THE WORLD S MOST VALUABLE LIQUOR COMPANY IN NOT WHAT YOU WOULD EXPECT!
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1 THE WORLD S MOST VALUABLE LIQUOR COMPANY IN NOT WHAT YOU WOULD EXPECT! Dr. Inge Russell 2017 Alltech, Inc. All rights reserved.
2 THE WORLD S MOST VALUABLE LIQUOR COMPANY IN NOT WHAT YOU WOULD EXPECT! 2017 Alltech, Inc. All rights reserved.
3 It s not Johnnie Walker any more!
4 DISRUPTION IN THE ALCOHOL INDUSTRY Some Baijiu history and this fascinating spirit s move out of China to the global marketplace Counterfeit alcohol Why millennials are disrupting the landscape for alcohol consumption Some innovative examples of products aimed at millennials Two things to remember to thrive in this disruptive alcohol marketplace?
5 Johnnie Walker What is happening?
6 Just how big is this Baijiu market?
7 What exactly is Baijiu ( 白酒 )? Pronounced Bye Joe/ Buy Jee-oh/ Bye Gio or Bah-Joo in English Name Báijiǔ literally means white alcohol It has a billion-strong fan base in China Very ancient and very strong Chinese liquor (40-60% alcohol)
8 HOW IS BAIJIU PRODUCED? Image Source: baijiuamerica.com/what-is-baijiu/
9 BAIJIU PRODUCTION IS A UNIQUE PROCESS Few publications in English on its production Solid-state fermentation process A blend of raw materials sorghum, wheat, rice, sticky rice, corn Blend of micro-organisms (Qu) Distillation Unique aging process
10 THE FIRST TIME MOST NORTH AMERICANS HEARD OF BAIJIU President Nixon and Premier Zhou Enlai toasting with Maotai during Nixon s 1972 visit to China CBS Dan Rather liquid razor blades
11 BAIJIU PRODUCTION Image Source: baijiuamerica.com/what-is-baijiu/
12 SORGHUM IS THE MOST WIDELY USED GRAIN IN BAIJIU PRODUCTION
13 STEAMING THE GRAINS
14 PRODUCTION OF QU (PRONOUNCED CHEW) Very different process from a a beer or whisky fermentation!
15 SACCHARIFICATION STAGE Converting the starch to usable sugars
16 SOLID STATE FERMENTATION
17 DISTILLATION Traditional stills are like a dumpling steamer Some repeat the process by adding fresh grain and ferment and distill again Comes out at over 70 % alcohol and then requires aging Cottage industry in the past
18 AGING IN POTS Above ground Below Ground Inside aging Outside aging
19 BAIJIU: THE ESSENTIAL GUIDE TO CHINESE SPIRITS BY DEREK SANDHAUS
20 FROM THE LUXURY BRAND MAOTAI.. A 43-part TV series about a legendary Qing Dynasty gunfighter-turned-winemaker who founded the baijiu industry.
21 KWEICHOW MAOTAI The production process takes five years during which it is distilled 9 times and aged in clay pots. 53 % alcohol.
22 KWEICHOW MAOTAI Aroma and taste are reminiscent of Soy Sauce, pear, walnut and almond.
23 WULIANGYE - Five Grains Liquid Proso millet Maize Glutinous rice Long-grain rice Wheat 52% alcohol Marked fruitiness mainly pineapple notes, licorice, with savory elements, soy sauce and a distinct dryness.
24 EAST MEETS WEST Introducing Baijiu to the North American Palate via HKB (Hong-Kong Baijiu) $50 dollars for 1000 ml $160 dollars for 375 ml
25 EAST MEETS WEST Introducing Baijiu to the North American Palate via HKB (Hong-Kong Baijiu) Sorghum, rice, glutinous rice, wheat, corn First distillation China finished in Italy distributed in North America $50 dollars for 1000 ml Delicate bouquet of green apples and meadow grass on the nose with notes of hawthorn and toffee on the tongue
26 PRICE OF BAIJIU Very dependent on where produced and type of baijiu Price ranges from very inexpensive and everyman affordable to over $1000 dollars a bottle
27 COUNTERFEIT ALCOHOL AND THE TRUST ISSUE Estimate is that 30 % of alcohol consumed in China is fake Alibaba.com sells bottle labels Europe has significant problems with counterfeiting Online sales of empty rare scotch bottles
28 MILLENNIALS AND ALCOHOL TRENDS Millennials defined as the generation born between 1980 and 2000 They love mobile technology and love sharing.everything! (Facebook, Snapchat, Yelp, TripAdvisor, Youtube etc.)
29 MILLENNIALS AND ALCOHOL TRENDS Want authenticity and no knock-offs Greater emphasis on health Love the concept of handcrafted, local, organic (craft beer, craft spirits, craft wines) High wine consumption and more expensive wines Like to drink spirits socially rather than alone Love the theatrical aspect of cocktails Cannabis and disruption of liquor sales
30 MILLENNIAL CONSUMER AND ALCOHOL ATTITUDES It is all about new experiences Moderation is key Quality over quantity Influencers on the baby boomers Disruptive as they have huge buying power US forecast is that millennials will spend than $200 billion annually starting in 2017
31 MARKETING TO THE MILLENNIAL CONSUMER Millennials are the first generation to wring 26 hours out of a 24-hour day by multitasking on multiple devices at once Over 80% of millennials report using two or more Internet devices while watching TV Gaining their confidence will require a very different mindset
32 MARKETING TO THE MILLENNIAL CONSUMER Never wait at the bar again for your drink.. Have to ask Harriet if she knows how Clip they do not like internet links fo Introducing the Martini Smart Cube want to insert short video clip here to play on how it works - not sure how to capture and insert
33 MARKETING TO THE MILLENNIAL CONSUMER Would you share your DNA with a wine company?
34 MARKETING TO THE MILLENNIAL CONSUMER Is your taste in wine really in your DNA??
35 MARKETING TO THE MILLENNIAL CONSUMER The hot new trend for this summer Shim Drinks ( low alcohol)
36 THE HOT TREND FOR THIS SUMMER SHIM DRINKS It is all about the millennials (again!) Lower alcohol ( no more than half an ounce of strong spirit) High quality healthy ingredients and craft beers and spirits It is about the theatrical Trying and then sharing on social media
37 HOW DO YOU SUCCEED IN SUCH A DISRUPTIVE ENVIRONMENT?
38 IT IS ABOUT BEING NIMBLE Craft beers craft spirits
39 IT IS ABOUT BEING AUTHENTIC What is your story? Are you appealing to my heart? How good is your quality? Can I trust you?
40 THE GENIUS IS IN FIGURING OUT HOW TO BE BOTH NIMBLE AND AUTHENTIC TO SUCCEED IN THE NEW GLOBAL ALCOHOL MARKET WHERE NOTHING STAYS THE SAME.
41 Thank you
42 Extra slides
43 TALENT HITS A TARGET NO ONE ELSE CAN HIT GENIUS HITS A TARGET NO ONE ELSE CAN SEE ( Arthur Schopenhauer)
44 COUNTERFEIT OR THE REAL THING? Millennial consumers want authenticity and quality Point and shoot testing technology coming.
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