Chinese Alcoholic Beverage Producers Aim To Introduce Baijiu To Western Consumers

As sales of the Chinese liquor baijiu slow down at home, its producers are reformulating the spicy grain liquid to appeal to a larger clientele, including cocktail enthusiasts in New York, Los Angeles, and London.
 
Even while sales of baijiu are still growing in China, leading producers, like as Kweichow Moutai, are facing much slower development than in the past due to younger generations' growing preference for foreign alcoholic beverages.
 
Currently, several significant producers of the colourless spirits are beginning to market it to Western customers outside of China for the first time in an effort to uncover new growth opportunities.
 
However, few people in the United States, the United Kingdom, or Europe are familiar with baijiu, so many Westerners would have to become used to the flavour.
 
Translating to "white alcohol," baijiu typically contains 40% to 60% alcohol. Sorghum is typically used to make it, although other grains including wheat, barley, millet, or glutinous rice can also be utilised.
 
Depending on the area or method of production, it has different tastes. Some people compare it to vodka. Another popular kind is comparable to soy sauce.
 
Chinese businesses are attempting to promote baijiu outside of China at a time when Western beverage conglomerates, such as Diageo and Pernod Ricard (PERP.PA), are encroaching on the territory of Chinese spirits producers and luring China's young adults with offerings of Irish and Scotch whiskies in particular.
 
Shede Spirits, a Sichuan province-based company, distributes two baijiu brands to Chinese customers both domestically and internationally. Shede, its priciest brand, may cost up to $1,000 per bottle.
 
The firm, which is owned by the Chinese giant Fosun International (0656.HK), opened a new tab and said that it is conducting tastings to determine how to improve the flavour of the Shede brand in an effort to make it more palatable to non-Chinese drinkers.
 
The participants will be drawn from Japan and Singapore in addition to the United States, Australia, Britain, and other European nations.
 
Zhu Yingcai, chief of sales and marketing at Shede, stated, "We found that the foreigners, their taste is finer." Baijiu may be "heavy and very thick," in contrast to vodka.
 
Shede thinks baijiu will gain popularity among Westerners in due course and may eventually overtake other spirits in terms of market share.
 
According to Zhu, the business will start selling its Shede baijiu internationally in September for about $150 in nations throughout sections of Europe, the US, and Japan.
 
By contrast, 750 millilitre bottles of Diageo's most costly whisky, Johnnie Walker Blue Label, retail for $200 or more on the websites of online alcohol sellers located in New York.
 
Rival baijiu manufacturer Sichuan Yibin Wuliangye Group, which has its headquarters in Yibin, Sichuan, has partnered with Italian beverage company Campari in an effort to promote both businesses' brands both domestically and abroad.
 
Campari, a company whose products include the aperitif Aperol, tequila Espolon, and whisky Wild Turkey, stated that the cooperation, which was announced in November, is still in its "very early stages". At the moment, Campari's own brand sales in China are not very high.
 
According to Campari, the businesses will collaborate on marketing and brand promotion as well as co-create goods.
 
With a "special blend" of Wuliangye's baijiu, they have already created a unique take on the negroni drink, which is typically prepared with gin. This drink was introduced in September and given the name "Wugroni" in Shanghai.
 
When contacted for comment, Wuliangye remained silent.
 
Sales of baijiu have made China the world's largest market for alcohol. According to data estimates from ates research firm Euromonitor, the nation's spirits producers sold almost $167 billion worth of baijiu in China alone in 2023.
 
It claimed that the still-small sales of baijiu outside of China are not being tracked.
 
According to Zhu, Shede's foreign sales were around $5 million in 2023, but the company hopes to grow them to $100 million in the next five to ten years.
 
According to Zhu, the company intends to reach this goal by marketing on websites like TikTok, partnerships with American and European celebrities, and eventually sports sponsorships—possibly even of important occasions like the Olympics.
 
Customers may get a 'Berry Me NYC' at the Manhatta restaurant's bar in New York for $21. It has shiraz, Pimms, and a tiny bit of baijiu in it.
 
Senior beverage manager Patrick Smith described baijiu as "very aromatic." He claimed that even though the baijiu bottles are shrink-wrapped, the smell still assaults the nose when one opens the package.
 
The drink made its debut not too long ago. However, its predecessor, which contained baijiu, was "in the middle" of other cocktails on the menu in terms of popularity. He said that customers who tasted them were intrigued by the flavour.
 
The baijiu used in Manhattan's drink comes from Ming River, a business founded by three Westerners in collaboration with the significant Chinese distillery Luzhou Laojiao.
 
With the goal of expanding the spirit's global reach, Ming River distributes its baijiu throughout 15 nations, including the US, where customers include diners and bars, Costco, and visitors to Disneyland.
 
(Source:www.reuters.com)