Xinhua Insight: China's most famous liquor targets foreign market

Moutai, China's most famous liquor, first grabbed international attention a century ago when it won a medal at the 1915 Panama-Pacific Exposition in San Francisco

But Moutai and other brands of baijiu, a clear liquor made from sorghum and other grains, haven't had an easy time gaining a Western following in the hundred years since then.

Moutai has turned to social media to change that. On its Facebook page, which has 30,000 followers, the company shares news, such as San Francisco proclaiming Nov. 12, 2015 to be "Moutai Day" in honor of the anniversary, as well as bits of the brand's history.

"Through Facebook, LinkedIn, and other social media, we share developments at Moutai and directly engage with Western customers. This is part of our plan to expand the overseas market," said An Huailun, general manger of the export and import branch of the Kweichow Moutai Group.

Moutai aims to expand its overseas market by an annual rate of 15 percent in the next five years, said Yuan Renguo, director of the Moutai board.

By 2020, the company hopes overseas sales will make up 10 percent of total sales volume.

"We will continue to market the existing brands, develop new liquors for overseas buyers, and boost Moutai's international recognition," said Yuan.

CATERING TO WESTERN TASTES

Moutai, distilled in a town of the same name in Guizhou Province, has earned a reputation as the country's top liquor for its complex distillation process and fragrant aroma. It is made from wheat and sorghum using a process that requires several rounds of distillation at high temperatures.

However, baijiu can be challenging to the Western palate.

In 2014, Chinese baijiu accounted for 37.6 percent of the world's total liquor output, but it was less than 0.8 percent of global liquor sales outside China. Baijiu industry analysts say the drink's flavor is a hurdle for winning Western customers, who prefer mellower liquors.

In 2005, Moutai signed an agreement with Camus Wine Group, a top French wine merchant, to sell its liquor at duty-free shops worldwide.

Overseas sales have not made much progress, accounting for only 2 to 3 percent of the brand's total sales. In the last three years, the company has waged an aggressive publicity and merchandising campaign, especially after domestic sales were brought down by a frugality campaign targeting banquet and entertainment spending by officials.

Moutai is now sold in 53 countries and regions. Russia and Eastern Europe are the brand's main overseas market, thanks in part to the liquor's similarity to vodka in strength and mouthfeel.

Statistics showed that Moutai exported 200 million U.S. dollars' worth of liquor in 2014. In the first nine months of this year, it exported 958 tons of liquor, up 27.5 percent year-on-year.

Zhao Weixing, director of the Russian sales branch, said about 2,000 boxes of Moutai were sold to Russia last year, and the figure will reach 3,000 boxes this year. Sales in the Russian market will reach 10,000 boxes by 2020, he said.

"Though the domestic market is still Chinese baijiu's main market,exploring the international market has become an inevitable choice for high-end Chinese liquor companies," said Song Shuyu, secretary-general of the Chinese Alcoholic Drinks Association. Endi