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?
Could it happen? According to this report, a section of the beer community wants to ditch the word craft. They prefer instead the term “Indie” for brewers they believe follow the enlightened path of t...
The global elite were in Switzerland last week for the World Economic Forum in Davos, the annual corporate huddle for the rich and powerful. The CEO of The Coca-Cola Co, Muhtar Kent, was there too, de...
With The Coca-Cola Co stealing yesterday's limelight with its new united marketing strategy for brand Coke yesterday, a Forbes interview with PepsiCo North America Beverages' new CMO, Seth Kaufman, sl...
It is a bold attempt to regain a measure of control in the ever-spiraling debate about sugar. But will The Coca-Cola Co's new marketing strategy - which for the first time ties all of the Coke family ...
- What's so special about Islay anyway? - Comment
- Six key trends for alcoholic drinks in 2016
- With MegaBrew sorted, is MegaBev next? - Research
- Diageo gets 2016 off to a strong start - Analysis
- What do Bourbon and craft beer have in common?
- Bacardi ups ante in US Havana Club row
- Alcohol industry warning over Kroger plan
- The US is "the first place I look" - Diageo CEO
- SABMiller hits back in UK corporation tax row
- Suntory bids for Lucozade, Ribena Nigerian network
- What Next for Beer and Brewers Following the MegaBrew Deal?
- Global travel retail insights - market forecasts, product innovation and consumer trends
- Global Beer Trends 2015 : Global Beer Trends and Long-term Forecasts
- Global Whiskey Market 2016-2020
- Global sparkling wine insights - market forecasts, product innovation and consumer trends research