Hong Kong is increasingly the place to buy (and sell) expensive wine. One American wine merchant, the firm Acker Merral & Condit,told Reuters that Hong Kong was arguably the fine wine world's most important market.
The company president nows something about what's so good about Hong Kong; they had just sold good bottles for $6.4 million (214 million baht).
And why is Hong Kong the top place to buy special wine? China, of course,and plenty of new money eager to buy fancy and expensive products. Sure,but also something else which should interest our friends who decide the taxes in Thailand. Hong Kong abolished wine duties. Naughty boys and girls,those tax people in Hong Kong.
Sotheby's there just sold the contents of the cellar of two American collectors.That brought in $7.9 million (263 million baht) in two days. If anyone wants to buy Chateau d'O a modest wine collection for that price, I'm ready to throw in the apartment with the cellar.
According to Serena Sutcliffe, Sotheby's wine director, Asian buyers represented 99 percent at the sale. To her,Hong Kong is now more important than London or New York.
What did you miss? Well, to start with a 6-litre Imperial of Chateau Petrus 1982. It went for $93,000(3.1 million baht), a record for the vintage.
A case of Domaine de la Romanee Conti 1995 sold for $93,077, but if you were not ready to spend that kind of money for 12 bottles of wine (admittedly one of the very best in the world), a case of 2002 was acquired for "only"$85,000(2.85 million baht).
What is amazing is that Asian buyers represented only 7 percent in 2005.Today? At least 61 percent worldwide.
And most of them are Chinese. I wonder if a few members of the Central Committee of the Communist Party of China are among the buyers.Marxism-Leninism, after all, is not what it used to be.
The only danger facing the Asian market, according to Reuters, is overheating. Some of the wines sold in Hong Kong are cheaper in London or New York. Paris obviously is not in the picture.
Chateau d'O failed to taste any Romanee Conti these past few weeks but was fortunate to enjoy the Sole 2009 from GranMonte. This unwooded chenin blanc was distinguished by a Bangkok hotelier a few weeks ago and I can see why. At 12.5 percent it is a lovely white wine with a delicate balance of fruit and acidity.
As winemaker Nikki wrote on the back label, the grapes benefited from a December graced by warm sunshine and cool nights. Grapes were handpicked. This is a first example of GranMonte screw cap. The wine may be young but it is ready. If you like Germanstyle whites, you should be delighted.
And if you are a farang with modest knowledge of written Thai you won't be disturbed by the compulsory notice telling you how dangerous it is to drink alcohol.
Three other GranMonte wines did very well at an international wine competition in Vienna, with three silver medals, including one for the limited release 2009 Sakuna Rose, a 2009 Spring Chenin Blanc and a 2007 Shyraz. The difference between the two chenin blanc is that the first one (the Sole)was made from grapes from the outer vine canopy while the second used grapes from the shaded interior canopy.
Siam Winery, another member of the Thai Wine Association, also did quite well recently. Its new Colombard (with screw cap) is wonderful and everybody I served it to loved its freshness and delicate fruit. It is the work of talented German-born, marathonrunner Kathryn.
Saturday, October 31, 2009
Zone curbing alcohol sales set for trial
The zoning of outlets selling alcohol around universities will begin on a pilot basis pending a ministerial announcement enforcing the change.
Deputy Public Health Minister Manit Nopamornbodee yesterday said the selection of areas for the project had been discussed with Thammasat University, the Thai Health Promotion Foundation and a network of civic groups.
The pilot would show curbs on the sale of alcohol around universities would work, Mr Manit said.
The Prime Minister's Office has drafted an announcement under the Alcohol Control Act. The announcement is organic to the act and it is needed to enforce the zoning.
First, however, it would have to be backed by the national committee on alcohol consumption control chaired by Deputy Prime Minister Sanan Kachornprasart. No date for a meeting of the committee has been set.
No alcohol sales will be allowed within 500 metres of universities or other education outlets under the announcement.
