Foreign investors have approached state-run Taiwan Tobacco and Liquor Corporation (TTL,
"Many foreign firms have made inquiries about investment after we announced our privatization plan," said Morgan Hwang (
TTL, a 56 year-old company with NT$35 billion in working capital, was spun off from the Taiwan Tobacco and Alcohol Monopoly Bureau (台灣省菸酒公賣局) last July, and is set to complete privatization by the end of next year. By that time, over 50 percent of its shares will be released to private investors, at a price of about NT$20 each.
"Prospective firms that can ensure job opportunities for the more than 7,000 employees in the company, while increasing competitiveness and feeding into related local industries will be taken into consideration first," Hwang said.
While Hwang did not reveal any of the companies that have expressed an interest in pumping cash into TTL, one Belgian beer brewer said that it and all major brand names in the market would jump at the chance of getting involved in TTL's privatization project.
"Taiwan's beer market is lucrative," said Vincent Wang (王得進), the marketing and sales coordinator for Beck's Beer, a brand of Belgian beer giant Interbrew. "Foreign firms including us are interested in getting a slice of TTL's annual billion-dollar profits through investing in the company."
Last year, TTL reported NT$62.8 billion in revenue, a decline of 15 percent from the previous year due increased competition after the local liquor market was liberalized. Its share of the beer market also dropped from 82 percent in 2001 to 74 percent last year.
The 8-percent drop was grabbed by China's Tsingtao Beer (
"TTL's beer sales have already bounced back and swept over the market this summer, demonstrating the strength of the company and its products," Wang said.
Tsingtao Beer may be still a formidable rival for the indigenous Taiwan Beer, but after the government banned Tsingtao's TV commercials in February in retaliation for China's ban on Taiwan Beer's ads, its sales have been declining.
TTL's Hwang was also upbeat about this summer's sales results to date, saying the company has recently taken back 4 percent in market share with its new Gold Medal Taiwan Beer (金牌台灣啤酒) release.
"The demand for new products almost exceeds supply so we are considering dropping the commercials and going back to the promotion of Taiwan Beer," Hwang said. "I believe our revenues for this year will reach NT$69 billion."
One analyst is looking forward to seeing foreign investment in the new privatized TTL.
"In addition to advancing competitiveness, foreign companies will be a great help in promoting TTL's products in the international community," said Chou Tien-chen (
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01