Chinese baijiu, a potent spirit relatively unknown in the Western world, is undergoing a transformation to attract a broader audience of Western drinkers. Producers of this robust Chinese spirit are adjusting its formulation in an effort to appeal to a wider clientele, including cocktail enthusiasts in cosmopolitan cities such as New York, Los Angeles, and London.
Despite a continued increase in sales within China, major baijiu producers like Kweichow Moutai are encountering slower growth compared to previous years. This trend is primarily attributed to the fact that younger Chinese consumers are increasingly opting for alternatives to the nation’s traditional spirit. In pursuit of new avenues for growth, certain prominent baijiu manufacturers are now setting their sights on Western consumers beyond the borders of China for the first time.
The term “baijiu” translates to “white alcohol” and generally boasts an alcohol content ranging from 40% to 60%. This spirit is typically distilled from sorghum, wheat, barley, millet, or glutinous rice, with its flavour profile varying depending on the region and production method. While some liken it to vodka, a well-known type is often compared to soy sauce.
Chinese companies are currently seeking to expand the reach of baijiu beyond China in response to the efforts of Western beverage conglomerates like Pernod Ricard and Diageo to penetrate the Chinese market. One such company, Shede Spirits, based in China’s Sichuan province, now offers two baijiu brands in China and to Chinese consumers globally. Their premium brand, Shede, commands prices of up to US$1,000 per bottle.
Shede is presently conducting tasting sessions to establish new flavours that may resonate with non-Chinese drinkers. The company maintains that, over time, Western consumers may develop an appreciation for baijiu, potentially positioning it as a competitor to other established spirits. They intend to introduce the international version of their Shede baijiu at approximately US$150 in select regions of Europe, the United States, and Japan.
Another baijiu producer, Sichuan Yibin Wuliangye, headquartered in Sichuan, has forged a partnership with the Italian beverage corporation Campari to promote the brands of both companies in China and on a global scale. This collaboration is in its early stages, with the companies collaboratively focusing on marketing and brand promotion.
China presently holds the title for the world’s largest market for alcoholic beverages, largely due to baijiu sales. In 2023, Chinese baijiu producers raked in an estimated US$167 billion from domestic sales alone. Despite relatively modest sales of baijiu outside of China, there exists substantial potential for growth in international markets.
In an effort to bolster their international sales, Shede and other baijiu producers are devising marketing strategies on platforms like TikTok, leveraging influencer partnerships in the United States and Europe, and entertaining the prospect of sports sponsorships. Ming River, a venture established by three Western individuals in conjunction with the prominent Chinese distillery Luzhou Laojiao, aims to cultivate a global market for baijiu. Presently, their baijiu is available in 15 countries, including the United States.
The introduction of baijiu cocktails in establishments such as the Manhatta in New York is contributing to elevating awareness of this traditional Chinese spirit among Western consumers. With innovative marketing approaches and adjustments in flavour profile, it appears that baijiu could soon find a place in the drinking culture of Western audiences.