However, shops such as convenience stores or entertainment venues selling alcohol may be exempt from the ban.
Exemptions will be decided by the education outlets and the provincial alcohol regulation committee.
Roadside vendors selling alcoholic smoothies will also come under the regulation.
The changes also introduce picture warnings on bottles containing alcohol,similar to those seen on cigarette packs.
The draft will specify the size of the images and health messages which must cover half the label.
They will tell of drinkers suffering from liver cancer and cirrhosis of the liver and causing road accidents. They have to be posted on all bottles and packaging for alcohol, the Disease Control Department says.
The pilot project will be useful for testing the water before the announcement takes effect, Mr Manit said.
Another possible measure for the pilot zone is to reject any new applications for operating licences for alcohol shops close to education outlets.
Deputy Public Health Minister Manit Nopamornbodee yesterday said the selection of areas for the project had been discussed with Thammasat University, the Thai Health Promotion Foundation and a network of civic groups.
The pilot would show curbs on the sale of alcohol around universities would work, Mr Manit said.
The Prime Minister's Office has drafted an announcement under the Alcohol Control Act. The announcement is organic to the act and it is needed to enforce the zoning.
First, however, it would have to be backed by the national committee on alcohol consumption control chaired by Deputy Prime Minister Sanan Kachornprasart. No date for a meeting of the committee has been set.
No alcohol sales will be allowed within 500 metres of universities or other education outlets under the announcement.
However, shops such as convenience stores or entertainment venues selling alcohol may be exempt from the ban.
Exemptions will be decided by the education outlets and the provincial alcohol regulation committee.
Roadside vendors selling alcoholic smoothies will also come under the regulation.
The changes also introduce picture warnings on bottles containing alcohol,similar to those seen on cigarette packs.
The draft will specify the size of the images and health messages which must cover half the label.
They will tell of drinkers suffering from liver cancer and cirrhosis of the liver and causing road accidents. They have to be posted on all bottles and packaging for alcohol, the Disease Control Department says.
The pilot project will be useful for testing the water before the announcement takes effect, Mr Manit said.
Another possible measure for the pilot zone is to reject any new applications for operating licences for alcohol shops close to education outlets.
Tuesday, October 20, 2009
Where there is smoke, there will be fire
The Public Health Ministry is warning the organiser of an Asian tobacco exhibition against breaking the laws covering the advertising of tobacco products and smoking during its three-day event next month.
The Disease Control Department has sent a letter to the Impact Exhibition and Convention Centre asking it to inform the organiser, US-based Tobacco Reporter magazine, about the restrictions on tobacco promotion, public health spokesman Supan Srithamma said.
Mr Supan yesterday said public health officials would work with police in "inspecting and arresting" violators of the law at Tabinfo Asia 2009 in mid November.
The two applicable laws are the 1992 Tobacco Products Control Act, which controls the advertising and marketing of tobacco products, and the 1992 NonSmokers' Health Protection Act, which sets out to prevent non-smokers, especially in public places, from being exposed to tobacco smoke.
The Non-Smokers' Health Protection Act prohibits smoking in an exhibition area. Smoking is only allowed outside an exhibition building, and should not disturb people or be located in areas easily noticed by visitors to an exhibition,said Panuwat Panket, director of the tobacco consumption office.
The Tobacco Products Control Act does not allow tobacco advertising in the form of posters, leaflets or video presentations during an exhibition or an academic conference.
The Disease Control Department has sent a letter to the Impact Exhibition and Convention Centre asking it to inform the organiser, US-based Tobacco Reporter magazine, about the restrictions on tobacco promotion, public health spokesman Supan Srithamma said.
Mr Supan yesterday said public health officials would work with police in "inspecting and arresting" violators of the law at Tabinfo Asia 2009 in mid November.
The two applicable laws are the 1992 Tobacco Products Control Act, which controls the advertising and marketing of tobacco products, and the 1992 NonSmokers' Health Protection Act, which sets out to prevent non-smokers, especially in public places, from being exposed to tobacco smoke.
