than 99% of all imports into Singapore enter bottle at landed cost of 10 SGD with
the country duty-free and for this reason free trade 14% alcohol
agreements do not have an impact on the final price of Duty =
wine as they do in markets such as China. 88 SGD x 14% x 0,75 L = 9,24 SGD
However, for social and/or environmental reasons, GST =
Singapore levies high excise taxes on distilled spirits and (landed cost + Duty) * 7% = 7,65 SGD
wine, tobacco products, motor vehicles and petroleum
products. TOTAL tax amount =
16,89 SGD ≈ 17% of the landed costSingapore Guide to Market 8
PRICING
SINGAPORE - RETAIL PRICE & FOB CALCULATION GUIDE (AS AT APRIL 2020) - FOR FCL SHIPMENTS5
The live version of this pricing calculator is available on nzwine.com members' site here:
nzwine.com/members/sell/market-resources/pricing-calculators/
To Calculate RRP (SIN $)
from FOB (NZ$)
Enter FOB price per 9 litre
case (NZ$) in Cell B6. Then
enter current exchange rate
(Cell B7), relevant importer
margin if applicable (Cell B15),
and retailer margin (Cell B19).
Your retail price per bottle
(SIN$) will be calculated and
appear in Cell B21
To Calculate FOB (NZ$)
from RRP (SIN $)
Enter retail price per bottle
(SIN $) in Cell E6. Then enter
relevant retailer margin (Cell E10),
importer margin if applicable (Cell
E14), and current exchange rate
(Cell E21). Your FOB price per 9
litre case (NZ$) will be calculated
and appear in Cell E21.
Notes:
Duty Calculation - volume being shipped x S$88 per litre of alcohol x % abv of wine
e.g. 9 x $88.00 x 0.14 will calculate duty payable on a 9-litre case of 14% abv wine
Goods and Services Tax (GST) calculation - 7% x (CIF value of wine + duty)
Singapore Importer Margin can vary between 30% and 40%, depending on their route to market. If you intend to sell
direct to a retailer then you do not need to factor in the importer margin.
Retailer Margin can vary between 25% and 40%, depending on the retailer and business model
Work closely with your distributor to determine appropriate recommended retail prices, but look at your competitors
and position your wines where you feel comfortable.
Additional budget for marketing & POS support may be required to support your brand with the retailer
or distributor.
5 www.nzwine.com/members/sell/market-resources/pricing-calculators/asia/Singapore Guide to Market 9
LABELLING & DOCUMENTATION
Compared with most Asian countries, importing To ensure your shipment is not kept in consignment
to Singapore is pretty straightforward in terms of under poor storage conditions, Singapore Customs
labelling. There are no specific wine standards or offer the possibility to pre-book the inspection process
labelling requirements in Singapore, but wine products online through the AVA (Agri-food & Veterinary
are subject to the general food standards and labelling Authority) e-services, for each shipment coming to
requirements. Singapore.
The following items are required to be declared in What needs to be remembered is that even
English language. Other languages can be added if Singapore requests a fairly light amount of
as long as they do not contradict the English text. documentation, you must ensure that all the necessary
Information needs to be displayed in a font size of at import documentation is consistent and matches
least 1.5mm: exactly with what appears on the wine’s label. A
common error is stated alcohol content on the import
• product name
documentation not matching up with what is printed
• volumetric measure (ml) on the label. A simple check at the winery end prior
• alcohol content (%) to shipment can be the difference between a 3-4
day customs clearance, or a period of two weeks to
• country of origin clear which is hardly an ideal situation in Singapore’s
• name and address of importer, distributor or agent exceedingly hot and humid climate.
in Singapore
LOGISTICS & STORAGE
• allergens: allergen labelling is now required for all
wine imported into Singapore containing As Singapore’s average annual temperature is around
‘ingredients known to cause hypersensitivity’ 28°C with generally very high humidity (80-100%), it is
(egg, milk products or sulphites over 10ppm). imperative to investigate temperature control measures
The statement should be presented in a 'contains' to ensure wine quality is protected throughout
statement, i.e, 'contains: sulphites' or 'contains: egg, its journey and upon arrival into Singapore. Good
milk'. Wine fined with isinglass or fish gelatin is importers will have invested heavily in appropriate
exempt from the requirements. warehousing as well as having measures in place to
ensure smooth processing at customs. As part of your
Regarding the import documents required upon arrival,
due diligence it’s advisable to check these details with
here again the list is quite standard, but all of them
your importer before you first ship.
