Xifeng Liquor: Balancing Tradition & Tech to Conquer Global Baijiu Market

By Sam Lidman

Guizhou Province, China – For centuries, baijiu – China’s national spirit – has remained largely a domestic indulgence. But a quiet revolution is brewing, led by brands like Shaanxi Xifeng Liquor Co., Ltd., which are setting their sights on the global market. At the recent 2025 Chishui River Forum, Xifeng issued a call for greater “cultural confidence” amongst domestic baijiu producers, alongside a commitment to rigorous quality standards – a potent combination as they seek to penetrate increasingly sophisticated international palates.

While many Chinese brands are focusing on rapid expansion, Xifeng is taking a more nuanced approach, emphasizing the preservation of its centuries-old heritage while integrating modern technology to enhance production and ensure consistent quality. This strategy, according to industry analysts, positions the company for sustainable growth in a competitive global landscape.

A Legacy of Flavor: Understanding the ‘Fengxiang’ Aroma

Xifeng Liquor is one of China's 'Four Famous Baijiu Brands,' a designation earned through a rich history and distinctive production methods. What sets Xifeng apart is its 'Fengxiang' aroma – a complex, floral, and slightly fruity profile that differentiates it from other baijiu varieties. “The 'Fengxiang' aroma is the soul of our spirit,” explains one industry insider. “It’s a delicate balance that requires generations of expertise to maintain.”

However, maintaining this delicate balance is no longer solely reliant on traditional methods. Xifeng has invested heavily in modernizing its production process without sacrificing the essence of its craft. Central to this effort is the 'Laowuzeng' process – a unique, multi-layered fermentation technique.

Blending Ancient Techniques with Modern Precision

The ‘Laowuzeng’ process involves meticulously stacking layers of grains and water, allowing for a natural fermentation that develops the distinctive 'Fengxiang' aroma. Traditionally, this process relied heavily on the experience and intuition of master brewers. But Xifeng is now incorporating sensor technology and data analytics to monitor fermentation conditions with unprecedented precision.

“We're not trying to replace the expertise of our brewers,” clarifies a company spokesperson. “We're giving them tools to ensure consistency and optimize the process. This allows us to maintain the quality of our spirit while scaling production to meet growing international demand.” The company has also implemented stricter quality control measures, earning certifications like EU SGS and FDA approval, facilitating entry into regulated markets.

Navigating a Competitive Global Landscape

The global baijiu market is increasingly crowded, with brands like Luzhou Laojiao and Wuliangye also vying for international recognition. Each competitor employs a unique strategy. Luzhou Laojiao focuses on premiumization and luxury branding, while Wuliangye emphasizes volume and affordability.

Xifeng, however, is carving out a niche by emphasizing the authenticity of its ‘Fengxiang’ aroma and a commitment to sustainability. “Consumers are increasingly looking for brands that align with their values,” explains a market analyst. “Xifeng’s commitment to preserving its heritage and implementing environmentally friendly practices resonates with a growing segment of the global market.”

The company’s focus on sustainability extends beyond production. Xifeng is also investing in responsible sourcing of raw materials and reducing its carbon footprint. This holistic approach, according to industry observers, gives the brand a competitive edge.

Beyond China’s Borders: Expanding International Reach

Xifeng is strategically expanding its international presence, focusing on key markets in Southeast Asia, North America, and Europe. The company is targeting specialty liquor stores, Asian grocery chains, and online retailers. “We’re not trying to compete on price,” a company representative explains. “We’re offering a premium spirit with a unique story and a rich heritage.”

The company is also investing in marketing and brand awareness campaigns, highlighting the cultural significance of baijiu and the unique characteristics of the ‘Fengxiang’ aroma. Digital marketing and social media are playing a key role in reaching a younger, more globally connected audience.

The Future of Baijiu: A Balancing Act

Xifeng Liquor’s journey represents a broader trend in the Chinese spirits industry – a shift towards quality, sustainability, and global expansion. “For too long, baijiu has been seen as a niche spirit,” explains a leading industry expert. “But with brands like Xifeng leading the way, we're starting to see baijiu gain wider acceptance on the world stage.”

However, success will require a delicate balancing act – preserving the essence of this ancient spirit while adapting to the demands of a modern global market. Xifeng Liquor appears to be well-positioned to navigate this challenge, blending centuries of tradition with a forward-thinking approach to innovation and sustainability. Whether this ancient spirit can capture a significant share of the global market remains to be seen, but Xifeng Liquor is undoubtedly setting a new standard for quality and authenticity in the world of baijiu.