The Non-Smokers' Health Protection Act prohibits smoking in an exhibition area. Smoking is only allowed outside an exhibition building, and should not disturb people or be located in areas easily noticed by visitors to an exhibition,said Panuwat Panket, director of the tobacco consumption office.
The Tobacco Products Control Act does not allow tobacco advertising in the form of posters, leaflets or video presentations during an exhibition or an academic conference.
Saturday, October 17, 2009
AB InBev pulls out of E. Europe
Anheuser-Busch InBev,agreed yesterday to sell breweries in nine eastern European countries to CVC Capital Partners for an initial $2.23 billion,passing its target for divestments since its merger a year ago.
The sale is the third by the world's largest brewer to a private equity company, after KKR's purchase of South Korea's Oriental Brewery and Blackstone LP's of its US theme parks, made possible by improved capital and equity markets.
AB InBev and CVC said in a statement that the price tag could rise to $3.03 billion depending on CVC's return on investment, while AB InBev has the right of first offer to reacquire the business should CVC decide to sell in the future.
AB InBev has therefore pushed past the $7 billion goal it had set for divestments to help pay for InBev's $52 billion takeover of US rival Anheuser-Busch completed last November.
The brewer of Budweiser, Stella Artois and Beck's has now actually raised a potential $9.5 billion after sales of assets in South Korea, China, Scotland and Ireland as well as packaging and theme park businesses in the United States.
AB InBev, which took the number one spot back from SABMiller Plc last year, said CVC would be acquiring its operations in Bosnia-Herzegovina,Bulgaria, Croatia, the Czech Republic,Hungary, Montenegro, Romania, Serbia and Slovakia.
Analysts said the business was put up for sale as AB InBev did not have key positions in any large beer markets, while competition in some of these markets from SABMiller and Heineken meant a bid from the world's second and third largest brewers was unlikely for antitrust reasons.
AB InBev is the leading brewer by volume in Serbia, Croatia and Montenegro, number two in the Czech Republic to SABMiller, number two in Bulgaria to Heineken and number three in Hungary and Romania behind Heineken and SABMiller.
"We are pleased to announce this transaction which enables us to exceed our stated commitment to achieve $7 billion in divestitures," said AB InBev chief executive Carlos Brito.
As part of the transaction, CVC, which owns over 50 companies worldwide from motor racing's Formula One to luggage group Samsonite, had raised $1 billion of senior debt financing from a group of banks.
The deal, which was expected to close by January 2010, is comprised of a $1.618 billion cash payment, a $448 million unsecured deferred payment obligation with a six-year maturity and interest of 8 to 15% and $165 million in minority interests, assuming market value at Wednesday's close.
Barclays Capital and Lazard acted as financial advisers to AB InBev and Clifford Chance as legal adviser.
Freshfields acted as legal counsel to CVC.
The sale is the third by the world's largest brewer to a private equity company, after KKR's purchase of South Korea's Oriental Brewery and Blackstone LP's of its US theme parks, made possible by improved capital and equity markets.
AB InBev and CVC said in a statement that the price tag could rise to $3.03 billion depending on CVC's return on investment, while AB InBev has the right of first offer to reacquire the business should CVC decide to sell in the future.
AB InBev has therefore pushed past the $7 billion goal it had set for divestments to help pay for InBev's $52 billion takeover of US rival Anheuser-Busch completed last November.
The brewer of Budweiser, Stella Artois and Beck's has now actually raised a potential $9.5 billion after sales of assets in South Korea, China, Scotland and Ireland as well as packaging and theme park businesses in the United States.
AB InBev, which took the number one spot back from SABMiller Plc last year, said CVC would be acquiring its operations in Bosnia-Herzegovina,Bulgaria, Croatia, the Czech Republic,Hungary, Montenegro, Romania, Serbia and Slovakia.
