Taiwan and Thailand Emerge as Promising Wine Markets in Asia

Taiwan and Thailand are emerging as exciting wine markets in Asia, each with unique characteristics and opportunities. Taiwan, though small, is a business-friendly market with a growing interest in wine. Thailand, on the other hand, has recently reduced excise taxes on wine, making it an attractive destination for wine businesses.

Powell Yang, a major wine importer in Taiwan, has an interesting journey in the wine industry. As a college student in the 1990s, he would buy wines with high scores from Wine Spectator magazine. His local drug store even stocked the prestigious Screaming Eagle 1992 for $50. Although he didn't purchase it then, today, he is well-versed in fine wines and runs a successful import business in Taiwan.

Yang's career path took him from working at Anheuser-Busch to a job in Napa Valley with Diageo's wine division. He later worked with Spectrum Wine Auctions and moved to Hong Kong in 2013. The Hong Kong wine market had boomed after the government dropped wine duties in 2008, but by 2013, the market had become challenging due to clampdowns on corruption and business loans. Yang relocated to Taiwan in 2014, where he found a smaller but promising market.

In Taiwan, wine is not yet a major cultural element. The country had a government-controlled alcohol monopoly for 80 years, only allowing foreign alcohol in 1987. This monopoly ended in 2002 when Taiwan joined the World Trade Organization. Taiwanese people often drink wine for social reasons, seeing it as a trendy and healthier alternative to whiskey. While red wines are popular, white wines and sparkling wines are gaining traction.

The Taiwanese wine market presents challenges, such as building volume and visibility. Many wines end up in private cellars, and the bring-your-own-bottle culture in restaurants makes it hard to establish brand presence. However, connecting with sommeliers and offering personal experiences can help build brands. Yang advises wineries to send winemakers or owners to Taiwan, as personal connections are valued more than marketing efforts.

Traveling to Taiwan is crucial for success in the market. Yang emphasizes the importance of spending time in the country and visiting major cities. Language barriers are minimal, as many Taiwanese speak English and are welcoming to foreign visitors. Building relationships with local distributors and wine bars can also open doors for new entrants.

Yang's current focus is on consolidating his international networks and enhancing the marketing of Californian wines in Taiwan. He sees potential in Thailand, which recently reduced wine import duties to boost tourism and attract luxury travelers. The Thai government lowered import duties from up to 60% to 5%, creating a favorable environment for wine businesses.

Thailand's hospitality industry is well-developed, with numerous restaurants, bars, and hotels. The country attracts a large number of tourists who are willing to spend on wine. The local market is also growing, partly due to increased health awareness during the pandemic. Spirits have traditionally been strong in Thailand, but wine consumption is on the rise.

Yang believes Asia is the next frontier for the wine industry. He advises businesses to view the region as a whole market rather than focusing on individual countries. Spending time in Asia and understanding the local culture can lead to success. American wines, except for well-known labels like Opus One, face challenges in Asia, but Yang is determined to change that perception.

In Taiwan, major wine retailers include Costco, Carrefour, and RT-Mart. The Taiwan Tobacco and Liquor Corp, once a monopoly, still holds some influence. Wine fairs such as the Wine & Gourmet Taipei Festival and the Taipei International Wine & Spirits Festival offer opportunities for exposure.

Overall, Taiwan and Thailand present exciting opportunities for the wine industry. With strategic efforts and a focus on building relationships, businesses can tap into these growing markets and establish a strong presence in Asia.