Due to slowing domestic sales, Chinese baijiu producers are reformulating to appeal to more consumers, including cocktail enthusiasts in New York, Los Angeles, and London.
Although baijiu sales in China are still growing, the growth rate for top producers like Kweichow Moutai is far lower than in the past, as younger generations increasingly prefer other beverages.
In search of new growth opportunities, some major baijiu producers are promoting baijiu to Western consumers outside China for the first time.
However, baijiu has low recognition in the US, UK, and Europe, and many Western drinkers need to adapt to its unique taste.
Baijiu, meaning "white alcohol," typically has an alcohol content between 40% and 60%. It is usually distilled from sorghum but can also use ingredients like wheat, barley, millet, or glutinous rice.
The taste of baijiu varies by region and production method. Some people compare it to vodka, while another well-known type is likened to soy sauce.
As Chinese companies push baijiu internationally, Western beverage groups like Pernod Ricard and Diageo are entering the market of Chinese baijiu producers, especially attracting Chinese consumers in their twenties and thirties with Irish and Scottish whiskies.