This week’s Vinexpo in Hong Kong is bringing the world’s biggest and most innovative wine makers to town. And we got a rare chance to sit down with the founder of one of the companies that is changing the way we buy Bordeaux wine: Mr. Henning Thoresen, founder of Bordeaux Provenance.

Our talk with Mr. Thoresen delves into the strategy and essence of new business in selling certified Bordeaux wine online direct from France to anywhere in the world.

Where did the idea of creating a certified Bordeaux wine company come from?
Customers are cheated every day around the world when buying fine Bordeaux wine because producers in Bordeaux have no exclusive distribution channels. The wines are sold by various merchants and because there is no exclusivity, the international price competition puts pressure on companies to try and save on transport and storage.

Wines sold by retailers and by auction houses can have changed ownership many times and this information is not disclosed to the buyer, This is a situation we intend to rectify.

What is your background in the wine business?
I’ve been in the wine trade for more than 20 years and I’ve been on a crusade for transparency and provenance for the last 10 years. The last 5 years I’ve been living in Bordeaux, working on the Five Star Provenance® program by buying up “direct château” stock.

How do you source the wine?
All our wines come direct from the châteaux – this is one of the essential differences of our company.

How many types of wine do you store in the Winebank at any one time?
For Bordeaux Winebank the objective is to buy and store only the very best wines, wines that have been made with outmost care – wine we want to protect for future generations to come. Currently we have around 100 references in our “bank” with 80% from legendary vintages like 2000 and 2005 – mostly Bordeaux First Growths with some selected “Super Seconds”

What exactly is “Five Star Provenance®?”
Five Star Provenance® is a guarantee that the wine has come direct from the château and has been stored in Bordeaux since release. The wine travels directly from our warehouse to the customer in order to provide a wine that is as close as possible to the way the wine was made and meant to taste. Our five requirements are:

• All wines sold exclusively in original wooden case (OWC).
• All wines must have documented “ex-château” provenance.
• All cases must remain in professional storage in Bordeaux since bottling.
• Professional storage facilities must be temperature and humidity controlled and monitored 24/7.
• Annual certification of procedures by qualified auditor.

What is it about the computer-operated surveillance that is a benefit to wine storage?
Wine is fragile and must be handled with the utmost care. Bordeaux Winebank stores wine perfectly for our clients in Bordeaux and we must then monitor the temperature, the humidity and the security 24/7 in transit to make sure the customers, when they take delivery of the wine, get a perfect wine to drink and enjoy – just the way it was made.

Bordeaux is far away from Hong Kong, how can we get safe delivery in Asia?
One of the biggest problems in Asia is often high temperatures in combination with slow customs clearance. With tough competition, and many market players, few transporters use temperature-controlled containers, despite the fact that wine can stay in these containers for days while being cleared through customs. Bordeaux Provenance and its logistics partners use only temperature-controlled transport (trucks and containers) with a team on “stand-by” upon the arrival in each country where we deliver.

We monitor every shipment with eProvenance – a temperature controlling device that tracks the temperature during transport. This is of course a more expensive way of doing things, but fine wine deserves the very best. When we’re talking about the top wines in the world, the question is not about price but about provenance and the extra cost is a fraction of the price of the best Bordeaux wines – so this is a win-win for all parties. I can’t say this enough – wine is fragile and must be handled with care.

What countries/cities do you forsee will be your biggest outside of Europe?
Bordeaux Provenance has a 20-year business plan to create three core distribution centers in Bordeaux, Hong Kong and New York, and a sales office in London. Europe, US and Asia are all important markets and the idea is to have the best and most collectible wines which remain in Bordeaux, and the ready-to-drink wines stored in New York and Hong Kong.

Our exclusive “Five Star Distributors” will then be able to purchase from the three core distribution centers and for Asia we are building a tight and professional distribution network to make sure lovers of fine wine can drink and enjoy the best of Bordeaux the way it was made.

Having just returned from wine dinners in Beijing, Shanghai and Taipei (where we have customers and partners) the Greater China market remains a top priority for us and we expect to have permanent “Five Star Winecellars” in these cities by early 2011 – secure and professionally managed wine cellars where our clients can purchase and enjoy wine.

Do you think your service is for regular wine drinkers or collectors?
We target both and both are equally important. The best of Bordeaux is made to drink, but as they take years to develop (15 in average for a First Growth) the market benefits from having players like ourselves that protect the wine during its development stage.

You are using RFID (Radio-frequency identification) chips in your shipments, how does this work?
Yes, and this is extremely important. The eProvenance device is put on each case and activated prior to the case leaving our warehouse. It is set to read the temperature every hour during the transport and when the customer receives his wine the tag is removed and mailed back to us. We will then read the information and create a chart, showing the temperatures the cases have been exposed to during the shipment. The client will then receive a transport certificate that confirms that the provenance has been maintained during the transport.

What kind of pricing are we looking at for a case of wine to be shipped to Asia?
Oh it varies, subject to method (air or sea) and volume. With Fine Bordeaux wine getting pricey, shipment and tracking cost represents approximately 5 to 10% extra, but it’s worth it!

You are taking a very high-tech approach to what is normally a very traditional business – is this what you are seeing as a needed way to do business in the 21st century?
To stay competitive and protect the wines that we love, we will make use of all possible and available technology to enhance the customers’ experience when drinking and enjoying fine wine. Like I said, wine is fragile and I’m shocked when I see how people often treat and handle top Bordeaux wines around the world.

What is the purpose of your trip to Vinexpo?
The purpose is to launch the Five Star Provenance® program and make customers in Asia more aware of what transport and storage can do to fine wine. Hong Kong has become a world hub for fine wine and we aim to have a permanent office here by the end of 2010 in addition to our office in Singapore that was established in 2004.

Where else will you be exhibiting this year?
Working direct with fine wine collectors we will host several wine events and dinners in Hong Kong, Beijing, Shanghai, Taipei, London and New York during 2010.

Lastly, Mr. Thoresen, what is your personal favorite wine?
A great Bordeaux from a great vintage (1982, 1990, 1996) that drinks beautifully now and it can be from any top château if the wine is well made.

Thanks for the chat, and we hope you have a rewarding stay in Hong Kong, and hope to see you again soon.

To learn more about the Bordeaux Winebank please click here:  www.bordeauxprovenance.com

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There’s nothing wrong with Hong Kong’s wine economy – in fact, it’s soaring! In the first nine months of 2009, HK$2.71 billion in revenue was brought in, representing a huge jump of 41% from 2008. The sales totals from fourteen wine auctions in the past year have reached HK$496 million. With numbers like this, Hong Kong could become the world’s second-largest market for wine auctions.

Famous auction houses like Christie’s International and Sotherby’s are definitely interested in Hong Kong’s wine market. Christie’s has noticed a demand for the highest-quality wines in the city, and Sotheby’s reports that Hong Kong has moved past London to become their second-biggest market. Many wine-centric businesses in the city have been upgrading and expanding to meet the huge demand.

The Hong Kong government is highly supportive of the growth in the wine market, lessening duties on imports to enrich the growing economy. Rita Lau said the government is helping the industry develop, in partnership with the Hong Kong Quality Assurance Agency, a certification scheme whereby wine storage facilities meeting certain required standards will be accredited.

“The scheme is expected to be launched before the end of the year. It will first cover wine storage facilities, with possible extension to other logistics facilities such as vehicles later,” Mrs Lau said, adding that the government is working on various fronts to enhance the further development of Hong Kong as a regional hub for wine trading and distribution.

Read more:

• China Daily
• Bloomberg

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