must have consistent information:
• Cargo Clearance Permit RE-EXPORT
• Invoice (not pro-forma) Re-export of wine to the rest of Asia-Pacific is common
from Singapore, with many large alcohol companies
• Airway bill / bill of lading
having their regional headquarters established here. A
• Packing list number of importers in Singapore have offices and do
business in other parts of Asia and it is easiest to store
• Certificate of origin
wine in a bonded warehouse and consolidate orders in
• Documentation of the quality assurance program Singapore. This allows them to assure the security and
under which the wine is produced (HACCP or condition of their wines and means having to hold less
health certificate from the exporting country) stock in destination countries.
• Certificate of analysis (not mandatory but can
support any dispute, particularly concerning the
abv given its relevance to taxation).
Singapore maintains the authority to extract samples
from any shipment for analysis of the wine through
its own certified lab system, keeping the rest of the
shipment on hold until the results are published, which
can take up to 12 days.Singapore Guide to Market 10
4. ROUTE TO MARKET & KEY PLAYERS
OVERVIEW Medium sized companies, those with 15-35 brands
on their lists, are probably your best bet to aim for,
Due to the small size of the Singapore market, it is
particularly from the stand point of less competition for
generally recommended to stick exclusively to one
attention on a list. Most importers, regardless of size of
importer. The exception might be if you have multiple
portfolio, have fairly small sales teams (fewer than 10
product lines with different labels aimed at different
people), even those servicing the on-trade.
channels.
Trade fairs such as Prowine Asia and World’s Leading
Wines, although costly, can help to initiate meetings
KEY PLAYERS
and discussions with local importers. Alternatively Below is a list of some of the key players in the
using an agent or agency to help make introductions Singaporean wine trade. The list is not exhaustive and
to well suited buyers can be a good first step towards contains a mixture of small, medium and large scale
meaningful market access. companies.
As with any new market, time spent doing research IMPORTERS
and due diligence into your chosen partner is seldom
wasted. Documentation to consider asking for before Alfa International
signing on the dotted line may include the following: Well established player in operation for over 16
years with a strong old world portfolio servicing
• Copy of business/import license
predominantly the on-trade. Their well laid out and
• Copy of their downstream sales portfolio or their managed website ewineasia.com covers direct to
book of prices, either digital or hard copy consumer.
• The exact size and shape of their team, including
Ampelia
management, sales, logistics, marketing, and
Small but strong on-trade player, originally focused on
accounting
German and Austrian wines but in the past few years
• Warehousing, storage and delivery information
expanding to offer a good selection from all over the
• A credit application with all necessary credit and world.
financial information
Artisan Cellars
• An explanation of their downstream distribution
Focused on artisanal, terroir driven wines particularly
network
Burgundy and Grower Champagne.
Reluctance or inability to provide any of the above
should be a red flag for the importer as a serious and Benchmark Wines
legitimate partner. Medium sized, with wines mostly from small, high-
quality and highly-praised family-owned vineyards in
Australia, the US, France, Italy, Spain and New Zealand.
ROUTES-TO-MARKET
Brand Connect
IMPORTERS
A top spirits importer but with a sizeable list of wines
There are approximately 500 importers of wine in from the New World.
Singapore of all different shapes and sizes. The relative
ease and low cost of forming an import business, Certain Cellars
however, has crowded the market with a plethora of Medium sized importer and distributor with a quality
smaller, specialist importers many of whom are mere selection from USA, Italy, New Zealand and France to
hobbyists, selling small quantities of wine, usually via fulfil the needs of both trade customers and private
online platforms direct to consumers. clients.
There are only around 50 or so large players, those Crystal Wines
with 40+ brands on their portfolios from a variety One of the big players with a strong list suppling
of different countries and regions, currently active mainly to the on-trade.
in the market. Although these tend to be the most
professional, particularly from a brand building D&D Wines
standpoint, they are generally the least accessible for A JV between Vinum and Darryll Burleigh,
new/smaller brands trying to enter the market. predominantly old world focus servicing the on-trade.Singapore Guide to Market 11
Enoteca Taste of Tradition
Premium wine importer with its roots in Japan that has Good sized list of fine wine producers from around
expanded over the years into Hong Kong, Singapore, the world.
Mainland China and South Korea.
