Division of Liquor 44 Future Prospects

Business Philosophy

Insistence on Optimum Quality

Ensuring Customer Satisfaction

Seeking Excellent Development

Commitment to Social Responsibility

Being the leading and the largest tobacco and liquor company in Taiwan, we have excellent professional teams, and constantly hold ourselves to the perspective of social feedback and the notion that the customer comes first. Thereby, we provide customer-satisfied products and services, and fulfill the quality guaranty of zero defects. 02

2 2 Profile 0 0Contents

09 Reorganization

01 Business Philosophy 10 Organizational Structure

04 Quality Policy/ Mission Statement 12 Management Team 06 Foreword from the Chairman 16 Member of the Board of Directors 07 Business Strategy Board Director/ Supervisors/ Auditor General

08 History 18 Financial Situation

禁止酒駕酒後不開車安全有保障 03 An Introduction to Taiwan Tobacco & Liquor Corporation

34 20 Operation Division of Tobacco 36 22 Division of Marketing & Sales Dept. of Biotechnology

24 Division of International Business 40 Dept. of Marketing

26 Division of Liquor 44 Future Prospects

30 Division of Beer 46 Adress List

酒後不開車安全有保障 04 臺灣菸酒 2020 年簡介

Quality Policy

• Total Participation • Economic Efficiency • Customer Satisfaction • Innovative Value

Excellent quality is the essence of the corporation. Through the participation of proposals, continuous improvement and refinement to enhance business performance; for the proper use of company resources, actively promote the profit center system, and achieve business goals; with innovative spirit, strengthen the value of products and services to meet customer requests.

禁止酒駕酒後不開車安全有保障 05 An Introduction to Taiwan Tobacco & Liquor Corporation Mission Statement

• Create a friendly working environment for employees • To oversee the healthy consumption of alcohol and tobacco • To insist on innovation, initiative, responsibility, honesty and faith

酒後不開車安全有保障 06

Foreword from the Chairman

The Taiwan Tobacco and Liquor consumers with high-quality products and Corporation has entered its 119th year of services, and while pursuing profitability operation. It is the largest and historical and steady growth, it also attaches great tobacco and liquor production and marketing importance to environmental protection and company in Taiwan. It is shouldering the social responsibility, strives to deeply root development of national policies, promoting in Taiwan, and actively deploys overseas the government's responsibility for tobacco, markets to move towards the goal of an liquor and food safety laws and regulations, international enterprise. and jointly promoting the national financial and economic mission Continue to provide

T. T. L. (CEO)

禁止酒駕酒後不開車安全有保障 07 An Introduction to Taiwan Tobacco & Business Strategy Liquor Corporation

• Focus on core raw materials and technology to develop products that meet the needs of the market. • Strengthen brand management to enhance brand and product value. • Promote e-commerce, expand sales channels and improve consumption convenience. • Promote the reproduction of tourist wineries, create wine cultural value and enhance corporate image. • Cooperate with the government to promote the "new southbound" policy and actively expand the Asia-Pacific market. • Handle staff training, implement manpower renewal and technology inheritance.

酒後不開車安全有保障 08

History

The Taiwan provincial monopoly business was started during reduced to tobacco and the time of the Japanese occupation. Aside from maintaining liquor only, when the its monopoly on opium in 1898, the Taiwan Governor’s camphor business ended in Office had also expanded its range of items to include a 1968. monopoly on salt and later camphor. It merged its Taiwan Taiwan Tobacco and Wine Pharmaceutical Factory, Taiwan Salt Bureau and Taiwan Monopoly Bureau was an Camphor Bureau in 1901 into the “Monopoly Bureau of institute which handled the Taiwan Governor’s Office”. The Taiwan Governor’s the production, delivery, and sales of tobacco and liquor Office took over tobacco in 1905, liquor in 1922, matches products. It was responsible for mass production of sufficient as well as standardized weights with measures in 1942, supplies of tobacco and liquor to satisfy the public demand, and petroleum in 1943. Therefore, the eight monopolized and also the execution of the tobacco and liquor Monopoly items before the retrocession of Taiwan were: cigarettes, Regulations. The agencies under its jurisdiction included liquor, opium, salt, camphor, matches, petroleum and the tobacco and liquor distribution units and permitted retailers standardization of weights as well as measures. throughout Taiwan, which formed an integral sales network. After the retrocession of Taiwan in 1945, the Taiwan The monopoly profits from tobacco and liquor sales were Government Executive Administration Office, in an effort turned over to the National Treasury to fulfill the economic to maintain its financial resources and minimize taxpayers’ and financial goals of the Taiwan Tobacco and Wine burdens, continued the monopoly system by establishing Monopoly Bureau. The business of the Bureau was very the “Taiwan Provincial Monopoly Bureau”. The number of profitable, and the profits provided to the Treasury accounted monopolized goods was reduced to five: tobacco, liquor, for a large portion of Taiwan is tax revenue. camphor, matches, and standardized weights and measures. In 1947, the Taiwan Provincial Government brought the Bureau directly under its authority by a re-organization which formed the “Taiwan Tobacco and Wine Monopoly Bureau”. At this time, the number of monopolized items was reduced to three: tobacco, liquor, and camphor. After the statutes were amended in 1951, the bureau was placed under the supervision of the Finance Department of the Taiwan Provincial Government as a third level agency of Taiwan Province. After this, the monopolized items of the Taiwan Tobacco and Wine Monopoly Bureau were further 09 An Introduction to Taiwan Tobacco & Liquor Corporation Reorganization

In accordance with the "Temporary Regulations of the The "Taiwan Tobacco and Liquor Corporation Regulations" Taiwan Provincial Government's Functions, Business and were approved by the Legislative Yuan on April 25, 2002 Organization", the Taiwan Tobacco and Wine Board was and became law by presidential decree on May 15, 2002. reformed, and has been supervised by the Ministry of The name of the Board was subsequently changed to Finance since July 1, 1999, which continues to manage Taiwan Tobacco and Liquor Corporation on July 1, 2002. the administration, production and sales of tobacco and Facing market competition after liberalization of the liquor products. In recent years, in order to prepare for production and sale of tobacco and liquor, we have internationalization and liberalization, the government upheld the rights and benefits of consumers, provided decided to abolish the monopoly system of tobacco and high quality products, and actively strengthens its liquor products, and free the manufacture of tobacco and overseas market layout to move towards the goal of an liquor. Accordingly, the government enacted the "Tobacco international enterprise. and Liquor Management Law" and the "Tobacco and Liquor Tax Law", two laws which took effect on January 1, 2002. Thus, the monopoly system was eliminated, and free production of tobacco and liquor began. 10

Organizational Structure 11 An Introduction to Taiwan Tobacco & Liquor Corporation

Organizational Structure · Taipei Office · New Taipei Office Division of · Taoyuan Office Marketing & Sales · Taichung Office · Chiayi Office Division of · Tainan Office Liquor · Kaohsiung Office Dept. of · Hualien Office Auditing Division of · Key Account Office Beer

Division of · Taoyuan Sake Brewery Tobacco · Taichung Distillery · Puli Shaohsing Brewery Secretarist, Division of · Nantou Winery & Distillery Board of Directors International Business · Chiayi Distillery · Longtian Distillery Dept. of · Pintung Distillery Biotechnology · Yilan Brewery · Hualien Distillery Dept. of Marketing

