Blog: Diageo - 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?
just-drinks is in Berlin this week for Bar Convent Berlin. Here's the second and final part of Andy Morton's blog, which will keep you up-to-date at one of Europe's most important dates in the alcohol...
just-drinks is in Berlin this week for Bar Convent Berlin. Here's the first part of Andy Morton's daily blog, which will keep you up-to-date at one of Europe's most important dates in the alcohol indu...
Responding to criticism on social media is tough. You've got to engage the consumer without starting an argument and - ideally - get them on side....
Want to know how The Coca-Cola Co-backed Keurig Kold - released in the US yesterday - works?...
- AB InBev, SABMiller - Here's what'll happen next
- Is time right for TWE to move for Diageo's wines?
- Is Brown-Forman at the end of the SoCo road?
- Will a sexed-up SABMiller tempt AB InBev?
- Making consumers the centre of your business
- AB InBev makes formal offer for SABMiller
- Diageo secures Xerox Corp CFO as finance head
- Tesco pulls several Carlsberg SKUs in UK
- Diageo makes US$780.5m beer deal with Heineken
- SABMiller formally rejects AB InBev's offer
- The IWSR Duty Free/Travel Retail Summary Report 2015
- Future growth opportunities for global spirits
- Global gin insights - market data, product innovation and consumer trends research
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research