The Straits Wine Company
Equatorial Wines Large player servicing all channels particularly the on-
Small importer and distributor of wines from around trade. Host one of the biggest consumer wine events –
the world but with a particular focus on Australia and The Straits Wine Fiesta – on an annual basis.
New Zealand, bringing them into Singapore as well as
Vinum
South East Asia.
Leading importer of fine wines particularly from the old
Excaliber Fine Wines world.
Mid-sized importer and distributor focused on servicing
the on-trade. WHOLESALERS
Less important as a channel for wine compared to
Hai Choo Wines & Spirits
spirits where wholesale business is big business
A family run business in operation for over 30 years,
servicing the likes of bigger alcohol companies who are
with a wide range of wines from contemporary to
doing direct import such as MHD and Pernod Ricard.
classics.
Usually very localised companies who buy from the
Hock Tong Bee (Cornerstone) importers and sell to the local on trade, retail, and local
One of the larger and more established players with a corporate clients. It is unlikely that you will ever deal
wide-ranging list servicing both the on-trade and direct directly with the distributors.
to consumer.
SUPERMARKETS
KOT Selections
The supermarket sector is dominated by three key
Quality, mid-sized importer with a strong list of
players: NTUC Fair Price Cooperative, Dairy Farm
premium brands predominantly from the old world and
Group, and Sheng Siong Supermarket Chain. As with
primarily servicing the on-trade.
supermarket business around the world margins are
Monopole thin but unlike their counterparts in the UK or USA,
Serious player, top F&B supplier, wide ranging list from supermarkets here do not represent a fast-moving
around the world. channel for wine and thus the volumes sold may not be
worth the large financial investment required to access
Octopus Group this channel.
Large player importing both wines and spirits, focused
Many importers either don’t work with the
mainly on bigger brands and servicing all channels.
supermarkets in the first place, or are pulling away
Core wine brands include Concha y Toro, E&J Gallo,
from this channel because of the very low margins
Castel and Distell.
and the fact most supermarkets are sourcing direct.
Pinnacle Wines & Spirits Dairy Farm Group for instance is now buying 80% of
Strong portfolio of quality minded, premium producers their wines direct as they are looking for the very best
from around the world servicing the on-trade and pricing they can get.
private clients. Having a supermarket listing in Singapore could
represent some opportunity for enhancing visibility
Sarment amongst the biggest brands, but generally for smaller
Luxury wine and spirits importer focused on small, brands the high listing fees and likely small volumes
quality minded producers from around the world, sold make this channel a non-starter.
particularly strong in France and Italy. Servicing
Having said all this, the online opportunity through
premium on-trade and private clients.
these supermarkets’ websites is likely much more
Straits Cellars significant compared to that of the retail opportunity,
Originally a Californian specialist that over the years based on the fact that Singapore is a market of
has broadened their selection to cover wines from Italy, convenience where home delivery and home
Australia, New Zealand, France and Portugal. consumption is on the increase.
Selling to the on-trade as well as private clients.Singapore Guide to Market 12
NTUC Fairprice • Marks and Spencer has a similar selection to the
Singapore's largest retailer (supermarkets, UK original but with a more conservative selection
hypermarkets, gas marts and convenience stores). • Traditional markets and “Mom and Pop” grocery
Retail Formats: stores.
• FairPrice, FairPrice Finest, FairPrice Xtra, and
SPECIALIST RETAILERS
FairPrice Xpress supermarkets/hypermarkets
There are a large number of specialist wine retailers in
• Cheers convenience stores
Singapore. As rents on retail spaces in prime locations
Dairy Farm can be expensive retailers often do a mix of sourcing
Singapore's 2nd largest retailer (supermarkets, from local importers as well as some self-import to
hypermarkets, gourmet stores and convenience make sufficient margins. The focus in these specialists
stores). Wine sales are generally split 70% red, 30% tends to be more premium than you might find in the
white with Cabernet Sauvignon dominating for reds supermarkets, with more open market wines available,
and Chardonnay for whites, although Marlborough especially from Burgundy and Bordeaux.
Sauvignon Blanc, particularly Cloudy Bay, is also The following is a list of some of the more significant
significant. The aim moving forwards is to diversify players:
their New Zealand selection, adding more wines from
1855 The Bottle Shop
regions such as Central Otago and Martinborough
High end specialist wine and spirits retailer with 8
as well as introducing different pricing levels within
stores around the city. Source direct as well from local
Marlborough.
suppliers.