Dept. of · Jhunan Brewery Planning · Wurih Brewery · Shanhua Brewery Dept. of B.O.D. Senior Finance · Taipei Brewery President Chairman Vice President Dept. of Information Management · Taipei Cigarette Plant Dept. of · Fongyuan Cigarette R&D Plant Legal Affairs · Neipu Cigarette Plant Dept. of · Taoyuan Printing Factory General Affairs

Dept. of Safety and Health Supervisors Institute of Liquor Dept. of Property Operation Management and Biotechnology

Dept. of Accounting

Dept. of Human Resource

Dept. of Civil Service Ethics 12

Management Team 13 An Introduction to Taiwan Tobacco & Liquor Corporation

Chairman Education •Master in Department and Graduate Institute of Political Science, National Chung Cheng University Experience •Deputy Magistrate of Yunlin County Government •Director of Social Welfare Department of Yunlin County Government •Confidential Secretary of Yunlin County Government •Director of Civil Affairs, Yunlin County Government

Yen-Che Ting

President Education • Master in Graduate Institute of Chemical Engineering, National Cheng Kung University Experience • Seinor Vice President of TTL • Director of Taoyuan Sake Brewery of TTL • Director of Yilan Distillery of TTL • Director of Chiayi Distillery of TTL

Chi-Shih Huang 14

Management Team

Senior Vice President Huan-Chang Tseng Education • Department of Business Administration, National Sun Yat-sen University Experience • Senior researcher of TTL • Consultant of TTL • Senior Vice President of TTL

Senior Vice President Huan-Chung Lai Education • Department of Shipping & Transportation Management, National Taiwan Ocean University Experience • Director of Dept. of Biotechnology of TTL • Director of Secretarist, Board of Directors of TTL • Senior Executive Officer of TTL

Senior Vice President (Acting Vice President of Division of Beer) Hui-Huang Wu Education • Master in Graduate Institute of Chemical Engineering, National Cheng-Kung University

Experience Senior Vice President • Vice President of Division of Beer of TTL Chih-Chien Liao Director of Shanhua Brewery of TTL • Education • Deputy Director of Shanhua Brewery of TTL • Department of Diplomacy, National Chengchi University Experience • Director of Cultural Affairs Bureau, Hsinchu City • President of Taiwan Film Institute • Vice President of Hakka TV Station 15 An Introduction to Taiwan Tobacco & Liquor Corporation

Vice President of Division of Marketing & Sales Chih-Kuan Chou Education • Master in Department of Plant Diseases and Insect Diseases, National Taiwan University Experience • Manager of Tainan Office of TTL • Senior Executive Officer of TTL • Vice President of Division of Marketing & Sales of TTL

Acting Associate of Vice President of Vice President of Division of Liquor Division of Tobacco Shih - Chi Lin Zih-Ji Sung Education Education Master in Graduate Institute of Management • • Master of Dept.of Technology Management of (Technology), National Taipei University of Chung Hua University Technology Experience Experience • Deputy Manager, of Division of Tobacco, of • Director of Linkou Brewery of TTL TTL • Director of Hualien Distillery of TTL • Director of Fengyuan Cigarette R&D and • Deputy Director of Dept. of Planning of Manufacturing Plant, of TTL TTL • Section Chief of Fengyuan Cigarette R&D and Manufacturing Plant, of TTL

Vice President of Division of Biotechnology Li-Ching Mao Education • Master of International Business, Tamkang University Experience • Director of Dept. of International Business of TTL • Director of Dept. of Property Operation Management of TTL • Manager of Dept. of Taipei Office, TTL 16

Member of the Board of Directors

Chairman President Independent Independent Board Director Board Director Yen-Che Ting Chi-Shin Huang Yi-Long Jaw Jason Yeh CEO of TTL President of TTL Professor of Department Head of Jason Yeh Law of International Business, Firm Taiwan University

Board Director Board Director Board Director Board Director

Yu-Cheng Liu Ming-Huei Wu Chia-Lin Chang Chin-Lun Chen Professor of Department Director of Department of Professor of Department of Taiwan Grains & Feeds of Public Adminstration Economic Development Applied Economics & Vice Development Foundation and Policy, National Taipei of, National Development President for International CEO University Council Affairs, Chung Hsing University

Board Director Board Director Board Director Board Director

Woei-Dai Chang Ping-Jou Lee Mei-Chung Lou Su-Mei ChenLai President of New Channel Director of Dept. of Deputy Director of the Head of ChenLai Su-Mei Corporation Personnel, Ministry of Taxation Administration, Land Adminstration Agents Finance Ministry of Finance Office 17 An Introduction to Taiwan Tobacco & Supervisor/ Liquor Corporation Auditor General

Labor Director Labor Director Labor Director Supervisor Chia-Hsiung Hou Jung-Yao Cheng Chào-Kuo Chang Bi-Chen Tsai Staff of Division of Sales Sales of the Kaohsiung Driver of Puli Brewery of Director of National of TTL Business Office of TTL TTL Taxation Bureau of the Kaohsiung, Ministry of Finance

Supervisor Supervisor Supervisor Supervisor

Yea-Ling Sheu Lotus Wu Hui-Mei Chen Chin-Hsiung Chen Chief Secretary of Director of the National Director of Dept. of Director of Dept. of Directorate-General of Taxation Bureau of the Accounting, Ministry of Planning, Ministry of Budget, Accounting and Central Area, Ministry of Finance Finance Statistics, Executive Yuan Finance

Yu-Chi Wu Education • Master in Department of Agribusiness Management, National Pingtung University of Science and Technology Experience • Director of Neipu Cigarette Plant of TTL • Director of Fongyuan Cigarette R&D Plant of TTL • Director of Taipei Cigarette Plant of TTL Auditor General

Yu-Chi Wu Auditor General of TTL 18

Financial Situation

ASSETS LIABILITIES AND EQUITY

12.79％ Investment property, net 0.50% Current liabilities Intangible and other assets 0.07% Long-term liabilities 0.09％

Other liabilities 4.06％

Current assets 43.40%

Capital 36.60％

Funds,investment and long-term accounts receivable 13.46% Capital surplus, retained eamings and other equity interest 46.46% Total property, plant and equipment 42.57%

Balance Sheet Unit : U.S.$million Dec.31,2019 Dec.31,2018 Dec.31,2017 Item Amount Percentage(%) Amount Percentage(%) Amount Percentage(%) Assets 3,996 100.00 3,796 100.00 3,918 100.00 Current assets 1,734 43.40 1,553 40.91 1,642 41.92 Funds, investment, and long- 538 13.46 563 14.83 532 13.57 term accounts receivable

Total property, plant 1,701 42.57 1,657 43.65 1,720 43.90 and equipment Investment property, net 20 0.50 19 0.51 20 0.51 Intangible and other assets 3 0.07 4 0.10 4 0.10 Liabilities and equity 3,996 100.00 3,796 100.00 3,918 100.00 Liabilities 677 16.94 677 17.85 743 18.98 Current liabilities 511 12.79 516 13.60 572 14.60 Long-term liabilities 4 0.09 Other liabilities 162 4.06 161 4.25 171 4.38 Equity 3,319 83.06 3,119 82.15 3,175 81.02 Capital 1,462 36.60 1,427 37.59 1,478 37.71

