Drunk or alert: Moutai latte mixes up latest coffee sensation

The buzz over the latte using Moutai liquor has incited heated discussions on Monday.

Drunk and Alert

Young consumers joked that the new mashup of the national liquor brand and local coffee chain store Luckin Coffee would keep them “drunk and alert” at the same time.

The innovative latte flavor, which costs 19 yuan (US$2.62) from Luckin stores and online delivery, went on sale on Monday morning, drawing attention and divided comments on microblogging and social media platforms.

A New Attraction

The convergence of seemingly unrelated items has created a new attraction for customers.

“With a slight touch of Moutai fragrance, the new beverage still tastes much like a latte,” said Shanghai resident Kino Chen, who ordered one from a Luckin shop near his office on Monday morning.

Using liquor-favored distilled milk with less than 0.5 percentage of alcohol in the coffee drink, many think the new taste is worth trying but any buzz won’t last long.

A microblogging user nicknamed NowHere96 said the latte tasted like chocolate with a touch of an alcoholic flavor, and said those who were allergic to liquor should avoid it.

It’s the latest move of Moutai to push alcohol-flavored snacks after its tie-up with Mengniu Diary for liquor-flavored ice cream last year.

Young Consumers

The new latte flavor created curiosity, wide social media discussion and a peek into why young consumers embrace new flavors and new product types.

Spirits with low alcohol percentages, such as those around 10 percent, are most welcomed by the young generation, and the combination of soft drinks and spirits brings huge demand for new product innovation, according to a recent study by Ries Positioning Strategy & Consulting China.

Industry watchers suggest that new beverage flavors and fresh experiences have beefed up spending and provided a strong boost for the overall service segment.

Similarly, mashup is applied in new entrants such as teahouses and studios, which have added new momentum for a rebound of consumer sentiment.

About E. J. McKay

E.J.McKay is a Shanghai-headquartered investment bank with a special focus on mergers & acquisitions. We are one of the most long standing independent investment banks in China, with core business of mergers & acquisitions and financing advisory.