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TTL defends Asian Games sponsorship deal in China

“We need to push our Taiwan Beer brand onto the world’s stage, and a sponsorship at the Asian Games will help us achieve just that.” — Tseng Chun-kai, spokesman for Taiwan Tobacco and Liquor Corp

State-run Taiwan Tobacco and Liquor Corp (TTL, 台灣菸酒公司) yesterday defended its sponsorship in next year’s Asian Games in Guangzhou, China, saying it was a cost-effective way to increase brand awareness of Taiwan Beer.

“We need to push our Taiwan Beer brand onto the world’s stage, and a sponsorship at the Asian Games will help us achieve just that,” company spokesman Tseng Chun-kai (曾俊凱) said by telephone.

The marketing efforts at the Games will increase exposure of Taiwan Beer — which dominates the Taiwanese market with an 80 percent share — among Chinese consumers, a new growth market for TTL as it explores other revenue sources, he said.

Democratic Progressive Party Legislator Huang Wei-cher (黃偉哲) told a press conference yesterday that TTL chose to favor the Chinese market by spending as much as 100 million yuan (US$14.6 million) on the Asian Games sponsorship and accused the firm of forgoing its responsibilities to its home market.

Tseng rebuffed the complaints, saying that TTL was able to reach a deal for second-grade sponsorship, which normally costs 120 million yuan, at a “cheaper rate.” He refused to say how much the company paid, but said it was less than 100 million yuan.

The Asian Games are the world’s second-largest games after the Olympics. The 16th Asian Games, scheduled for November next year, are expected to attract 14,000 athletes from 45 countries and regions and 4 million ticketholders.

More than 10 million people would visit Guangzhou during the Games, TTL said in a statement.

TTL chairman Duan Wei (韋伯韜) was in Beijing yesterday to sign the sponsorship deal and announced the launch of corporate offices in Beijing and Shanghai.

The company has also applied to set up an office in Guangzhou, and aims to expand further to service the China market, Tseng said.

Taiwan Tobacco and Wine Monopoly Bureau, which changed its name to TTL in 2002, began the grueling process of registering its “Taiwan Beer” trademark in China in 1999. Its application was repeatedly rejected because of sensitivities over use of the name “Taiwan.” The company finally gained a Chinese trademark in May this year and distributors began to import Taiwan Beer in large quantities in July.

Sales of Taiwan Beer have soared in China, Tseng said, noting that 10 or so cargo containers of the beer were imported into China last year, while 280 have been imported so far this year.
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