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Thai
Wines Sell Better Abroad
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In a
growing number of restaurants, diners are filling their glasses with
wines produced in Thailand. But you won't be able to see the same
phenomenon in most restaurants in places like Phuket, Samui or Bangkok. |
Instead, it is
in cities such as London, Paris and in New York that these wines are
gaining popularity. Almost 300,000 bottles of locally produced wine
are being exported yearly to Europe and the United States, even as
consumption in the domestic market is barely growing.
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"Eight
years ago, in the beginning, it was a joke. This was the last country
I dreamed I would make wine in," says Laurent Metge-Toppin. Metge-Toppin
spent years working in the wine industry in France. Nowadays, he
spends his time promoting Thai wines in Europe. |
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This year,
Siam Winery, the country's largest export-wine producer, expects to
see more than 17 percent growth in export sales, according to Kim
Wachtveitl, director of business development.
The increased
sales are almost exclusively from Thai restaurants abroad, which
offer the wines, under the name Monsoon Valley or, in the case of the
popular chain Blue Elephant, under their own private label.
Thailand, of
course, is not a country traditionally known for wine production.
According to the Thai Wine Association, it was not until the 1980s
that people there began experimenting with local grapes to produce
wine. Since then, a handful of wineries have sprung up, offering
wines referred to in the industry as "new-latitude" because
the grapes used to produce them are grown outside of the usual
wine-friendly band between the 30th and 50th parallels.
"The wine
industry is traditionally limited in terms of innovation&ldots;but in
Thailand we've been able to experiment with new techniques to create
a new type of wine," says Metge-Toppin.
The
experimental attitude has freed vintners from traditional blends with
traditional grapes. Instead, most wines produced domestically have
been made specifically to go with the spicy cuisines found in the
region.
"Most
wines weren't meant to go with this type of food&ldots;but in
Thailand we can make wines that just taste better with the spicy,
strong flavours of the region," he says.
Producers are
leveraging the complementary nature of Thai wines with Thai food to
increase exports.
"Thai
food is very popular outside Thailand. Where would people try Thai
wine if not in a Thai restaurant?" asks Wachtveitl.
Wachtveitl has
been focusing nearly all of his company's marketing energies on
getting Thai restaurants abroad to carry his company's products. More
than 700 Thai restaurants overseas have sold nearly 250,000 bottles
of Monsoon Valley so far this year, and Siam Winery is hoping to
double that number in 2006.
Restaurateurs
and distributors abroad agree that the taste of the wines is boosting
sales, but say it is not just flavour, but also the price.
"Perhaps
the biggest reason is price&ldots;The wine is readily affordable and
with its style of good fruit and soft tannins, it pairs well with
spicier cuisines," says Bernard Sun, corporate beverage director
for Jean-Georges Management (which owns Spice Market and Restaurant
66 in New York City).
The weaker US
dollar this year has increased the price of European wines by between
20 and 30 percent in the US, causing consumers to be more open than
usual to cheaper alternatives, says Sun.
A bottle of
Thai-produced wine in a restaurant in New York City is substantially
cheaper than most alternatives, retailing for US$14-24 a bottle, says
Sara Paleewong, a distributor based in New York.
While Thai
producers are watching the market for their products grow steadily
abroad, the one place they are still having difficulty selling is
Thailand itself. Consumption of locally produced wines has grown only
about two percent this year, according to industry data.
Producers
point to a lack of a wine-drinking tradition and a tax structure that
favours locally produced beers and spirits. Local and excise taxes
bring the bill for Thai wines up approximately 200 percent. "It's
really crazy that a bottle of our wine in Paris sells for 30 percent
less than in Bangkok," said one producer.
Still Thai
wine makers say they are happy to take advantage of the growing
export market, and see room for additional expansion not only in Thai
restaurants but also in retail outlets. |
