Key Points
- Baijiu is the most-consumed spirit in the world, but not popular outside of China.
- Australian baijiu makers face production challenges, especially high labour costs.
- A 500ml bottle of Australian-made baijiu can cost as much as $188.
When his first bottle of baijiu was packaged last April in Tasmania, Tim Ye thought his distillery had finally made it, following three years of preparation.
One year later, Chinese-born Mr Ye and his Australian business partner Ian Spykes had not earned a cent of profit from their business.
“We don’t sell a lot. Some people may be hesitant because of the price [of our baijiu], and we don’t seem to have found our target customers yet, resulting in unsatisfactory revenue from this business,” Mr Ye says.
“But we have not yet thought of giving up unless we’ve been doing it for decades [and continue to fail]."
Making a high-quality Chinese product in Australia means a lot to me as a Chinese migrant here.Tim Ye
While an estimated 5 billion litres of baijiu are consumed in China annually, the planet’s most drunk spirit is struggling to find its way on the international stage, including in Australia.
According to the Chinese National Bureau of Statistics, baijiu exports account for only 0.24 per cent of total production (6.7 million kilolitres), making up for 0.72 per cent of baijiu sales in 2022.
Tim Ye and Ian Sypkes went to China to visit a local baijiu distillery in Moutai Town in 2018. Credit: Supplied by Tim Ye
‘Tastes like petrol’
Baijiu, which translates to ‘white alcohol’ in Mandarin, is a high alcohol content Chinese distilled spirit made generally from fermented grains such as sorghum, wheat or barley.
As a Chinese who has been living in Tasmania since he moved from Guangdong in 2014, Mr Ye says he was surprised to find that baijiu is little known in Australia.
Some Australian locals say it [baijiu] tastes like petrol or Firewater.Tim Ye
According to the General Administration of Customs of China, only 1.7 per cent of baijiu was exported to Australia in 2022.
The Asian region is the largest market for Chinese liquor exports.
Mr Spykes, another co-founder of the baijiu distillery in Tasmania, says many Australians have a bad experience with the drink, and its strong, “punchy” flavour can take some getting used to.
“Australians have either never heard about baijiu or they have had a one-off experience with it,” says the young Australian who also works as a civil engineer.
But the more you know about it, the more you enjoy it.Ian Sypkes
“Sitting down at a banquet with a bottle of baijiu, and having that as a part of the meal, that’s what I really like about it."
Ian Sypkes said that when he got his first bottle of baijiu in 2018, its unusual "punchy" flavour blew him away. Credit: Supplied by Ian Sypkes
Expensive production in Australia
Apart from the limited local market acceptance of baijiu, its high cost of production in Australia is another challenge faced by the two entrepreneurs.
On their website, a 500ml bottle is priced at $188.
Mr Ye explains that the solid-state fermentation in the baijiu-making process involves a lot of labour, which is costlier in Australia than in China.
“Also, Tasmania is a relatively remote region where the cost of transporting supplies is higher than the rest of the market,” he adds.
Harry Zhao, the marketing manager at a Brisbane baijiu distillery founded in 2020, says that they had also struggled with high costs.
“There is a shortage of professionals in Australia who know the baijiu-making process because this industry has not existed here before.
“We need to train novices to become baijiu-makers, which takes a long time and can be very costly.
“But the solution is that we use machines to reduce the labour – filling, labelling and packing are basically automated,” Mr Zhao adds.
Chinese-born Tim Ye and Australian young man Ian Sypkes spent three years preparing for their baijiu distillery in Tasmania. Source: SBS / Tianyuan Qu
‘Australian baijiu is just a baby’
For Melbourne liquor distributor Mohan Cao, the aroma of Australian baijiu is “definitely different” from the Chinese baijiu.
I don't think Australian baijiu is comparable to Chinese baijiu.Mohan Cao
She tells SBS Chinese that she is in contact with Australian baijiu producers to seek cooperation for her business.
After tasting the samples sent by the producer, Ms Cao describes the taste of Australian baijiu as “unique” and can be considered “entry-level baijiu”.
Mohan Cao is a Melbourne-based liquor distributor who sells more than 20 brands of baijiu imported from China. Credit: Supplied by Mohan Cao
“Freshly-made high-proof baijiu doesn’t have a pleasant flavour. It needs to be stored for years before it tastes good.”
She says Chinese baijiu can be centuries old, while the oldest homemade Australian baijiu she knows of is no more than five-years-old.
Australian baijiu is just a baby [given its age]Mohan Cao
Apart from the vintage, Ms Cao adds that the fermentation equipment used to make baijiu also plays an important role in imparting it a distinct flavour.
“In China, baijiu is fermented in mud or stone ponds that contain a variety of trace elements, which can impact its taste,” she explains.
Marketing manager Mr Zhao said the oldest of their locally produced baijiu is more than two years old. Credit: Supplied by Harry Zhao
Baijiu gains popularity overseas
Despite its low popularity outside China, the slight rise in its global recognition in recent years has provided a beacon of hope to the industry.
Jim Boyce, from Canada, who has been living in Beijing for many years, established August 9 as World Baijiu Day (WBD) in 2015 to make the liquor better known outside of China.
The theory behind how he arrived at this date is very interesting.
‘Ba’ is Mandarin for August and ‘jiu’ for the number nine, which comes phonetically very close to the word ‘baijiu’.
Mr Boyce said that he was aware of the growing popularity of Baijiu among non-Chinese drinkers.
He said WBD events have been held in more than 70 cities around the world in the past eight years, “from Lima to Los Angeles to London to Stockholm to Sydney to Shanghai”.
Since the first WBD in 2015, partners in 70-plus cities across the world have held events to introduce baijiu-inspired cocktails and other infusions. Credit: Supplied by worldbaijiuday.com
A lot of newcomers have tried baijiu straight up as well as in ice cream, cocktail, gelato, chocolate and many other forms.Jim Boyce
Meanwhile, Australia’s baijiu industry is seeing a glimmer of hope.
China's baijiu exports to Australia rose slightly, from 231 kilolitres in 2021 to 279 kilolitres in 2022.
Some Australian restaurants are beginning to pair baijiu with Chinese cuisine and bars are using it to make cocktails.
Both Ms Cao and Mr Zhao point out that more and more popular Chinese baijiu brands have begun to enter Australia to expand their overseas market.
“Australia used to only have the Moutai and Wuliangye brands, the most well-known baijiu labels in China.
“Now you can easily find many second-tier baijiu brands here,” Mr Zhao says.
Mr Boyce says he has been reading stories for over a decade about baijiu being the “next big thing” in the drinks industry, but he believes “that is easier said than done”.
Given that most countries already have their favoured spirits, it is hard for newcomers to break in when the competition is already so fierce and the shelves so crowded.Jim Boyce
“And many of the top [Chinese baijiu] brands pushing overseas are quite expensive, which also makes them a tougher sell for first-time buyers,” Mr Boyce adds.
Mr Ye said that promoting baijiu in Australia is a process that requires a lot of effort and their influence alone is limited.
“It can be said that it might take the efforts of all Chinese people to promote baijiu to become as prevalent as whisky.
“We have a long way to go."
In Australia, you must be 18 or older to buy or drink alcohol. When drinking, enjoy in moderation.
