Blah blah blah, explain our structure, with the Hong Kong PLC and also the joint stock company.,
Number XXXX – No One Will Buy Your Whisky – It Will Never Be As Good As Western Whisky
Well let’s start with the question about how is quality defined? It’s fair to say that cost to purchase (and inferred cost of production) is at least one of the major influences when we define the quality of something. So let’s take a moment to look at Scotch – undoubtedly considered to be the world standard in whisky.
There’s an interesting article over on Oak and Barley which took a tiny look at Scotch, using the annual statistics published by the Scotch Whisky Association and a calculator. When you divide the value of exports by the number of bottles produced, you end up with an average value of £3.26 a bottle. That works out to ¥27.35 – less than a coffee at Starbucks!
Remember, that includes all the high end single malts within that average – some of which sell for hundreds and even thousands of pounds per bottle. Oh, and it includes profits for the distillery too. Add in the cost of glass, closures, labels, packaging and all the other non-liquid costs and it does make one wonder where the quality aspect kicks in. You can read all about it on the Scotch Whisky Association website and see for yourself.
China is actually the source of thousands of world leading products, and hundreds of world class brands, across all industries. There’s a strong possibility that those “leading western brands” that you cherish – are probably made in China (or at least contains components or parts that were made in China).
Just like every country in the world, there are top tier products, and cheaper alternatives. However, a lot of opinions in the west are influenced by a legacy of importers in their home countries, choosing to import the cheapest possible products to maximise their own profits. It’s kinda like the Dilbert approach to business.
What differentiates us is simple. We’re not some monstrous alcohol conglomerate driven by profits and dividends. We’re just over 200 (and still growing) shareholders who are first and foremost, whisky lovers. We’re driven by a commitment to make amazing whisky and every single one of us wouldn’t let a single drop out of our door unless it was truly world class. With a tasting panel of over 200 whisky lovers, we’re pretty confident we can hit our standards – and have a lot of fun along the way.
Then list through how we are going to make exceptional whisky.
Once you get big and successful – “they” will take it off you / your competitors will get you closed down.
This story goes around literally on a weekly basis in the ex-pat community. We all know someone with a story where they know someone who built an amazingly successful business (almost always a bar, or a restaurant) and then, just as they were making stacks of money – they suddenly closed down.
“They” closed me down. Typically referring to the authorities. Or “They got me closed down” as an inference that there was some kind of conspiracy involving local competitors.
The vast majority of the investors in Nine Rivers Distillery are either business owners, or senior figures in both local and international companies. We can all tell you one thing for sure – those stories are total nonsense!
Here’s what really happens – and you can take your pick of any of these REAL reasons.
- The business was a total flop from the start. In the example of F&B (as it’s the most common). Bad concept, bad location, insufficient investment, no business plan, nothing more than an idea that “I’m a cool person (IMHO) so if I open a bar everyone will come and drink with me”. Rather than admit failure, the convenient “they closed me down” story saves a lot of embarrassment.
- Total ignorance towards the processes, procedures, fire and safety requirements, licenses and HR laws – and then a completely aloof attitude when mistakes are pointed out. After months of ignoring the need to rectify the issues, the business owner will be fined. Sometimes those fines can be substantial and this can often result in a bar or restaurant closing down. Again, rather than admit faults, the owner will run with the “they closed me down” story.
- Tax evasion – and this is a lot more common than people consider. The view that “everyone else cheats tax so I just do the same” is a pretty bad attitude to start a business with. In most western countries, the penalties for tax evasion are much more serious than here in China, which is probably why some business owners choose to duck and dive around this. Again, those people will run with the “they closed me down” narrative instead of simply admitting, they got caught cheating tax and the back tax bill was too much for their business to fund.
- No work permit.