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Horticultural Crops

California Grape Retail Volume Increases in Hong Kong with MAP-Funded Activities

06 25 2019

 

Attachment California Table Grape Commission Hong Kong Success Story 06 25 19 USAEDC

 

Hong Kong display with California POP 2018

During the 2018-19 season, California grape shipments to mainland China (China) and Hong Kong were down; over 38.9 percent to China and 16.9 percent to Hong Kong. The reason for the decrease in volume to China was the retaliatory tariff of 53 percent imposed by the Chinese government; the tariff also impacted Hong Kong volume as a large number of California grape shipments exported to Hong Kong were transshipped to China. While overall California grape export volume to Hong Kong was down for the season, the retail sector in Hong Kong was successful in increasing season-long volume sales by 8 percent in 2018-19. Using USDA-MAP funds, 86 retail stores from the two major retail chains in Hong Kong were targeted with in-store sampling demonstrations and California point-of-purchase materials for promotions September through December 2018. Assisted by the promotional activities, season-long California grape volume sales from the targeted chains increased to 608,350 19-pound boxes, up from 563,045 19-pound boxes in 2017-18, for a value of $13.8 million. The return on investment for the 2018-19 promotions was $133 for every USDA-MAP dollar spent on the program.