Why Chinese Baijiu cannot get out of China and become a mainstream liquor in the world like Whisky or Brandy?

Chinese Baijiu, also called Chinese Liquor or Chinese white spirit, is both the most popular liquor in China and the world’s most consumed liquor by volume. In the year of 2021, based on a report by World Spirit Alliance, the Spirit market worldwide was €464 Billion, in which Chinese Baijiu sales accounted for 14.9% or € 69 Billion (530 Billion RMB). However, according to China Alcoholic Drinks Industry Association, in the fiscal year of 2021, Chinese Baijiu sales outside China was only 3.64 Billion RMB, less than 1% of its total sales revenue. Therefore, we can’t help but asking one question: why Chinese Baijiu cannot get out of China and become a mainstream liquor in the world like Whisky or Brandy?

The first reason is that Chinese Baijiu has a special taste with Chinese characteristics that is not accepted by most westerners. For example, in a 2015 video, some western tasters sampling Kweichou Moutai, which is China’s premium brand of Baijiu for the first time, expressed disgust and confusion at its flavor and aroma. Some critics even said it felt like “burning plastic”, while some unpleasant descriptions have included “industrial cleaning solvent” and “liquid razor blades”. So, it’s not surprising to know that Chinese baijiu bought outside China is bought mostly by overseas Chinese people or Chinese travelling abroad.

The second reason is that Chinese Baijiu is tied to Chinese culture that emphasizes social interconnectivity. Unlike Whisky or Brandy that are often served in a bar, Chinese Baijiu is usually served at the dinner table where drinkers may enjoy rounds and rounds of shots from tiny 1-ounce glasses. There is a famous Chinese saying “it’s not a feast without alcohol.” Chinese Baijiu is therefore suitable for large gatherings with a multi-course meal. By comparison, most bars in America are stocked with British gin, Scottish whisky, Russian vodka, French Cognac, Caribbean rum, Mexican tequila that emphasize solitude and individualism.

Of course, we have some good news. According to Brand Finance, a consulting agency, recently released a ranking list of the most valuable spirits brands on the planet. The top three are all Chinese Baijius: Moutai, Wuliangye, and Yanghe. Johnnie Walker, the famous Whisky brand, ranks the no.4.

 According to Brand Value (China) Network, Chinese Baijiu may take some time to become a mainstream alcoholic drink in the world and Chinese Baijiu Moutai will retain its position as the world’s most valuable spirit brand in the next 10 years.

On the ranking of “The 2nd Daguan·Keweiwei World Brand Value Top 900” released on January 13, 2022, Kweichou Moutai’s brand value was 294.966 billion RMB, ranking the 77thd.

作者：杨瑞安