Parties boost sales of imported liquor

Sales of imported whisky and brandy brands are surging in China on rising demand from younger consumers and others with a zest for parties, market insiders said.

In the first half year, imported liquor sales reached 58.68 million liters, up 10.5 percent year-on-year, and were worth $1.15 billion, up 34 percent year-on-year. Sales fell a bit in 2022, said the China Chamber of Commerce of Import & Export of Foodstuffs, Native Produce & Animal By-Products.

Customs data showed the value of imported spirits rose by nearly 29 percent year-on-year in July and by nearly 35 percent in August.

In terms of categories, brandy and whisky gained the most among hard liquors in the first half. Imported brandy grew 16 percent in volume and more than 31 percent in value. Whisky imports grew almost 8 percent in volume and more than 18 percent in value.

"Renewed enthusiasm for social gatherings is expected to drive a surge in on-premise alcohol consumption, revitalizing the industry," said Marta Zhang, senior research analyst of Mintel Group.

According to Mintel's report Consumption Habits of Alcoholic Drinks China 2023, out-of-home alcoholic drinks market value is expected to reach 700 billion yuan ($95.95 billion) by 2027 with a five-year aggregate growth rate of nearly 11 percent. And the value of imported spirit products is expected to rebound this year, boosted by the surge in demand for whisky.

Diageo, which has more than 200 brands and premium spirits, including Johnnie Walker Scotch whisky, said in its first-half financial report that its business performance in the Chinese market has been strong on the back of whisky sales, despite a decline in sales of its Chinese white spirit products.

Pernod Ricard, the world's No 2 in wines and spirits and owner of 17 of the Top 100 spirit brands, said in its financial report for 2022-23 (July-June) that its global net sales grew 10 percent year-on-year to 12.14 billion euros ($12.87 billion), with Asia contributing 17 percent.

Yang Zhengjian, director of WBO Wine Observer, an industry research provider, said imported liquors have strong market concentration, reflected by the increasing investment by leading international spirit enterprises in the Chinese market.

On Aug 22, Diageo unveiled its new research and development center in Shanghai to expand its product innovation and development capabilities in China, so as to meet the tastes of local consumers and their counterparts in the rest of Asia. The company's first malt whisky distillery in China, located in Eryuan county, Yunnan province, is expected to produce its first China-origin single malt whisky from this year.