Report identifies preferred spirits of Chinese super rich

A new report which examines the consumption behaviour of China’s millionaires has revealed the imported brands and spirits favoured by the super-rich.

Louis XIII de Remy Martin Cognac and Johnnie Walker Scotch are among the imported spirits favoured by Chniese millionaires

The Hurun Wealth Report 2013 – by the publisher best known for its China Rich List ranking – surveyed the tastes and activities of 551 Chinese citizens with personal assets of more than RMB10 million, including 69 with over RMB100 million.

According to the report, 70% of those surveyed drink alcohol, with red wine remaining the “preferred alcohol” for 49%, followed by whisky (16%), Chinese spirits (15%), Champagne (12%) and Cognac (8%).

The millionaires list their top five best imported spirits as: Louis XIII de Rémy Martin Cognac, Hennessy Cognac, Royal Salute Scotch, Johnnie Walker Scotch, and Martell Cognac.

The report also looked at the media spending of luxury spirits brands, with Moutai listed at the top (RMB2.691 million), followed by Luzhou (RMB1,731 million), Martell Cognac (RMB 1,505 million), Wuliangye (RMB1,267 million), Hennessy (RMB 1,102 million), Shuijingfang (RMB 696 million), Rémy Martin (RMB517 million), Xijiu (RMB475 million), Royal Salute (RMB387 million), and Johnnie Walker (RMB272 million).

According to the report, the number of Chinese millionaires now sits at 1.05 million, 3% up on the previous year’s figure (1.02 million) – the slowest increase in five years. The average age of the surveyed super rich individuals is 40, 90% of whom are men and 60% have a Masters degree or higher.

Eve Lo, chief knowledge officer for GroupM Knowledge China, which worked with the Hurun Research Institute to produce the report, said: “Although the growth rate of China’s millionaires is the lowest in the last five years, we can still gain insights into their life choices as revealed from the changes in their consumption and investment preferences, their perception of life and health and social responsibility, despite uncertainty in the wider environment.

“This will help brand marketers to think deeper about what kind of value their brands could offer in their brand communication strategy.”

Other noted areas of spending for the millionaires are entertainment, gifts and their children’s education.

The super-wealthy all around the world are known for splashing the cash on luxury spirits, with the most expensive whisky sold at auction reaching US$460,000. The world’s most expensive spirits include not only whisky but Cognac and Tequila too.

For a more in-depth look at the luxury spirits market and what the future holds, see the September issue of The Spirits Business.