Taisun Enterprise Co. Ltd., a Taiwanese food and beverage company, has won exclusive rights to distribute in Taiwan health products made by Beijing Tong Ren Tang Group Co. Ltd., a well-known maker of traditional Chinese medicine in mainland China.
In forming their alliance, the two companies will join hands in trying to capture a major share of the health care market on the island, worth an estimated NT$30 billion (US$950 million) per year.
“This deal will be critical in helping Taisun increase its revenues significantly,” said Taisun President Chan Yeh-lin as he announced the cooperative agreement May 24.
Sources said a formal agency contract agreement will be signed in June between Taisun and Tong Ren Tang Da Feng Co. Ltd., TRT’s agent in Taiwan.
The agreement will reportedly authorize Taisun to sell health care products in Taiwan under the TRT brand. Taisun will be responsible for sales and marketing, including the creation of new products, and safety and quality control. TRT will supply formulae for making its goods and technical support.
The two companies will aim at both the high and low ends of the market, sources said, adding that the first batch of goods should appear on markets sometime in July.
As TRT specializes in selling traditional Chinese medicine, it is less familiar with the food and beverage market—the strong suit of Taisun.
Sources said that the partners do not rule out the possibility that in the future they could try to reduplicate in the mainland what is being attempted in Taiwan.
Tong Ren Tang has been in existence since 1669. During the Ching dynasty (1644-1911), it was given the responsibility of preparing medicines for the imperial household.
Tong Ren Tang Da Feng was established in Taiwan in 2004. As it was registered as a pharmaceutical company, it has had to abide by local medical regulations and has only been able to sell a very limited range of expensive traditional Chinese medicines.
Taisun said it had projected earning NT$70 million from health care products this year. After forming its alliance with TRT, however, this goal has been revised drastically upward, the company said. (HZW)