The problem is that the government has no experience of managing [the alcohol market]. The administration is poor as it used to be managed by a monopoly. Now it has been passed to the Ministry of Finance. They do not have the people, they do not have the skill. They need to understand the policies fully so that they can implement them properly. They have very good intentions, they just do not have the expertise.
TT: Whiskey is very often ripped off in Taiwan. Is counterfeiting a problem for you and do you feel the government is doing enough to enforce anti-counterfeit laws?
Li: Before last summer, I don't think the government realized the seriousness of counterfeiting. Until local rice wine was counterfeited and people died, then they woke up to the fact that it is not only hurting imported products, it is also hurting local products and consumers. Then they started to beef up enforcement. They did ask us for help. We brought people over from the UK to help the police identify counterfeit products. The government has been very co-operative and realizes the seriousness of the problem now, they just did not have the manpower or expertise before.
TT: How important is the Taiwan market for you and how has the market changed?
Li: The Taiwan market is very important for two reasons: profit and organization. Taiwan is the second biggest market in the world for Johnnie Walker after the US. Taiwan is important because Hong Kong and Taiwan are venture markets. Taiwan will provide the people and expertise - what Taiwan has done in the past 10 years can be copied and modified for China. Right now 80 percent of the nightclubs in China are owned and run by Taiwanese, and 70 percent of the customers are Taiwanese.
Ten years ago it used to be the gan bei culture ? if you don't drink you don't give me face. Middle management and the newer generation coming up are more health conscious.
People drink less, more for enjoyment and less for business. Frequency is more, but the amount drunk each time is less. There are also a lot more females drinking as there are a lot more choices - wine, champagne, Smirnoff Ice and other ready-to-drink beverages.
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