Industry still at early stage of consolidation — Rapid organic growth at China\\\\\\\'s
leading spirits producers has limited any impetus for industry consolidation. The
top 5 distillers have a combined market share of only 22% and the top 25
brands claim just 14% of industry sales, leaving ample room for further growth.
 Top players benefit from high barriers to market entry — Chinese spirits are
categorized into flavor types, with the three most popular being associated with
Luzhou Laojiao, Kweichow Moutai and Shanxi Fenjiu. Also, premium spirits are
an acquired taste derived from age-old production facilities and some blending
of vintage spirits, which cannot be easily replicated by would-be competitors.