Pernod Ricard Unveils China’s First Homegrown Whisky, Shaking Up the Global Spirits Game
Pernod Ricard Gains Edge in China’s Whisky Market
Pernod Ricard has taken the lead in China’s whisky market by unveiling its first domestically-produced whisky from the Chuan Distillery in Sichuan Province, a project initiated in 2020. Meanwhile, rival Diageo is nearing the completion of its distillery in Yunnan Province, aiming to tap into the same lucrative market.
Both companies are keenly eyeing China’s burgeoning appetite for luxury products. Already, China stands as Pernod Ricard’s second-largest market, trailing only the US. In a recent investor meeting, Diageo underscored its commitment to capturing a significant share of China’s growth potential.
At the launch of Chuan single malt, Pernod Ricard’s CEO, Alexandre Ricard, acknowledged the current economic slowdown in China. However, he remains optimistic about the potential growth driven by the expanding middle class and their evolving preferences for international spirits.
Currently, China hosts 26 whiskey distilleries, with more underway. However, Pernod Ricard’s Chuan Distillery is the first owned by a global liquor giant to release a whisky specifically designed for Chinese palates.
The Chuan single malt is priced at 888 yuan per bottle (US$124 or £99), tapping into the cultural significance of ‘888’ as a lucky number in China.
Despite whiskey being a relatively niche market in China, valued around US$1 billion in 2021, it’s projected to grow steadily. Traditional Baijiu dominates the spirits market, but Western spirits are gaining ground as Baijiu’s appeal wanes among younger consumers.
In the imported spirits segment, Cognac and Bourbon are in the lead. Jim Beam and Jack Daniels hold significant shares in the whiskey category, while Diageo’s Johnnie Walker and Pernod Ricard’s Jameson Irish Whisky also have a presence.
Alexandre Ricard’s vision for Pernod Ricard is to dominate the global spirits market, with China as a crucial stepping stone.
Pernod Ricard prides itself on its strong distribution network across China, introducing flagship brands like Martell Cognac and Chivas Regal over thirty years ago, which now lead the imported spirits portfolio in China.
Celebrating the opening of The Chuan Distillery, Pernod Ricard heralds it as a blend of Emeishan’s natural beauty and skilled craftsmanship, promising a unique whiskey experience for enthusiasts.
The Chuan single malt, made from both European and Chinese barley, matures in local oak, Bourbon barrels from America, and Sherry casks from Spain, offering a distinctive flavor profile.
Diageo has already established its foothold in China with Johnnie Walker Houses in Beijing, Shanghai, and Chengdu. Pernod Ricard plans to follow suit with The Chuan Malt Whisky Distillery Experience Centre within the distillery’s grounds.
