Luxury alcohol brands compete for China, and cultural capital

Alcohol companies survive on the art of entertainment. As historic protagonists of social events, from dinner parties to award ceremonies and balls, beverage brands have always been uniquely positioned to authentically champion art, culture, and music. But it’s only in recent years that they’ve advanced their collaboration strategies, capitalizing on cultural positioning. In a bid to maintain relevance in the zeitgeist, household brands are increasingly tapping into the creativity and followings of artistic talent – whether it’s Hennessy V.S.O.P recent work with Chinese popstar Jackson Wang and his fashion brand Team Wang, iconic designer Philippe Stark joining Mortlach Whiskey as its first Creative Director, or American artist Daniel Arsham designing a bottle for Moët & Chandon or Japanese starchitect Kengo Kumo designing for Dalmore Whiskey. Despite a global slowdown in spending, major players continue to see growth, and as competition intensifies, many brands are creatively evolving. China remains a pivotal market for the luxury alcohol industry: according to a 2024 report by alcohol data and intelligence company IWSR, China’s beverage alcohol market is projected to grow by $41.7 billion between 2022 and 2027, particularly noteworthy when contrasted with the US’s growth of $12 billion in the same period. “Whether it’s artists, sports people, celebrities, fashion designers, musicians or actors, we always look for partnerships that embody innovation and share our values of cultural richness and collective achievement,” says Isabel May, chief marketing officer of Moët & Chandon. In 2024 alone, we’ve witnessed a surge of collaborations: JW Anderson unveiled a Guinness-embossed Milan fashion week collection, crystal brand Baccarat collaborated on a Martell cognac decanter, wine brand Penfolds celebrated 180 years with Kenzo creative director Nigo, and Hendrick’s Gin joined Wiederhoeft on a lingerie capsule. The creativity and collaboration emanating from the alcohol industry reflects the increasingly competitive landscape. With the Covid-19 hangover leading to an economic slowdown, and younger generations declaring themselves sober, brands face increased pressure to establish themselves as cultural tastemakers. “Our partnership with the arts is pivotal, as it reflects our devotion to culture and the enduring pursuit of crafting memorable experiences,” says May. “In collaborating with artists such as Daniel Arsham, we're able to intertwine a forward-thinking vision with our own storied history.” Layering in creative branding Whisky brands have been particularly active in the creative collaboration sector. Johnnie Walker Blue Label has a ongoing program: most recently partnering with digital artist Luke Halls on futuristic, new tech cityscapes around the world, with 10 limited edition bottle designs envisioning a new era of innovation in each city. Often blending brand heritage with boundary-pushing aesthetics, the whiskey label has past collaborated with the likes of hip Chinese fashion designer Angel Chen for their annual Lunar New Year limited edition bottles. Glenmorangie also shows devotion to culture; this year, the 1843-founded brand reunited with Japanese artist Azuma Makoto to reimagine a limited edition 23-year-old malt. Renowned for his sublime installations that champion botanical beauty, Makoto skilfully brought to life the whisky’s floral notes. “We often partner with creators around the world to explore new possibilities when it comes to our whiskies,” says Glenmorangie head of distilling, Dr. Bill Lumsden. “This continues to fuel our creativity, but also helps us welcome even more people into our wonderful world.” Diverse creatives can reimagine brands by inviting new visions, layering on existing identities. As Makoto himself explains, external talents bring fresh perspectives, through a creative process that’s entirely different from their solo work, as they have to interpret brand needs. “Since it's not just my own artwork, I always keep in mind to firmly anchor the core of the project that the brand would like to express,” says Makato. “I constantly think about how I could use flowers and plants to bring that core to life through artistic expression.” Flowers are often at the center of Makoto's work, and they formed the inspiration of the alcohol’s flavors. “During the time we spent together exploring the Scottish Highlands around the Glenmorangie Distillery,” says Dr. Lumsden. “Azuma and I marveled at the natural world around us and he introduced me to the Japanese notion of “Shinra-bansho” (森羅万象), which celebrates all of nature - from the ground to the sky.” “The attitude towards...listening to the voice of the flowers, and thinking about how to express them in the best possible way,” says Makato. “I believe that such attitudes and philosophies create originality, which is human creativity that AI cannot replicate.” In addition to the limited-edition whisky, a dedicated sculpture was produced, constructed from orchids and roses sourced at Tokyo’s Ota market, an image of which adorns the bottle itself, enhancing the brand's reputation as a celebrator of culture within the luxury space. Consumers are thus purchasing more than alcohol – they’re investing in art. Fashioning identity Beyond art, fashion is a major industry alcohol is setting its sights on. Designers are invited to reimagine bottles or design collections inspired by established brands, positioning them within pop culture as style tastemakers and enhancing their cultural prestige. The collaborations often work well: a 2024 search for Moët & Chandon on Xiaohongshu still prominently features images of the Ambush-designed bottle that launched in 2021. The cult label is one of several fashion collaborators partnering with the champagne brand, with other names including streetwear designer Don C, as well as French designer Charles de Vilmorin, who curated a space at the recent Paris Olympics for visitors to enjoy Moët champagne alongside the cuisine of Yannick Alléno. “We were captivated by [de Vilmorin’s] creativity and the exuberant spirit of his designs, which mirror the essence of what we aspire to encapsulate in our champagnes – joy, celebration, and artistry,” says May. “He visited our home in Epernay and got inspired by the nature close to Château Saran, which he translated into a vibrant, colorful experience. We wanted the place to be memorable and surprising for our guests – a place to explore our champagne in a new and different way.” New generation Fashion collaborations not only infuse artistic expression into a brand, such as in Moët’s partnership with de Vilmorin, they also expand consumer bases. Winning over younger generations is a historic battle for brands, but partnering with popular trendsetters is often a surefire way of gaining street cred. Hennessy V.S.O.P for example, found success through its partnership with Team Wang. Alongside a dedicated cognac bottle, the collaboration birthed a series of videos titled “Mixology,” serving as both a creative and promotional venture by blending Wang's artistic style with Hennessy's age-old heritage. While Hennessy boasts global recognition, its reach on Gen Z-dominated platform Xiaohongshu reveals the power of these partnerships: #Hennessy has 2.6 million views, while #teamwang has 516.3 million. Fan power of that scale is golden as brands reach young consumers. In addition, searches for Hennessy on the platform also feature the brand’s NBA pop-up experience at The MixC Xiamen, where consumers posed next to a giant basketball to reinforce the brand’s identity as youthful and streetwear-adjacent. Reports reveal Gen Z drinks 20% less than Millennials, driven by a rise in conscious consumption. The shift has crafted a new advertising arena for alcohol brands, compelling them to adapt through high-level strategies focused on playful experiences, tapping into communities and subcultures, and embracing style elements previously unexplored. In China, foreign brands are constantly competing with baijiu's dominance and homegrown giants like Moutai. It’s a bold new era, with more geographical complexity, but one where more luxury alcohol brands are strategizing by taking note from the structure of fashion houses. Additional reporting by Jing Zhang

Luxury alcohol brands compete for China, and cultural capital

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Published August 23, 2024

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Luxury alcohol brands compete for China, and cultural capital