Analysts said the business was put up for sale as AB InBev did not have key positions in any large beer markets, while competition in some of these markets from SABMiller and Heineken meant a bid from the world's second and third largest brewers was unlikely for antitrust reasons.
AB InBev is the leading brewer by volume in Serbia, Croatia and Montenegro, number two in the Czech Republic to SABMiller, number two in Bulgaria to Heineken and number three in Hungary and Romania behind Heineken and SABMiller.
"We are pleased to announce this transaction which enables us to exceed our stated commitment to achieve $7 billion in divestitures," said AB InBev chief executive Carlos Brito.
As part of the transaction, CVC, which owns over 50 companies worldwide from motor racing's Formula One to luggage group Samsonite, had raised $1 billion of senior debt financing from a group of banks.
The deal, which was expected to close by January 2010, is comprised of a $1.618 billion cash payment, a $448 million unsecured deferred payment obligation with a six-year maturity and interest of 8 to 15% and $165 million in minority interests, assuming market value at Wednesday's close.
Barclays Capital and Lazard acted as financial advisers to AB InBev and Clifford Chance as legal adviser.
Freshfields acted as legal counsel to CVC.
Tuesday, October 13, 2009
British MPs back ban on cigarette vendors
Cigarette vending machines could be banned after MPs supported an amendment to a planned new law that will also stop shops from displaying tobacco.
Former Labour minister Ian McCartney, who proposed the vending machine ban, said the new law would make it harder for children to buy cigarettes.
The proposal forms part of a Health Bill that must now go back to the House of Lords for approval before becoming law in England, Wales and Northern Ireland.
"We don't allow alcohol, fireworks,knives or other age-restricted products to be sold from vending machines," Mr McCartney said on his website."These are only sold where there is a face-toface transaction over the counter. We need to tackle this anomaly which allows children to get hold of cigarettes."
The House of Commons approved the vending machine amendment late on Monday without it going to a vote.
Health campaigners welcomed the amendment and said it would help to stop children from becoming addicted to tobacco."Consigning vending machines to the scrapheap will cut off an easy supply of cigarettes to children,"said the British Heart Foundation, which has campaigned for a ban.
Anti-tobacco pressure group ASH,Action on Smoking and Health, said the new law would be the most significant public health measure since the 2007 smoking ban.
Meanwhile, Conservative backbenchers argued that the proposals would harm shopkeepers and do little to improve the public's health. The government said it would not oppose Mr McCartney's amendment in the House of Lords.
Former Labour minister Ian McCartney, who proposed the vending machine ban, said the new law would make it harder for children to buy cigarettes.
The proposal forms part of a Health Bill that must now go back to the House of Lords for approval before becoming law in England, Wales and Northern Ireland.
"We don't allow alcohol, fireworks,knives or other age-restricted products to be sold from vending machines," Mr McCartney said on his website."These are only sold where there is a face-toface transaction over the counter. We need to tackle this anomaly which allows children to get hold of cigarettes."
The House of Commons approved the vending machine amendment late on Monday without it going to a vote.
Health campaigners welcomed the amendment and said it would help to stop children from becoming addicted to tobacco."Consigning vending machines to the scrapheap will cut off an easy supply of cigarettes to children,"said the British Heart Foundation, which has campaigned for a ban.
Anti-tobacco pressure group ASH,Action on Smoking and Health, said the new law would be the most significant public health measure since the 2007 smoking ban.
Meanwhile, Conservative backbenchers argued that the proposals would harm shopkeepers and do little to improve the public's health. The government said it would not oppose Mr McCartney's amendment in the House of Lords.
Monday, October 12, 2009
Alcohol tax revamp urged
Excise taxes for alcoholic beverages should be overhauled to be strictly based on alcoholic content, according to Satit Rungkasiri, director-general of the Fiscal Policy Office.
Shifting tax calculations to be based on degree rather than quantity is in keeping with the idea that beverages with higher alcoholic content should pay higher tax, considering the higher potential cost to public health and society.
