How Chinese distillers are adapting baijiu to attract more Western drinkers
The creators of the Chinese spirit baijiu are reformulating the fiery grain liquid to appeal to a broader customer base, including cocktail drinkers in New York, Los Angeles and London.
As sales in China continue to rise, top baijiu Manufacturers such as Kweichow Moutai are facing much slower growth than in the past as younger consumers increasingly opt for alternatives to the country’s national alcohol.
Now, in an effort to find new sources of growth, some major manufacturers of this colorless alcohol are starting to offer it to Western consumers outside of China for the first time.
Baijiu is little known in the US, UK and Europe, however, many Western drinkers should learn to love its flavor.
Baijiuwhich translates to “white alcohol,” typically has an alcohol content of between 40 and 60 percent. It is usually distilled from sorghum, although wheat, barley, millet, or sticky rice are also used.
Its taste varies depending on the region or how it is produced. Some say it is similar to vodka. Another well-known type is likened to soy sauce.
Measures taken by Chinese companies to promote baijiu Outside China, Western drinks groups like Pernod Ricard and Diageo are moving into Chinese distillers’ territory, tempting Chinese twenty- and thirty-year-olds with Irish and Scotch whiskies in particular.
Shede Spirits, based in China’s Sichuan province, is selling two baijiu brands in China and to Chinese consumers around the world. Its most expensive brand, Shede, costs up to $1,000 a bottle.
The company, controlled by Chinese conglomerate Fosun International, is holding tasting sessions to test changes to the flavor of its products to appeal to non-Chinese drinkers.
Participants will come from the United States, Australia, Great Britain and other European countries, as well as countries such as Japan and Singapore.
“We understood that foreigners have a more refined taste,” said Zhu Yingcai, head of sales and marketing of Shede, adding that compared to vodka, baijiu can be “heavy and very thick”.
Over time, Shede believes Westerners will come to appreciate baijiuand it could steal market share from other spirits.
The company will market the international version of its Shede baijiu for around $150 starting in September in parts of Europe, the United States and Japan, according to Zhu.
By comparison, New York-based online alcohol retailers are selling 750ml bottles of Diageo’s Johnnie Walker Blue Label whisky, the brand’s most expensive version, for US$200 or more on their websites.
Rival baijiu Sichuan beverage maker Yibin Wuliangye, headquartered in Yibin, Sichuan, has teamed up with Italian beverage group Campari to promote the two companies’ brands in China and internationally.
The partnership, announced last November, is still in its “very early stages”, said Campari, whose sales in China are currently relatively weak.
The companies will work together on marketing and brand promotion and co-create products, Campari said.
They have already developed a variation of the negroni cocktail, usually based on gin, using a “special blend” from Wuliangye. baijiuThey launched this cocktail in Shanghai in September and named it “Wugroni.”
Wuliangye did not respond to a request for comment.
China is the world’s largest alcohol market, thanks in large part to baijiu sales. The country’s manufacturers sold approximately $167 billion worth of baijiu in China alone by 2023, research firm Euromonitor estimates. It said it was not monitoring baijiu sales outside China remain weak.
Zhu said Shede’s international sales were about US$5 million in 2023, but the company aims to increase them to US$100 million within five to 10 years.
To achieve this, it plans marketing on platforms like TikTok, through influencers in the United States and Europe and possibly sports sponsorships, perhaps even major events like the Olympics, Zhu said.
At the Manhatta restaurant bar in New York, guests can enjoy a “Berry Me NYC” cocktail for US$21. It contains a small amount of baijiualongside Pimms and Shiraz wine.
Patrick Smith, Senior Beverage Director, said baijiu is “extremely aromatic”. By opening a box of baijiu The bottles, the smell hits the nose even though they are shrink-wrapped, he said.
The cocktail was only recently introduced. But a predecessor that contained baijiu The cocktail was “about average” in terms of popularity compared to other cocktails on the menu. Customers who tried them were curious about their flavor, he said.
Uses of the Manhattan Cocktail baijiu from Ming River, a company created by three Westerners in partnership with the large Chinese distillery Luzhou Laojiao.
In an effort to develop an international market for the spirit, Ming River is selling its baijiu in 15 countries, including the United States, where customers range from bars and restaurants to retailers such as Costco and tourists flocking to Disneyland.
