The private sector will soon be allowed to produce alcoholic beverages, giving the state-run Taiwan Tobacco and Wine Mo-nopoly Board (菸酒公賣局) its first serious competition in 50 years.
The move is part of the newly revised Tobacco and Alcohol Administration Law that went into effect Jan. 1.
Interest in the commercial opportunities of the market opening was limited on the first day of business. The Ministry of Finance yesterday received only two applications for licenses to produce alcoholic drinks, while another 110 applications were submitted for the importation of alcohol. The ministry expects to process those applications within the next 30 days.
But more home-grown breweries and wine makers are expected to enter the market.
"We are expecting more [prospective] independent wine producers to submit applications later because they will have to first pass a local government-assessed environmental impact study," Chen Wang-ching (陳萬清), an official at the ministry's tobacco and alcohol management division, told the Taipei Times yesterday.
He also encouraged foreign players to enter the market, but reminded them that government regulations require applications to both the Ministry of Economic Affairs and the Ministry of Finance.
Several domestic soft drink makers that double as wine importers, have plans to set up their own breweries in the near future.
Dong Hsun Hsin Trading Co (東順興貿易), local importer for Japan's Sapporo beer, plans to invest NT$30 million to NT$50 million in opening up at least three micro-breweries within pubs nationwide this year, said marketing director Philip Lee (李引正).
Lee said that the company had previously planned to cooperate with the Monopoly Board by utilizing its beer-making techniques and management. But after the MOF decided on Dec. 25 to scrap a plan to open the market gradually, the trading company was having second thoughts on cooperating with the board, vowing to "make the final decision in a month whether or not to go independent," Lee said.
Another local alcohol importer, Tsin Tsin Corp -- famed for its asparagus juice -- has big plans to take a bite out of Taiwan's rice wine market.
"We aim to grab 3 to 5 percent of the tobacco and wine board's yearly market share with production volume of 6 million to 10 million bottles per year," said (津津) executive vice president Morgan Chiu (邱民雄), adding that the company will invest NT$30 million in its yet-to-be-built Taoyuan-based brewery.
Chiu, however, was concerned over the prospects of the nation's rice wine sector, where prices have soared six-fold to NT$130 per bottle this year.
"We'll adjust our output of rice wine in accordance with this year's market demand," Chiu said.
Meanwhile, one arm of the Uni-President Enterprises Corp (統一企業) -- Nan Lien International Corp (南聯貿易) -- has chosen to cancel its previous plan to produce fruit wine. "The market is too small and offers no opportunity for profits," said a Nan Lien official who preferred to stay anonymous.
Uni-President's public affairs director Jean-Yves Yao (姚力仁) explained the cancellation was necessary because consumers have yet to decide what kinds of wines they prefer.
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