Wine, Beer and Spirits Industry Analysis in Singapore

This report provides an analysis of the wine and spirits industry in Singapore through the lens of the “Taketsure Pure Malt Whiskey Nikka” manufactured by the organization Golden Vineyards. It covers the overview of the industry, market segmentation, consignment contract, and product details.

Running head: WINE, BEER AND SPIRITS INDUSTRY
Wine, Beer and Spirits Industry
Name of the Student:
Name of the University:
Author’s Note:

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Introduction
The business organizations of the present times provides a wide range of products to
the customers like electronics, furniture and other objects of day-to-day necessities.
Furthermore, it is seen that apart from the necessary items the organizations also provides a
range of products which can be said to belong to the category of recreational and
entertainment needs of the people (Delmas and Grant 2014). The wine and the spirits industry
is an example of such an industry which caters to the recreational needs of the customers
from the diverse parts of the world (Delmas and Grant 2014). The alcohol consumption rate
of the world has increased in a significant manner and this particular factor is being utilized
by the various organizations to provide superior quality alcohol to the people (Cassi,
Morrison and Rabellotti 2015). The increase in the alcohol consumption rate or more
appropriately the wine consumption rate of the people has increased in a significant manner
in the past few years and it has kind of become an important requirement of their daily lives
(Cassi, Morrison and Rabellotti 2015). Therefore, this particular social requirement of the
individuals from the various parts of the world is being utilized by the organizations to
further enhance the growth of their organization (Cassi, Morrison and Rabellotti 2015). This
report will provide an analysis of the wine and the spirits industry of the nation of Singapore
through the lens of the “Taketsure Pure Malt Whiskey Nikka” manufactured by the
organization Golden Vineyards.
Overview of the industry
Wine is an alcoholic beverage which is being manufactured from the juice of the
grapes and is a part of the social lives of the individuals from the various parts of the world
(Anderson, Nelgen and Pinilla 2018). The wine making industry is one of the most important
ones in the nation of Singapore and the annual consumption rate of the nation is “17.6 million

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hectoliters” for the year 2017 (Singapore Wine Vault. 2018). This particular consumption is
higher than the other nations of the world by almost 248% (Singapore Wine Vault. 2018). In
addition to this, the mixed culture of the nation further encourages the people to consume this
particular drink. Moreover, it is seen that 68% of the people of the nation like to consume red
wine (Singapore Wine Vault. 2018). The others varieties of wine are also popular in the
nation of Singapore however the popularity of the red wine is more in comparison to the
other varieties (Anderson, Nelgen and Pinilla 2018). Furthermore, it is seen that the nation is
a wine loving and various kinds of wine are popular within the nation. Furthermore,
according to an estimate the annual wine consumption rate of the nation is expected to
increase by almost 21% (Singapore Wine Vault. 2018). Moreover, as per the same source the
annual wine consumption rate of the nation has increased by almost 83% within the last
decade (Singapore Wine Vault. 2018). The nation imports the majority of the wine required
by its citizens from the nations of Australia, Chile, France and others (Garcia et al. 2012).
However, in the recent times it is seen that the nation of Japan has emerged as one of the
major suppliers of wine to the nation of Singapore. It is a reflection of this particular fact that
almost 40% of the wine which is being consumed by the nation is being exported from the
other nations of the world (Singapore Wine Vault. 2018). The below given figure provides
the growth rate of the wine industry in the nation of Singapore-
Figure 1: Growth rate of the wine industry in the nation of Singapore

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Source: “Singapore Wine Vault. 2018”
Some of the major wine companies of the nation of Singapore are “AA French Wine
Pte Ltd”, “Beautiful Wine”, “Golden Hung Ho”, “Infinite Supply Pte Ltd” and others
(Gov.sg. 2018). In addition to the foreign wines and other alcoholic drinks imported by the
nation of Singapore from the other nations of the world the wine and alcohol manufactured
by these organizations has also been much appreciated by the citizens of the nation.
Market segmentation
The Japanese company Golden Vineyards is trying to enter the wine and spirits
industry of the nation of Singapore with its “Taketsure Pure Malt Whiskey Nikka”. This is a
whiskey which is a manufactured by the Japanese company from the cereals and malt and is
likely to be much popular in Singapore considering the fact that the people of the nation like
to indulge in hard drinks and the annual alcohol consumption rates of the people of the nation
also hints towards the same fact. The whiskey under discussion here is one of the most
popular ones in the nation of Japan and initially the company will export 100 bottles of the
whiskey to check the response of the people towards this particular product. After the product
have proved its popularity as well as sustainability in the national market of Singapore the
company is likely to export more quantity of the same product to this particular nation. The
price of each bottle of 1.5 liters of “Taketsure Pure Malt Whiskey Nikka” is $79.99 in the
nation of Singapore. Furthermore, the government of the nation levies a tax of 5% on the
various kinds of alcohols and therefore the above quoted price is likely to go even higher
depending on whether the above mentioned alcohol is being procured from the registered
liquor stores or consumed at the restaurants (Gov.sg. 2018). In addition to this, the nation of
Singapore levies an additional tax of 7% on the various kinds of alcohol which is being
exported from the other nations as part of GST (Gov.sg. 2018).

