The first thing that hits you is the smell: mild Camembert muddled with Marmite and spiked with gin. Production of baijiu, China’s national drink, is not an olfactory delight.
It is, however, big business. Last year more than 4bn litres of the white spirit were sold in China and Euromonitor estimates that number will increase by another billion over the next five years. International spirits, by comparison, sold a meagre 80m litres in China.
Even in value terms, baijiu dominates China’s £25bn ($40.8bn) alcohol market. Revenues are growing, especially at the premium end. And gross margins of 80 per cent are nothing to be sniffed at.
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