China’s banquet tipple on path to world bars

By Xander Urban Source:Global Times Published: 2015-4-21 22:43:01

Illustration: Liu Rui/GT

Baijiu
is the world's best selling liquor that most people, outside of China, have never heard of. A report by McKinsey & Co. and UBS estimated the baijiu market in 2012 at $23 billion. Baijiu, translated literally as "white liquor," has a long and important history inside of China. Distilled from sorghum, a member of the grass family, and other grains, baijiu's place in China's culture is firmly rooted. There are a myriad of types and fragrances of baijiu and nearly as many rules and customs relating to the proper way to drink it.

Baijiu's first international headlines came years ago when former US president Richard Nixon famously toasted with Moutai (a well-known brand of baijiu) alongside then Chinese leader Mao Zedong. Such a celebratory toast is an excellent example of baijiu's role in China's culture. It's frequently used for special occasions at mealtime.

But despite the wide variety of baijiu available, there is one unifying factor. It's always served alone in small cups and it's always enjoyed with meals. This is about to change, as 2015 may be the year that the baijiu cocktail gains international fame.

Many Chinese and expats in China may initially blanch at the thought of a baijiu cocktail. This complex, robust and potent spirit is certainly an acquired taste. For the uninitiated, if you can imagine a cross between fruity essence and stinky cheese, you'll get a sense of the aroma, and the flavor is no less bracing. Baijiu is also very powerful, often bottled at 100 proof or higher.

Some might question the international appeal of such liquor. Indeed, there are challenges ahead to capture yet tame the earthy funk and powerful aroma of baijiu into cocktails with wide appeal. But for all the naysayers who resolutely claim there is no market for baijiu outside of China, there is one simple rebuttal. The international "Baijiu boom" has already commenced, and is only set to get bigger.

A confluence of contemporary events is driving the nascent international expansion of baijiu. Cocktails in the US and elsewhere are enjoying a strong renaissance in popularity. This trend complements a more general trend in growing international food sophistication.

China's increasing prominence in the world is also driving interest in trends related to Chinese culture and customs. Together, these trends form the platform for baijiu's expansion.

The stakes are high. According to Jim Rice, a managing director at global liquor powerhouse Diageo, the volume of baijiu sold outside of China might grow to 40 percent. That's a significant number and ample incentive when the baseline market is already estimated at $23 billion.

Baijiu cocktails are already available in many international cities. In Los Angeles, the Peking Tavern is a pioneer in baijiu cocktails. Their menu includes at least three baijiu options, highlighted by the Wong Chiu Punch. The fruitiness in such a punch may be the key to winning over international palates.

New York-based cocktail consultant Orson Salicetti notes that the key to baijiu success in the West is to find ways to hide the aroma that international palates can't abide. Salicetti has been working with a group of Chinese investors on a New York-based project called Lumos, set to open next month, which will be the first exclusive baijiu bar in the US. Lumos will feature a menu with over 60 baijiu cocktails, the recipes for which have been thoroughly market tested on Western palates.

With international growth from a $23 billion market at stake, you can be certain that Lumos success will be followed closely. The "Baijiu boom" is upon us; discover for yourself new cocktails with Chinese characteristics.

The author is a partner with a natural resource trading and advisory firm where he manages projects across the developing world including China, Russia, Brazil and Africa. opinion@globaltimes.com.cn

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