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Case Study: HRAFN GIN | Entering Hong Kong Hotels with Localised Positioning

Updated: Oct 19

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Hong Kong’s premium spirits market is one of the most competitive in Asia. With zero import tariffs on wine but a 100% liquor tax on spirits, foreign alcohol brands face unique commercial and regulatory challenges. For many distillers, the city’s dense hospitality scene promises prestige but also complexity.


HRAFN Gin, a premium craft spirit from Scotland, set out to enter this sophisticated market. Through a partnership with Mr. Discovery, which held the Liquor Import Licence under Hong Kong Customs and Excise, the brand transformed its European identity into a culturally aligned presence tailored for Hong Kong’s luxury hotels. This case study outlines how regulatory compliance, pricing adaptation, and localised storytelling worked together to achieve on-trade success with minimal marketing budget.


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  1. Hong Kong’s Premium Spirits Market: Opportunities and Barriers


Hong Kong is a mature market where spirits consumption is dominated by established players and imported labels. The city’s tax structure and licensing requirements demand both financial and operational readiness from entrants.


Yet, the potential rewards are significant. Five-star hotels and Michelin restaurants actively seek premium and differentiated spirits for their curated menus. For brands like HRAFN Gin, success required more than import logistics. It demanded precise market understanding, price adaptation, and storytelling tuned to local expectations.

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  1. Common Challenges for Foreign Liquor Brands Entering Hong Kong


  1. Licensing complexity:

    • All imported spirits must obtain a Liquor Import Licence from Hong Kong Customs and Excise.


  2. Pricing pressure:

    • The 100% liquor tax increases retail prices, often misaligning foreign brands with local purchasing power.


  3. Market saturation:

  4. Cultural translation:

    • European brand narratives often fail to connect with Hong Kong’s audience unless localised thoughtfully.

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  1. About HRAFN Gin


HRAFN Gin has achieved global recognition with more than 30 international awards and medals from prestigious competitions such as the International Wine & Spirit Competition and the San Francisco World Spirits Competition. This recognition highlights the brand’s craftsmanship and quality before its expansion into Hong Kong.


A Scottish Craft Spirit with Global Ambition


Founded in Scotland, HRAFN Gin embodies craftsmanship, heritage, and purity. Its name, inspired by the Norse word for “raven,” symbolises wisdom and discovery. When the founders decided to enter Asia, Hong Kong was chosen as the first step due to its international visibility and hospitality-driven ecosystem.


For HRAFN Gin, entering Hong Kong meant translating heritage into hospitality. The brand has earned international acclaim with more than 30 medals won globally across major competitions such as the International Wine & Spirit Competition (IWSC) and the San Francisco World Spirits Competition, including multiple gold and double gold awards between 2019 and 2024.


Its ambition was clear: to be listed alongside globally recognised spirits in Hong Kong’s top hotels, while retaining its authentic craft heritage.

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  1. Licensing and Regulatory Pathway: Securing the Liquor Import Licence


As lead consultant and execution partner, Mr. Discovery managed the end-to-end compliance process through its Hong Kong-based entity. Holding a valid Liquor Import Licence under the Hong Kong Customs and Excise Department, the firm handled documentation, customs clearance, and compliance checks.


This structure allowed HRAFN Gin to focus on market activation instead of navigating bureaucratic procedures. It also provided immediate operational legitimacy for distribution within Hong Kong’s hotel and F&B network.

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  1. Pricing Strategy Under Hong Kong’s 100% Liquor Tax


One of the most critical commercial decisions was pricing. Early testing positioned the gin between HKD 728 - 868 per bottle, mirroring European premium pricing. However, local feedback from hospitality buyers suggested limited elasticity above HKD 700.


Through data analysis and comparative benchmarking, the final HKD 600 price point struck the balance between perceived quality and repeat purchase. This repositioning maintained premium perception while increasing the brand’s competitiveness for hotel procurement budgets.


Next Step: Book a FREE consultation with Mr. Discovery to design a Hong Kong pricing strategy that aligns with your brand identity and market entry goals. Without clarity, brands risk being stuck in the middle. Our consultation ensures you avoid this trap.

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  1. Penetrating the Luxury Hotel Segment: From Island Shangri-La to Conrad


Hotel partnerships became the cornerstone of HRAFN Gin’s entry strategy. Within months of launch, listings were secured at Island Shangri-La, JW Marriott, Mira, Cordis, and Conrad.

Each partnership was supported by tasting sessions, co-branded cocktail events, and staff training workshops to familiarise mixologists with the gin’s botanical profile. This on-trade focus established credibility faster than a retail-first approach and positioned HRAFN Gin as a trusted supplier to Hong Kong’s hospitality elite.


