Chinese food is ubiquitous in every city from Sydney to Seattle. But Chinese white liquor? A bit tougher to find.

Most foreigners would be hard-pressed to name a single brand of Chinese liquor, and few would even recognize the domestically famous "Moutai." But the most expensive liquor maker in China, Chengdu Swellfun Co Ltd, wants to bring its brand into the international mainstream. The dream is, of course, to make "baijiu" as common as, say, hot pot.

But is this realistic?

"I never saw Chinese white spirits sold outside of China," says Rave, an English language expert with about 20 years' multi-national working experience in Europe and North America. "Westerners have scarcely ever tasted and sometimes have never heard of it."

Among the principal types of liquor sold in the world are: French brandy, Scottish whisky, Russian vodka and Chinese liquor.

Compared with the three other liquors, Chinese white liquor is virtually unknown on the international platform.

However, Swellfun recently produced a mild type of white spirit to cater to oversees consumers' taste. The offering is called 43 degree Swellfun International Fashion Spirit, and the company is determined to successfully market this new type of spirit overseas before other Chinese liquor makers get there.

A pioneer to go aboard

"The international market is still a strange market for Chinese domestic liquor enterprises; it will take time for us to get familiar with it," says Yang Zhaoji, president of Swellfun.

Swellfun began to export in 2000 and the company says its export volume is increasing every year. It now has exported to a dozen economies including South Korea, Hong Kong, Japan, South Africa, Thailand, and Singapore, and has entered tax-free shops in most airports of big cities in China.

Since entering South Korea in 2002, Swellfun has been sold to about 30 five-star hotels and over 50 high grade restaurants throughout South Korea, with retail unit prices ranging from 3,000 to 6,000 yuan (US$375-750), Yang says.

By far, exports of Chinese white liquor are mainly concentrated in Southeast Asia, but Swellfun says its next important exporting target is America and Europe.

Yang says they are negotiating with some top international liquor sales companies about co-operation and plans to use foreign partner's sales channels to promote Swellfun in the overseas market.

"We have established a very mature market in eight countries in southern Africa, and have entered tax-free shops in eight African countries," the president of Swellfun says.

Chinese white liquor began exporting to the overseas market in the 1990s. Many Liquor enterprises in Southwest China's Sichuan Province adjusted their overseas business strategies, made new types of liquor that are more exportable, and have made some breakthroughs in exporting since 2000.

China exported 29, 717 kilolitres of white liquor and hit US$110 million in liquor export volume in 2005. In the first half of 2006, the top three economies importing Chinese liquor were Hong Kong at 4,298 kilolitres, Japan at 3,826 kilolitres, and South Korea at 1,574 kilolitres. These three accounted for 70-80 per cent of total exported Chinese liquor.

"I have drunk Chinese liquor at official dinners or banquets in China, and its smell is very nice and fruity," says a Philippine media professional working in China. "If I want to prepare a gift for my friends back in my country, maybe I will consider buying them Chinese liquor, since white liquor is a very typical Chinese thing, and I think they may want to try something different."

The total consumption of white liquor around the world is about 5 million tons, and is standing at a steady level. However, high-end liquor consumption is about 20,000 to 30,000 tons and only accounts for 1 per cent of total consumption, according to Huang Jianyong, vice president of Chengdu Swellfun Co Ltd.

"The high end market of white liquor still has huge potential, and the more and a more open international market provides us a promising opportunity," says Huang.

"Liquor is an inseparable part of Chinese traditional culture," says Yang. "When we promote Chinese white liquor to the international market we are promoting the Chinese culture to the world."

Throughout China's history, many poets have been known for drinking, and there are a lot of anecdotes and interesting stories about liquor and poets.

Li Bai, one of the most famous poets in Chinese history, was known as "the liquor sage." He named himself a "liquor immortal." Most of his poems and articles were written with the assistance of liquor, and of all his compositions, one-sixth discussed the contents of liquor.

Sales in world market

According to the Ministry of Commerce, domestic liquor makers lack marketing and sales channels. Most domestic liquor exporters feel there is difficulty in finding appropriate foreign trading partners. Many foreign countries have very demanding technological and trade barriers for importing distilled spirits. They treated liquor as a special commodity, and put a very high tariff and excise tax on it. Chinese white liquor has done little promotion in foreign markets.

"Liquor drinking belongs to hobby-driven consuming behaviour; people in different regions have different hobbies," says the liquor circulation regulation office of the Ministry of Commerce. "After all, Chinese liquor is a typical Chinese product and only produced in China."

On one hand, Chinese liquor enterprises know little about foreign markets; on the other hand, inadequate financial capital and the lack of liquor marketing professionals who know the international liquor trade are a major hindrance to domestic liquor enterprises considering the international market, says Huang Junfeng, a beverage industry analyst of China Stock.

"Taking the potential risk and opportunity into consideration, we suggest Chinese liquor makers adopt a gradual overseas business model, and enter the foreign market step by step from direct export, setting up overseas representative offices, establishing overseas branch companies, to finally investing in manufacturing," says analyst Huang Junfeng.

Huang says a gradual overseas business model can help domestic liquor enterprises gain experience and draw lessons from overseas business management, further understand the target market, and thus effectively control risk.

"High-graded white liquor brands should be promoted to developed countries and used on diplomatic occasions," says the liquor circulation regulation office of the Ministry of Commerce. "Liquor designated for diplomatic banquets is brand promotion made by the government. Former Premier Zhou Enlai has done a good job in promoting Chinese liquor to the world."

(China Daily 10/09/2006 page6)