Beijing Boyce

A report published on just-drinks.com finds that international spirits sellers in China face not only “a highly competitive marketplace, a fickle consumer base with low brand commitment and [a] high level of counterfeiting and paralleling,” but also drinkers unaware that Cognac and Whisky are different.

One of the most alarming findings of the report for spirits producers – and one that must have distillers in both Scotland and Cognac blinking in disbelief and horror – concerns unfamiliarity with international spirits. In a poll, 471 regular international spirits drinkers in Shanghai, Beijing and Guangzhou were asked if whisky and Cognac are the same drink. Some 19% said they agreed that whisky and Cognac were the same drink, and although 38% said they were not, a further 43% said they weren’t sure.

One factor: advertising for both pursues a “modern lifestyle” theme, rather than distinguishes what makes each spirit unique. Thus, any old Cognac or Whiskey – they’re the same thing anyway, right? – will do, at least according to one twenty-something white-collar worker participating in a focus group. “Foreign brands are always on promotion. I go to my favourite KTV about once every two weeks and they always have a new or different international brand on promotion. We always buy it as it is cheaper and when we mix it with tea, Coke or Sprite they all taste the same anyway,” says he.

Spirits makers aren’t alone with identity crises. This study last year for the California Association of Wine Growers found that a lack of familiarity with foreign wines was the second biggest constraint, after distribution, for those selling imported vino in China.

… in 1/3 of the stores that carried California wines, the clerk told us that they did not carry California wines. In several stores we were told that California (or the US) did not make wine. In another store, we were told that they only carried “Old World” wine, such as wine from, “France, Italy, Argentina and Chile.” When we pointed out that continental US was discovered long before Chile, the clerk told us that we did not now our world history and that wines only grew well in the old world anyhow.”

Putting aside who discovered what, the report notes the obvious need for educating wine store clerks. In the meantime, imports of wine and spirits continue to flow, pop, bubble up – whatever cutesy term you like.

(Notes: 1. China Law Blog recently posted on the topic of Scotch in China; 2. Given that I’ve written lots of reports, I tend to take many of them with a grain of salt, or at least a shot of 10-year-old The Balvenie.)