Baijiu producers target western markets

Producers of China’s native spirit Baijiu are seeking new markets in the US and Europe as sales plummet due to China’s on-going anti-corruption campaign.

Producers of China’s white spirit Baijiu are looking to break into Western markets

Baijiu Moutai is China’s official drink and frequently served at state dinners and used as a luxury gift, but as a result of president Xi Jinping’s crackdown on extravagant gift giving, the $23 billion market (according to research reports by McKinsey & Co and UBS), has had an adverse effect on the category.

The brand was worth almost $2.4 billion, meaning it only sat behind whisky giant Johnnie Walker, according to consultancy firm Brand Finance.

Distilled from sorghum, wheat or rice, the white spirit accounts for more than a third of all spirits consumed globally, due to China being the world’s leading spirits consuming nation, according to International Wine and Spirits Research (IWSR).

Consequentially, producers such as are looking to alternative markets outside of Asia, and despite Baijiu’s high alcohol content – brands can range from 50% abv to as high as 60% abv – the category is confident that in time producers will be able to convert Western drinkers.

“I believe that baijiu will eventually find a home outside of China, but it will need to be tweaked to meet the needs of the local market,’ Derek Sanhaus, author of Baijiu, The Essential Guide to Chinese Spirits, told Reuters.

“What needs to change is less the drink itself than how it is represented. In China, baijiu is served neat at room temperature and almost exclusively with meals. In America and Europe, it is more common to take high-proof liquor in a mixed drink.”