In 2008, the company's total revenue reached a record NT$12.2 billion (US$370 million)--an 8-percent increase over 2007, a KKL press release said Jan. 10, while pre-tax profits hit NT$4.7 billion, a record high. The price of the sorghum liquor, however, remained the same despite a hike in production costs.
Production volume also increased with the 2008 annual output exceeding 24.7 million liters, about 2.3 million more than the previous year.
The making of Kaoliang is a major part of the local economy in the outlying island in the Taiwan Strait. "Kinmen Kaoliang Liquor Inc. is the economic lifeline of the Kinmen County Government and all local residents," said KKL General Manager Wang I-ming. He went on to explain that the company gives part of its earnings to the county government and therefore has become a major source of funding for local construction and welfare programs.
The company, fully owned by the Kinmen County Government, started its first distillery in 1952. A second one was set up in 1997 with more modern and automated facilities due to growing demand. In 2007, a new production line was added to the second distillery. According to Wang, the company is now planning to build a cellar that can store up to 30 million liters of the liquor.
Kinmen Kaoliang's success is an example of how an infertile island turned a disadvantage into an asset. Because of the island's sandy soil, laterite and low precipitation, crops are limited to low-value drought-tolerant plants such as sorghum, sweet potatoes, peanuts and barley.
Kaoliang in Chinese means "sorghum," as the grain is the main ingredient of the drink. The grain is first cooked, mixed with yeast and let to ferment for 10 days. It is then distilled to obtain a clear and smooth liquor with various alcohol content.
Kaoliang is so popular in Taiwan that it has become synonymous with Kinmen. Many drinkers appreciate it not only for its aroma and taste, but also because it doesn't give them a hangover. "You won't have a headache the next day," commented Chen An-hsiung, a Kaoliang fan.
As a typical product of Taiwan, the liquor is often used during official occasions such as the 2004 and 2008 presidential inaugural banquets.
In 2004, the liquor was officially introduced in mainland China when Kinmen Kaoliang Liquor Inc. opened up a branch office in Xiamen, just across the Taiwan Strait from Kinmen.
The outlying island of Kinmen is located near the mainland's Fujian Province. From the late 1950s through the 1970s, it was the site of extensive shelling between the mainland and Taiwan forces and remained a military outpost. Direct transport of people and goods between Kinmen and Xiamen on the Chinese mainland was implemented in 2001, paving the way for the "three links" launched at the end of 2008.
Write to Jean Yueh at yueh@mail.gio.gov.tw