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Overseas SAKE situation Taiwan edition
~A place where a unique sake culture was nurtured~

How is sake, Japan's national drink, handled overseas? Sake World's overseas correspondents report on the current state of Japanese sake. This time, we bring you the latest report from Taiwan, Japan's "neighborhood."

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In recent years, sake has been gaining popularity in overseas markets, particularly in Asian countries. Taiwan, in particular, has a strong affinity with Japanese culture and is attracting attention as an export destination for sake.

It may come as a surprise, but Taiwan once had one of the longest periods of martial law in the world, lasting 38 years.
I first visited Taiwan in 1990, just three years after martial law was lifted. Over the next 30 years, I have traveled there dozens of times, primarily working in the alcohol industry, and it is an important market. I have summarized my observations of the penetration of Japanese sake in the country and its future prospects.

A culture nurtured by a multi-layered history and a sense of affinity with Japan

Taiwan is home to 2,330 million people in an area roughly the same size as Kyushu.
As a key maritime transportation hub in Asia, Taiwan has long been ruled by the Dutch, Spanish, and the Qing dynasty, and has seen immigration from mainland China, as well as the introduction of modern systems and lifestyles during the Japanese colonial period - all of these factors have combined to form the cultural diversity that we see today.
In urban areas, vestiges of Japanese houses can be seen, and the cityscape has a nostalgic feel. This accumulation of multiculturalism has fostered the flexible and open national character of Taiwan.
During the Japanese colonial period from 1895 to 1945, Japanese language education was introduced in Taiwan, and railways, sanitation, and infrastructure were developed. These remain the foundations of Taiwanese society to this day, and many elderly people understand Japanese. In the past, taxi drivers would often speak to you in Japanese in a friendly manner.
The number of Japanese tourists traveling to Taiwan is also increasing, and this is not just due to geographical proximity, but also due to the psychological proximity, which allows people to relax and be themselves.

Taiwanese people's affinity for Japan is strong, not only among the elderly but across generations.
Young people are becoming familiar with Japanese culture through Japanese movies, anime, and music, and it is not uncommon for them to call themselves "Japan lovers" and have traveled to Japan five or more times, which leads to a growing attachment to the products they see and consume in Japan.

The reason why Japanese brands and products are accepted with their packaging, taste, and names remaining almost the same is due to the Taiwanese people's pro-Japanese sentiment and deep understanding of Japanese culture. Sake is no exception to this, and "just as it is in Japan" is recognized as a value, but more on this later.

A food culture made up of "oil, aroma, and gentle sweetness"

Japanese people visiting Taiwan for the first time will likely feel a sense of nostalgia as they walk the streets. One reason for this is the unique smell that wafts from the noodle shops and food stalls.
Taiwanese cuisine is lighter and more sweet than mainland China, and is characterized by not being heavy even when oil is used. It uses aromatic vegetables delicately, and as it is surrounded by the sea, many dishes make use of seafood. Because of the well-developed food stall culture, light meals such as xiaochi are the norm.
Compared to the spicy, salty, and stimulating cuisine of mainland China, Taiwanese cuisine is mild and easy to eat. It has something in common with the clean flavors of Cantonese cuisine in Hong Kong, where I used to live, but if I had to sum up the appeal of Taiwanese food in one word, it would be "oil, aroma, and gentle sweetness."

For example, the rich flavor of Lu Rou Fan, which has become popular in Japan, the meat juice of Xiao Long Bao, the nutritious soup of beef noodles, and the fragrant aroma of stir-fried green vegetables...all of these are sure to whet your appetite.

Other foods that cannot be left out when talking about Taiwanese food culture include betel nuts and dried mullet roe. However, they have completely opposite positions.

Betel nut stands are a common sight along the roads in Taiwan.
Chewing a betel nut produces a mild stimulant effect that makes you feel a little more energized, and the inside of your mouth turns bright red. It was once a hugely popular companion for truck drivers and laborers, but its popularity has faded since its health risks became known. Nevertheless, the neon lights of betel nut stands remain a stubborn part of Taiwan's nightscape (though they are becoming less common in Taipei).

Karasumi is the complete opposite of betel nut and is considered to be "elegant."
This high-end delicacy, made from salted and dried mullet roe, is a surefire gift for the Lunar New Year. Softer than Japanese mullet roe, it has a rich, full-bodied flavor, and when thinly sliced ​​and eaten with daikon radish and garlic, it truly is a "Taiwanese taste."

Betel nuts are a "wild delicacy that is eaten on the streets of Taiwan" and karasumi is an "elegant delicacy that decorates celebratory occasions." The contrast between these two is quite interesting.