Capital surplus, retained earnings 1,857 46.46 1,692 44.56 1,697 43.31 and other equity interest

Note: Statements for 2017 and 2018 is examined by the Ministry of Audit, and statement for 2019 is unexamined at the time of publication. 19 An Introduction to Taiwan Tobacco & Liquor Corporation

Income Statement Unit : U.S.$million Jan.1, 2019-Dec.31,2019 Jan.1, 2018-Dec.31,2018 Jan.1, 2017-Dec.31,2017 Item Percentage of Percentage of Percentage of Amount Amount Amount each item(%) each item(%) each item(%) Operating revenues 2,063 100.00 2,326 100.00 2,493 100.00 Operating costs 1,626 78.83 1,851 79.57 1,942 77.89 Gross Profit 437 21.17 475 20.43 551 22.11 Operating expenses 208 10.07 212 9.12 215 8.61 Operating income 229 11.10 263 11.31 336 13.50 Nonoperating revenues 80 3.89 43 1.83 70 2.81 Nonoperating expenses 6 0.28 7 0.30 9 0.35 Nonoperating income 74 3.61 36 1.53 61 2.46 Pretax income 303 14.71 299 12.84 397 15.96 Income tax expense 55 2.64 55 2.36 60 2.42 Net income 248 12.07 244 10.47 337 13.55

Note: Statements for 2017 and 2018 is examined by the Ministry of Audit,and statement for 2019 is unexamined at the time of publication.

Percentage of revenue, expenditure and net income of the total business revenue

% 2019 88.90 88.69 2018 86.50 2017 %

% 14.71 15.96 12.07 13.55 12.84 11.10 13.50 10.48 11.31 3.89 2.64 3.61 2.46 2.81 2.36 2.42 1.53 0.28 0.30 0.35 1.83 本期淨利Net Income所得稅費用 tax 稅前淨利Pretax Nonoperating營業外利益 Nonoperating營業外費用 Nonoperating營業外收入 Operating營業利益 Operating營業支出 costs income expense income income expenses revenues income and expenses 20

Operation

The government opened the domestic market to foreign tobacco and liquor in 1987, entered the WTO in January 2002, and then enforced the Tobacco and Liquor Tax Law, allowing imported tobaccos and beers from Mainland China. The abolishment of monopoly system of tobacco and liquor products had a direct impact on the sales of local products. To ensure our market share of tobacco and liquor products and to improve competitiveness, we have applied a customer- oriented marketing strategy as our core, taken active measures in new-product R&D, improved the quality of tobacco and liquor, and enhanced customer services. The total amount of sales value in 2019 was NT 61.9 billion dollars and kept market shares of tobacco, beer and liquor at 20.4%, 57.8%, and 57.4% respectively.

Revenue of the Past Five Years

Years Unit : NT$ million

2019 61,871

2018 71,482

2017 74,003

2016 73,458

2015 74,343

0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 禁止酒駕酒後不開車安全有保障 21 Breakdown of Liquor Sales Yu Tzuen Series by Product Series Alcohol 3.72% An Introduction to 3.94% Yu Her Series Taiwan OMAR Series 0.15% Tobacco & 1.98% Liquor Corporation Yu Lu Series 0.01% Yu Chan Series 18.57% Import Series 3.62%

Other Liquor 0.14%

100% Rice Liquor Series 41.00% Yu Shan Series 26.78%

Yu Tai Series 0.08% Breakdown of Beer Sales 18Days Taiwan Draft by Product Series Beer Series 3.38%

Fruit Beers Series 0.83% Breakdown of Tobacco Sales by Product Series Keg Beers 0.63% Other Beers 0.51%

PM Series Long Life Series Song Beer 0.82% 16.35% 17.32%

100% Classic Taiwan Beer Series 17.68%

Gold Medal 100% Taiwan Beer Series Gentle Series 76.15% 39.03% Breakdown of Biotechnology and Foods Sales by Product Series

Cleaners 4.66% Dietary supplement Foods 7.37% Cosmetics 11.15% Other Series 1.57% Import Series 2.44% Formosa Series 0.58% Drinks 2.31% New Paradise Series 6.71% Vesta Series 0.54% Mars Series 7.74% 100% Oner Series 5.89%

King Ston Series 1.95%

Other Series 1.45% Foods 72.94% 酒後不開車安全有保障 22

Division of Marketing & Sales Structure of Organization

The Division of Marketing & Sales has 8 domestic offices and 1 Key account office. It has 89 branches,17 stations, 11 convenience stores(including Puli Shaohsing Brewery Convenience Store), 5 Shops and 5 distribution centers ,jointly responsible for both product sales and promotion. More than 22,000 wholesalers and retailers across the country distribute their products. The retailers include convenient stores, supermarkets, hypers, national military welfare supply stations, and traditional stores. The sales network is well-established.

Taipei Office 89 Branches

New Taipei Office

Taoyuan Office 17 Stations

Taichung Office Division of Domestic Chiayi Office 11 Convenience Stores Marketing & Sales Business Office Tainan Office

Kaohsiung Office 5 Shops

Hualien Office

Key Account Office 5 Distribution Centers

禁止酒駕酒後不開車安全有保障 23 An Introduction to Taiwan Tobacco & Liquor Corporation

Operation of Channel Marketing

In response to to the rapid changes in domestic retail products, we hire promotion girls in restanrants, channels and the fierce competition in the tobacco hypers and supermarkets to promote the company’s and liquor market, the Division of Marketing&sales products as well. is actively pursuing the function of strengthening In addition,telephone order, centralized product distribution, implementing the channels purchase,transfer or delayed payment,etc., diversification and segmentation, developing regional provide customers with convenient and diversified distribution systems, and establishing a modern choices. In order to provide customers with a more marketing network management system. We set up comfortable purchase environment, in recent years, 11 convenience stores and e-commerce to fulfill the business offices and purchase lines have been consumers’ needs. Nowadays, there are more than re-adjusted recently. In order to improve the total 22,000 retailers directly purchasing tobacco and quality management of the company, each business liquor from the company. For the better service and office has obtained ISO-9001 international quality effectiveness, the restaurants and kiosks can directly assurance certification and established a performance purchase from the distibutors and wholesalers.,In benchmarking system. order to meet the needs of consumers trying new

Flow chart of channel marketing operation TTL convenience store,shop

Convenience store, supermarket, hypermart

Division of Domestic Branch (station) Retailer, contract Marketing & Sales (distribution Consumer Business Office shop, wholesaler center) Restaurant (on trade market), Distributor Kiosk

E-commerce

Operation of Channel Marketing

In the face of the overall business model change of operation capabilities,strengthen customer and retailer the tobacco and liquor market, we will enhance the relations and service management mechanisms to competitiveness of the company, actively establish a establish global competitive advantages and achieve nationwide multi-site sales network, reinforce logistics the global marketing system. 酒後不開車安全有保障 24

Division of International Business

Structure of Organization

The functions of the Division of International Business Self-owned Taoyuan Duty-free Shop International Airport are export of TTL’s cigarettes, liquors, wines and other products; overseas procurement of tobaccos, wines, Tasa Meng Duty Free liquors, raw materials and production equipment; and operations of duty-free shops. Export business covers Ever Rich Duty Free sales and marketing in the territories including China, Other Free Trading Zone America, Europe, Asia and Oceania; operations of self- Duty-free Shop owned duty-free shops at Taoyuan international airport Outlying Island where a large variety of duty-free cigarettes, wines and liquors are provided for inbound and outbound Airline passengers; and the supply & business promotion to other duty free shops in Taiwan. Sole Agent Division of International Business Oversea Market Importer

Contracted Business Partner Bonded Warehouse

Revenue in year 2019

In 2019, the total revenue generated by the Division of International Business amounted to about NTD2.63 billion, which mainly came from sales of duty-free shops and export. Of the revenue, sales of duty-free shops accounted for 77%, while export accounted for 23%.

