The Competitive Bread Bonanza

Every afternoon Taipei's streets fill with people returning home from work or school. Above the din of the bustling crowd rises the fragrant aroma of baked goods. On all of Taiwan's busy streets one is likely to find several bakeries with their sumptuous pastries and breads enticingly displayed, competing for the attention of hungry pedestrians.

Baked goods are now common both as a snack and as a food staple in the Republic of China, but it wasn't always that way. Several years ago, due to a lack of facilities, recipes, and skillful bakers, baked goods in the Republic of China were few in quantity and limited in variety. Bakeries were opened by small shop owners with limited resources who tended to all sell the same things. With the advancement of commercial industry, women were taking careers and thus had less time to spend in the home cooking. Along with this bread became popular for breakfast as toast and for making noontime sandwiches. These combined factors caused the market for baked goods to expand drastically. Many large companies like President, I Mei, and Wei Chuan revolutionized the baking industry in the Republic of China by investing large amounts of money in large scale, automated bakeries. These companies brought a new challenge to the old-style companies that continued to bake goods in small amounts and by hand.

In 1970 the President Company first began to use machines to mass produce baked goods. This marked the beginning of the baking revolution on Taiwan. It also marked the start of the heavy competition between companies such as I Mei, Ding Hao, Shi Yun, Pucci, Wei Wang, Mandarin, New East Asia, etc. that exists today.

Previously, the President Company made products such as flour, salad oil, and dried meats. In 1969 they decided to go in a new direction and invested close to 450 million NT dollars to open a large, automated bread factory. Why such a big move?

There were several reasons, as President's manager, Kao Ching-yuan, explains. Small bakeries have many problems such as a lack of equipment and an ability to only produce on a small scale, which makes them less economical. A large, automated factory could save time and money by producing baked goods on a large scale. President was already producing products like flour and oil which made it convenient for them to make bread. Another incentive which made them decide to invest such a large amount of money on a bread factory was an optimistic market survey that indicated there was a potential to earn 2 million NT dollars a year.

Taiwan had no previous experience in large-scale production of baked goods, so the President Company spent 2 million NT dollars over a five-year period for assistance from the Japanese, San Chi Company. President employees learned about personnel selection, quality control, quantity control, product selection, etc. According to manager Kao, it is wiser to spend money in the beginning for know-how, which will pay off for many years to come. He stresses the importance of cooperation and the value of learning from another's experience.

Running such a large bakery and supplying bread for the whole of the Taiwan market is no simple matter. It involves two daily shipments from their Chungli factory, as well as extensive surveys, and testing and research to control the quantity and quality of President baked goods. They have run into such difficult problems as making bread which would attract the consumers who might prefer the oven-fresh bread that smaller bakeries have to offer. Despite these difficulties, manager Kao remains optimistic and points out that next year President's initial investment will be paid off and they will start earning profit.

Two years after President built their first bread factory, the I Mei Company, which previously dealt solely in candies and cookies, also opened a large, automated bread factory north of Hsinchu. Like President, I Mei uses chain stores to sell their products, but their way of running these chain stores is significantly different.

I Mei is more selective than President in choosing their chain stores. They prefer shops with experience in selling baked goods. They allow owners of each chain store more independence in the running of the store. I Mei is not in a rush to expand, they rely more on quality than quantity to make money. I Mei's baked goods are noted for being sweet and flavorful. They are proud to note that McDonald's Restaurants selected them as the supplier of bread products for its Taiwan operations. Supervisor Kao says that they depend on the large factory for convenience and speed, but that this doesn't prevent them from producing high-quality baked goods such as whole-wheat bread and thick-crusted bread.

A third company to produce on a large scale is Wei Chuan. Only one-tenth the size of the President Company, Wei Chuan is limited to serving the Taipei market. Their major selling point is price.

They have a reputation as being the least expensive of the major bakeries. Although they produce bread and pastries like other companies, their biggest money-making product is frozen dough. Twenty small bakeries are already using Wei Chuan's frozen doughs to make their bread products, and as more and more households acquire microwave ovens, the frozen-dough market continues to expand.

The Ding Hao Bakery, whose ten-year history makes it the oldest gourmet bread shop on Taiwan, specializes in high quality, expensive baked goods. Seven years ago they learned from Japan how to make French bread, and for years to follow had the corner on the French bread market. It is only in the last few years that other bread companies have begun making French bread. With this onslaught of competition, innovative owner, Li Hong-wen has had to think of other ways to attract customers. Now, Ding Hao bakery specializes in a wide assortment of German breads, including high-nutrition, low-calorie wheat and rye breads. Along with their new product they have redecorated their store, (including a giant loaf of bread in the display window), and have German-style uniforms for the workers.