The secret to a well-liked drink is to "reset"

So, what kind of alcohol goes well with food?
One hint is to "reset" your palate. People prefer alcoholic beverages that wash away the oiliness and sweet, umami aftertaste that are characteristic of Taiwanese cuisine, leaving the next sip feeling refreshed.

In Taiwan, as in Japan, the most consumed alcoholic beverage is beer.
In the past, I have developed a beer for the local market, which has a refreshing aroma and a clean taste, but with a slight sweetness in the aftertaste. It matches the Taiwanese climate and tastes, and is still enjoyed by many people 20 years later.

KIRIN Bar BEER

Sake is closely related to drinking habits

So what about sake? Before we move on, let's take a look at drinking habits in Taiwan.

In Taiwan, toasting is not done all at once like in Japan, but one-on-one. It is customary for each person to drink the entire glass.

As an aside, the Taiwanese subsidiary of the company where I used to work was also the general agent for Gekkeikan, a leading sake brewery in Fushimi, Kyoto. At the time, wholesalers (distributors) from all over Taiwan would gather together for banquets, where endless toasts would be made. As a result, an unimaginable amount of empty sake bottles would pile up after the event.

In Taiwan, the traditional style of drinking alcohol after a meal, where friends get together and drink in a lively atmosphere, is somewhat different from Japan. For serious drinking occasions, people have traditionally drank high-alcohol distilled spirits that burn the throat, such as Scotch whisky or the traditional Taiwanese alcoholic beverage Kaoliangjiu.

In contrast, sake, a brewed alcoholic beverage, is sweet and smooth, has low alcohol content, and pairs well with food, making it popular among young people and women.
In Taiwan, sake with a soft sweetness, a light and gentle acidity, and a low alcohol content tends to be popular. Ginjo sake with a fruity and gentle aroma, crisp honjozo sake, and refreshing junmai sake go well with Taiwanese cuisine.
In addition to being easy to drink, the fun of sake lies in the variety of ways it can be enjoyed: chilled, at room temperature, or lukewarm.
While pouring sake from a tokkuri into an ochoko (small sake cup) is a traditional way to enjoy sake, pouring chilled sake into a wine glass seems to appeal to the "fashionable" sense of young drinkers in particular. It looks cool, beautiful, and photogenic, leading to sharing of drinking experiences on social media.

Sake consumption is steadily growing, attracting new drinkers.
According to the latest data, the volume of sake exported from Japan to Taiwan was 372,688 liters, making it the fourth largest export destination (1st: USA, 2nd: China, 3rd: South Korea). Taiwan's share of the total volume of sake exports is 9.30%, making it an important market.
* [Good News] December 2024 Japanese Sake Exit to Taiwan Sales Quick Review | Sake Brewery Japan

"Japanese-style sake made in Taiwan" was created before Japanese sake

I would also like to touch on the history of sake in Taiwan.

Taiwan is home to a huge sake brewery called TTL (Taiwan Liquor Corporation), which has been producing and supplying the "Japanese-style sake" Gyokusen for many years.
Based on the brewing methods and techniques of Japanese sake, Gyokusen is a low-alcohol, smooth sake brewed with Taiwanese-grown "Horai rice," and has become established as a drink to accompany everyday meals at home. This "Taiwanese-made Japanese-style sake" predates the "Japanese-made sake" imported from Japan, laying the foundation for "sake for everyday life."

Alcohol sales in Taiwan have long been a monopoly system, and because TTL was originally a state-owned enterprise (the core of the alcohol monopoly system), it has a very wide distribution channel in the domestic alcohol market, distributing throughout Taiwan from convenience stores to supermarkets.
"Horai rice" is a Japonica rice variety that was bred during the Japanese colonial period and is the staple food rice in Taiwan. However, it is also suitable as sake rice and has been used in Taiwanese-made Japanese-style sake such as "Gyokusen" and "Hatsugiri" produced by the company.

This combination of "Japanese sake technology," "Taiwanese food culture," and "Taiwanese rice" has resulted in a uniquely Taiwanese sake quality and established a wide base of consumption. TTL was originally established under the name of the Taiwan Governor-General's Office Monopoly Bureau in 1901 during the Japanese colonial period, with the purpose of managing the monopoly of alcoholic beverages and other products, and is closely related to the history mentioned above.

The current state of sake in Taiwan, where the "everyday" and the "special" coexist

"Japanese-style sake" forms the foundation as "everyday sake," while "special (premium) sake" imported from Japan sustains the market. Locally produced sake supports everyday evening drinks, while directly imported premium sake adds color to special occasions. This dual structure shapes Taiwan's current sake market.