Other Duty-free Shop Self-owned 27% Duty-free Shop 50% Oversea Market 23%

禁止酒駕酒後不開車安全有保障 25 An Introduction to Taiwan Tobacco & Liquor Corporation

2019 Oversea Fair and Activity

Month Day Type Activity 3 5-8 Fair Participated Foodex Japan 2019 in Tokyo 3 12-14 Fair Participated MITT in MOSCOW 3 22-24 Fair Participated 2019 China Duty Free Trade Fair (CDF) 5 14-16 Fair Participated SIAL China 2019 8 9-11 Fair Participated WHISKY L! Shanghai 2019 9 20-22 Fair Participated Germany InterTabac 2019 9 24-27 Fair Participated Food & Hotel Malaysia 2019 9 28-29 Fair Participated Taiwan Plus Tokyo 2019 11 7-9 Fair Participated Hong Kong International Wine & Spirit Fair 2019

Sept. 2019 ～ June 2020 Activity TTL whisky branding in international advertising 2019-2020

Prospects

With the benchmark of internationally promoting TTL’s 3.Strengthening international competitiveness in all products, the Division of International Business has set aspects. the following 5 core values to accomplish the goals of 4.Establishing international platform of procurement. becoming an internationally well-known enterprise and 5.Diversifying operations of duty-free shops. selling products worldwide. 1.Promoting internationally the image and brand value of TTL. 2.Seeking critical international business partners and developing close relations.

酒後不開車安全有保障 Division of Liquor

The Liquor Division is responsible for production and R&D of liquors other than the beer. Currently, there are nine distilleries and wineries including Taoyuan, Taichung, Puli, Nantou, Chiayi, Longtian, Pingtung, Hualien, and Yilan that engage in the sales and promotion of liquor production and derivative products.

禁止酒駕酒後不開車安全有保障 27 2019 Annual Production An Introduction to Taiwan Tobacco & The annual production reaches approximately 11,300,000 dozens at 0.6L/bottle. Liquor Corporation

Taoyuan Brewery produces 655,000 Taichung Distillery produces 3,464,000 dozens, accounting for 5.8% dozens, accounting for 30.7%

Longtian Distillery produces 1,149,000 dozens, accounting for 10.2% Chiayi Distillery produces 233,000 Puli Brewery produces 190,000 dozens, accounting for 2.1% dozens, accounting for 1.7%

Yilan Distillery produces 1,787,000 dozens, accounting for 15.8%

Hualien Distillery produces 1,632,000 dozens, accounting for 14.4% Pingtung Distillery produces 2,010,000 Nantou Distillery produces 180,000 dozens, accounting for 17.8% dozens, accounting for 1.6%

New Products Development

The liquor division has developed some new pot". In corporate with the marketing requirement, products in 2019, including "0.7L OMAR Single we use the high quality of the raw wine for special Malt Whisky (Harvest Series NO.1)", "1.2L holidays' celeberation, classic products, souvenirs Yushan Aged Chu Yeh Ching Liqueur Gift Box", or customized products for tax free shop in the "0.7L Yushan Kaoliang Liquor Aged 10 Years Gift airport, including: "1.0L Yushan Taiwan Kaoliang Box (Noblely )'', ``2.0L Yushan Taiwan Summit Liquor Aged 8 Years Gift Box (Golden Top Glory)", Kaoliang Liquor Aged 16 Years Gift Box (Wealthy "1.0L Yushan Taiwan Red Kaoliang Chiew Aged Prosperity)'', ``1.0L Yushan Teh Cheu Kaoliang 12 Years Gift Box (Shou Fu)" and "1.0L Yushan Liquor Gift Box (rat)'', ``Taichiew Comprehensive Taiwan Red Kaoliang Liquor Aged 16 years Gift Nuts Gift Box'', ``Taichiew Red Golden Tremella'' Box (lucky)" etc, various gift box for attracting , "Taichiew Sake Kasu Grain Almond Bars gift box" young customers, and also bring up the brand's and "Taichiew Shaohsing pickled cabbage pork reputation profits.

Quality Control

˙To reach consistency in product quality, the distilleries and Brewery have been certified by ISO-9001, ISO-22000, ISO-14001, ISO-14064, OHSAS-18001, and TOSHMS:2007.

˙The Liquor Division has acquired the Wine Quality Certification awarded by MOF for several rice liquor, Kaoliang, wines and whishy to incorporate with government policies.

酒後不開車安全有保障 28

Sightseeing Wineries and Distilleries Reengineering

To coordinate with the local industrial resources, The distilleries are promoting the tobacco and liquor the distilleries have been developed into sightseeing products of the company through the showroom center, distilleries with showroom centers and cultural museums supplemented by the development of liquor-related set up to organize various promotional activities with the products and cultural products to assure sustainability and community, creating the production and tourism image. create revenues.

Advocacy for environmental protection, energy saving and recycling

In response to people's awareness of environment photovoltaic system, Pintung Distillery, Longtian Distillery protection, the Company has been active in , Chiayi Distillery, Nantou Winery & Distillery, Hualien implementation of environmental policies through Distillery, Taichung Distillery, Taoyuan Brewery as the colossal investment of resources to energy efficiency venue for a pilot run of solar power, and depending on and to be reusable into the business. To further fulfill the the outcomes, further implementation is expected. environmental ideas, the company has chosen the solar

禁止酒駕酒後不開車安全有保障 29 An Introduction to Taiwan Tobacco & Liquor Corporation

Sponsorship on cultural and public welfare activities

Combining distillery and Brewery with local cultural societies or communities, Handled activities such as "Kaoliang Liquor Festival", "Shaohsing wine Festival", "Sake Festival", "Cooking Wine Road running competition" and other activities. In 2019, we cooperated with Fu Baoshi Painting Exhibition and launched 4 limited editions of OMAR Single Malt Whisky-Four Seasons of Sanqianyuan, Xiangjun, Jiaoyin Beauty and Jiugeshan Ghost Figure, etc., to enhance the company's products and combine of cultural.

Future Prospects

Faced with the intense competition in future wine market, the Division intends to utilize the core technology of the company, advantage of distillery scale and the diversity in product structures to actively develop high-quality alcoholic products, in addition to combining in-depth cultural events through brand re-shaping in attempt to promote special Taiwanese wine culture, lead the Taiwan drinking market and expand export market.

酒後不開車安全有保障 Division of Beer Structure of Organization

The Division of Beer is responsible for the production planning, new product development, and quality control. Currently the Division comprises of three breweries, Jhunan, Wurih, and Shanhua as well as Taipei Brewery (Independent operation since January 1, 2008). The breweries are responsible for the execution for beer production, where Jhunan Brewery also features as a bottle manufacturing plant for the manufacturing and production of bottles. Wurih Brewery features a beer research and development center with responsibilities in new product technology research and development, Shanhua Brewery features an Easy Clean factory with production in biotech cleaning products, Taipei Brewery is responsible for the maintenance of the historic monuments while researching, development and production of craft beer.

