Core Insights - The unveiling of the "Brandy Capital of China - Yantai" sculpture on July 4, 2025, marks a significant turning point for the Chinese brandy industry, following the recognition of Yantai as an "International City of Grapes and Wine" in 1987 [1] - The introduction of the new national standard for Chinese brandy in 2024, which emphasizes "no added sugar" and "no added oak extract," is set to redefine the competitive landscape of the brandy market globally [2][4] Industry Changes - The new national standard for brandy in China introduces the concept of "vineyard brandy," which is the first of its kind globally, setting a high bar for quality by prohibiting sugar and oak extract additives [2] - Imported cognac brands, which traditionally added sugar and oak extracts, are now required to disclose these additives on their labels, revealing the true nature of their products [3] Quality Comparison - Vineyard brandy, which does not add sugar or oak extract, is considered to have superior quality due to its natural fermentation process, resulting in a more balanced and refined taste compared to artificially enhanced products [4] - The absence of sugar in vineyard brandy offers a healthier alternative for consumers, aligning with the growing health consciousness among buyers [4] Market Potential - The Chinese brandy market is poised to become a new growth engine in the spirits sector, with the potential to capture a share of the high-end market traditionally dominated by French cognac [5] - The appeal of Chinese vineyard brandy lies in its lower alcohol content and zero sugar, making it attractive to high-net-worth individuals who prioritize quality and health [5] Historical Context - The origins of the Chinese brandy industry trace back to 1892 with the establishment of Zhangyu, which produced China's first brandy, "Koya," in 1914, marking the beginning of modern brandy production in China [7] - The success of Koya brandy at the Panama World Expo in 1915, where it won a gold medal, highlights its early international recognition [7] - In 2019, Koya's 15-year barrel-aged XO brandy won a blind tasting competition against renowned global brands, indicating the rising prominence of Chinese brandy on the world stage [7][8]