Mr Satit also said Thailand was unique in charging excise taxes for beers based on a three-category system: premium,standard and economy."No other country uses the system we use for beers. It only introduces complications in calculating taxes."
But past efforts to overhaul the tax structure for beer, wine, liquors and spirits have mostly failed, in part to heavy lobbying by domestic producers.
Excise taxes for beer are currently calculated as 55% of the ex-factory price or 100 baht per litre-equivalent of 100%alcohol, whichever is higher. In general,charging based on alcoholic content will bring the government more money.
The three-category structure is complicated as each has its own reference for ex-factory prices, with economy the lowest and premium the highest. This is despite the fact that production costs for beer differ relatively little.
Past efforts to link tax rates to alcohol content have also been impeded by government policies to assist community producers of white spirits, which generally have more alcohol than imports.
Shifting tax calculations to be based on degree rather than quantity is in keeping with the idea that beverages with higher alcoholic content should pay higher tax, considering the higher potential cost to public health and society.
Mr Satit also said Thailand was unique in charging excise taxes for beers based on a three-category system: premium,standard and economy."No other country uses the system we use for beers. It only introduces complications in calculating taxes."
But past efforts to overhaul the tax structure for beer, wine, liquors and spirits have mostly failed, in part to heavy lobbying by domestic producers.
Excise taxes for beer are currently calculated as 55% of the ex-factory price or 100 baht per litre-equivalent of 100%alcohol, whichever is higher. In general,charging based on alcoholic content will bring the government more money.
The three-category structure is complicated as each has its own reference for ex-factory prices, with economy the lowest and premium the highest. This is despite the fact that production costs for beer differ relatively little.
Past efforts to link tax rates to alcohol content have also been impeded by government policies to assist community producers of white spirits, which generally have more alcohol than imports.
Thursday, October 8, 2009
O'Brien's to be liquidated
O'Brien's Sandwich Bars, a major success story of Ireland's dead Celtic Tiger economy, was handed over to liquidators after a judge declined to set aside the chian's expensive Dublin leases on more than 80 franchises.
Dublin-born O'Brien's was Ireland's answer to Starbucks. It spread across much of the globe over the past decade of unprecedented Irish ambiton, reaching more than a dozen countries, including Australia, China, India Indonesia and Saudi Arabia.
But like many pub and restauratnt groups in Ireland, O'Brien's has struggled with crippling debts ever since the economy plummeted into deep recession over the past year. The company's British unit sought protection from creditors in June, followed a month later by its Irish parent, which employs 800.
O'Brien's founder Brody Sweeney had hoped to sell his business to an investor group led by Graeme Beere, owner of several rival fast-food chains in Ireland, including Abrekebabra and Gourmet Burger. But Beere's consortium had insisted that O'Brien's transfer ownership of its property leases over to franchise operators, who objected that they couldn't afford them either.
Beere withdrew his offer on Tuesday after a Dublin High Court judge ruled that he couldn't set aside the leases.
Dublin-born O'Brien's was Ireland's answer to Starbucks. It spread across much of the globe over the past decade of unprecedented Irish ambiton, reaching more than a dozen countries, including Australia, China, India Indonesia and Saudi Arabia.
But like many pub and restauratnt groups in Ireland, O'Brien's has struggled with crippling debts ever since the economy plummeted into deep recession over the past year. The company's British unit sought protection from creditors in June, followed a month later by its Irish parent, which employs 800.
O'Brien's founder Brody Sweeney had hoped to sell his business to an investor group led by Graeme Beere, owner of several rival fast-food chains in Ireland, including Abrekebabra and Gourmet Burger. But Beere's consortium had insisted that O'Brien's transfer ownership of its property leases over to franchise operators, who objected that they couldn't afford them either.
Beere withdrew his offer on Tuesday after a Dublin High Court judge ruled that he couldn't set aside the leases.
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