Report on Singapore's Wine and Spirit Industry: Market Analysis

This report provides an overview of the wine and spirits industry in Singapore, highlighting the increasing alcohol consumption rates and the recreational needs catered to by the industry. Singapore's wine market is detailed, noting an annual consumption rate of 17.6 million hectoliters in 2017 and a preference for red wine among 68% of consumers, with an expected 21% increase in consumption. The report identifies key players like AA French Wine Pte Ltd and explores market segmentation, focusing on Golden Vineyards' entry with 'Taketsure Pure Malt Whiskey Nikka,' targeting consumers aged 20-40 through bars, restaurants, and supermarkets. It also discusses consignment contracts, product details, import taxes, and the company's product differentiation strategy, concluding that the spirits industry has evolved significantly in terms of revenue and customer base. The report references various academic sources and government data to support its analysis.

WINE AND
SPIRIT
INDUSTRY
An Overview

INTRODUCTION
 The wine and the spirits industry
is the 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).

OVERVIEW OF THE
INDUSTRY
 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 hectoliters” for the year
2017 (Singapore Wine Vault. 2018).
 68% of the people of the nation like
to consume red wine (Singapore
Wine Vault. 2018).
 Furthermore, according to an
estimate the annual wine
consumption rate of the nation is
expected to increase by almost 21%
(Singapore Wine Vault. 2018).

OVERVIEW OF THE
INDUSTRY (CONTINUED…….)
 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).
 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).

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.
 Likely to be much popular in
Singapore considering the fact
that the people of the nation like
to indulge in hard drinks.

MARKET SEGMENTATION
(CONTINUED…..)
 The company will export 100 bottles of
the whiskey to check the response of
the people towards this particular
product.
 The price of each bottle of 1.5 liters of
“Taketsure Pure Malt Whiskey Nikka”
is $79.99 in the nation of Singapore.
 The government of the nation levies a
tax of 5% on various kinds of alcohols
(Gov.sg. 2018).
 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).

MARKET SEGMENTATION
(CONTINUED…..)
 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.
 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.
 The whiskey under discussion here
will also be provided in the Shen
Shiong supermarkets.

MARKET SEGMENTATION
(CONTINUED….)
 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.
 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).

CONSIGNMENT CONTRACT
 A consignment contract is a
contract which is signed
between a “consignee and
consignor”.
 Signed 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).

CONSIGNMENT
CONTRACTS
 The below give are two samples of the
consignment contracts which the
company can take the help-

PRODUCT DETAILS
 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.

PRODUCT DETAILS
(CONTINUED….)
 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).
 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.
 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).