Beijing Boyce

A Somewhat Young China Hand on the Local Drinking Scene
Archive for February 19th, 2007

Free Pour: China’s Scotch Market Coming of Age

China Law Blog is hitting the bottle again, figuratively at least, with China’s Middle Class and Robert DeNiro Driving Scotch Sales Upward. The article cites this story from The Scotsman re the global boom in Scotch whiskey sales, particularly to Brazil, Russia, India and China. There is plenty of anecdotal evidence (see bottom) of this in Beijing. But first, some of The Scotsman’s China-relevant paragraphs:

In just 10 years, growth in China has risen from 700,000 litres to 5.7 million, fuelled by a burgeoning middle class that have acquired a taste for whisky.

At the moment the market leader is Pernod Ricard’s Chivas Regal. So incensed was [Diageo Chief Executive Paul] Walsh by this that last year he flew to Shanghai with a £20m cheque for his Chinese marketing team. Johnnie Walker Black is now experiencing 85% growth a year.

In December, the Chicago Tribune carried Chinese Whiskey Imports Skyrocket, which stated, “Chinese imports of Scotch whiskey have zoomed from $2.9 million in 2001 to more than $90 million in 2005.”

Last year the value of whiskey imports grew 84 percent. This year China is expected to crack the top 10 of whiskey-guzzling nations, according to David Williamson, public affairs manager for the Scotch Whisky Association in Edinburgh….

America remains the most lucrative export market for Scotch whiskey, but China has become an object of desire for Scottish distillers not only because of its size but because Chinese whiskey drinkers tend to be in their late 20s and early 30s — a more desirable target market than British or American drinkers who generally are older.

A few anecdotes from Beijing:

Here a few anecdotes re Whiskey (not just Scotch) in Beijing:

- Simple observation shows Scotch whisky is increasingly popular here, whether at clubs (where it’s often mixed with green tea) or as a gift.

- Choice is growing in Beijing’s non-hotel bars. Bar/restaurants such as The Tree and The Pavillion, among others, have decent selections. Last night, I popped into 5:19 Bar and found Crown Royal, Canadian Mist, Schenleys (!), Dalwhinnie and Balmore, among others.

- I’m posting this from The Bookworm - known for its 14,000-volume lending library, wireless, seminars, and coffee and food. On the shelf nearby sit 33 (yes, thirty-three!) different Whiskeys, including some rarely seen in Beijing - Glen Elgin Speyside Single Malt, Caol Ila 12-year and Scapa 14-year, along with The Balvenie, Laphroig, etc. I’m noting The Balvenie as though it’s fairly commonplace, yet two years ago, the only spot near my apartment that carried it - usually a single bottle - was a tiny bar called First Cafe.

- Several people linked to Scottish distilleries have contacted me recently to find out how to find a distributor in China. Meanwhile, The Kentucky Trade Office is looking to faciliate heavier promotion of Jim Beam (and, one hopes, other Bourbons) in the near future.

- One of the biggest battlegrounds for Scotch is in the nightclubs. I live close to a place called Gongti West, which has nearly a dozen huge clubs. The billboards are massive, with Chivas and Johnnie Walker fighting Hennessey to see who can get the most square meters of glossy ads.

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