Kaoliang Liquor signs distributor

Kinmen Kaoliang Liquor Inc (金門酒廠), producer of Taiwan's renowned sorghum firewater, breathed a sigh of relief yesterday after a lawmaker hinted that clear spirits from China will remain barred from import into Taiwan unless the Middle Kingdom permits the import of Kinmen Kaoliang.

"The day when Chinese clear spirits are allowed to be imported into Taiwan is the day when Kinmen Kaoliang liquor is allowed to be sold in China," New Party Legislator Wu Cherng-dean (吳成典) said from Kinmen.

Wu made the statement at a ceremony where Kinmen Kaoliang Liquor Inc signed a deal on a partnership with Tait Marketing & Distribution Co (德記洋行). Tait -- a consumer-goods distributor that markets groceries, personal care products, beverages and alcohol -- will serve as a new distributor for Kinmen Kaoliang liquor in Taiwan.

Wu's remarks ended a two-week silence since the Board of Foreign Trade announced on Aug. 16 that Chinese liquor with high alcoholic content, such as Luzhou Laojiao (瀘州老窖) and Kweichow Moutai (貴州茅台), will continue to be barred in Taiwan, citing opposition by Wu and Kinmen County Commissioner Lee Chu-feng (李炷烽). They are concerned about the future of sorghum farmers on the island.

"We have no intention to stand in the way and no plans to set limits on the entry of clear liquor from China; what we simply want is reciprocity," Wu said.

Several liquor importers -- which ironically also include Tait -- were originally expecting the board to lift the importation ban on Aug. 16, which was a major threat to Kaoliang liquor and other spirits produced by the Taiwan Tobacco and Liquor Corp (台灣菸酒公司).

Ed Shyurng (熊震寰), chief executive officer of Tait, said yesterday that he has every confidence in the liquor's popularity in a market which is estimated to be worth NT$15 billion a year, despite competition.

Tait beat Nanlien International Corp (南聯國貿), a subsidiary of Uni-President Enterprises Corp (統一企業), to become the new distributor for Kinmen Kaoliang Liquor in Taiwan after bidding that ended on Aug. 21.

"The market opening after both China and Taiwan joined the WTO has resulted in a huge structural change in the market. But in my opinion that change poses no difficulty for leading brands [such as Kinmen Kaoliang]; it is actually an opportunity for the brand to upgrade and improve," Shyurng said.

Tait will help Kinmen Kaoliang enjoy brisk sales in Taiwan as well as assisting it to tap into the emerging Chinese markets, Shyurng said.

Lee Jung-wen (李榮文), chairman of Kinmen Kaoliang Liquor, said Tait has promised to distribute more than 30.34 million bottles of the Kaoliang liquor worth some NT$10 billion over the next two years. Former distributor Nanlien had helped expand the Kaoliang market to NT$7 billion a year from NT$4 billion over the last four years, he said.