Retail Formats:
Bottles & Bottles
Cold Storage, Market Place, Jason’s and Giant
Nine outlets across the city, including two at the airport
supermarkets.
with a wide array of wines and spirits.
Of these Giant attracts more lower income locals and
is more focused on everyday wines. Cold Storage sees Century Cellars
a greater proportion of ex-pats and higher income Six stores across the city selling a wide range of wines,
families. There is more demand here and in the more beer and spirits.
upmarket Market Place and Jason’s for organic,
sustainable and premium options, as well as ‘low Drinks & Co.
and no’ which is feeding into the wider emphasis on Currently with four outlets Drinks & Co. acts as the
wellness being seen across Singapore. showroom and retail arm of Brand Connect, allowing
guests to “shop and pop” i.e. buy wine on site and
Sheng Siong consume it without paying any corkage.
Singapore's 3rd largest retailer. Mainly focused on beer
and Asian spirits. Wine Connection
One of the biggest retailers in town with over 20
Retail Formats: retail stores and nine restaurants allowing guests to
• Supermarkets with "wet & dry" market experience “shop and pop”. Specialising in everyday, value wines.
• Located across the island, mostly in suburban areas Work via an annual tender process for entry to their
selection.
Other smaller retailers include:
• Prime Supermarkets with 20 stores, mainly located The Oaks Cellars
in suburban neighborhood areas, targeting budget- High end retailer with an extensive list selling both
conscious consumers exclusive and non-exclusive brands. Currently five
outlets plus a showroom/tasting room where they host
• The Japanese retail stores Meidi-Ya Singapore and
events.
Isetan Supermarket
• Hao Mart which has seen extraordinary growth from
just 4 stores two years ago to 60 today. Mainly
located next to government subsidized apartment
blocks and serviced by the likes of Octopus Group.Singapore Guide to Market 13
Convenience Stores Lazada
This sector is dominated by 7-Eleven stores, however, The largest e-commerce operator in Southeast Asia
this is not where most consumers are looking to now owned by China’s Alibaba Group.
purchase wine. If wine is listed it is very entry level and
KrisShop
uninspiring. Even if listing fees can be afforded this is
Singapore Airlines flagship retailer selling a wide array
generally not a recommended channel in Singapore for
of premium wines and spirits.
quality minded producers.
Paneco
E-Commerce
An online liquor store delivering top alcohol brands
E-commerce is a lively and growing sector in
within Singapore.
Singapore, with local online giants such as Redmart
commonly used by locals now becoming accustomed Pop Up Wine
to the convenience of home delivery services. Dining Australian and New Zealand wine specialist offering
and entertaining at home is also more popular here more than 200 award-winning wines at sharp prices.
than in other Asian countries and has helped to drive
more casual consumption of wine. Redmart
Alongside the ‘giants’ – Redmart, Amazon, Lazada, One of Singapore’s largest and most popular online
Paneco, EAMart to name a few – there are a multitude grocery sites.
of online wine specialists catering to the ever-
Vinomofo
diversifying tastes and demands of Singaporean locals.
Australian company that expanded to Singapore in
Most importers, distributors and retailers have online
December 2016 to attract the younger audience of
sites to cater direct to consumers.
drinkers. Large Australian selection with bits and pieces
A selection of the top e-commerce sites for wine, both from elsewhere.
‘giants’ and smaller, specialist players are as follows:
Amazon
Global leader in e-commerce with a strong presence in
Singapore.
Brown Bag Wines
Small online, direct to consumer business dedicated to
organic wines.
Cellarbration
E-commerce site of Octopus group, one the leading
wine and spirits delivery services in Singapore.
Dellarosa
Founded in November 2017 by Quintin Dellarosa
this online service has the goal of bringing organic,
biodynamic and natural wines made by artisanal
winemakers to Singapore.
EAMart
One of Singapore's leading online lifestyle and
groceries shopping site.
