The cup is at least half full for the wine and spirit market on Taiwan. Since calendar 2001, the volumes of distilled spirit and wine sales have risen 37 and 221 percent, respectively. Whiskey sales alone shot up 76 percent during the period.

And if U.S. producers launch successful marketing campaigns, that cup could run over.

A Long, Proud Tradition
Taiwan’s appreciation for grain-based alcoholic drinks manifests itself in the importation of Western alcoholic beverages, especially distilled spirits that closely resemble their Asian counterparts. Western brandy and whiskey have splashed into the glasses of the elite for more than a century. Accepted as symbols of status, wealth, and luxury, such spirits customarily grace tables at social and business events.

Distilled beverages constitute the most popular wine and spirit imports, accounting for 54 percent of overall import volume in 2006. Whiskey and brandy were the most popular, winning 65 and 10 percent, respectively, of the distilled spirit import volume that year.

Wines lack the cultural roots that distilled beverages have in Asian culture. Though wines, particularly lower-priced ones, have made impressive gains in status and consumption, their main market remains limited to the more adventurous connoisseur. In the longer term, sales in the higher-end, luxury section of the market could trump gains in lower-priced varieties as consumers become more familiar with, and curious about, wines.

The Post-2000 Market: Opportunities for Growth
Wines: The increase in the number of Taiwan’s informed consumers equals opportunity for U.S. exporters. Market observers encourage exporters to identify which slices of the market have the best sales potential. Exporters should then craft a follow-up strategy that includes: 1) selecting an importer/distributor with suitable sales channels, and 2) developing marketing support and training programs. While some major wine labels (e.g., those highly rated by widely published experts) may need only minimal marketing support for successful sales, most will benefit greatly from a well-targeted marketing program to make sure a label becomes familiar and respected among target consumers.

Several countries are, to varying degrees, backing entry of their wines and spirits into Taiwan’s market through marketing programs by national trade offices. These countries include France, Chile, Italy, and the United States, which undertakes such activities through the California Wine Institute. Significant growth in recent years has encouraged competitors to increase their attention to this market, with visible success.

As a new taste to the Asian palate, wines have more room to grow than spirits in depth and breadth. Available at low-key social gatherings and occasionally in the home, wines currently are more novelty beverages than a social staple.

When they do purchase wines, informed Taiwan consumers favor European ones. However, most consumers are aware of New World wines and recognize California as one of the world’s top wine-producing areas. The deciding factors in purchasing higher-end wines usually are quality marketing and technical/educational support, while for lower-end wines the key is price.