禁止酒駕酒後不開車安全有保障 31 An Introduction to Taiwan 2019 Annual Production Tobacco & Liquor Corporation

“Taiwan Beer golden glory” is dominating the entire accounting for 41.79% of total productivity; beer market in Taiwan by 58.0%. It is not only the approximately 12,170,000 dozens of bottles by top brand beer of the market but also exports to Wurih Brewery, accounting for 27.01% of total China, U.S., Japan, Korea, France, New Zealand, productivity; approximately 13,950,000 dozens of Australia, Singapore, Cambodia, and many other bottles by Shanhua Brewery, accounting for 30.96% countries worldwide. The company produces of total productivity; and 100,000 dozens of bottles 45,050,000 dozens of 0.6 liter/bottles while the by Taipei Brewery, accounting for 0.22% of total production by brewery includes approximately productivity. 18,830,000 dozens of bottles by Jhunan Brewery,

New Products Development

In 2019, not only additionlly promoting the existing flavored beverages to develop the Japanese market to prodouts, but also with the upcoming successful beer (ly enhance Taiwan’s beer brand power. chee) which is cooperated with Tainan Cultural Bureau. In addition to researching process improvement to In addition, we cooperated with specific channels improve beer quality, Wuri Brewery also actively to launch Taiwanese beer PREMIUM special brew collects various beer information and craft beer trends series/Golden Age. In July 2019, in conjunction with in the market in response to more diversified beer the Taipei Brewery 100th Anniversary Celebration, it market items and consumers choose more diverse launched two limited-edition beers, Takasago Beer and trends. And has developed a number of reserve Taiwan Beer’s 60th Anniversary Reissue. The company’s products to seize the beer consumption market. core beer brewing technology combines tea drinking culture and Premium Assam Black Tea to develop the Taiwan beer Slightly drunk series. Deep leaf beer, and actively invest in the development of non-alcoholic beverages, and develop Taiwan’s first local beer for the Taiwan market and taste Gold Free beer flavored beverages were well received by consumers in the Early sales. The market responded enthusiastically. During the half-year sales period, nearly 900,000 cans were sold. In the future, resources will continue to be invested in promotion and research and development of healthy and functional products will increase product market competitiveness. It also assisted Japanese customers in customizing 0 zero premium non-alcoholic beer-

酒後不開車安全有保障 32

Quality Control

The key to the stable market for Taiwan Beer is the that produce the fresh brew and mellow quality “stable and reliable quality as well as the fresh and beer. The breweries further devote to getting quality mellow flavor.” The breweries have all been certified by certification while the Jhunan, Wurih and Shanhua, multiple certifications such as ISO-9001, ISO-14001, Taipei Breweries were Alcohol Quality Certification OHSAS-18001, and ISO-22000, from the selection of Mark by the Ministry of Finance for quality liquor superior raw materials, professional brewing technology category. The company’s beer safety and quality have to the rigorous process monitoring and quality control. been further enhanced and it has been certified at the Notably, Wurih Brewery has been certified by TQF to national level. certification Taiwan Beer’s crafts in professional brewing

Sightseeing

Following the changes in time and industrial structure, Currently Jhunan, Wurih, and Shanhua Breweries have domestic production factories in Taiwan have eventually been certified by the Ministry of Economic Affairs transformed into tourism factories. Jhunan Brewery, as the tourism factories. In contrast, Taipei Brewery Wurih Brewery and Shanhua Brewery of Taiwan Beer with smaller productivity will transform into a beer also form special tourism factories combining local culture district park in the future due to the concurrent characteristics and beer. For example, Jhunan Brewery operation as Taipei municipal historic monument and features a promotional center for Hakka Culture, the advantage of downtown location. Taipei Brewery Shanhua Brewery offer mixed fruit beer using the local will also become the general landmark for Taipei City advantage of fruits mixing, and Wurih Brewery takes the culture, where the park not only offers recreational transportation advantage of Taichung High Speed Rail plaza, cultural commercial district, and historic Station to proactively design and establish the Taiwan buildings but will also be designed with an overall craft Beer Brand Image Experience Hall. The breweries beer production line. The craft beer with special savor integrate the Taiwan Beer brand with most publicity into will be integrated with the park restaurant to turn Taipei tourism factories in attempt to depict the brand, history Brewery into a composite tourism factory featuring and production stories to the tourists and consumers. culture, recreation, and beer fashion. Therefore, the tourists can enjoy the cool and refreshing beer while increasing their emotional relation with the brand of Taiwan Beer. 禁止酒駕酒後不開車安全有保障 33 An Introduction to Taiwan Tobacco & Liquor Corporation

Awards and Achievement

Taiwan Beer has won numerous awards between Beer PREMIUM and Taiwan Beer have won gold 1997 to 2018 since its participation in Monde medals and above medals for three consecutive years Selection. Notably, the company’s main products, and have been awarded the highest international 2019 is a lucrative year, with Taiwan Beer, Gold quality award which is really well deserved. Medal Taiwan Beer, Taiwan Beer Weissbier, In addition, Taipei Brewery Red Quinoa Beer Taiwan Beer PREMIUM, Taiwan Beer honey beer participated in IBC and won the bronze medal and participating and 17 other products participating in participated in the World Beer Awards 2019 and won Monde Selection and winning 1 Grand Gold Quality the silver medal. Award, 15 Gold Medal and among them, Taiwan

Future Prospects

The Company aims to provide consumers with Factory in 2018 and put into production to produce the freshest, high quality beer services with varied craft beer, wheat beer and 18-day draft beer. In the flavors, using the advantage of local production and future, this site will serve as a demonstration of the domestically grown agricultural products to care company's craft beer. The company has introduced for the farmers, adopting advanced beer brewing a teaching plan, hoping to enhance the company’s and production management technologies as well staff’s professional learning ability, so that all as successful brand maintenance experience. The employees can become excellent beer brewing company actively expands the 18 days draft beer masters, and continue to develop and supply high- so that consumers will be able to enjoy the freshest quality craft beer in the beer market in line with and mellow unpasteurized beer. The company also customer needs. The external space will also be constantly develops new-flavored fruit beer using the planned It is a beer culture park for people to visit abundant resources of Taiwan fruits, which not only and promote beer culture. In addition to enhancing help care for the domestic farmers but also expands the value of the site visit, it also takes into account its revenue in beer. TTL is taking efforts to build the the activation of assets. international image of Taiwan beer with high quality Considering that Taiwan's beer market is becoming and sophistication, accumulating the assets of saturated, it is urgent to expand overseas markets. In “Freshest Taiwan Beer,” opening up the opportunities addition to cooperating with the government's new for “international brand,” strengthening the southward policy, it also meets the diversified needs production and sales channel system, cooperating of international customers and actively expands the with emerging channel development, and constantly market. It is hoped that Taiwanese beer can occupy a developing greater market. place in the international beer market in the future. In addition, domestic and foreign craft beer has continued to develop in recent years. The craft beer equipment has been completed in the Taipei Beer

酒後不開車安全有保障 34

Division of Tobacco

II. Introduction of Our Factories

Taipei Tobacco Factory

Founded in 1912, was the first tobacco factory in Taiwan, formerly known as the "Taipei Tobacco Factory of the Taiwan Governors-General's Office" during Japanese colonial period. Its original location was in Huayin Street in Taipei City. In 1956, a branch factory was set up at the current location (in Xindian) to comply with the wartime evacuation plan, and the factory was evacuated in two phases and officially put into production in 1967. The current area of the factory is 6.379 hectares.

