Local tropical wines, distilled spirits get boost
The Department of Science and Technology (DOST) is now banking its attention and resources on the development, promotion and commercial application of science and technology (S&T) among small and medium enterprise especially on tropical wines and distilled spirits all over the country.
DOST Secretary Dr. Estrella Alabastro said the local market for distilled spirits is well established compared with tropical wines. "The same is not true for tropical wine that face a stiff competition from grape wine." Grape wine has a wide consumer acceptance even from Biblical times.
The focus at the moment is on the development of product standards and test protocols as well as sustainability of supply. This is to ensure that present and potential small and medium enterprise producers are guided in their investment plans. "We have a very long way to go but we have always adhere to the idiom that a journey of a thousand miles begins with a single step," said Alabastro.
She made her statement in last week's opening of the DOST Visayas Cluster Performance Review in Cebu City. The occasion also highlighted the launching of the High Impact on Tropical Wines and Distilled Spirits under the department's Small Enterprise Technology Upgrading Program (SET-UP).
Alabastro added that they opted to pave way to tap the potential of creating and sustaining a market niche for tropical wines and distilled spirits considering the huge global market for the said products. "The program calls for an ingenious marketing strategy that would influence not only the consumers' perspective, tastes preferences but also the institutional barriers for penetrating the world market.
According to DOST Region 4 Regional Director Dr. Alexander R. Madrigal, the objective of the High Impact Program on Tropical Wines and Distilled Spirits is to develop the competitiveness of locally developed tropical wines and distilled spirits to support the growth of beverage, agriculture and tourist industries.
He referred "tropical" as all agriculture and forestry products in a tropical country and potential sources of flavored alcoholic beverages; wines as product made by normal alcoholic fermentation of juice from sound, ripe fruits containing 8-18 percent alcohol by volume and distilled spirits as product made by distillation process containing more than 18 percent alcohol by volume.
Madrigal said there is a potential market for Philippine tropical wines and distilled market for overseas. However, there are issues that should be resolved first. Issues on lack of market and aggressive promotional support, local and abroad; inconsistent quality; lack of product and process standards; lack of testing facility or services or testing capability and lack of sufficient and reliable input system which includes raw materials, wine yeast, bottles and corks should be dealt.
In 2005-2006, the total imports of alcoholic beverages increased by 18 percent. The Cost, Insurance and Freight (CIF) valued at $54M. The consumption of Flavored Alcoholic Beverages (FABs) and wine posted growth rates in 2005 of 14 percent and 12 percent in volume, respectively. There is likewise a significant increase in the entry of cheaper New World wines, Spanish, Chinese and Chilean wines in the last five years. These include fruit and rice wines.
Significant local investment and business activities have been undertaken in almost all parts of the country. Approximately, there are initially 50 producers of tropical wines and distilled spirits in the country. "Locally developed distilled spirits and tropical wines has already been introduced and has been recognized internationally," said Madrigal.