KKR-backed Chinese baijiu maker ZJLD aims at nationwide product roll-out after completing Hong Kong’s biggest IPO this year

China’s fourth-largest baijiu distiller raised HK$5.3 billion (US$675 million) via Hong Kong’s biggest IPO this year

Liquor distiller is betting on its niche products to grow its market share and catch up with bigger rivals like Kweichow Moutai and Wuliangye Yibin

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ZJLD Group, a Chinese liquor company is betting on its niche products to grow its market share as China’s fourth biggest privately-owned distiller catches up with bigger rivals. Photo: WEIBO

Published: 1:30pm, 19 Jun 2023Updated: 2:39pm, 20 Jun 2023

ZJLD Group, Hong Kong’s first listed maker of baijiu or the traditional fiery tipple, is betting on its niche products to grow market share as the distiller catches up with bigger domestic rivals like Kweichow Moutai and Wuliangye Yibin.

“In many parts of China, we have a market gap,” said Guo Liang, general manager of ZJLD, which is backed by US investment firm KKR & Co with a 16 per cent stake. “To achieve revenue growth, our next phase will be to fill the market gap,” that is to expand its business nationwide, he added.

According to Guo, the company has established around 150 bases across the country to further expand the market in provinces like Henan, Shandong, and Guangdong.

The distiller, based in southwestern Guizhou province, raised HK$5 billion (US$636.9 million) in April by selling more than 490 million shares at HK$10.82 each, making it Hong Kong’s biggest initial public offering (IPO) in the year to date.

A technician checks the liquor, white wine, in the cellar of ZJLD Group, a Chinese liquor company. (Photo: ZJLD Group)

Baijiu is a traditional Chinese liquor with a 5,000-year history and is the world’s most consumed liquor, although very little is found outside China’s borders. It is distilled from grain, usually sorghum or rice, with additions of sticky rice, wheat or corn being common and has alcohol content ranging from 35 to 55 per cent.