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The company will focus on the customer base belonging to the age range of 20-40
years of age as it is seen that the people belonging to this particular age range consume the
maximum amount of alcohol. Furthermore, the mixed culture of the nation also encourages
the people belonging to this particular age range to take the help of various kinds of alcohols
and other hard drinks (Chandran, Sundram and Santhidran 2014). Furthermore, the company
will more specify focus on the affluent people belonging to this particular age since the
product under discussion after the addition of the various taxes becomes high in comparison
to the other alcohol products offered by the other organizations of the nation. The primary
areas where the product will be served to the customers are the various kinds of bars,
restaurants and others in addition to the authorized stores which sell alcohol to the customers.
In addition to these, the whiskey under discussion here will also be provided in the Shen
Shiong supermarkets and depending on the level of success attained by the product the
company is latter on also likely to help of the e-commerce strategies as well.
The company which is likely to take this particular kind of whiskey is “Golden Hung
Ho”. The company is known for the high quality as well as the diversity of the alcohol to the
customers. Therefore, it is more likely that the company will take the initiative to sell this
particular new whiskey to the customers of the nation. The people of the nation of Singapore
like to try new kinds of alcohol and the particular whiskey under discussion here is a well
established brand in the nation of Japan (Chandran, Sundram and Santhidran 2014).
Furthermore, the whiskey is known for its quality and has a cooling off period of more than
17 years. Therefore, it is likely that the company “Golden Hung Ho” is likely to significantly
benefit from the sale of this particular kind of whisky. Moreover, the providing of this
particular whiskey is likely to further diversify the products which are being offered by this
particular company. Therefore, it is all the more likely that the company is going to sale this
particular product to the people of this nation.

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Consignment contract
A consignment contract is a contract which is signed between a “consignee and
consignor” for the process of the sale of a particular product, its transfer from one place to
another, its storage, resale or any other related aspects (Curdt-Christiansen and Silver 2013).
Therefore, it is being used by the various organizations for the process of the business of
between two organizations and is generally seen as a legally binding agreement for the
related aspects of that particular product (Curdt-Christiansen and Silver 2013).
Contract 1:
The below given is an example of a Consignment contract which will be used by the
company for the purpose of sale of the whiskey under discussion here-

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Figure 2: Consignment Contract
Source: (Created by the Author)
Consignment Contract 2:

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The below given is an example of the consignment contract which will be used by the
organisation for the purpose of the sale of the whiskey-
Figure 3: Consignment Contract
Source: (Created by the Author)

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Details of the product
The whisky under discussion is originally manufactured in the nation of Japan from
malt and is a very popular one in the nation. Japan generally transports alcohol and other
kinds of products to the diverse nations taking the help of the sea routes and therefore it is
quiet logical that the nation of Japan will transport this particular product as well to the nation
of Singapore via the sea route itself. Furthermore, since both the nations are near the sea
therefore this particular method of transportation will be very useful for both the nations. The
nation of Singapore levies a tax of 7% on the products which it exports from the other nations
of the world (Gov.sg. 2018). Furthermore, the products which are entering into the nation
needs to have a prior permit as well as permission from the government of Singapore for its
entry into the nation as per the precepts of “International Trade Act” of the nation.
Furthermore, the products from the other nations of the world need to take care of another 7%
of additional duty tax in order to enter the market of the nation (Gov.sg. 2018). The whiskey
under discussion here after clearing the port will be taken over by the company “Golden
Hung Ho” which will initially store it at its warehouses and after getting the adequate paper
works and seeing adequate amount of demand in the market will deliver it to the various
licensed stores, bars and other places. As because the company will be only delivering 100
bottles of the whiskey to see the response of the people towards this particular product
therefore the product will be initially distributed at the various posh bars and restaurants
where the people affluent people belonging to the age range 20-40 on which will be the major
focus of the company normally visits. The company is going to follow the strategy of product
differentiation for the process of the sale of this particular whiskey. It is significant to note
that the people of the nation are normally used to drinking wine and other kinds of alcohol
and therefore this particular product is something new to the people (Rod, Ellis and Beal

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2012). Furthermore, the company will also try to take the help of various kinds of effective
marketing strategies for the process of the sale of this particular product.
Conclusion
To conclude, the spirits industry has recently evolved as one of the major ones and in
the recent times it is seen that the industry has significant strides not only in terms of the
revenue generated by it also in terms of the number of customers which they have. However,
for the process of the sale of various kinds of whiskeys and other spirits the organizations the
government needs to take into consideration various factors. Some of these factors are the
GST levied by the government on the sale of these products, the customs and duty taxes
which the companies need to pay when they are exporting products from the other nations
and others. In addition to these, having a clear knowledge about the customer base and the
target market is also considered to be an added advantage for the organization concerned.
Therefore, it would be apt to say that various factors have contributed towards the growth of
this particular industry in the recent times.

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