The export of Taiwan beer produced by Taiwan Tobacco and Liquor, a state-owned enterprise, was recently suspended by China, which has aroused concern.

The picture shows the Zhunan Brewery under Taiwan Tobacco and Wine.

(Reuters) ☆ Excessive drinking is harmful to health and drinking and driving is prohibited☆

[Reporter Wang Menglun/Taipei Report] The export of Taiwan beer produced by the state-owned enterprise Taiwan Tobacco and Liquor was suspended by China a few days ago, which has aroused concern.

Taijiu revealed that in recent years, considering the diversification of risks, the export volume to China has dropped significantly to 300 million yuan, accounting for only 0.53% of the company's overall revenue. It must not damage the national character.

On December 9, a batch of Taiwan beer with a total price of about 1.3 million yuan was suspended by the Chinese customs. How will this affect the operation of the Taiwan wine company?

What are the strategies and countermeasures?

Please read on...

Ding Yanzhe, chairman of Taijiu, said that, first of all, the value of Taijiu’s exports to China has continued to decline in recent years. Among them, this year (January to November) the proportion of overseas exports has dropped to about 17%. If Hong Kong and Macau are included, it will be 29%. %; The main reason is that we are actively expanding into other markets. After all, export sales should focus on the whole world.

"In business, we hope that the market will be stable." Ding Yanzhe explained that, leaving aside political factors, any business owner does not want too many variables, and China is a society ruled by man, and the market is very difficult to control; in order to reduce risks In recent years, Taiwanese wines have been sold in other markets like Europe and the United States.

Fragmented markets, including: whiskey, etc., have good growth performance.

According to the data provided by Taiwan Liquor Company, the amount of exports to China in 2020 will be about 900 million yuan, accounting for about 50% of the overall export sales. In 2021, it will be about 400 million yuan, and the proportion to China will drop to about 22%. In addition, the company's annual revenue forecast for this year is about 56.7 billion yuan. Based on this figure, the export of Chinese products only accounts for 0.53% of the company's revenue.

The director of Taiwan Wine said that the export market to China is currently missing, and it can still be supplemented by other markets. He is optimistic about flavored beer products, such as fruit beer, which are sold in the two major markets "Japan" and "Southeast Asian" countries, because there are relatively few locals. This kind of tropical fruit-flavored beer has a high willingness of the public to try it.

Regarding being blocked by the Chinese customs on the grounds that the documents are not complete, Ding Yanzhe pointed out that the Taiwan Wine Club will continue to provide replacement parts and actively fight for due rights and interests. And so on, otherwise, "we'd rather not do this business."

☆Drinking too much alcohol is harmful to health, and drinking and driving is prohibited☆

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