Published on Taipei Times
http://www.taipeitimes.com/News/biz/archives/2002/08/16/160547

Wine fair celebrates open market

OPPORTUNITY: Micro distillers and brewers are eying niche markets as WTO entry has opened up Taiwan's liquor industry
By Annabel Lue
STAFF REPORTER
Friday, Aug 16, 2002, Page 11

A bartender juggles a cocktail shaker at the Taipei International Wine and Spirits Show at the Taipei World Trade Center yesterday. The 4-day event runs through Sunday and is open to the public.
PHOTO: CHEN CHENG-CHANG, TAIPEI TIMES
Eyeing niche markets in Taiwan's recently opened alcoholic beverage sector, micro distillers and brewers toasted each other yesterday at the first annual Taipei International Wine and Spirits Show in Taipei.

"We've spent five year studying how to distill clear spirits even before the government lifted the ban ? and now open, the market is very attractive," said Morris Hsiao (蕭嘉人), general manager at Fortune Brewery International Co (福祿壽酒廠), a rice wine maker.

Fortune, the nation's first independent spirit maker to be awarded an operating license earlier this year, estimates sales will top NT$500 million in 2002.

According to Hsiao, the annual clear liquor market in Taiwan is about NT$25 billion, and private companies expect to swallow up nearly 5 percent of the total market this year.

In accordance with requirements of Taiwan's entry into WTO, the government revised the Tobacco and Alcohol Administration Law effective Jan. 1, allowing local licensed private companies to produce and market wine and spirits.

The first annual show of its kind in Taiwan saw 80 wine, spirit and beer companies set up 178 booths yesterday, showing off newly brewed or imported alcoholic beverages at the Taipei World Trade Center.

"For years wine only played a small role in the annual Taipei Food Show, while this year, with the government opening up the market, and brewers as well as importers actively promoting products, we decide to spin this [wine and spirits] segment off," said Beatrice Hsia (夏梅花), an official at China External Trade Development Council (CETRA), host of the event.

In addition to profiting from domestic markets, Fortune Brewery also plans to begin exporting its rice-wine and Kaoliang liquor to Japan next month.

Meanwhile, fruit wine makers from around the nation also had dollar signs in their eyes at yesterday's show.

"Our county is famous for tasty plums and grapes, and therefore our fruit wine is a great new beverage," said Chen Chun-hung (陳俊宏), an official at Nantou County's Hsinyi Township Farmers' Association.

The township has a two-pronged strategy to combine the new wine brewing business with tourism.

"Travelers can visit the beautiful scenery in Hsinyi and visit our vineyards to enjoy the wine," he added.

Another popular market sector abroad -- micro brewing ? has also crept into the Taiwan market, known for its beer consumption.

"Hand-crafted beer is very popular in Western countries and has great potential in Taiwan," said Vina Lee (李婉娜), marketing manager at Taiwan Brewing Systems Inc (台精統). The company --

a subsidiary of San Diego-based KJCS Micro Brewing System Inc -- acts as a consultant for local pubs or restaurants planning to make hand crafted beer.

Lee said that while idea of micro-brew pubs weren't going to catch on overnight, the company viewed the project as a "long-term investment."

The four-day show is open from 9am to 5pm until Sunday. Admission is NT$250. Visitors under age 18 are prohibited.