Surrounded by rustic industrial buildings, 60-year-old laurel and mango trees can be seen everywhere. The boiler room and the towering chimney built in 1956 have survived for more than 60 years and are listed as historic sites by the New Taipei City Government.

The company has introduced the first high-speed automatic rigid box making machine and other equipment in Taiwan, which has helped to write a new page in the history of the Taipei Tobacco Factory. The company not only produces products of its own brands but also provides OEM service. The quality of all the products meets international standards.

Fengyuan Cigarette R&D Plant

I. Division of labor in the organization Fengyuan Tobacco Factory was founded in 1950. After the Tobacco Research Institute was merged into it in 2004, it was renamed as Fengyuan Cigarette R&D Plant and The Department of Tobacco is responsible for the became an integrated factory for the research, development production of cigarettes, research and development, and manufacturing of cigarettes. It helps to monitor and and the printing of packaging paper boxes and wine control the quality of tobacco products manufactured labels. Currently, we have a cigarette factory in Taipei, by each tobacco factory, playing the role of the ultimate a cigarette R&D plant in Fengyuan, a cigarette factory gatekeeper of product quality. It also analyzes the changes in Neipu and a printing factory in Taoyuan. of competitive brands (imported tobacco products) in the market in order to master the trend in the market and to improve the conditions of production processes for optimization. This is to reduce production costs and improve product quality.

Founded in 1917, the original business of the Tobacco Research Institute was to direct the cultivation of tobacco. 35 An Introduction to Taiwan Tobacco & Liquor Corporation

In 1994, its business was transformed, and it was renamed as the Tobacco Laboratory, which was engaged in the research of tobacco leaves and cigarette rolling technology. In 2004, the institute was merged into Fengyuan Tobacco Factory. Currently, it is divided into two departments: product development and technology development, which are dedicated to new product and material development; It also conducts various chemical analysis and research related to tobacco manufacturing.

Neipu Tobacco Factory

Founded in 1986, it is the youngest tobacco factory in since 2010. the company's history and has a modern design. After the The Neipu Tobacco Factory is blessed with a wide land merger of the Pingtung Tobacco Factory into the Neipu area and suitable climate, so that tobacco is not easily Tobacco Factory in 2002, it now occupies 20.013 hectares exposed to moisture due to the environment. In addition to of land, and its’ main premise has a floor area of about the existing cigarette rolling facilities, it also has a special 96,000 square meters, which makes it the largest one remanufacturing plant producing specially processed cut among the three tobacco factories. By taking over the OEM tobacco, which is supplied to the Taipei Tobacco Factory work of international tobacco companies, it has gradually and the Fengyuan Cigarette R&D Plant. been connected to the international market and emerged

Taoyuan Printing Plant

Founded in 1921, it was formerly known as the Printing efficiency printing machine, and it is responsible for the Plant of the Taiwan Tobacco and Wine Monopoly Bureau, production of packaging materials required by our tobacco located in Section 4 of Zhongxiao East Road (Taipei Dome) and wine factories, including cigarette boxes, outer wine in Taipei City. It was moved to the current location (Guishan, boxes, wine labels, wine bottle caps and aluminum screw Taoyuan) in accordance with government policy. caps.

Taoyuan Printing Plant has introduced high quality and high

III. Quality Control

In order to achieve consistent quality, each factory has obtained international certifications such as ISO-9001, ISO-14001 and ISO-45001. The laboratory of the Tobacco Research and Development Center has also obtained the certifications for "reducing sugar, total niacin, nicotine, tar, carbon monoxide, formaldehyde and hydrogen cyanide" from Taiwan Accreditation Foundation (TAF).

All factories of the company continue to promote energy saving, carbon reduction and greenhouse gas inventory in order to create the environment for sustainable development. 36

Dept. of Biotechnology

Organization

Our Department of Biotechnology was established in October of 2005 via task arrangement. The business has gradually prospered. It was approved to be a official department by the Ministry of Finance at the end of 2009. The Department of Biotechnology is responsible for the product development, production management and brand marketing of biotechnology products. The R&D and the quality inspection of biotechnology products are conducted by the Research Institute of Liquor and Biotechnology and the breweries and distilleries.

Products Development

The Department of Biotechnology actively used the core raw materials provided by the Company and adopted advanced biotechnology to develop the four major types of products, which were safe and functional health foods and drinks, cleaning products without environmental hormone and anti-wrinkle, moisture retention and whitening skin care products. The general food and drink products were transferred to the Department of Liquor in the second half of 2012. The Department of Biotechnology has focused on the management of these four categories of products: ”health foods”, ”health drinks”, “skin care products” and ”cleaning products”. The Department of Biotechnology also developed 3 new products in 2019, including “Longan Malz ”, “’Easy Clean Liquid Laundry Detergent” , ”Taiwan beer Yeast Tablet ”. 37 An Introduction to Taiwan Tobacco & Liquor Corporation

Production and Revenue

The production models of four major types of products are divided into self-production, semi-self-production and OEM. In 2019, the total revenue generated by the Department of Biotechnology amounted to about 347 millions TWD.

Quality Control

The Department of Biotechnology has been committed in providing safe products with quality warranty. For maintaining the brand assets, it strengthens the quality management of manufacturing, marketing and logistic, particularly the management of the resource of raw materials, and manufacturing process management. In addition to strictly screening the cooperation manufacturers, the Department of Biotechnology also enhance the quality inspection, monitoring and management in order to let the general public feel safe to choose our products and to enhance the corporate brand value and the image of health professionalism. 38

Awards

The Department of Biotechnology has applied for the products, and “High-purity Iso Malto-Oligosaccharides, patents in Taiwan and other countries based on its results HIMO” health food). Our biotechnology products have in research and development. Currently there are six received multiple awards at home and abroad. The results that have been granted with patents in multiple awards received from 2015 to 2019 are listed in the countries, in which four products with patents have table: (please refer to the attachment) been launched to the market (“Easy Clean” cleaning

Products 2015 2016 2017 2018 2019

1.SNQ Symbol of 1.SNQ Symbol of 1.SNQ Symbol of 1.SNQ Symbol of 1.SNQ Symbol of Unchole Monascus National Quality National Quality National Quality National Quality National Quality Capsule 2.Healthy Food 2.Healthy Food 2.Healthy Food 2.Healthy Food 2.Healthy Food Certification Certification Certification Certification Certification Unchole Monascus SNQ Symbol of SNQ Symbol of Natto Capsule National Quality National Quality 1.SNQ Symbol of 1.SNQ Symbol of 1.SNQ Symbol of 1.SNQ Symbol of 1.SNQ Symbol of High purity Iso Malto- National Quality National Quality National Quality National Quality National Quality Oligosaccharides 2.Healthy Food 2.Healthy Food 2.Healthy Food 2.Healthy Food 2.Healthy Food Certification Certification Certification Certification Certification

