Core Viewpoint - The Chinese liquor industry, particularly Baijiu, is accelerating its international expansion as domestic market conditions become challenging, with major companies like Kweichow Moutai and Wuliangye actively seeking growth opportunities abroad [1][2]. Industry Overview - In 2024, the production of Baijiu in China saw a decline of 1.8%, with major listed companies reporting weak performance [1]. - The total export value of Chinese Baijiu reached $970 million in 2024, marking a 20.4% increase, while the export volume was 16,400 liters, up 6.3% [3]. - Kweichow Moutai alone accounted for over 70% of the Baijiu export market, with overseas revenue reaching approximately $7.02 billion, a 19.27% increase year-on-year [3]. Company Strategies - Kweichow Moutai aims to become an international company by 2035, while Wuliangye has prioritized international markets as a key goal for the year [1]. - The company has been enhancing its product structure and optimizing its export strategy to improve sales quality in international markets [3][4]. Market Challenges - Despite the growth in exports, Baijiu's international presence remains limited, with exports only accounting for 2.4% of the global spirits trade [5]. - Cultural differences, competition from established international brands, and tariff barriers pose significant challenges for Baijiu's global expansion [6]. Long-term Vision - Kweichow Moutai has outlined a long-term strategy focusing on quality, cultural promotion, and sustainable practices to enhance its international brand influence [7][11]. - The company is actively pursuing international certifications and has achieved significant recognition in ESG ratings, which are increasingly important for global market entry [8][12]. Sustainability Efforts - Kweichow Moutai has implemented comprehensive sustainability measures, including carbon footprint reduction and resource recycling initiatives, aiming for a 20% reduction in carbon emissions by 2030 [13][14]. - The company is also working with suppliers to promote green practices and certifications, contributing to a sustainable supply chain [14].