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Your email address will not be published.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 *

Subscribe to our newsletters

Sales Manager

The Old Curiosity Distillery
United Kingdom

Brand Development Executive

Manchester Gin
Manchester, UK

Senior Buyer

Speciality Drinks
London, UK

Marketing Assistant

Berkmann Wine Cellars
London, UK

PR Manager

Master of Malt
London, UK

Sales Manager

Hairy Dog Brewery
Haywards Heath, UK

National Operations Director

Amathus Drinks Plc
London, UK

Sales Executive – Hush Heath Estate

Hush Heath Estate
London/ Kent

Marketing Manager

Zonin UK
Richmond, UK

Unsigned Talent Tasting

London,United Kingdom
20th Sep 2018

Love Wine, Love Chile

London,United Kingdom
25th Sep 2018

Almaviva Masterclass

London,United Kingdom
26th Sep 2018
Click to view more

Cabernet Sauvignon Masters 2018

the drinks business is proud to announce the fifth year of its Global Cabernet Sauvignon Masters

The Global Pinot Noir Masters 2018

the drinks business is proud to announce the fourth year of the Global Pinot Noir Masters, the most extensive competition in the Global Masters series.

Click to view more