Blog: Olly WehringDiageo - Who will buy my baijiu?

Olly Wehring | 31 May 2012

Amongst the sideline talk at this year's Capital Markets Day from Pernod Ricard yesterday, check this, from a China Daily reporter.

Talk over dinner last night turned to baijiu, the domestically-produced white spirit and national drink of China. The category accounts for a staggering 99% of spirits sales in the country, with imported spirits – annual volumes of a still-healthy 5m cases – making up the final per cent.

What was Diageo's thinking in getting involved in baijiu, the reporter asked me. Could the company be keen to grow the Shuijingfang brand in China, or is Diageo looking to introduce baijiu to export markets?

I proffered the possibility that Diageo is hoping to use Shuijingfang as its way in to the Chinese consumer, before looking to turn him on to the likes of Johnnie Walker.

“No,” the reporter fires back. “That will never work.” The baijiu consumer is such, due to a mixture of compulsion and national loyalty, I'm told. A Chinese civil servant, for example, - of which there are a few - will buy baijiu and baijiu alone when it comes to spirits.

I'm hoping Diageo knew this before it made its play for Shuijingfang.

Unless, of course, baijiu's going to get its own gondola end in Wal-Mart and Tesco some time soon?


BLOG

Coca-Cola's selfie bottle might be a step too far

Whenever we read anything about Millennial consumers, there is almost always mention of the personalisation trend as well as the importance of social media....

BLOG

Anheuser-Busch InBev execs have a dream - a US$350m-sized one

Ever wondered what fuels Anheuser-Busch InBev's acquisitional drive? Is it naked ambition? Faith? The good of mankind?...

BLOG

Anheuser-Busch InBev's Bud Light ad pull shows not all campaigns can win

Anheuser-Busch InBev is reportedly calling a halt to its Seth Rogan and Amy Schumer Bud Light campaign in the US....

BLOG

SABMiller's last word

Today is SABMiller's final day. Some time this evening, Brussel's time, the second-biggest brewer in the world will be subsumed into the biggest, creating a beer behemoth of unprecedented proportions....

just-drinks homepage



Forgot your password?