Wine, Beer and Spirits Industry Analysis in Singapore

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

1WINE, BEER AND SPIRITS INDUSTRY
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

2WINE, BEER AND SPIRITS INDUSTRY
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

3WINE, BEER AND SPIRITS INDUSTRY
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).