The aforementioned Gyokusen is a standard product in convenience stores and supermarkets in Taiwan, and can be purchased for 950 yen (NT$5) for a 600ml bottle, whereas sake imported from Japan is subject to high tariffs (40%) and is 2-3 times the price in Japan (around 3,000-5,000 yen for a 720ml bottle). For this reason, it is often chosen for special occasions when eating out or as a gift.
*"Yuquan": Home page - Taiwan Yuan Liquor Co., Ltd. (AP1)

In mid- to high-end restaurants in Taiwan, "sake with an appealing aroma," such as ginjo and junmai daiginjo, has become standard.
Brands such as Gekkeikan, Hakkaisan, Dassai, and Kubota are offered along with suggestions for pairing with food, and there is an increasing trend to serve wine in wine glasses and enjoy different temperatures.
In recent years, the presence of sake sommeliers has become more widespread, and the provision of explanations of brands and advice on how to drink sake has become more comprehensive, further supporting this trend.

At a local restaurant

Alcohol distribution in Taiwan

Generally, in Taiwan, sake imported from Japan is delivered to consumers through the following business routes.
1. Importers (liquor import license required)
2. Wholesaler (Alcohol Sales License)
3. Retail stores (convenience stores, supermarkets, liquor stores)
4. Restaurants (hotels, restaurants, izakayas, etc.)

In Taiwan, the sale of alcoholic beverages online is prohibited by law.
The background to this is that it is not possible to reliably verify age in real time, and in addition to preventing purchases by minors (under 18 years of age), there are health policy reasons for wanting to prevent alcohol from being too easily available.
Taiwan also has its own unique regulations regarding advertising and sales promotion, so sellers must be careful when conducting marketing activities. For details, please refer to the information from JETRO below.
Alcoholic Beverage Import Restrictions and Procedures (Taiwan) | Export Systems from Japan – Taiwan – Asia – By Country/Region – JETRO

A specialty store for premium Japanese sake

A store specializing in hard liquor

The sake market: "The products are Japanese, but the experience is Taiwanese"

The reason behind the continued growth of Taiwan's sake market is the natural overlap between Taiwan's unique culture and the characteristics of sake.

Young drinkers in Taiwan are simultaneously "learning, drinking, and sharing" through social media, intuitively enjoying the world of sake through eye-catching bottle designs, sake ware, and photos of pairings with food.
There is also a strong gift-giving culture for the Lunar New Year and anniversaries, and the higher price range of imported alcohol is actually welcomed as a "special feeling," so in addition to the label, the design and high-quality texture of the outer box are very important.

What is unique about these markets is that sake is accepted "just as it is in Japan."

The Japanese label, the story of the brewery, and the traditional packaging are proof of authenticity for Taiwanese consumers, and unnecessary, gimmicky localization is actually unnecessary.
Rather, it would be more effective to keep the product itself unchanged and only optimize the experience of drinking or interacting with the brand for Taiwan. By tailoring the experience to be "Taiwanese," such as pairing suggestions with Taiwanese cuisine, temperature guides, serving in wine glasses, and gift planning for festivals and special occasions, it will resonate with younger generations and naturally expand the drinking scene.

In recent years, drinking preferences in Taiwan have become more diverse.
Convenience stores are lined with rows of canned chuhai in a variety of flavors, and locally produced craft beer is popular among the national beer. There are also many different reasons why people choose sake, such as for its aromatic flavor, light taste, story behind it, or design that looks good on social media.
Sake comes in a wide range of styles, from sweet to dry, light to mellow, and served chilled to hot, and this diversification directly leads to market expansion. Beginners to sake start with everyday sake like locally produced Gyokusen, and as their interest deepens, they progress to premium sake like ginjo and daiginjo, creating a "step-up structure" that supports sustainable growth.

Of course, there are also challenges, such as refrigeration in Taiwan's unique hot and humid climate, and balancing the expansion of product lineup with inventory and freshness management. Carefully managing these throughout the distribution chain will also increase the quality value of sake and strengthen its premium status.

Taiwan is a rare market in the world where sake can be enjoyed as a culture and at the same time provide a uniquely Taiwanese experience. The product remains Japanese, while the experience is Taiwanese. This delicate balance will be the driving force behind taking Taiwan's sake market to the next level.

writer:
Fumiaki Kishihara / Sommelier, HBA cocktail advisor. A "traveling sommelier" who loves sake and other alcoholic beverages around the world, as well as travel. He has served as a brand manager for the world's three major beer brands and Western liquor brands.
32 years of experience in the alcoholic beverage industry both in Japan and overseas, including running a craft brewery in Kyoto. Supports the global expansion of ambitious Japanese alcoholic beverages. Representative of BOONE LLC. National Licensed Guide-Interpreter. Resides in Tokyo.

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