The baijiu sector is entering a new phase in 2026, with the traditional growth model centered on distribution channels and multi-tiered wholesale networks undergoing a fundamental shift. Reducing inventory and reforming channel structures have become industry-wide priorities, prompting distilleries to pivot aggressively toward direct engagement with end consumers.

The key to cracking the consumer market lies in product innovation and expanding consumption scenarios, and Luzhou Laojiao Company Limited has already taken a leading step by deploying two strategic cards: lower-alcohol offerings and youth-focused branding.

Launch of 28-Degree Gaoguang Targets Everyday Consumption and Younger Drinkers

On June 25, 2026, Luzhou Laojiao officially launched its 28-degree Gaoguang baijiu, a significant addition to its lower-alcohol product line. Operated as an independent sub-brand aimed at the casual social drinking segment, the product targets consumers aged 25 to 35, filling a gap in everyday consumption settings. This positions it in a differentiated portfolio alongside the 38-degree Guojiao 1573, which is focused on high-end business banquets.

The shift toward lower-alcohol products has been a prominent trend in recent years, driven by practical growth considerations. According to data from the China Alcoholic Drinks Association, the country's low-alcohol beverage market was valued at approximately RMB 74.2 billion in 2025 and is projected to climb to RMB 172 billion by 2030. This expansion is fueled by changing demographics and evolving consumption habits, meaning the race is on to capture younger drinkers and novel usage occasions.

As the industry enters a period of deep adjustment and growth drivers move from channel expansion to end-user demand, lower-alcohol products have emerged as the most effective breakthrough at the product level. However, achieving this is no simple task. The primary challenge lies in preserving flavor complexity after reducing the alcohol content, as dilution often leads to a thinner, less satisfying taste, which is why few low-alcohol baijiu products have achieved blockbuster status.

Here, Luzhou Laojiao benefits from a distinct natural advantage: its centuries-old fermentation pits. The base liquor produced from these pits contains a far richer and more stable array of flavor compounds than those from ordinary pits, allowing the spirit to retain its layered character even after dilution. This is the foundation upon which the 38-degree Guojiao 1573 has built its remarkable success as a hundred-billion-yuan-level product.

Indeed, Luzhou Laojiao has established itself at the forefront of the low-alcohol segment. It launched the 38-degree Guojiao 1573 as early as 2001, and from 2015 to 2025, the product achieved a compound annual growth rate of over 30%, making it the industry's first, and to date only, low-alcohol high-end baijiu to reach the hundred-billion-yuan sales milestone. In its key market of Hebei Province, the 38-degree Guojiao 1573 commands over 70% of the low-alcohol high-end segment, and in some prefecture-level cities, it holds more than 80% coverage in premium baijiu banquet settings. The 38-degree Guojiao 1573 has become the core growth engine for Luzhou Laojiao, creating a dual-driver product structure alongside the classic 52-degree version.

With the introduction of the 28-degree Gaoguang, Luzhou Laojiao's lower-alcohol portfolio is gradually becoming more complete. Backed by the brand strength and channel network of the 38-degree Guojiao 1573, the prospects for the 28-degree Gaoguang look promising.

Youth-Oriented Branding Drives Long-Term Momentum

Youth engagement is the other pillar of Luzhou Laojiao's strategy. In recent years, the company has rolled out a series of effective marketing campaigns centered on revitalizing its brand image among younger audiences. In June, instead of hosting a traditional launch event for the 28-degree Gaoguang, the company announced a partnership as a special sponsor of Zhao Lusi's Macau concert, a move that resonated strongly with younger consumers.

Additionally, the 28-degree Gaoguang made an appearance at the Shenzhen Te'ang Festival, a city-level nighttime event co-created by 36Kr and local craft beer brand TAGSIU, which draws a crowd of young trendsetters. As the only baijiu product at the festival, the 28-degree Gaoguang attracted considerable attention. Notably, several specialty cocktails made with the spirit, including the Romantic Guangyao creation favored by Zhao Lusi, became must-have photo props in the hands of attendees.

For baijiu makers, expanding into new consumption scenarios, particularly the cocktail mixing segment, has long been a weak point. This requires both operational expertise and a spirit that can balance flavors effectively. However, successfully entering the cocktail space opens up enormous incremental growth opportunities. Bars and lounges have traditionally been a blind spot for baijiu, dominated by whisky, vodka, and beer. The market for base spirits in bar cocktails is worth tens of billions of yuan, representing a wholly untapped growth area for baijiu.

Moreover, by blending with popular beverages, cocktails help soften baijiu's signature intensity, making it more accessible to Gen Z consumers and younger women, thereby broadening the overall consumer base. Luzhou Laojiao has built a portfolio of brand IP initiatives around innovative drinking styles, including chilled baijiu and Chinese-style specialty cocktails. In 2009, the company launched the Guojiao 1573 Icy Drinking Style IP campaign to promote chilled consumption. This evolved into the Ice JOYS brand in 2018, with pop-up ice bars in Beijing's Sanlitun, expanding to bar venues in Shanghai and Chengdu the following year, and branching into art exhibitions, concerts, and micro-films from 2020 onward.

In recent years, Luzhou Laojiao has also made strides in social media marketing. By building an integrated model combining brand core, platform conversion, scenario-driven engagement, and user co-creation, and leveraging self-owned IPs such as the Cellar Master Festival, traveling museums, and sports event sponsorships, the company has successfully integrated its brand into consumers' daily lives.

Furthermore, Luzhou Laojiao has been a pioneer in sports marketing within the baijiu industry. During the 2018 FIFA World Cup in Russia, Guojiao 1573 was the only Chinese baijiu brand in the official hospitality suites. For the 2022 World Cup in Qatar, it released a FIFA-authorized limited-edition baijiu, entering the global fan market through officially licensed products. Now, for the 2026 World Cup in North America, the company has secured dual official exclusive licenses for two top national teams, Argentina and Portugal, and launched a commemorative edition themed "Peerless Duo," which has resonated strongly with football fans and younger consumers.

Against the backdrop of deep industry adjustment and a shift in growth logic toward consumer-driven demand, Luzhou Laojiao's comprehensive strategy is fundamentally about cultivating long-term growth momentum, transitioning its business model from channel-led to consumption-led. As its products continue to gain wider recognition and consumption scenarios expand, the results of these efforts are expected to become increasingly evident.