Premium drinks sales rise in China’s Guangdong in 2017

China’s southern Guangdong province, bordering Hong Kong and Macau, consumed RMB 58.1 billion (US$9.2 billion) worth of alcoholic beverages last year, mainly driven by high-end drinks, while lower end consumption continued to drop.

Guangzhou, capital of Guangdong province

The increase has been described as a sign of both consumers’ rising demand for premium beverages as well as how even the price increases of Baijiu, the main category leading the growth, last year failed to deter consumer enthusiasm for the fiery liquor.

According to the latest figures released by the Guangdong Alcohol Industry Association, the province’s premium drinks consumption priced RMB 500 (US$79.2) or above jumped 8.6% year-on-year, a sharper increase compared with 2016’s 2.16%. Mid-range consumption for beverages between RMB 100 (US$15.9) and RMB 500 increased 3.37%, while low end consumption (below RMB 100) dropped by 2.63% over 2016.

The consumption was mainly led by domestically produced Baijiu with a majority of RMB 21.5 billion (US$3.4 billion), followed by RMB 16.8 billion (US$2.66 billion) for beer, RMB 10.8 billion (US$1.7 billion) for wine and RMB 9 billion (US$1.4 billion) of imported spirits.

The rise is also partly a result of the price upticks of high-end Baijiu seen in the past year especially with popular brands such as Kweichow Moutai and Wuliangye.

Moutai for instance raised the factory-gate price to distributors (similar to wholesale price) across its product line by 18% last December ahead of Chinese New Year. The factory-gate price for its flagship brand ‘Flying Fairy’, which constitutes over 90% of Moutai’s overall sales, was raised from RMB 819 (US$129) to RMB 969 (US$153), pushing up the company’s suggested resale price to RMB 1,499 (US$237).

Chen Xingwu, secretary general of the association revealed that price hike has been a key topic related to premium Baijiu last year.

Mid-range products have also seen some moderate increases, and Guangzhou, Shenzhen happen to be two key markets in Guangdong province that prefer premium and mid-range drinks, he explained.

Leave a Reply

Your email address will not be published. Required fields are marked *

Please note that comments are subject to our posting guidelines in accordance with the Defamation Act 2013. Posts containing swear words, discrimination, offensive language and libellous or defamatory comments will not be approved.

Subscribe to our newsletters

Brand Marketing Assistant

Hatch Mansfield
Ascot, UK

Regional Account Manager

Scotland, UK

Retail Assistant Manager

The Whisky Exchange

Retail Supervisor

The Whisky Exchange

Retail Sales Advisor

The Whisky Exchange

Retail Manager

Friarwood Fine Wines
SW London, UK

Assistant Manager

Seven Cellars
Brighton, UK

Key Account Manager

MMI Dubai
Dubai, UAE

Head of Supply Chain

Lanson International UK Ltd
London W1, UK

The City Wine Show

London,United Kingdom
13th Apr 2018

Prosecco Springs

London,United Kingdom
26th Apr 2018

Spirits & More

19th May 2018
Click to view more

The Global Malbec Masters 2017

the drinks business is proud to announce the inaugural Global Malbec Masters 2017

The Global Sparkling Masters 2017

the drinks business is thrilled to announce the launch of The Global Sparkling Masters.

Click to view more