2018年CRI Chinese alcohol seeking overseas market expansion

In the city of Luzhou in Sichuan, at the confluence 1 of Yangtze and Tuo Rivers, is one of the core areas of Chinese alcohol industry.

Over 200 liquor products from Luzhou are listed as national and provincial-level products, with many of the producers now attempting to expand overseas.

Chinese alcohol, or Baijiu, is the most widely consumed spirit in the world, with 5 billion litres sold in 2016.

The latest statistics shows Baijiu made up nearly 40 percent of the spirits produced worldwide last year.

However, baijiu only makes up 8 percent of global alcohol sales.

Lin Feng, the general manager of Luzhou Old Cellar, a well-known Luzhou-based Baijiu producer, says foreign markets are still wide-open for Chinese liquor producers, arguing the domestic market is overly saturated 2.

Luzhou Old Cellar was the only Chinese alcohol served at the just concluded FIFA World Cup in Russia.

Lin Feng says to attract more customers in Russia, the brand integrated Chinese liquor into cocktails 4 to boost sales.

"We displayed our liquor products in every box of the stadiums at the World Cup, as well as demonstrating Chinese alcohol culture with some live shows. We especially wanted to use the event to test our cocktail 3 products and see how consumers would accept it. Surprisingly it was so popular and demanding that our supply wasn't even enough."

In recent years, not only Luzhou Old Cellar, but other Chinese alcohol producers have chosen to be creative, developing new alcohol products.

Some are turning to fruit mixed alcohols and health care Chinese wine are among the favorite items now being generated in an effort to open up the overseas markets.

Zhang Suyi is a 22nd generation master of Baijiu tasting at Luzhou Old Cellar.

Able to distinguish over 10-thousand different aromas 5 and flavors, his job is evaluating the standard of alcohol the company producers.

Zhang says the popularization of Chinese alcohol culture is starting to be accepted by foreign consumers.

"In 2006 we visited Japan. People there were very interested in Chinese alcohol and wanted to produce Baijiu in Japan. But due to geographic 6 reasons it's not feasible. After I explained the detailed 7 procedures of Baijiu production, they all grabbed a drink of Baijiu and even wanted to bring home more from us. So the good mouth feeling of Baijiu needs to be gradually developed. We need let others know our distill 8 methods and production process."

General manager Lin Feng says Luzhou Old Cellar has sped up the internationalization of its brand.

"For the past two years, we have brought Chinese alcohol to some of the Belt and Road countries and demonstrated our products with multiple promotion 9 activities. Last year, for example, we promoted Baijiu in Russia with a special fireworks display at the Red Square. We also did promotions 10 in New York and places in Canada and Australia; this year is focused on South Africa, as well as many European countries like the UK. We have consistently made efforts to show others Chinese alcohol culture and increase overseas consumption."

Lin Feng adds that besides Luzhou Old Cellar, other major Chinese alcohol producers such as Moutai and Wuliangye have also been going beyond China to expand their customer base.

He is predicting Chinese alcohol is due to make a global breakthrough in the next five to ten years.