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?
It would appear that the folk at the UK arm of Carlsberg have this year found the 'gimmicky' drawer in the marketing office....
It's a popular grizzle and one I'll admit to having on at least one or two occasions… a day. Why do people post photos of their food and/or drink on to my social media feed?...
After a 2014 it'll want to forget, Treasury Wine Estates has some good news....
The garden shed is usually home to some spiders, a lawnmower and a few half-empty paint tins. ...
- It's not all bad for Diageo - Analysis
- Focus - Diageo's FY Performance by Region
- Diageo " knew United Spirits would be complicated”
- Focus - Diageo's FY Performance by Brand
- Diageo upbeat on Scotch prospects
- Challenges remain as Diageo posts flat FY sales
- Edrington appoints new board director
- Heineken ups sales, profits despite volume squeeze
- Mast-Jagermeister closes Sidney Frank buy
- Britvic appoints SABMiller's Dunn as CFO
- Global gin insights - market data, product innovation and consumer trends research
- Global rum insights - market forecasts, product innovation and consumer trends research
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research
- Global Tequila insights - market forecasts, product innovation and consumer trends research
- Global cachaca insights - market data, product innovation and consumer trends research