Heineken expands horizons in Taiwan’s evolving alcohol market

TAIWAN – Heineken, the Netherlands-based brewing giant, has announced its foray into Taiwan’s non-beer alcoholic beverage market. 

With a product lineup that includes sparkling wines and spirits, the company seeks to broaden its brand presence and tap into Taiwan’s growing demand for diverse alcoholic offerings.

This announcement marks a pivotal step for Heineken, which has been a key player in Taiwan’s beer market for over two decades. In 2022, it became the first international brewer to own a local brewery in the country.

Market ripe for diversification

Taiwan’s Ministry of Economic Affairs has consistently reported whiskey and wine as the top two imported alcoholic beverages by value over the past decade. This trend has driven robust demand, particularly for sparkling wine. 

According to IWSR data, imported sparkling wine in Taiwan achieved an impressive annual growth rate of 9.7% over the past five years. Customs reports show that the import value of sparkling wine increased from US$3.89 million in 2014 to US$6.92 million in 2023, a striking growth rate of nearly 80%.

Recognizing these dynamics, Heineken has prioritized non-beer products, noting that while beer accounts for 86% of Taiwan’s alcohol market by sales volume, wine and spirits hold a dominant 57% market share by value. 

This duality reflects Taiwanese consumers’ evolving preferences for premium, versatile beverage options suited to various social settings.

New product lineup

Heineken’s new portfolio in Taiwan includes three wines: Nederburg, Pongrácz, and Bernini Classic. 

Pongrácz and Bernini Classic are sparkling varieties, catering to the growing appetite for effervescent drinks. 

The Bernini Classic, with its off-dry flavor profile and 4.5% alcohol by volume (ABV), is presented in an innovative beer bottle-like design with a zip-top cap, aiming to attract younger consumers and enhance its suitability for casual and social occasions.

These brands originate from Distell Group Holdings, a South African wine and spirits producer acquired by Heineken in 2021 for 40.1 billion South African Rand (US$2.2 billion). 

The acquisition was completed in 2023, enabling Heineken to leverage Distell’s expertise in wine and spirits to strengthen its foothold in Taiwan.

Consumer trends and market insights

Taiwan’s wine import value reached US$255.65 million in 2022, driven by a decade-long average annual growth rate of 8%, as reported by Vino Joy News. However, customs data indicates a 5.58% drop in the volume of wine imports in 2023 for containers of two liters or less compared to the previous year.

Industry experts attribute this decline to market adjustments rather than waning consumer interest. 

Sarah Liao, a Taiwanese professional promoting EU wines, explained that the pandemic fueled increased wine imports, and the recent slowdown reflects efforts to clear excess inventory.

Meanwhile, sparkling wine remains a standout category. Liu Rizhong, Managing Director of Grand Jin Yue Fine Wine Co., noted a steady rise in its popularity, citing Taiwan’s warm climate and relatively low taxes as factors making sparkling wines, like Prosecco, affordable and appealing to consumers.

The expansion of Taiwan’s non-beer alcohol market mirrors broader shifts across Southeast Asia, where health-conscious consumers are increasingly opting for low- or non-alcoholic beverages. 

The region’s non-alcoholic beer market, for instance, is valued at US$1.91 billion in 2023 and projected to grow at a compound annual rate of 8.84% through 2027, according to Dashmote data.