S11 Probiotic food SNQ Symbol of SNQ Symbol of SNQ Symbol of SNQ Symbol of National Quality National Quality National Quality National Quality

β-Glucan Capsules SNQ Symbol of SNQ Symbol of SNQ Symbol of SNQ Symbol of SNQ Symbol of National Quality National Quality National Quality National Quality National Quality

Lutein Soft Capsule SNQ Symbol of SNQ Symbol of SNQ Symbol of National Quality National Quality National Quality VINATA Deep Clean SNQ Symbol of Makeup Remover National Quality VINATA Whitening 1.2018 MIT Smile logo Hydration Toner 2.2018 MIT gold logo 1.FashionGuide 2.Monde Selection Silver Metal 1.Monde Selection VINATA SAKE KASU 3.2018 MIT Smile logo Silver Metal & VITAMIN SYSTEM FashionGuide 4.2018 MIT gold logo 2.SNQ Symbol of MASK 5.2018 Taiwan National Quality Excellence Award 6.SNQ Symbol of National Quality 1.FashionGuide 2.Monde Selection Silver Metal 1.Monde Selection VINATA SAKE KASU 3.2018 MIT Smile logo & HYALURONATE Silver Metal FashionGuide 4.2018 MIT gold logo MOISTURE SYSTEM 2.SNQ Symbol of MASK 5.2018 Taiwan National Quality Excellence Award 6.SNQ Symbol of National Quality 1.Monde Selection 1.Monde Selection 1.Monde Selection Complex Vegetables Silver Metal Silver Metal Silver Metal and Fruits Fermented SNQ Symbol of SNQ Symbol of Liquid National Quality National Quality 2.SNQ Symbol of 2.SNQ Symbol of 2.SNQ Symbol of National National Quality National Quality 1.Monde Selection National Innovation Anka Malz Gold Metal 2.High International Award Quality Trophy

1.Monde Selection Gold 1.Monde Selection Gold 1.Monde Selection Gold Metal Metal Metal Malz Beverage 2.SNQ Symbol of 2.SNQ Symbol of 2.SNQ Symbol of National Quality National Quality National Quality 39 An Introduction to Taiwan Tobacco & Liquor Corporation

Ginger Malz Monde Selection Silver Monde Selection Gold Monde Selection Gold Metal Metal Metal

Smoked Plum Malz Monde Selection Gold Monde Selection Gold Metal Metal

Sake kasu soap SNQ Symbol of SNQ Symbol of National Quality National Quality Activated carbon SNQ Symbol of SNQ Symbol of soap National Quality National Quality

Red wine soap SNQ Symbol of SNQ Symbol of National Quality National Quality 1.SNQ Symbol of 1.SNQ Symbol of 1.SNQ Symbol of 1.SNQ Symbol of 1.SNQ Symbol of National Quality National Quality National Quality National Quality National Quality 2.Green Mark's Easy Clean cleaner 2.Green Mark's 2.Green Mark's 2.Green Mark's 2.Green Mark's Environmental Environmental Environmental Environmental Environmental Specifications Specifications Specifications Specifications Specifications 3.National Innovation Award

1.SNQ Symbol of 1.SNQ Symbol of 1.SNQ Symbol of 1.SNQ Symbol of 1.SNQ Symbol of National Quality National Quality National Quality National Quality National Quality Easy Clean Laundry 2.Green Mark's Detergent 2.Green Mark's 2.Green Mark's 2.Green Mark's 2.Green Mark's Environmental Environmental Environmental Environmental Environmental Specifications Specifications Specifications Specifications Specifications

1.SNQ Symbol of Easy Clean Baby Green Mark's Green Mark's National Quality SNQ Symbol of SNQ Symbol of Bollte & Fruit Environmental Environmental 2.Green Mark's National Quality National Quality Cleanser Specifications Specifications Environmental Specifications Green Mark's Green Mark's Green Mark's Green Mark's Green Mark's Easy Clean Dishwashing Liquid Environmental Environmental Environmental Environmental Environmental Specifications Specifications Specifications Specifications Specifications

Future Prospects

With positive and healthy image of biotechnology beautiful world” and continue to develop products with products, the Department of Biotechnology will still be even higher quality to meet the various demands of committed in reaching the goal of a “healthy life and consumers. 40

Dept. of Marketing

Structure of Organization

The Marketing Department is responsible for the marketing and promotion of tobacco wine, spirits and beer and continuing to build brand awareness on the three main axes. Product competitiveness: differentiating the market with differentiated new products and eye-catching packaging. Marketing capability: organize creative marketing activities and interesting marketing events to get closer to consumers and increase their purchase intentions. Brand appeal: through advertising image, community management and social media influencers to develop reputation and enhance customers’ brand loyalty.

Product Competitiveness

In addition to regularly purchasing marketing awards. information reports (such as Nielsen market share In order to correspond to the diversification of data) or visiting major distribution channels to gather consumption in the beer market where consumers information on competing products and consumption tend to try limited-edition products, TTL launched new trends, the Marketing Department also uses the products that include “Strawberry Flavor Beer” in Sweet interactions between the front-line staffs of TTL’s Touch series and “Sunshine IGA” of Brew Lab series, business offices, distribution channels and customers both were respectively sold in limited channels. When to grasp marketing trends and provide information to it comes to marketing tactics, TTL used public media the Production Departments for product innovation, to proliferate along with word of mouth marketing research and development. For example, the newly via KOL and social media. These tactics successfully develop OMAR Harvest Series No 1 Single Malt Whisky attracted target customers to purchase these new has successfully attracted whisky lovers and been debuts and share their experiences on the internet awarded international gold medal as well as other and social media. Soon after “Strawberry Flavor Beer” 禁止酒駕酒後不開車安全有保障 41 An Introduction to Taiwan Tobacco & Liquor Corporation

and “Sunshine IGA”, TTL also introduced two other eye- beverage, was introduced to the market using “enjoy it catching products, “Oatmeal Stout” of Brew Lab series and drink it” as its advertising message and proliferating and “Yuze Flavor Beer” in Sweet Touch series, in order to via TV commercials, social media influencers and keep enhancing consumers’ confident toward TTL’s R&D social media postings, this TTL product not only free its capabilities and new products. consumers from restrictions of the Law but also reach out With the amendments of Road Traffic Management to potential drinking groups such as sports lovers and gym and Penalty Act came into effect in July, 2019, the new goers in order to provide the aroma and pleasure of hops alcohol-free product “Gold Medal Free”, a beer-flavored to more consumers.

