Speeches and Articles by Former Consul General Joseph R. Donovan Jr.

Remarks by Consul General Joseph R. Donovan Jr.
at
Virtually, the Best! A Taste of Oregon Wines
Video-conference Guided Wine Tasting/Promotion

From Left to Right: Andrew Wylegala, Chief of the U.S. Foreign Commercial Service; Consul General of the U.S. Joseph R. Donovan, Jr.; Raymond Yip, Assistant Executive Director of the Hong Kong Trade Development Council and Philip Shull, Chief of the U.S. Foreign Agricultural Service Trade Office are shown at a 'Virtual' Wine Tasting of some of Oregon’s finest wines held at the U.S. Consulate on Friday, June 26, 2009.

June 26, 2009
American Consulate General

Good morning/Good evening … and a warm welcome to everyone joining this call on both sides of the Pacific.

Thank you, Lisa (Kelley--of Fedex) and Scott (Goddin--of Commerce's Portland Export Assistance Center), for bringing the Oregon contingent together and making the arrangements.

You should know that from our Consulate meeting room in Central Hong Kong we are looking out over bucolic Oregon landscapes, courtesy of the images you provided to us; Anita, thanks for your introduction.

Frankly, I was a bit taken aback when approached about today's "virtual" promotion. What first came to mind was pantomime and imaginary glassware. Then came the thought that there is nothing "virtual' about U.S. food and beverage exports to Hong Kong. They are all around us in three-dimensions, worth well in excess of a billion dollars per year, and defying macro-economic trends by growing in double digits over recent months.

Finally, I was a bit dubious when staff suggested I get ready to savor a refined Pinot--at the office--somewhat closer to breakfast than lunch time. No sacrifice too great for my country; but better the precise hour not be relayed back to Secretary Clinton!

Today's event--the marriage of digital communications, express logistics and age-old viniculture--is, like one of today's featured wines, a fine blend.

Our heart-felt appreciation to the three wineries, EIEIO, Ken Wright Cellars and Willamette Valley Vineyards, who, in a few minutes, will be introducing us to nine excellent products not yet available in Hong Kong.
It is particularly hospitable of Jim Bernau of Willamette (Valley Vineyards) to host the Oregon group at his vineyard.
And, again, a special thanks to Lisa Kelley of FedEx for her role in both initiating and sponsoring this event. Under the U.S. Department of Commerce's Corporate Partnership Program, Federal Express has been actively promoting global trade and exports from small- and medium-sized businesses for the last several years.

Whether you are a winery, an importer, a distributor, a logistics service provider, a sommelier, a journalist, or a trade promotion agency, we share a common goal: to make Hong Kong an attractive place to do wine business.

Following the elimination of the 40% wine excise tax in Hong Kong in early 2008, the wine has flowed. U.S. wine exports to this city are up a dramatic 242% to over US$25 million, notwithstanding a global economic downturn that has curbed discretionary spending.

Equally important for our potential suppliers to Macau, China and Asia-Pacific at large, U.S. wine re-exports from Hong Kong to other countries grew by 92% over last year. As demonstrated in a host of consumer and industrial sectors, Hong Kong is a place where products are developed and debuted, and where tastes--especially those of Mainland consumers, are influenced. The folks in Oregon are likely not aware, but Hong Kong is host to some 17 million Mainland visitors each year. A slightly larger number visit the far smaller city of Macau, just an hour to our west.

Together, Hong Kong and China comprise more than 60% of Asia's wine market, equivalent to the world's 8th largest market. With its exceptional quality and competitive pricing, I am confident that U.S. wines will gain steadily more popularity here and throughout Asia, with Hong Kong acting as gateway or -- in this case -- "cellar" (… that's cellar with a c).

To help establish Hong Kong as a wine trading, storage and consumption hub in Asia, the U.S. Department of Commerce, the U.S. Department of Agriculture and the Hong Kong SAR Government are working on a Memorandum of Understanding on cooperation in wine trade and related businesses. Through the MOU, we will work with Hong Kong to promote U.S. wine tourism, premium logistics services, and the exports of wine and wine-related equipment to Hong Kong.

So while the time difference means we must sample a bit early in the day, while our friends back in Western Oregon are working overtime, we have a great program. Before we begin the tasting, I wish to introduce a colleague who will speak briefly about an especially important upcoming event for this sector

In November the Hong Kong Trade & Development Council will host the second annual Hong Kong International Wine and Spirits Fair at the Exhibition Center.

Both the Foreign Agricultural Service, the lead entity for the promotion of U.S. wines worldwide, and the Foreign Commercial Service, which promotes wine-related manufactures and services, have both endorsed this year's show. Commerce's Export Assistance Centers are picking up interest in the show from the major wine producing states, California, Washington, Virginia, New York and, of course, Oregon.

	Professional wine experts on both sides of the Pacific Ocean taste the Oregon wines and exchange opinions on the products through a digital Video conference.

So that you can spread the word to your colleagues in Oregon and elsewhere, Mr. Raymond Yip, Assistant Executive Director of H.K.T.D.C., has kindly joined us and will fill us in on plans for the show. Mr. Yip is one of the motive forces behind the promotion of this sector in Hong Kong and the activities our two governments will be supporting through the MOU.