Singapore – a difficult but growing wine market

Singapore is a small market. 4.5 million inhabitants consume only about 2 liters of wine per head and they prefer mostly heavy, full bodied red wines, like Shiraz, Cabernet Sauvignon and Bordeaux wines. Branding is also very important, so wines and champagnes from the big producers are much more appreciated than smaller labels from excellent but mostly unknown wine makers.

Beside of these they like to drink premium branded brandy’s at every opportunity. Singapore is leading in the consumption of premium brandy’s, more than the Americans.

Contrary to this small market there are many importers of wines, some of them really perceive wines only as a commodity, which should fit to the common taste and should be consumed fast.

The high customs duty is a barrier to increase the consumption. It is S$ 70.00 per liter alcohol (about Euro 35.00). The customs duty per normal bottle of wine is between S$ 5.00 and 8.00 plus 7 % GST.

For further considerations it is to take into account that the Singapore market has a big influence on the surrounding South East Asian markets up to China. The consumer behaviour if often a model for  them.

Magma is a Singapore company in German ownership, which started end of 2006 to promote German wines. The market share of German wines was very small, incomparable to the wines from Australia, New Zealand, USA, France, Italy and Chile. Often “German Wine” was synonym for “Sweet Riesling”. There were only few German wines in the market, mostly bottled by traders, which mostly confirmed the prejudices. 

Main target group for Magma were the local people, not primarily the Expats. Insofar is to consider that the local people, mostly of Chinese descent, like to eat, but are also interested to try something new.

Magma combined the offer of excellent German wines in a shop (and in wholesale) with a restaurant, which offers a broad range of delicious German food from all parts of Germany. These food will be matched with wines from 25 of the best German wine makers of all 13 German wine regions (some names are e.g. Keller, Wittmann, Emrich-Schoenleber, Schweinhardt, Bassermann-Jordan, Juliusspital, Schloss Castell, Schloss Proschwitz, Luetzkendorf, Haart, Molitor, Becker, Stodden, Bercher, Weingart).

It’s not easy for Magma. If the people are going to a French or Italian restaurant, they expect a “Fine Dining” experience, start with a Champagne or Prosecco as an aperitif and drink wine matching to the food. If people go to a German restaurant, they expect pork knuckles (Haxen), sausages and beer. Magma bucks against the trend (it is much more easier for “German” restaurants which comply with these prejudices), but after more than 3 years Magma convinced many guests and customers of the contrary.

Magma offers about 250 labels of German wines in about 25 varieties. The guests appreciate much dry and semi-dry wines and one third of the consumption are red varieties with buoyancy.

In several blind tastings and in the leading wine challenges of Singapore German wines, submitted by Magma, have been very successful. 24 wines got “Gold” or “Best Wine” awards, surprisingly not only Riesling, but also several Pinot Noir, Pinot Blanc, Scheurebe and Silvaner.

More and more Singapore newspapers and lifestyle magazines recognize the high quality of German wines and report about it.

And more and more restaurants and hotels consider their wine menu and add some more German wines on it.

The way is furthermore long, but the efforts of Magma will also be supported by the German institutes for the promotion of wine and these is very helpful.

At the “Wine for Asia 2009 Singapore” more than 120 professionals could participate in 2 seminars, supported by VDP, about “German Great Growths” and “German unknown varieties which are leaders in the world”. 80 more participated in a seminar of the organizer about “Pinot Noir” in which Alexander Stodden could represent German wines.

In a smaller circle of experts at the Magma restaurant Joel Payne could succesfully introduce “German Great Growths” to some leading sommeliers, F & B Manager and opinion leaders, supported by VDP.

And the first trip abroad of the new elected German Wine Queen Sonja Christ went to Singapore, where she represented the German wines at several events, wine tastings and at the exhibition “Wine for Asia 2009 Singapore”.

Target of Magma is that in most of the better restaurants and hotels some German wines will be put on the menu and that the sommeliers and F&B manager will be educated to recommend them to their guests.

And that more and more people will know, that they would be able to buy and enjoy excellent German wines in different varieties in Singapore.