Marketing Capability

In addition to cooperating with major distribution channels to hold consumer promotion events during annual festivals, the Marketing Department plans differentiated consumer promotions (e.g., scratch cards, invoice registration, etc.) based on the characteristic of the host channel and continues to strengthen over-the-counter markets and product display to stimulate sales turnover. In celebration of Taiwan Beer’s 100th anniversary, Taipei Brewery held a two-day admission-free beer festival and launched a limited retro edition beer gift box along with stage performances, food and drink, interactive games and beer promotions providing both food and cultural connections of beer enjoyment. In addition, TTL also with the brand’s classic elements. Moreover, TTL debuted strengthened cross-industry collaboration and cooperation a limited edition of themed cans in collaboration with with Plain-me, a trendy apparel brand, to launch a Classic “Romantic Route 3 Arts Festival” to increase the brand’s Taiwan Beer bag giveaway to create a new retro fashion popularity and to rejuvenate the century-old brand image. 酒後不開車安全有保障 42

TTL also continues to introduce Gold Medal Taiwan Beer superstores and hypermarkets, and recreate company’s Christmas Limited Edition using the slogan “Be Together” retro brand image, TTL plans to introduce a new to convey the joy of Christmas and the Christmas tree generation of licensing signboard, the medal signboard pattern on the can make it possible to combine as many used to identify authorized alcohol and tobacco cans as possible together, making it more fun to drink distributors in the past, as exclusive identity of our TDCs together at parties. in order to strengthen a closer relationship distributors and In order to plough deep into traditional distribution consumers. channels (TDCs), those exclude Convenience Store and

Brand Appeal

TTL concentrates marketing resources on professional image of TTL. The Marketing Department coordinates management through its Marketing Department where functions of production and sales departments within TTL both rational functions and emotional demands are used to in order to transform the culture of passive marketing of effectively communicating with consumers, promoting the a state-own enterprise into a consumer-oriented active purchase intention and behavior and enhancing the overall marketing.

禁止酒駕酒後不開車安全有保障 43 An Introduction to Taiwan Tobacco & Liquor Corporation

Prospects

Domestic beer market in Taiwan is gradually diversifying and coordinated the development of products, such as in flavor. In response to this market trend, the Marketing innovative 3-cup chicken noodles, alcoholic foods and PX Department coordinates with every division within TTL to cask OMAR 10Y Single Malt Whisky, to meet these trends. develop new products such as flavored beer and beer with Facing the fast-changing market, the Marketing Department high alcohol content and to establish a complete product will grasp more deeply the life and the consumption line with beers to fit into high, medium and low price trends, seek more dynamic marketing strategies and ranges as well as to proactively rejuvenate TTL’s brand by diversified marketing modes in response as well as devote adopting contemporary marketing techniques to target itself to building a unique brand image of Taiwan bred young generation. and born and creating Taiwan’s exclusive brand culture in As for spirits and its related derivatives, in addition order to earn the recognition from domestic and foreign to providing high quality spirits to the public with customers. affordable price, TTL has kept abreast of market trends

酒後不開車安全有保障 44

Future Prospects 45 An Introduction to Taiwan Tobacco & Liquor Corporation

Develop domestic market, enhance market competitiveness, and build a solid foundation for the future sustainable development.

Faced with the full liberalization of domestic tobacco and liquor industries, the market competition becomes increasingly intense. To fully protect the domestic market, we execute business reengineering to speed up industrial transformation. We integrate marketing resources to focus on main products, and improve customer relationship management to maintain customer loyalty as well as build brand identity of new customer. Moreover we develop biotechnology industry and tourist wineries and distilleries to enhance diversification.

Strengthen foreign markets, establish overseas business bases, and become an international company

In addition to focusing on developing the Southeast Asian market and continuing to operate the Asia-Pacific market, it is also actively expanding in other markets in Europe and the United States, seeking business partners through exhibition promotion, and strengthening cooperation with local large-scale distributors to increase the international reputation of products and increase sales opportunities. 46

Address list of branches of Taiwan Tobacco and Liquor Corporation

Taipei Office New Taipei Office Taoyuan Office

No.85, Sec. 2, Bade Rd., Zhongshan No.163, Zhenqian St., Shulin District, New No. 664, Mingsheng Rd., Taoyuan District, District, Taipei City Taipei City Taoyuan City TEL:02-87725120 FAX:02-87725038 TEL:02-8685-9668 FAX:02-8685-0283 TEL:03-3385725 FAX:03-3365574 [email protected] [email protected] [email protected]

Taichung Office Chiayi Office Tainan Office

No. 364, Sec. 3, Fuxing Rd., South 2F, No. 427, Chuiyang Rd., West District, No.278, Qingnian Rd., East District, District, Taichung City Chiayi City Tainan City TEL:04-22222031 FAX:04-22252952 TEL:05-2225891 FAX:05-2285307 TEL:06-2089175 FAX:06-2750692 [email protected] [email protected] [email protected]

Kaohsiung Office Hualien Office Key Account Office

No.113, Wenheng 2nd Rd., Lingya No.4, Sec. 1, Nanchang Rd., No.75, Ren-ai St., Hualien City District, Kaohsiung City Zhongzheng District, Taipei City TEL:03-8323141 FAX:03-8356004 TEL:07-3336252 FAX:07-3356289 TEL:02-23214567 FAX:02-2394-5951 [email protected] [email protected] [email protected]

Taoyuan Sake Brewery Taichung Distillery Puli Shaohsing Brewery

No.55, Wenhua 1st Rd., Guishan No.2, Gongyequ 28th Rd., Xitun District, No. 219, Sec. 3, Zhongshan Rd., Puli District, Taoyuan City Taichung City Township, Nantou County TEL:03-3283001 FAX:03-3280208 TEL:04-23501318 FAX:04-23501138 TEL:049-2984006 FAX:049-2981861 [email protected] [email protected] [email protected]

Nantou Winery & Distillery Chiayi Distillery Longtian Distillery

No.4, Zhongshan Rd., Minxiong Township, No.335, Sec. 1, Zhonghua Rd., No.82, Dongshan Rd., Nantou City Chiayi County Guantian District, Tainan City TEL:049-2234171 FAX:049-2236204 TEL:05-2215721 FAX:05-2205251 TEL:06-5791311 FAX:06-5793581 [email protected] [email protected] [email protected]

Pingtung Distillery Hualien Distillery Yilan Brewery

No.34, Jianguo Rd., Neipu Township, No.6, Meigong Rd., Hualien City No. 3, Jiucheng W. Rd., Yilan City Pingtung County TEL:03-8227151 FAX:03-8226241 TEL:03-9355526 FAX:03-9354542 TEL:08-7781640 FAX:08-7796880 [email protected] [email protected] [email protected]

Jhunan Brewery Wurih Brewery Shanhua Brewery

No.345, Hexing Rd., Zhunan Township, No.1, Guanghua St., Wurih District, No.2, Chenggong Rd., Shanhua Miaoli County Taichung City District, Tainan City TEL:037-583500 FAX:037-583066 TEL:04-23381216 FAX:04-23362273 TEL:06-5838511 FAX:06-5831284 [email protected] [email protected] [email protected]

Taipei Cigarette Plant Fongyuan Cigarette R&D Plant Neipu Cigarette Plant

No.235, Sec. 2, Ankang Rd., Xindian No.1, Zhongshan Rd., Fongyuan District, No.36, Jianguo Rd., Neipu Township, Distric, New Taipei City Taichung City Pingtung County TEL:02-22123100 FAX:02-22118139 TEL:04-25346410 FAX:04-25346418 TEL:08-7782001 FAX:08-7796872 [email protected] [email protected] [email protected]

Taoyuan Printing Factory Institute of Liquor and Biotechnology Taipei Brewery

No.55, Wenhwa 1st Rd., Guishan No.32, Ln. 142, Roosevelt Rd., Wenshan No.85, Sec. 2, Bade Rd., Zhongshan District, Taoyuan City District, Taipei City District, Taipei City TEL:03-3286060 FAX:03-3283336 TEL:02-29301792 FAX:02-29300250 TEL:02-2771-9131 FAX:02-2781-1914 [email protected] [email protected] [email protected]