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The Hot Liquor that Ended the Cold War: Inside Kweichow Moutai Distillery

Distillery Spotlight: Kweichow Moutai Distillery

Region: Moutaizhen, Guizhou Province, China

 

Note: Our Distillery Spotlight articles break down how each distillery's unique process results in the distinctive flavour profiles of their spirit. Click here to learn about the 4 different categories of baijiu and our favourite brands and distilleries.

 

"蜀道之于上青天。"

Shǔ dào zhī nán, nányú shàng qīngtiān.

“The road to Shu Kingdom is harder than a climb up the heavens.”

  

An ancient saying from southwest China goes “The road to Shu Kingdom is harder than a climb up the heavens.” It refers to the ancient Shu Kingdom (蜀國) that existed around 250 BCE in modern-day Sichuan and parts of Guizhou Province. It is a highly mountainous region where ancient Chinese travellers would have found extremely difficult to traverse.

 

The town of Moutai, or Moutaizhen.

 

Over two thousand years later today, the valleys of Guizhou Province are shrouded in heavy fog and humidity, and still notoriously difficult to traverse. The region is highly mountainous, and the dirt roads unpaved and unlit. If you stick by the meandering Chishui River and boldly venture past the thick curtain of fog, you’ll actually see sights from an ancient kingdom – farmers manually tend to rice terraces and stakes of hay are carried on horse-drawn carts. You will also find a quaint town called Maotaizhen (茅台镇) nestled in tranquillity within the mountains. In contrast to the treacherous journey, the climate here is very mild and the scenery has a rough-hewn beauty. You would feel that time seems to stand still here, and your instincts would be right. In fact, Guizhou is one of the least developed provinces in China, untouched for decades by the rapid development that saw sprawling metropolises along the eastern seaboard of China.

And yet Guizhou Province is home to the world’s most valuable liquor distillery which is owned by the Kweichow Moutai Group. This single distillery is valued more than all of the 30 whisky distilleries owned by the UK Diageo plc combined.

 

 

Baijiu (pronounced “bye-joe”) is an intensely aromatic and flavourful grain-based spirit with over a thousand years of Chinese production history. To audiences familiar with rum, a typical baijiu’s flavour somewhat resembles Haitian white rhum (or clairin). However, of all categories of alcoholic spirits, the baijiu category probably sees the largest variance of quality and brand prestige. The cheapest bottles of baijiu could cost as little as US$2 from Chinese convenience stores – many of which taste undeniably bad and cut like razors. On the other hand, a genuine bottle of Moutai – often considered the finest example of baijiu– costs an upwards of US$400 and has a remarkably smooth texture. 

 

It may sound a bit much, but to drink a cup of Moutai is to quite literally drink the unique terroir of Moutaizhen.

 

So, what is Moutai’s cultural and geo-political significance? Why do Chinese businessmen and politicians invariably present Moutai to their guests? Is there any magic in the terroir and environment of Moutaizhen where the famous baijiu is made? And, is the Moutai brand worth the prohibitive price premium?

To answer these questions, we’ll delve a little deeper into the history of Moutai Distillery and the history of its eponymous town.

 

How the Moutai sensation began 

Moutaizhen is a tiny town which has one of the greatest concentration of liquor producers  in China – much like how the tiny Speyside region of Scotland hosts more than 50 whisky distilleries (Image Source: Bloomberg via Getty Images)

 

The term “Moutai” actually refers to a style of baijiu originating from Moutaizhen. Baijiu distillation in Moutaizhen dates back about a thousand years ago, when Guizhou Province had already earned its place as a famous baijiu-producing region in ancient China. Baijiu distillation in Maotaizhen prospered in the late 19thcentury when the rivercity (situated by the Chishui River) became a key waterway for shipping salt into the province. The trading of salt attracted many rich baijiu-drinking merchants to settle in Moutaizhen, increasing the town’s demand for baijiu. By the late 19th century, many small family-run distilleries dominated the baijiu market, with Maotaizhen boasting at least 20 family-run baijiu distilleries.

The Moutai style of baijiu first gained international prominence at the 1915 Panama-Pacific World Exposition in San Francisco when two producers from Moutaizhen, “Moutai Chun” and “Moutai Shaochun” both won Gold medals for their baijiu. 

 

(Image Source: PARC, NPS)

 

Fascinatingly, the elevation of Moutai baijiu is inextricably linked to China’s revolutionary past in the 1930s. During this period, wine was perceived as a drink that represented the decadent bourgeoisie class, while baijiu was closely associated with the working class. It also helped that Moutai played a small part in helping the Chinese Red Army win a decisive battle during the brutal civil war.

