Fine Wines/Champagne and Spirits in China

PROSPECTS

Baijiu dominates fine wines/champagne and spirits

China’s luxury alcoholic drinks market is dominated by the local spirit, baijiu. While fine wines and champagne have gained in popularity, their consumer base remains relatively small.

Younger adult consumers increasingly turn to luxury drinks for casual consumption

The consumption of luxury alcoholic drinks is expanding into everyday occasions. Having traditionally been reserved for special occasions such as Chinese New Year holidays, banquets and business dealings, luxury wines/champagne and spirits products are now consumed on a more casual basis.

Brands look beyond traditional marketing

Traditional alcoholic drinks brands are exploring new marketing channels as they look to adapt their activities to the evolving sensibilities and lifestyles of younger adult consumers and diversify their consumer bases. No longer limiting their marketing activity to traditional channels such as TV advertisements, brands are increasingly looking to engage with consumers in the digital arena.

COMPETITIVE LANDSCAPE

Traditional brands work to diversify consumer bases

The fine wines/champagne and spirits category is dominated by local distillers, led by Kweichow Moutai Co Ltd. Several traditional spirits producers are working to attract younger adult consumers by enriching and upgrading their product mixes.

Pernod Ricard to open China’s first whiskey distillery

Pernod Ricard Groupe, the 12th largest player in fine wines/champagne and spirits, is planning to further develop its business in China by building the country’s first whiskey distillery in Sichuan Province, a renowned baijiu region. The site, located near the well-known tourist attraction, Mount Emai, will also function as a visitor centre to attract whiskey lovers and promote whiskey culture, as it aims to combine a distillery with tourism.

Small-bottled products emerging

Casual, everyday consumption by the general public is replacing official receptions as the main growth driver of the high-end alcoholic drinks market in China. More portable and affordable luxury alcoholic drinks in small-sized bottles are gradually gaining in popularity amongst consumers, especially younger adults.

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