TTL gets go-ahead to set up China offices

State-run Taiwan Tobacco and Liquor Corp (TTL, 台灣菸酒公司) has obtained government approval to set up representative offices in Beijing and Shanghai to facilitate its expansion, the company said in a filing to the Taiwan Stock Exchange yesterday.

TTL is applying for corporate registration in China and expects the representative offices to be set up in four to six months, company spokesman Hsu An-hsuen (徐安旋) said in a telephone interview.

The establishment of the two offices will help the company gain a better understanding of the Chinese market by collecting information and conducting surveys on market conditions and industrial technology, as well as allow the firm to launch product promotions, he said.

The firm has been selling its tobacco products -- mainly Long Life (長壽) and Gentle (尊爵) cigarettes -- in duty-free shops in Shenzhen, Zhuhai and Shanghai. It is in talks with China Duty-Free Co (中國免稅公司) to expand sales at the latter's 154 outlets in airports and harbors around China.

The company also expects to get the green light from the State Tobacco Monopoly Bureau by May or June, allowing it to tap into the regular distribution channels, he said.

Additionally, the firm is waiting for the Chinese government's approval to register the Taiwan Beer brand name as a trademark, he said.