 
The Maotai Liquor Distillery in the 1930s (Image Source: Xinhua News Agency)

 

It was 1935 and the Red Army was engaged in protracted 2-month battle with nationalist forces along Chishui River, near Moutaizhen. According to legend, soldiers of the Red Army were offered Moutai baijiu as a refreshment to lift their spirits during the civil war. Other soldiers used the liquor to disinfect their wounds. The Red Army eventually won the battle, and this win was later recognised as a tipping point in the Red Army’s eventual victory over the nationalists.

Naturally, after the civil war, Moutai baijiu continued to be widely drunk by Communist Party leaders. After the Communist Party took power in 1949 and established a centrally planned economy, family-run private businesses ceased to exist. The largest baijiu distilleries were forced to enter into public joint-ventures with the government. Thus, the Chinese government purchased Chengyi Distillery – the largest baijiu distillery in Moutaizhen – before eventually purchasing two other local distilleries, Ronghe and Hengxing, to establish the Kweichow Moutai Distillery known today.

Shortly after the founding of the People’s Republic of China, Moutai baijiu became formally recognised as China’s “national liquor” in 1951.

 

 

But it really wasn’t until the 1970s that Moutai baijiu took on a yet more important role in geopolitics and international diplomacy. After a decade without contact, US President Nixon took a historic trip to China in February 1972 to re-establish diplomatic relations. This marked a turning point of the Cold War and a new era of cooperation between the US and China. The Chinese Premier Zhou Enlai threw a state banquet to welcome President Nixon, and eagerly offered Moutai baijiu to his American guests.

 

(Image Source: The Life Picture Collection / Getty Images)

 

At the table, Zhou proudly introduced the Moutai to Nixon as the liquor that had been famous since the 1915 Panama-Pacific Exposition. “This has an alcohol level of over 50 percent, President Nixon,” said Zhou, gesturing with a match to his cup. “It can indeed catch fire.” Nixon shared that he heard a story where the Red Army once relied on Moutai baijiu during a battle near the town. “Ah yes, during the Long March, this baijiu was used by our soldiers to cure all sorts of diseases and clean their wounds.”

“Let me make a toast with this panacea,” replied Nixon

With the clinking of glasses and a sip of warm Chinese liquor, decade-old tensions were set aside and relations were thawed between the superpowers. Surprisingly, President Nixon took well to the Chinese firewater and was gifted a few bottles to bring back to the US.

Western journalists photographed Nixon and Zhou sharing a toast, the subtly placed bottle of Moutai in the background being widely circulated in Chinese and Western media. All of this served as an unwitting publicity campaign that dwarfed the clout of even the biggest marketing campaigns by Coca-Cola.

 

 President Ronald Reagan shooting a cup of Moutai baijiu during a toast in Beijing in 1984 (Image Source: AP Photo)

 

From then on, Moutai baijiu became part of an important ritual to serve important guests at banquets or celebrations in China, something of a tradition. Two years after Nixon’s visit, the US Secretary of State Henry Kissinger met with China’s paramount leader Deng Xiaoping and was once again served Moutai. Kissinger joked with his host: “I think if we drink enough Moutai we can solve anything." These glowing endorsements by people of influence cannot be purchased by any sum of money.

Today, Moutai baijiu remains the liquor of choice favoured by Chinese high society during business or state events. Serving a bottle of Moutai is not merely a symbol of wealth, but also a clear message that you hold your guests in high regard. 

 

How does Moutai get its flavour?

Moutai baijiu is easily one of the most complex and layered spirits you would ever taste. It tastes so distinctly Chinese; it’s fresh, piquant, peachy and savoury with a mouth-watering note of light soy sauce on the finish. 

To understand how Moutai baijiu gets its flavour, we’d have to take a look at its native environment and distillery processes – even if much of the Moutai-making process is kept secret.

 

Aerial view of the Kweichow Moutai distillery, which occupies a large swathe of land along Chishui River (Image Source: Sixthone)

  

Before we try and describe baijiu within the paradigm of familiar distilled spirits, we should remember that baijiu is a completely different beast. There is a surprising number of differences. Just as an example, while Western spirits like vodka are fermented and distilled from a liquified grain extract, baijiu makers conduct both the fermentation and distillation processes over a solid mixture of grains.

 

 
While "Western" spirits such as whisky are fermented in a liquified mixture, baijiu is fermented from a wet but solid mixture of sorghum grains.  

  

If you step into one of Moutai Distillery’s buildings, you would see steaming piles of dark red sorghum grains and scores of barefooted men shovelling tirelessly in an unbearably humid environment, preparing the steamed grain for fermentation.  

 

Steamed sorghum is spread out for the fermentation process (Image Source: Getty Images)

 

To kick off fermentation, the distillery staff would add a fermentation agent known as “jiuqu” (酒曲) into the sorghum mixture, which is then fermented in a massive pit for one to three months. To a casual onlooker, the jiuqu looks like nothing more than a dried mash of water and grain shaped into a brick. However, under a microscope, every brick of jiuqu teems with an ecology of millions of beneficial microbes, molds and yeasts.

