Foreign spirits producers eyeing middle class

One of the three biggest spirits producers, Pernod-Ricard, released a type of cognac this year that costs around 500 yuan. It is aimed at the middle class market and selling really well, said Fan.

Dadong, a high-end restaurant chain known for its roast duck, now features single malt whisky on its menu. Restaurants run by hotel brands of Shangri-La and Hyatt lower their price through replacing their expensive wines with middle-level-priced ones. With the expansion of China's middle class, foreign spirits will be positioned as more of a family drink, following a similar trend in the US, Fan said.

Chinese consumers are learning to drink quietly at home instead of showing off on social networks or in public. Also, frequent news reports about adulterated white spirits made by Chinese producers will help push Chinese consumers in the direction of foreign alcohol brands, Fan added.

"The young generation and rising middle class will be more open to foreign spirits. The potential room for producers is big because the types of spirits they introduce to China now are still a small part of their portfolio," he added.