Ewineasia
E-commerce site of Alfa International. Great selection
of premium wineries from around the world.Singapore Guide to Market 14
RESTAURANTS Food Delivery
Eating is serious business in Singapore, having earned As with elsewhere in the world food delivery services
the distinction of ‘one of the top 10 food cities in the are big business in Singapore. A number of the top
world’ a number of years in a row. There is no end players connect to selections from wine and spirits
of restaurants here catering to a vast variety of both retailers such as:
Asian and Western cuisines. • Grab – Century Cellars, Wine Connection, Bottles &
Although property rents aren’t the cheapest, they are Bottles
more reasonable compared to cities like Hong Kong, • Deliveroo – Wine Connection, Century Cellars,
and as a result the independent restaurant scene is The Straits Wine Company
able to thrive here more easily. Alongside of these, a • Food Panda – Wine Connection, Bottles & Bottles
number of larger restaurant groups also exist including: Bars & Clubs
• 1-Group Singapore leads the cocktail scene in Asia with more
• Les Amis bars in the 2019 World’s 50 Best Bars than any other
• Tung Lok Asian city. Although dominated by cocktail offerings,
• The Lo & Behold Group wine is also served on most top cocktail bar lists, albeit
• Unlisted Collection certainly a lesser focus.
• Spa Esprit Group The six bars currently in the World’s 50 Best are:
• Dandy Partnership
• Altas • Native
• Jigger & Pony Group
• Manhattan • The Old Man
• PS Cafe
• Operation Dagger • Jigger & Pony
Hawker Centres
The music scene in Singapore has gone from strength
Singaporeans often want to have a quick bite to
to strength in recent years, attracting both local and
eat a reasonable price. The city’s numerous Hawker
international talent, and the top nightclubs in town
centres or food courts offer down-to-earth culinary
regularly feature famous DJs from around the world.
destinations where you can find a wide variety of
These include:
local dishes, from Chicken Rice, Fried Kway Teow,
• Zouk • Bar Rouge
Hokkien Mee, Bak Kut Teh, Satay, Laksa, and Chilli
• Marquee • Canvas
Crab to the healthy Yong Tau Fu. Despite the cheap
• f.Club x Attica SG • Ce La Vie
prices (usually from S$2.50 to S$5.00), the quality of
• Lulu’s Lounge • Tanjong Beach Club
food is good. A lot of food connoisseurs in Singapore
frequently visit the best food courts in town for their Hotel Groups
favourite indulgence. Beer is the most widely drunk As an international travel hub Singapore’s hotels
alcoholic drink at the Hawker centres but there are represent a key opportunity for wine sales. All
no rules against BYOB as long as you finish drinking the major global hotel groups have presence here
by 10.30pm according to The Liquor Control (Supply including:
and Consumption) Bill which states drinking in public • Marriott International
places is prohibited between 10.30pm and 7am. You • Shangri-La Group
just need to remember to bring a bottle opener and • IHG
something to drink out of! • Hyatt Hotels
Some of the most popular are as follows, but there are • Accor S.A
more besides: • Hilton Hotel & Resorts
• Mandarin Oriental
• Maxwell Road Hawker Centre
• Tiong Bahru Market Hawker Centre A number of boutique hotels also have top quality F&B
• Newton Food Centre offerings such as The Warehouse Fullerton Bay, Six
• Amoy Street Food Centre Senses, Hotel G, Ann Siang House and Kesa House to
• Lau Pa Sat name but a few.
• Tekka Centre
• Chomp ChompSingapore Guide to Market 15 Casinos The Singapore Government has prioritized tourism and casinos with the creation of two large casino complexes. These two industries have helped the wine trade in many respects, particularly as the casinos invest heavily in their restaurant wine programs and staff training. Marina Bay Sands (MBS) Singapore’s most iconic hotel and casino boasts the world’s largest rooftop infinity pool and endless award- winning dining options. With over 50 bars, restaurants and nightclubs, the choices are endless and the opportunity for wine sales significant. Resorts World Sentosa (RWS) Resorts World Sentosa is one of Asia’s premium lifestyle destination resorts boasting world-class attractions such as Universal Studios, as well as six luxury hotels, a casino, a world-renowned destination spa and endless vibrant and diverse dining options, making this another top client for serious F&B operators.
Singapore Guide to Market 16
5. GETTING INTO MARKET
A. MARKET & BRAND BUILDING PLAN Opinions of customers e.g. restaurants, retailers, chains,
A well-considered and implemented plan for building supermarkets, consumers
your route-to-market and brand building vision, can Credit history – do they have a good credit history
help to establish a sustainable and long-term business with existing suppliers? What are their credit terms?
relationship with a market such as Singapore.
Due Diligence
What your plan should cover: a) Credit History
Your plan needs to be clear and concise, and ultimately, • Do they have good credit history with existing
deliver tangible results. suppliers?
