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On August 12, a Beijing Business Daily reporter visited the terminal market and learned that consumers' preference for whiskey is increasing. The owner of a whiskey bar in the Guomao area said that the number of consumers choosing to come to the whiskey bar is gradually increasing, and the store attendance rate has also increased. Most of them are employees of foreign companies in the surrounding area, and some young consumers choose to come for a drink on weekends. In fact, with the development of the market, more and more companies are beginning to focus on the whiskey track. According to incomplete statistics, in addition to Diageo, Pernod Ricard and other companies strengthening their layout of whiskey in China, domestic brands such as Luzhou Laojiao, Yanghe Shares, and Guyue Longshan have also entered the market.

Industry insiders said that the domestic whiskey market is currently in a rapid growth stage, with young consumers being the main consumer group, and companies entering the market one after another to catch up with the market heat. With the increasing frequency of international exchanges, the international wine consumption trend continues to penetrate the domestic market. Whiskey is becoming a new part of the lifestyle of young Chinese people and one of the new consumption trends in China.

Enterprises have entered the market

As alcohol consumption becomes more diversified, more and more young consumers are choosing whiskey, which provides a broad space and opportunity for the development of the domestic whiskey industry. When visiting whiskey bars in Guomao, Gongti and Wangjing, Beijing Business Daily reporters noticed that consumers' recognition of whiskey is gradually increasing. Many bar staff told Beijing Business Daily reporters that in addition to beer products, the number of consumers choosing whiskey products in the store has also increased.

Whisky is still in its infancy in the domestic market, which means that there is still a lot of room for development in the domestic whisky market. Against this backdrop, more and more companies are choosing to enter the whisky market. According to incomplete statistics from Beijing Business Daily, in addition to companies such as Diageo and Pernod Ricard strengthening their whisky layout in China, domestic brands such as Luzhou Laojiao, Yanghe Shares, and Guyue Longshan have also entered the market.

Regarding the construction of a factory in China, Cheng Zhanpeng, Managing Director of Diageo Greater China, said that the whisky distillery in Eryuan, Yunnan is the first single malt whisky distillery under the Diageo Group in China. The distillery started trial operation in November last year and officially went into production in March this year. In the future, the distillery will produce high-quality single malt whiskies originating from China, and is committed to pushing China to the center stage of the global whisky dialogue.

In January this year, Tianyoude Liquor simultaneously launched three whisky products on JD.com and Tmall platforms; in July 2022, the British Kirin Spirits Group and Luzhou Laojiao signed a cooperation agreement on the Chinese whisky project; in 2019, Yanghe Shares and the international wine group Diageo signed a strategic cooperation agreement to launch the first Chinese whisky "Zhongshiji".

Shen Meng, chief strategist of Guangke Consulting, analyzed that the reason why wine companies entered the whiskey market is that the domestic whiskey market is currently in its early stages of development and has great market potential and commercial value. The demand for whiskey is expanding as the number of whiskey enthusiasts gradually increases. Compared with other categories, whiskey is still a "blue ocean" with relatively few market participants.

Market size expansion

Data released by Whiskystats, a whisky statistics website, shows that in July this year, the whisky trading index increased by 3.97%, the original bottling trading index increased by 3.36%, and the independent bottling trading index increased by 1.86%. Behind the growth of the trading index is the continuous expansion of the domestic whisky market. Although the domestic whisky market is a niche market compared with the liquor and beer markets, the growth power behind the whisky market cannot be underestimated.

When visiting a whiskey bar near the Wynn International in the Workers' Stadium, a Beijing Business Daily reporter noticed that most of the whiskey products on display were imported brands. The clerk told the Beijing Business Daily reporter that the daily attendance rate in summer is basically above 90%, and there will even be queues if there are performances, events or other special times such as holidays.

The "2023 China Whisky Industry Development Research Report" released by the Whisky Professional Committee of the China Alcoholic Drinks Association shows that the number of domestic whisky production and operation units with legal entity status has also increased from 24 in 2022 to 42 in 2023, an increase of 75%.

From the market perspective, the domestic whiskey market will be worth about 5.5 billion yuan in 2023, a year-on-year increase of 10%. Public data shows that in 2013, the domestic whiskey market was about 1.288 billion yuan. It is not difficult to find from the data that in ten years, the domestic whiskey market has grown by about 327.02%, and the domestic whiskey market is gradually entering a stage of rapid growth.

As the market continues to expand, more and more young consumers are extending olive branches to whiskey. The "2023 Whisky Annual Report" released by WHISKY L! shows that among the whiskey consumer groups, the 18-29 age group accounts for 39%, while the 30-39 age group and the 40-49 age group account for 35% and 13% respectively.

Xiao Zhuqing, a Chinese consumer product marketing expert, said that whiskey has a unique international culture and consumption fashion, and also has a drinking experience different from traditional liquor. The continuous expansion of the domestic whiskey market is the result of the segmentation of the liquor market, and it is also the result of young consumers gradually becoming the Chinese alcohol consumer group.

Seeking new volume

As the market size continues to expand, the domestic whiskey market is also constantly improving. In April 2023, the Whisky Professional Committee of the China Alcoholic Drinks Association was established. The content framework of the group standard for the certification rules of Chinese whiskey products issued by the association stipulates the basic requirements for the certification procedures and management of Chinese whiskey, filling the gap in domestic whiskey product certification.

Xiao Zhuqing said that the continuous expansion of China's whiskey market is the result of the segmentation of the domestic liquor market and the result of young consumers gradually becoming the main force of liquor consumption.

The huge development potential of the whiskey market seems to have become a new track for many wine companies to seek growth. As a leading company in the cocktail market, Bairun Co., Ltd. planned to invest about 500 million yuan in the construction of a vodka and whiskey factory in Linqiong Industrial Park, Qionglai City as early as 2017; in 2020, Bairun Co., Ltd. raised 1.006 billion yuan in a private placement for the spirits (whiskey) aging and maturation project; in 2021, the company issued convertible bonds to raise 1.128 billion yuan for the construction of malt whiskey aging and maturation projects. Bairun Co., Ltd.'s plan shows that the spirits business will be guided by the strategic guidance of "focusing on the development of whiskey, occupying a position in high-quality spirits, and becoming the leader of China's local whiskey industry."

Guyue Longshan, the "big brother of yellow wine", has previously launched its first glutinous rice whiskey, Chuanyan 19, in order to seek new growth in the development of yellow wine. Guyue Longshan said that some barrels of Chuanyan 19 whiskey products are currently on pre-sale, and they need to be stored for at least two years before they can be packaged and put on the market. Liu Yuan, executive vice president of the China Alcoholic Beverage Circulation Association, said in his speech that glutinous rice whiskey is a model of the integration of traditional yellow wine brewing techniques and modern technological innovation. Its flavor is different from all the existing wines on the market, and it is believed that it will bring consumers a unique consumption experience.

In fact, although the domestic whiskey market started relatively late, it also leaves a lot of room for development and improvement for brands and markets. Xiao Zhuqing said that compared with white wine, whiskey is more likely to resonate with young people in terms of culture and quality. With the increasing frequency of international exchanges, the international wine consumption trend continues to penetrate the domestic market. Whiskey is becoming a new part of the lifestyle of young Chinese people and one of the new consumption trends in China.

Beijing Business Daily reporter Zhai Fengrui