Taiwan Today

The rush by coffee chain store operators to grab a slice of Taiwan’s lucrative tea market has been infused with an international element with Starbucks Corp.’s first foray into the battle. President Starbucks Coffee Corp. – the operator of the Starbucks coffee chain in Taiwan – announced Aug. 24 that it would be introducing three tea beverages to its menu islandwide from Aug. 27. The drinks include Biluochun tea, as well as Honey-scented Black Tea and Oriental Beauty Tea, a type of oolong tea. Shelli Taylor, a vice president at President Starbucks, said she believes there is a good chance that the new products will be introduced at the international chain’s stores in China and other Asian markets in the future. Dante Coffee and Foods Co. Ltd. and Ikari Coffee Corp., the second and third largest coffee chain operators in Taiwan, respectively, have said they have made preparations and are ready for Starbucks’ challenge. Representatives of both companies welcomed Starbucks’ latest move and stated they plan to benefit from the wave of interest in tea generated by it. Dante Vice President Roger Hsu said that his coffee chain currently offers 22 types of tea beverages, which account for roughly one-quarter of overall sales. He added that Dante’s most popular drink is not actually a local variety, but instead Korean citron tea. Hsu said that Taiwan tea consumption has a very strong regional element, pointing out that Dante’s tea sales are much stronger in the southern part of the island. He added that he anticipates that Starbucks will focus on this region in promoting its new tea products. Lien Yu-ching, deputy head of Ikari’s department of corporate planning, said that her coffee chain has been offering tea beverages since it first opened. She noted Ikari offers over 60 types of non-coffee drinks, with tea sales accounting for about 30 percent of revenues. According to tallies compiled by Starbucks, Taiwan’s coffee market is valued at about NT$20 billion (US$609 million) annually, while the island’s tea market amounts to a staggering NT$70 billion. Tea leaf and packaged tea production accounts for roughly NT$30 billion of the latter total, while that of other tea beverage products stands at a whopping NT$40 billion. (SB)