Additionally, the brand is now listed with at least three retail partners in Hong Kong, further strengthening its visibility beyond the hotel sector.


Next Step: 

Schedule a session with Mr. Discovery to explore how your brand can enter Hong Kong’s hotel network. Our hospitality partnership framework has helped international brands secure listings in five-star venues efficiently.

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  1. Localising the HRAFN Story: Crafting a Hong Kong Identity for a Scottish Brand


While the brand’s origin was proudly Scottish, its narrative in Hong Kong evolved into an East-meets-West dialogue. Mr. Discovery developed a bilingual PR deck and localised storytelling materials that blended craftsmanship with cultural sophistication.


Key adjustments included:


  • Translating brand values into Traditional Chinese to connect with local media and distributors.


  • Adjusting visuals to feature Hong Kong’s skyline and luxury interiors, replacing Western backdrops.


  • Reframing the tagline around exploration and heritage to resonate with local appreciation of artistry and craftsmanship.


Next Step: 

Need help crafting a localised narrative that resonates with Hong Kong audiences? Book a FREE consultation to refine your brand voice and visual identity for maximum local impact.


  1. Experiential Activation: Tasting Events, Festivals and Video Storytelling


To sustain momentum, Mr. Discovery designed a series of activation campaigns across trade shows and hotel venues. Over five gin festivals, five hotel collaborations, and ten masterclass sessions were completed, demonstrating consistent market presence despite a limited marketing budget.


Highlights included:


  • Gin Festival Hong Kong:

    • Brand booth with guided tastings and visual storytelling on Scottish origins.


  • Masterclass Series:

    • Educational events for hotel mixologists.


  • Video Production:

    • Short-form content showcasing the brand’s craftsmanship and its presence in important events and activations across Hong Kong, including a collaboration where Mr. Discovery hired the Bar Manager of The St. Regis Bar to host an exclusive Masterclass at The Murray Hotel during one of the Hong Kong Gin Festivals.


These activations created awareness beyond static listings, turning on-trade presence into a storytelling platform that built credibility organically.


Next Step: 

Plan to enter Hong Kong’s event and hospitality scene? Book a FREE consultation with Mr. Discovery to craft an activation strategy that aligns your brand with key trade shows, hotel collaborations, and consumer experiences.

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  1. Results and Impact: Distribution Expansion and Brand Equity Growth


Within the first phase of market entry, HRAFN Gin achieved:


  • Distribution in five luxury hotel groups across Hong Kong.


  • Expansion into three retail partners, increasing consumer accessibility.


  • Recognition as a premium yet attainable craft gin in Hong Kong’s hospitality market.


The project demonstrated how compliance, pricing adaptation, and cultural localisation could deliver significant penetration across Hong Kong’s top-tier venues with minimal budget expenditure.

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  1. Key Takeaways for F&B Brands Planning Hong Kong Market Entry


  1. Licensing enables legitimacy. Secure compliance before branding to avoid costly delays.


  2. Adapt pricing, don’t import it. Match perceived value with local elasticity.


  3. Localise your story. Cultural fluency transforms authenticity into relevance.


  4. Activate within hospitality first. Hotel partnerships build faster reputation than retail shelves.


  5. Strategic focus outperforms heavy spending. With the right positioning, even limited budgets can penetrate top venues.

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Conclusion


HRAFN Gin’s entry into Hong Kong demonstrates that disciplined compliance, pragmatic pricing, and culturally precise storytelling can unlock five-star hotel listings with a lean budget. Structured activations and targeted partnerships build credible on-trade presence and create retail spillover without overextending resources.


Next Step: 

Ready to enter Hong Kong with clarity and speed? Book a Hong Kong Market Entry Consultation to align licensing, pricing, localisation, and hotel partnership strategy with your brand.


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FAQs on Case Study: HRAFN Gin - Entering Hong Kong Hotels with Localised Positioning


Q1. How can foreign liquor brands import into Hong Kong legally?

They must register an importing entity or partner with a licensed importer holding a Liquor Import Licence under Hong Kong Customs and Excise. Mr. Discovery, as a licensed importer, provides end-to-end compliance and market entry support.

Q2. What pricing strategy works for premium spirits in Hong Kong’s hotel sector?

Balancing perceived luxury with procurement affordability. In most cases, HKD 550 - 600 per bottle is the psychological threshold for hotel adoption.

Q3. How important is localised branding for foreign F&B brands in Hong Kong?

It is essential. Traditional Chinese messaging and visual adaptation ensure local resonance, which directly affects sales velocity and PR pick-up.

Q4. What are the key success factors for hotel partnerships in Hong Kong?

Licensing readiness, relationship-building with F&B managers, cultural storytelling, and consistent activation through events or collaborations.







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