You will need to consider: • What are their credit terms?
• Characteristics of the market • Do they take direct responsibility for their debtors
• Competitor analysis and benchmarking or do they use a third party?
• Product range b) Warehousing
• Pricing • Location
• Brand positioning • Air conditioning
• Strategic objectives • Logistics & delivery
• Route-to-Market c) Company Financials & Structure
• Promotional strategy including investment • Financial records to check financial standing
required • Company structure
• Modifications to product, packaging, marketing
materials, pricing C. HOW TO FIND IMPORTERS
• Implementation and evaluation of your plan
Use an Agent
As well as the following: Hiring an agent to make introductions to suitable
• Payment terms importers is generally a good way to connect as they
• Import documentation required should have solid personal relationships with importers
• IP protection that can help to fast-track market entry in comparison
You should review and modify your plan on a regular to a cold, direct approach.
basis in line with the realities of the market. A good agent will identify active and appropriate
importers and identify gaps in price point/country/
B. WHAT TO CONSIDER WHEN SEEKING AN
styles/varieties where your brand may fit or be a better
IMPORTER/DISTRIBUTOR – AVOIDING PITFALLS…
offering than an existing brand. They should consider
Channel - It is recommended that you identify which
how your business can increase the profitability of a
channel(s) you would most like to sell in and focus
distribution partner.
on finding an importer or importers that specialize in
You will need to give a full overview of your business
selling within that channel.
plan to your chosen agent, including an overview of the
Condition of importer’s warehouse, storage and
history of the winery, ownership, product portfolio and
delivery systems
pricing, stylistic direction, and any USPs that may be
Size of importer’s sales and marketing team relevant including press and awards from internationally
Remuneration structure of the sales team renowned critics/competitions. You should also include
Number and profile of wineries in their portfolio – a what sort of support you are able to offer for building
big portfolio may attract a wide range of customers your brand in Singapore.
but getting focus from the sales team on your products
may be difficult in amongst so many other brands.
Other NZ wineries in the portfolio
Other Pinot Noirs/Sauvignon Blanc listings and other
competing varieties/styles at similar price points
Price points – yours and other brands on the portfolio;
where will your wines sit at trade prices; what margins
do they make; what are their selling mechanisms –
discounts, free stock, both?Singapore Guide to Market 17
Agents can help you to broker the import terms and E. BUSINESS ETIQUETTE IN SINGAPORE
conditions and make formal introductions as and when Although Singapore is highly westernized, business
it becomes necessary. meetings are often more formal than in many western
countries. As with other Asian countries, personal
Trade Fairs
relationships are the cornerstone of all business
Another way to meet with potential importers is
relationships and these will take time to build and
via trade fairs. These obviously require time and
nurture. Patience is key as this will demonstrate that
investment but in some cases can be a good way to
your organization is here for the long term and not
show an importer that you are serious about entering
just for short-term gains. Most Singaporeans are
the market.
softly spoken and conduct business in a calm manner,
Direct preferring this to an aggressive style. They tend to be
As English is an official language in Singapore and subtle, indirect and implicit in their communications.
most importers have easily accessible websites with Rather than say an outright ‘no’, they might say ‘I will
contact details, reaching out direct to importers try’ or ‘I’ll see what I can do’.
may yield results. Generally though, as with other Meetings and appointments should generally be made
countries in Asia, cold calls and emails tend to go a week or two in advance and punctuality is considered
ignored. Personal connections are far more likely to a virtue. Exchanging business cards is common
yield positive results, either via direct presence in the practice and business cards should be treated with
market, or via a good quality agent. respect and examined carefully studied before putting
away in a wallet. Singaporeans are generally tough
D. CONTRACTING WITH A SINGAPOREAN
negotiators so expect these conversations to come up,
IMPORTER/DISTRIBUTOR
particularly when it comes to pricing.
Working exclusively with one importer is usually
F. What to do if you want to change importers
recommended due to the small size of the market,
however, you should try to get some clarity on the Changing your importer should be considered carefully
following: due to the small size of the market and the relative
difficulty of finding a new, and more importantly, good
Volume and value expectation / goals (don’t expect
quality import partner.
these to be big! Singapore is more of a profile market
than a volume driver and importers won’t appreciate Things to consider if you do decide you want to
pressure to ship volumes that simply aren’t in line with change:
market realities) Terms of your contract, are you within your rights to
• Distribution goals – regions and channels break your agreement?
