Chinese Liquor Brands Are Targeting Younger Generations and the Western Market中国白酒品牌瞄准年轻人和西方市场

Across dining tables in China， diners toast （or taunt） each other with a tiny shot of the distinctively pungent baijiu. The sorghum-based Chinese liquor commonly produced in the country’s southwestern Guizhou province has played a key role in China’s drinking culture since the Ming dynasty.

在中国的餐桌上，就餐的人们往往会端起一小杯香气扑鼻但风味独具的白酒相互敬酒或彼此打趣。以高粱为主要原料的中国烈酒通常产自西南省份贵州。贵酒自明代以来就在中国酒文化中有着举足轻重的地位。

Today， baijiu is often cited as the world’s most frequently consumed liquor， thanks largely to the country’s population， 1.4 billion strong. With a market cap of US$69.2 billion， distillers Kweichow Moutai surpassed London-based multinational Diageo1 to become the world’s biggest liquor maker back in 2017 and has continued to grow ever since.

如今，白酒常被认为是世界上最常饮用的烈酒。这很大程度上要归功于中国14亿以上的人口。早在2017年，贵州茅台市值就高达692亿美元，超过总部位于伦敦的跨国公司帝亚吉欧，成为世界最大的白酒生产商，而且此后规模一直不断增长。

Several home lockdowns due to Covid-19 in 2020 didn’t cause China’s growth to falter， with GDP up and growth accelerating， the baijiu industry included. Although sales were impacted in the first half of 2020， the spirit’s revenue from the local market still increased by around US$3.2 billion compared to 2019.

2020年新冠疫情导致多次封控，但中国经济增长并未因此停滞。其国内生产总值增长，经济发展加快，白酒行业也不例外。尽管2020年上半年销售业绩受到疫情影响，但跟2019年相比，本地市场白酒收入依旧增长了大约32亿美元。

Valued at US$373 billion as of October 2021， Kweichow Moutai has retained its position as the world’s most valuable spirit brand. The second most valuable brand， Wuliangye， also Chinese and also a maker of baijiu， stands at US$144 billion.

截至2021年10月，贵州茅台市值3730亿美元，依然是世界最有价值烈性酒品牌。五粮液仅次于茅台，同属中国白酒品牌，市值1440亿美元。

Steffi Noël， a Shanghai-based research project leader at Daxue Consulting2， attributes the stock price increase to the company’s excellent financial figures and straightforward business model.

施特菲·诺埃尔是咨询公司博圣轩上海分公司的调研项目负责人。她将茅台酒股价上涨归功于该公司出色的财务数据和简单的商业模式。

She says， “At least seven to eight companies in the baijiu industry have great financial conditions. Return on equity for Mao-tai and Wuliangye can reach as high as 35.6 per cent and 22.9 per cent respectively. Unlike technology， health or other industry’s annual reports， baijiu’s business model is easy to comprehend， and is straightforward， with a 90 per cent profit margin.”

她说：“白酒行业至少有七八家企业财务状况非常好。茅台和五粮液的股本回报率分别能高达35.6%和22.9%。与科技、医疗保健或其他行业的年报不同，白酒行业的经营模式并不复杂，易于理解，利润率可达90%。”

She also notes that the spirit’s position in the market in China is “a special case” and that such stock price surges in alcohol companies in overseas markets are non-existent.

她还指出，白酒在中国市场上的处境是“特例”；在海外市场上，酒类企业股价如此暴涨的情况并不存在。

Shui Jing Fang， which means “the distillery by the well”， is recognised as one of the oldest baijiu distilleries in China with more than 600 years of continuous production. Looking to get on the bandwagon3 early， Diageo bought the brand’s parent company outright in 2013， and has since upped4 its stake from nearly 40 per cent to 60 per cent.

“水井坊”被认为是中国最古老的白酒酿造厂之一，其名含义是“井边的酒厂”，有600多年延续不断的酿酒历史。帝亚吉欧意图在白酒业中抢占先机，于是在2013年直接收购该品牌的母公司，后来将持股比例从近40%提高到60%。

Yet for a key industry brand， Kweichow Moutai has long been regarded as a luxury status symbol. In 2018， auction house Christie’s5 became the first international auctioneer to host a baijiu auction in China， featuring 178 lots6 of Kweichow Moutai. According to Ned Zhang， an auction specialist， prices can range from 2，000 yuan to more than 300，000 yuan a bottle. Overall， the highly anticipated event eventually raised more than 25.5 million yuan.

然而，作为一个主要的行业品牌，贵州茅台长期以来被认为是凸显身份地位的奢侈品。2018年，佳士得拍卖行成为第一家在中国举办白酒拍卖会的国际拍卖行，拍卖会上有178件茅台拍品。根据拍卖会酒业专家张萌的说法，一瓶茅台的拍卖价从人民币2000元到30多万元不等。总的来说，这次拍卖会备受瞩目，最终卖出逾2550万元人民币。

Noël believes there is still room for the industry’s giants to grow： “Famous and high-quality enterprises represented by Kweichow Moutai， Wuliangye and Luzhou Laojiao have gained a firm foothold7 in the industry based on their respective comparative advantages， actively deploying and seizing mid-to-high-end—especially high-end—markets. By 2029， China’s high-end liquor industry is expected to be a 160 billion yuan market. The demand for high-end baijiu such as Mao-tai is higher than the supply， which explains why there is still room for price increases.”

诺埃尔认为行业巨头尚有发展空间。她说：“以贵州茅台、五粮液和泸州老窖为代表的名优企业凭借自身的比较优势在业内地位稳固，同时积极布局中高端市场，尤其是高端市场。到2029年，中国高端白酒行业市场规模有望到达1600亿元人民币。茅台等高端白酒供不应求，说明价格还有上涨空间。”

Sichuan-based Luzhou Laojiao is the oldest continually operating distillery in China， and is also among the top four most valuable spirits worldwide. The historic8 distillery now plans to expand its reach with a classic strong-aroma variant9—Ming River—exclusively targeting consumers outside the Chinese mainland.

四川的泸州老窖是中国持续运营时间最长的酒厂，也是全球价值最高的四大烈酒品牌之一。这家历史悠久的酒厂现在计划推出一款衍生自经典浓香型白酒的新酒来拓展市场，名为“明江”，专门瞄准中国大陆以外的消费者。

Derek Sandhaus， co-founder of the Ming River brand， says， “We have created a name and packaging that is more accessible for the international market， but respects the product’s heritage10. Our sales numbers confirm that many more people are drinking baijiu in the US in the past couple of years. Typically， Americans like their liquor in cocktails， and that’s how most bars and restaurants serve our product.”