 

“Jiuqu” is a type of fermentation starter culture used to ferment baijiu in China. It is comparable to koji, which is used as the fermentation agent for saké, shochu, soy sauce and miso in Japan.

 

During fermentation, the microbes in the jiuqu work hard at converting starches into sugars, sugars into alcohol, proteins into amino acids and so on, producing a complex cocktail of flavour compounds from steamed sorghum grains.

Here is where the unique terroir and climate of Moutaizhen come into play. The proprietary jiuqu made at Moutai Distillery has its own unique biodiversity, naturally cultivated from the surrounding environment of the rivercity. Carefully cultivated and maintained for over 300 years, Moutai’s jiuqu had been passed down through generations of master distillers. They play a critical role in the unique flavour and aroma of the Moutai baijiu. 

 

 Tetramethylpyrazine is a nutty, musty compound found in cocoa beans, peanuts, soy sauce… and yes, Moutai.

 

Baijiu experts recognise 4 major flavour categories of baijiu and classify Moutai under the Sauce Aroma ()category. This is due to the sweet, savoury, nutty flavour of Moutai which is somewhat reminiscent of Japanese teriyaki sauce and Chinese soy sauce. Interestingly, the reason for Moutai’s nutty and savoury notes can be found in the unique microbes found in Moutai’s jiuqu. Under the microscope, researchers have found certain strains of Bacillus bacteria in Moutai’s jiuqu that readily create tetramethylpyrazine, one of the key compounds responsible for Moutai baijiu’s distinct savoury, nutty flavour.

 

Unlike Western liquor, baijiu distillation is performed over solid grains. Steam is passed through the fermented grain from below, carrying alcohol and flavour compounds into a cooling tower (Image Source: Kweichow Moutai / Jiangnan University)

 

After the fermentation stage comes distillation. Distillery staff transfer the fermented sorghum into a specialised still. Steam is passed through the fermented grains, extracting flavour, aroma and alcohol, which are then collected in a cooling tower. At Moutai, the mixture is distilled at least seven times to create a pure and smooth spirit.

Finally, a team of blenders would sample over 100 to 200 batches of spirit before blending them and sealing them in large clay jars and stored in a cool, dark place to age for 4 to 5 years. During this period, some alcohol evaporates, causing the baijiu to become more mellow. The spirit also undergoes some oxidation, forming new compounds and esters that enhance the flavours of the baijiu and make it more complex.

 

(Image Source: Ming River)

 

Embodying a Regional Spirit

Men hard at work at Moutai Distillery (Image Source: Bloomberg via Getty Images)

 

One might say that each cup of Moutai embodies the unique flavours from the Moutaizhen region. The mineral-rich Chishui River is provides an excellent source of water. The mild climate of Moutaizhen – characterised by its moderate temperatures – is said to be ideal for Moutai baijiu’s fermentation. Even the mist that shrouds the town is believed to play a role in the spirit’s aging process, keeping the baijiu at a consistent temperature and humidity.

Moutai Distillery had been struggling to meet its overwhelming demand for decades. It is said that in the 1970s, the Chinese government attempted to build a secondary Moutai plant across the valley. The attempt was to replicate an entire distillery complex from original floor plans right down to the production process and strains of jiuqu mold used for fermentation. While the process and equipment used were virtually identical, the resulting baijiu did not taste the same. It may sound a bit much, but to drink a cup of Moutai is to quite literally drink the unique terroir and otherworldly landscapes of Moutaizhen.

The brand faces a funny irony today. Despite Kweichow Moutai’s roots in China’s revolutionary past, bottles are now associated with opulence and the wealthy elite, with bottles offered as gifts to Communist Party bosses and occasionally as bribes for unscrupulous business executives. The baijiu has become such a Veblen Good in Asia today that genuine drinks enthusiasts would hesitate before purchasing a bottle to drink. Bottles aren’t unattainable, but there simply aren’t enough to go around while prices have been steadily bid up by speculators.

Amongst the more down-to-earth consumers, Moutai is also perceived to be an unnecessary expense; meant for conspicuous consumption and for keeping up with the Joneses. People do not seem to care how Moutai tastes as much as the fact that there is a bottle on their dining tables.

In recent years, the Kweichow Moutai Group has sought to keep prices sensible by expanding its production capacity and by forbidding distributors from increasing retail prices. The goal – however idealistic – is to keep Moutai an affordable luxury still accessible to the Asian middle class. Until the prices of Moutai become more sensible, perhaps it is pointless to ask “whether a Moutai is worth US$400 per bottle”. Perhaps we should be asking “whether this celebration is worth opening a bottle of Moutai.”

 

If you enjoyed this article, be sure to check out our review of the Kweichow Moutai baijiu.

 

@CharsiuCharlie