Liquor industry ready to go global in Guizhou
Updated: 2012-08-21 15:00
By Yang Jun, Zhao Kai and Su Jiangyuan in Guiyang (China Daily)
|
||||||||
Projects worth 43.97 billion yuan were signed at last year's China (Guizhou) International Alcoholic Beverage Expo. This year, set to open on Sept 9, the event is expected to see more investment projects inked. Photos provided to China Daily |
Building on the success of last year's China (Guizhou) International Alcoholic Beverage Expo, Guiyang, capital of Southwest China's Guizhou province, is set to host the event once again from Sept 9 to 13.
More than 1,100 liquor manufacturers and traders are expected to sign commercial contracts worth more than 25 billion yuan ($396.8 million) during the five-day expo, said organizers.
Nearly 500 enterprises and more than 500 business delegates are expected to join the liquor trade show.
The event is expected to have an even greater influence compared to the one last year.
By building an ideal business platform for the liquor industry and helping companies explore overseas markets, the expo has attracted worldwide attention in recent years.
By foraying into international markets, the liquor sector exemplifies the booming economic development of Guizhou.
Opening-up
"Guizhou should expand its horizons and vision to establish more platforms to boost the liquor industry and seek investment opportunities" said Zhao Kezhi, Party chief and governor of Guizhou province, at a provincial liquor industry development conference held in 2011.
His notion is based on the industry's development status quo.
Traditionally, Guizhou's liquor industry has been renowned for Moutai, the top national banquet liquor. But lately, the industry has been experiencing a market pinch, causing manufacturers to look for new opportunities.
Guizhou Vice-Governor Meng Qiliang said that the expo has provided a successful platform to strengthen international cooperation. It serves as a stage where Guizhou can showcase its brands and demonstrate its strength to the world.
More than 800 domestic and overseas liquor companies attended the gala last year, and nearly 10,000 exhibitors, dealers and 160,000 visitors joined the event.
"It is a professional exhibition for the world's most-famous liquor brands and a platform for industry insiders to exchange opinions and seek cooperation opportunities," said Jiang Zengwei, vice-minister of commerce, recalling his past experience in Guizhou.
Vice-Premier Wang Qishan made a speech at the opening ceremony last year, saying, "In addition to the liquor industry, this event has also created many opportunities to promote the development process of other related industries".
Wang concluded that it has been "good practice" for Guizhou to set up an industrial pioneer such as Moutai.
Going global
The liquor industry has played a highly important role in Guizhou's development.
The platform created by the fair has shown the depth of Guizhou's liquor culture, promoted industry influence and attracted a number of outside investors.
According to official data, last year the exhibitors and buyers signed more than 1,670 contracts valued at nearly 44 billion yuan. A total of 148 government investment projects were set into motion, and investment capital reached more than 118 billion yuan.
The numbers are expected to hit another high this year.
As of Aug 3, more than 445 overseas liquor companies had accepted the invitation to attend this year's international liquor fair. The number has continued to increase in recent days.
Ninety-seven French companies, 84 Spanish companies, 49 from Italy, 26 from Australia and 20 companies from Germany will join more than 660 domestic firms at the event.
Organizers also mentioned that this year, Guizhou is focusing on promoting larger projects, such as resource deep-processing projects and high-tech industrial projects. To date, Guizhou has pooled 926 investment promotion projects for the upcoming event.
"In terms of the exhibition area and the number of exhibitors, the China (Guizhou) International Alcoholic Beverage Expo has reached the requirements for a world-class event," Jiang said.
He hopes the fair will become the best place for international investors to find new opportunities and can help to open doors for companies looking to launch or expand their presence overseas.
Data shows that the number of foreign exhibitors has increased from 168 last year to 445. And 90 percent of the leading import countries of Chinese liquors will participate this year.
Foreign exhibitors include world-famous brands Hennessy XO, Remy Martin XO, Rafi Latour and Carlsberg Heineken, which all rank among the top 10 brands in the world and are representative of several different types of alcoholic beverages.
Brands
As China's largest production base for "sauce-fragrance" liquors and the home of Moutai - one of the world's three best-known liquors -Guizhou has a unique advantage and potential in the industry.
In addition, due to its sustainability and low resource cost, the liquor industry has been identified by the government as an ideal path to economic development.
Guizhou has put forward a bold target to build Moutai into the "world's most famous distilled liquor brand" in the next five to 10 years, and build the city of Renhuai, where Kweichow Moutai Group is located, into "the Cultural Capital of Baijiu Liquor in China".
Yuan Renguo, chairman of the group, said the company will focus on becoming an international brand.
The Moutai group has been implementing various strategies to reach the goal, such as attracting more global talent and strengthening their financial projects in overseas markets.
In addition to Moutai, some other local liquor brands also seeking ways to implement their own global strategies.
Dongjiu Liquor, for example, is one of the oldest brands in Guizhou. After experiencing a downturn for the past decade, it recovered in recent years, and now it is working to make new forays into the international market .
In early 2008, Dongjiu decided to relocate its production facility to an economic park in the Guangxi Zhuang autonomous region as a starting point to initiate a nationwide marketing project.
Yi Jigang, chairman of Dongjiu Liquor, said this move will greatly help the brand expand their business to the ASEAN market.
In addition, other rapidly developing brands, like Zhenjiu, Guotai and Guijiu, also expressed their intent to venture into international markets.
Contact the writers at yangjun@chinadaily.com.cn, zhaokai@chinadaily.com.cn and sujiangyuan@chinadaily.com.cn
World's largest porcelain wine jar, with a height of 113.5 cm and a diameter of 85 cm. It can hold 353 kilograms of liquid. Made in Renhuai, the city in Guizhou province that governs Moutai, it was on display at the expo. |
Zajiu, a folk tradition popular among Miao, Yi, Qilao ethnic groups in Guizhou. |
Dangmen Liquor, the wine presented to visitors upon arriving at the home of people from the Miao ethnic group. |
The production line of Jiuzhongjiu liquor, the famous brand located in the city of Renhuai, Guizhou province. |
A glance of the county of Moutai, home of one of the nation's most famous liquor brands. |
(China Daily 08/21/2012 page24)