Tsingtao Brewery, China's second-largest brewing group, has established a long-term partnership with Ireland's Great Northern Distillery (GND) to import and eventually produce whisky. The move marks a significant shift for the more than 120-year-old beer producer, as it seeks to capture a growing demand for premium spirits among younger, status-conscious consumers amidst stagnating sales in the traditional domestic beer and baijiu markets. (inside.beer, 28.08.2020)
Under the new agreement, GND will initially supply Tsingtao with mature Irish whiskeys aged between three and 21 years. These products will be distributed through Tsingtao's extensive nationwide sales network. Furthermore, the alliance provides the Chinese company with the technical expertise required to construct its own whisky distillery in China. GND, founded by industry veteran John Teeling, boasts an annual production capacity of 20 million liters (200,000 hl) and will support Tsingtao's ambitions. A specialized blending team will also be formed to develop flavor profiles tailored specifically to Chinese and broader Asian consumer preferences.
This strategic expansion comes at a time when traditional alcohol consumption in China is facing structural changes. While overall alcohol sales are weakening, whisky is gaining traction outside of its typical niche in bars. According to industry observer Vino Joy News, whisky is increasingly replacing premium Cognacs at business dinners and wedding banquets, particularly in southern China. Consumers are shifting towards more cost-effective alternatives, finding strong value in 12-year-old single malts priced around CNY 200 (approx. EUR 25) instead of expensive traditional spirits.
- Tsingtao is not the only domestic player heavily investing in this category. Shanghai Bairun Investment Holding Group, known for its RIO ready-to-drink cocktails, has recently invested over CNY 1 billion (approx. USD 148 million) to expand its whisky maturation capacities. International beverage conglomerates have also recognized the trend, with Diageo, the maker of Johnnie Walker, opening its own local distilleries to tap into the evolving Chinese market.
