SINGAPORE. In what it describes as a targeting of “the greatest opportunity yet for duty free” Cognac house Camus has launched Spirit of China, a pioneering range of China’s leading wines and spirits brands.
The range will be accompanied by a merchandising programme designed to give an international showcase to the brands. They will be targeted both at traveling Chinese and other international groups.
The lines are Moutai, Gu Yue Long Shan and Chunghwa Cognac.
As previously reported, Chunghwa Cognac has been launched via DFS Group, which holds the worldwide duty free rights to the famous cigarette brand’s first foray into liquor. However DFS will allow Camus to distribute the brand to selected other duty free retailers. Camus is the brand’s manufacturer and worldwide distributor. The Chunghwa tobacco brand is owned by the Shanghai Tobacco Group.
Gu Yue Long Shan is manufactured by the Zhejiang Yellow Rice Wine Group – the largest producer of Rice Wine in China. The company sells over 8 million cases a year, mostly under the Gu Yue Long Shan brand. The company is committed to a long-term plan for developing its volumes and its premium positioning, both domestically and internationally. Camus has been appointed as the brand’s exclusive worldwide duty free distributor, offering a premium version of the domestic market product.
Moutai is an icon of China and the Guizhou Moutai Group is described by Camus as “China’s most emblematic liquor company”. The company enjoys a quasi-monopoly on the production of the region’s famous spirit.
The Moutai brand is a controlled appellation and sells more than one million cases a year. It is considered China’s most prestigious and symbolic spirit and is the official liquor at state banquets. Its standard quality is priced at VSOP Cognac level. Again, Camus is the exclusive worldwide duty free distributor and will offer a premium version in the channel.
The “˜Spirit of China’ concept includes an elegant in-store merchandising unit. Camus said: “As Chinese travellers visit the stores, we need to make sure they can see very quickly that there is a place in the store that caters to them and where they will feel comfortable shopping. At the same time we want to bring to the non-Chinese traveler the level of product information and reassurance that is needed to make them comfortable buying Chinese brands of wines and spirits.”
Camus described the traveling Chinese market as “the greatest opportunity yet for duty free”, saying that there will be an estimated 50 million Chinese traveling by 2010. “The Chinese traveller already represents a major source of revenues in duty free tobacco and cosmetics retail, with penetration rates of over 30%. However, liquor is lagging behind almost all other categories in its ability to capture revenues from this nationality, with penetration rates at less than 10%.”
The company said that no single wines or spirits brand currently performs well with the Chinese traveler in penetration terms compared to other nationalities. Spirit of China attempts to address this issue based on a dual premise: 1) at equivalent quality level the Chinese prefer to buy Chinese liquor brands; 2) with the notable exception of Chunghwa cigarettes Chinese brands have historically not marketed themselves well to either the Chinese or international traveler. “There is a therefore a huge demand for world class Chinese brands of wines and spirits in duty free that has remained unanswered until today,” said Camus.
Camus President Cyril Camus said he was very honoured to launch the concept. “I have a great feeling of pride and it’s very flattering to be entrusted with these great brands,” he told The Moodie Report.
Approximate duty free price points are US$55 for Gu Yue Long Shan, US$65 for Moutai and US$125 for Chunghwa.
Look out for an interview with Cyril Camus about the Spirit of China, coming soon.
Comment: Camus has long been rightly regarded as one of the travel retail industry’s most innovative suppliers and this launch is its most inspired yet.
The merchandising beautifully captures the heritage of the brands and of China. And the ranging of three such famous lines seems sure to be a massive hit in duty free. Sky Connection’s impressive success with Chinese wines and spirits at Hong Kong International Airport shows the market potential for Chinese brands. That market looks certain to become a whole lot bigger in coming months.
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Former Hennessy and Gallo executive Michael Beamish joins Camus in key Asia Pacific role – 12/05/05
Camus launches Chunghwa Cognac via DFS; hot cigarette line extension listed in Singapore – 08/02/05
