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Beer in Taiwan was dominated by the monopoly of the Takasago Brewery until 2002 when free trade was allowed. The main domestic brand is Taiwan Beer by the Taiwan Tobacco and Liquor Corporation who took over the Takasago Brewery, which has a small export to Taiwanese living abroad.

The country has encountered trade problems with China which have led to what is known locally as the "Beer Wars".

Contents

[edit] History

Taiwan Beer (formerly Takasago Beer) has its origins in the beer first brewed in 1922 by Takasago Brewery when Taiwan was under Japanese rule. The government agency which produced it, the Monopoly Bureau of the Taiwan Governor's Office, was established in 1901. The Bureau was responsible for all liquor and tobacco products in Taiwan as well as opium, salt, and camphor. In the 1940s matches, petroleum, and standard weights and measures were also monopolized.

After the end of World War II, the incoming Chinese Nationalists preserved the monopoly system for alcohol and tobacco. Production of beer was assigned in 1945 to the Taiwan Provincial Monopoly Bureau. The name Taiwan Beer was adopted in 1946.[1] The following year, production of the beer was assigned to the Taiwan Tobacco and Wine Monopoly Bureau. [2]

Taiwan entered its modern period of pluralistic democracy in the 1990s. Free trade and open markets became priorities as Taiwan prepared for admission to the World Trade Organization (WTO) in 2002. Laws went into force that year that opened Taiwan's market to competing products. On July 1, 2002, the Monopoly Bureau passed into history. Its successor, the Taiwan Tobacco and Liquor Corporation (TTL, 台灣菸酒公司), is a private company that operates independently of government support. TTL introduced a new brew, Taiwan Beer Gold Medal, by the end of its first year.

Taiwan Beer remains the island's best-selling brew and is one of the most recognized brands in Taiwan's business world.[3]

[edit] Economy

Domestic beer production is more than 400 million litres annually, with significant volume being used for local consumption. Local beer production accounts for over 80% of total beer consumption in Taiwan. A small proportion of the domestically produced beer is exported, of which a major part is consumed by Taiwanese living abroad.[4]


[edit] The 'Beer Wars'

Taiwan (under the name Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu) and China (represented by the People's Republic of China) were admitted into the World Trade Organization (WTO) simultaneously in 2002. Beer could now be imported and exported across the Taiwan Strait for the first time.

Foreign labels accounted for just 18 percent of the NT$45 billion (US$1.3 billion) beer market in Taiwan in 2004; Taiwan Beer accounted for all of the remaining 82 percent. Two years later the People's Republic of China refused to allow Taiwan Beer to be imported. Officials cited a law banning the use of county or regional names in commercial products. In Taiwan this argument was hardly persuasive, given the number of products in China already sporting such names, including China's Tsingtao Beer, named for a city in Shandong province. The move was interpreted by many Taiwanese as an attempt to thwart the free trade China had pledged by denying Taiwan proper recognition of its trademarks. A boycott of beers from China was soon under way on the island.[5] The controversy, widely reported in the international press, led to increased recognition of the Taiwan Beer brand.

[edit] References

[edit] Notes

  1. ^ Lin, Jackie (2004). "Beer fight is about politics: TTL". Taipei Times. Taipei Times. http://www.taipeitimes.com/News/biz/archives/2004/07/02/2003177405. 
  2. ^ Ting, Chen (2004). "Taiwan Beer, potent at age 84, ferments cultural effervescence". Panorama. Government Information Office, ROC Executive Yuan. http://publish.gio.gov.tw/FCJ/past/04031241.html. 
  3. ^ Taylor, Michael (March 25, 2003). "Taiwan vs Tsingtao: Beer wars". Asia Times. http://www.atimes.com/atimes/China/EC25Ad05.html. 
  4. ^ "Beer in Taiwan". www.euromonitor.com. http://www.euromonitor.com/Beer_in_Taiwan. Retrieved 2008-08-23. 
  5. ^ Wu, Debby (July 10, 2004). "Boycott of Chinese beers promoted". The Taipei Times. pp. 3. http://www.taipeitimes.com/News/taiwan/archives/2004/07/10/2003178400. 

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