Shede Liquor's Tang Huan: Many young people don't like drinking baijiu because it's too strong. Shede has produced baijiu at 29 degrees while still retaining the flavor of baijiu.

Sina Finance’s “Liquor Price Insider” Launches with Key Insights into the Real Market Prices of Well-Known Baijiu

Special Topic: 2026 Yabuli Forum Annual Conference

On March 18, during the 2026 Yabuli China Entrepreneurs Forum Annual Conference, Tang Huan, President of Shede Spirits Co., Ltd., shared his views in the “New Consumption Forum: Understanding Consumption Logic” session.

He stated that the formula for consumer goods is: number of users multiplied by consumption frequency, multiplied by the amount per consumption, multiplied by the unit price. To grow the business, you need to identify the variables and incremental factors. Currently, in the Baijiu industry, all four variables are declining—fewer people, disappearing scenes, and falling prices—so it’s no surprise that the category is struggling.

He believes that to overcome industry difficulties, the Baijiu sector needs to find more users and create more consumption scenarios. He shared Shede Spirits’ approach: first, product innovation—considering what kind of Baijiu young people want to drink. Last year, Shede launched the industry’s first ultra-low-alcohol Baijiu. Previously, many people disliked drinking Baijiu because it was too strong and uncomfortable to drink. Shede managed to produce a 29-degree Baijiu that still retains the flavor of Baijiu. This is different from simply adding a bottle of mineral water to high-proof Baijiu, which dilutes the alcohol and flavor proportionally, resulting in a watery, bland taste. The core technology of Shede’s 29-degree Baijiu is reducing ethanol content while preserving flavor compounds. The low alcohol content minimizes physical irritation, yet it still has the characteristic Baijiu flavor—an industry breakthrough.

Second, they focus on delivering ultimate value-for-money rather than just cost performance. While their product may not taste better than others, it is much cheaper. Conversely, their high-end products, priced at 400 yuan, can give consumers a premium experience equivalent to 1,000 yuan. “We are one of the Chinese Baijiu companies with the largest reserves of aged liquor, which gives us an advantage. To make our liquor better, we blend in more aged liquor to enhance the flavor, giving us confidence in offering the best value.”

Third, they emphasize experience marketing. The wine estate experience model, successful in the wine industry, is now being adopted in Baijiu. Shede Spirits’ distillery is well-equipped and was among the first in China to propose the concept of ecological brewing, called the Forest Distillery. The distillery offers many activities for families and visitors to learn about brewing and Baijiu knowledge. “We receive about 220,000 visitors annually, with a 20% growth rate each year.”

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Editor: Yang Ci