• Information sharing: forecasts, inventory, sales How much stock do they have on hand? Is dumping of
depletions, marketing activities stock likely if you leave and if so, how damaging might
Signing distribution contracts with smaller importers is this be, particularly if it appears online?
not common practice but you can expect this with the Are there unpaid invoices outstanding? If so, you’ll
larger players. want to ensure you get paid before making a move.
Any promotional and educational support should be Ideally you’ll want to form an amicable agreement
discussed upfront including POS materials, sample to get stock moved to your new importer. In practice
support, marketing support, training, winery visits, this rarely happens.
winemaker visits, sales incentives etc. This negotiation
G. GETTING WINE INTO MARKET – FREIGHT OPTIONS
is very important to ensure your brand is built in the
most effective way. There are numerous options for shipping wine from
New Zealand to Singapore. Ensure you fully research
Payment terms different options for freight forwarders to ensure that
Where possible insisting on upfront payment terms you are getting the most cost effective deal.
would be advised, certainly for the first order. However,
Airfreight is also available between New Zealand and
some of the more established importers and ‘on trade’
Singapore but is more expensive. By far the most cost
specialists will expect payment terms of 60-90 days.
effective way of shipping is by sea.Singapore Guide to Market 18
6. WINE MARKETING IN SINGAPORE
Marketing techniques don’t tend to vary widely MARKETING MATERIALS
compared to what you may be doing in other parts As English is considered a main language in Singapore
of the world. It is worth discussing marketing activity there is no need to translate brand materials, however,
with your importer to ensure you are appealing to the in a very competitive market with thousands of wine
Singaporean market. brands trying to compete it is highly recommended
brand materials are as slick as possible!
MARKET RESEARCH
As with entry to any new market spending time PACKAGING
researching the market will never be wasted. A number Singaporeans tend to be open minded about
of trips to Singapore is recommended so that you can packaging options and there are no real preferences
begin to understand firsthand what type of activity is in this regard unlike markets like China that still prefer
worth investing in. cork over screwcap for example, and heavier bottles
over lighter ones. Singaporeans tend to be conscious
INVESTMENT REQUIREMENTS
of environmental issues as the growing trend in
This will depend on the size of your brand and sustainable and organic products clearly demonstrates.
which channels you are looking to work in. Generally
marketing investment will either be based on an PROMOTIONS
incentive per bottle, and/or a fixed amount to invest There are no strict rules or regulations when it comes
into marketing activations. Marketing investment to wine marketing in Singapore, as long as you are not
should generally be a 50/50 split with your marketing or advertising to minors (the legal drinking
importer. When launching a new brand or starting age is 18). There are also no seasonal cues here i.e.
a new partnership it is recommended that owners/ winter vs summer month promotions, however, key
winemakers visit Singapore within the first year to times of year for promotions include Chinese New Year,
effectively launch the brand in market. Valentine’s Day, National Day, Mid-Autumn Festival and
Christmas.
INTELLECTUAL PROPERTY
The Singaporean Intellectual Property (IP) legal Common promotions in the on-trade include:
framework is very comprehensive and is generally Wine of the Month promotions typically featuring a
considered to be one of the most thorough in Asia. pair of red and white by glass, or a compact selection
Singapore is a member of the following international of wines, often supported with tabletop or menu POS,
conventions regulating IP matters: a briefing to the floor staff, and a price offer from
the importer. More advanced versions of this might
• The Madrid Agreement concerning the
include wine preservation systems, particularly Coravin
International Registration of Marks
promotions which are currently trending, allowing a
• The Patent Cooperation treaty
greater number of fine wines to be offered by the glass.
• The WIPO Copyright Treaty
Wine list feature pages and menu inserts, or other
• The NICE Agreement concerning the International merchandising that features your wines for a period of
Classification of Goods and services time.
• The Berne Convention for the Protection of Collaborative promotion and event programs with
Literary and Artistic Works a visiting chef or winemaker.
SMEs are reminded that IP rights are territorial, and
accession to these treaties governs only the scope
and availability of protection in Singapore and does
not grant blanket protection for those who hold
registrations in other member nations. Furthermore, it
should be noted that Singapore operates a ‘first-to-file’
system, meaning that the first to file an application for
an IP right in the Singaporean jurisdiction will own that
right once the application is granted. Early application
for trademarks, ideally before release of products
and services into the market, is therefore generally
recommended.You can also read