A newer gourmet bread company is Pucci. They feature many European specialties such as British cheesecake and Irish soda pie. All their products are made by skilled bakers and are done by hand. So, like in the case of their well-known 65 NT dollar cheese sandwich, prices are more expensive.

The Mandarin Bakery, another high-class bakery, is owned by an overseas Chinese from the Philippines. This bakery, which features pineapple squares, hamburgers, and salad bread, combines American and Chinese cooking styles. All their baked goods are wrapped in plastic to insure freshness. Another unique characteristic of the Mandarin Bakery is that it employs only women to manage its stores.

It used to be that bakers in Taiwan received low pay. But with the expanding competition between bakeries, a skilled baker is in great demand. Two of Taiwan's master bakers are Ah K'un and Li Tse. Both were trained at the Ritz Hotel, but went on to work at different bakeries. Ch'en K'un-shan commonly referred to as Ah K'un, never received more than a primary school education. Now he is the master chef for Pucci Bakery. Workers at Pucci say that all you have to do is name a kind of bread and he can make it. Ah K'un often travels abroad to study new techniques in baking because, in his own words, "I want to be a high-class baker."

The Wei Wang bakery and New East Asia bakery both began as sellers of dried meats and snacks, but are now fierce competitors in the baking industry. It is said that wherever there is a New East Asia bakery you will find a Wei Wang bakery close by. Wei Wang has employed Li Tse (Li Chien-hui) at the considerable cost of 60 thousand NT dollars per month to train its bakers.

The rise in quality and quantity of bakers on Taiwan continues to grow. In a country already famous for its culinary delights, bakeries have added another welcome dimension to Chinese foods.

[Picture Caption]

Bread production in the Republic of China is improving constantly. Not only are there numerous flavors, but an interesting assortment of types as well.

1. Bread production is now a fully mechanized industry. 2. The President Company's outlet stores offer a variety of interesting packaged oven-baked breads. 3. Each day, freshly baked breads are delivered to the President's network of outlet stores. 4. Breads are prepared and stacked according to store orders before President begins daily deliveries. 5. Cake and cookie manufacturer, I Mei Food Products has now entered the competitive bread market. 6.7. I Mei has a research section that seeks to develop new bread products. 8. Freshly baked I Mei breads are placed on a circular rack stand to cool, and then are sent off for packaging.

1. A Wei Chuan outlet store. 2. The Olympic Bakery offers a well-stacked assortment of reasonably priced breads. 3. The Ding Hao Bakery offers a wide assortment of delicious sandwich flavors.

1. The Mandarin Bakery has also joined the outlet store ranks. 2. A sample of the Mandarin's famous pastry products. 3. The Pucci Bakery offers delicious, expensive fare such as these freshly wrapped sandwiches. 4. The Pucci also has a restaurant section for customers to enjoy. 5. Pucci baker, Ch'en K'un-shan holds a basket of his freshly baked French bread.

1. A tray of Wei Wang's famous peach-cheese pastries. 2. Fresh out of the oven, Wei Wang's bread draws crowds of eager customers. 3. A sample selection of the cornucopia of bread products produced at Wei Wang.

1. Customers shopping for bread at the Hsin Tung Yang Food Store. 2. Hsin Tung Yang has started to produce tasty meat products.

Bread production in the Republic of China is improving constantly. Not only are there numerous flavors, but an interesting assortment of types as well.

1. Bread production is now a fully mechanized industry.

2. The President Company's outlet stores offer a variety of interesting packaged oven-baked breads.

3. Each day, freshly baked breads are delivered to the President's network of outlet stores.

4. Breads are prepared and stacked according to store orders before President begins daily deliveries.

5. Cake and cookie manufacturer, I Mei Food Products has now entered the competitive bread market.

6.7. I Mei has a research section that seeks to develop new bread products.

6.7. I Mei has a research section that seeks to develop new bread products.

8. Freshly baked I Mei breads are placed on a circular rack stand to cool, and then are sent off for packaging.

1. A Wei Chuan outlet store.

2. The Olympic Bakery offers a well-stacked assortment of reasonably priced breads.

3. The Ding Hao Bakery offers a wide assortment of delicious sandwich flavors.

1. The Mandarin Bakery has also joined the outlet store ranks.

2. A sample of the Mandarin's famous pastry products.

3. The Pucci Bakery offers delicious, expensive fare such as these freshly wrapped sandwiches.

4. The Pucci also has a restaurant section for customers to enjoy.

5. Pucci baker, Ch'en K'un-shan holds a basket of his freshly baked French bread.

1. A tray of Wei Wang's famous peach-cheese pastries.

2. Fresh out of the oven, Wei Wang's bread draws crowds of eager customers.

3. A sample selection of the cornucopia of bread products produced at Wei Wang.

1. Customers shopping for bread at the Hsin Tung Yang Food Store.

2. Hsin Tung Yang has started to produce tasty meat products.