Spreading the Vinous Word in Thailand ...

I have to admit, sitting down to a bottle of red wine in Bangkok seems a little, err, foreign to me. I usually can't get past an ice-cold Singha beer or fairly strong Gin & Tonic but I guess that's just me. I am sure that many of you would feel the same way but that's 'just us tourists' says Joe Sriwarin founder/editor of 'Wine Today', Thailand's only wine magazine. I met up with him in Bangkok prior to Christmas last year for what I thought was a quick drink but ended up as an incredible meal on the river at 'Bann Klangnam 2', such is Thai hospitality.


Joe is an incredibly charming, charismatic character and one with a firm finger on the pulse when it comes to all things vinous in this beautiful country. Though he claims not to be an expert on the Thai wine market (he prefers the term 'wine promoter'), his insights are not only thoughtful, but are also backed with a passionate desire to see his country become an important player in the Asian wine scene.

His personal, and also financial, investment into the industry is significant to say the least, especially in terms of growing and building the local Sommelier organisation. The story sounds very familiar; limited or no funding, run by passionate volunteers (lead by Joe) with a clear desire to not only raise awareness of the role in Thailand but to build an educational platform to highlight a career path in the industry. The hard work continues to pay off as they recently sent a candidate to the Asia Oceanic Sommelier Competition in Osaka last year and also ran a national competition where there were over 90 Thai sommeliers battling it out for top honours (it will be run again this year). Clearly the interest is high. (Penfolds have been a sponsor - Interesting they support a sommelier association overseas but not in their own backyard, Hmmm).

'Most people who haven't been to Thailand before, or don't know the country well, still don't take the Thai wine market very seriously.' Joe tells me. 'Wine consumption is still small compared to a population of 65 million, but it has been in a fast growth phase during the past couple of years. The market in general is still relatively unsophisticated and dominated by major wine brands but I believe more boutique wines will increase interest and help consumption grow.'

This last point he is particularly passionate about, and he sees a huge opportunity for smaller Australian wineries. He tells me local Sommeliers and enthusiasts are craving it but just can't get at it. He hopes the Inaugural 'Bangkok International Wine Fair' (November 25th � 27th of this year) will entice many Australian wineries to get involved and engage the market by not just promotion of their brand, but education. He tells me education is the key for not just consumers, but his budding young sommeliers. Broken record anyone?

'Thailand is a major tourist destination, with more hotels, more 5-star restaurants and more wine and F&B professionals than any regional rival. Thanks to the Free Trade Agreement between Thailand and Australia, Australian wines enjoy an important competitive advantage over wines from other countries. Import duty has already halved on Australian wines and will reach zero in 2015.' he continues.

So what of the 300 odd percent wine excise tax? Surely that must be a negative factor in new brands selling wine in Thailand? 'Not your problem' he quickly responds. 'The demand is there and people are already paying it. It's up to the distributor to sell and as sommeliers already selling high-end wine; it's not a problem. If the wine is good, Thai's will buy it regardless'. Good point. He does admit though, it has impeded rapid expansion.

'Yes, the tax regime on wine in Thailand has been unfavourable although this has not prevented growth in consumption in recent years (according to the Thai Excise Department, by over 20% in 2009 alone). Following the implementation of the AFTA free trade agreement on 1 January 2010, the Excise is now working to liberalise the ageing tax regime, in particular by basing future taxes on alcoholic volume.'

So what of the future? Where will the Thai wine market be in the next five years? 'Assuming Thai wine taxes are reduced to reasonable levels this year, we have no doubt that Thailand will quickly establish itself as the region's largest wine consumer. Moreover, increasing Thai exposure to international habits and trends will ensure that the rate of growth accelerates. The domestic market aside, tourism has recovered rapidly from the international recession, with visitor arrivals projected to rise from 14 million to 16.5 million in 2010. If we assume 20 per cent growth per annum from current (official Thai Customs) wine import figures of 8 million litres, we arrive at a figure of 20 million litres by 2015.'

Finger on the pulse indeed.


If you'd like to know more about the Bangkok International Wine Fair, drop Joe a line at joe@thailandwinetoday.com. It's well worth the conversation ...


» Bangkok International Wine Fair Fact Sheet (70Kb)

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