Cheers to Angostura’s return to China

THE BITTERS made by Angostura Ltd are world famous. That fame looks set to be extended by the company’s recent return to the Chinese market. It’s a sweet move.

On December 20, the Ministry of Trade and Industry announced a $1 million shipment to that country by Angostura under a July 2024 distribution agreement signed with Caribbean Commercial Management (Hangzhou) Company Ltd, a subsidiary of First Caribbean Marketing Company Ltd.

The freight of orange bitters, aromatic bitters and various premium rums adds to $3 million in products which have been sent to China thus far.

"The shipment is a strategic move by Angostura to strengthen trade relations and showcase craftsmanship, quality and the heritage of the company’s products on the world stage," said Trade Minister Paula Gopee-Scoon in a media statement.

Angostura has exported to China before.

It did so in 2019 but paused before signing this year’s distribution deal, which involves marketing activities.

Aside from the ceremonial sealing of a container in Laventille this month at Angostura headquarters, officials also held a celebratory event at the Embassy of the Republic of TT in Beijing, China, in September.

Still, we toast the company, in operation for over two centuries, for making such moves.

China is one of the largest, if not the largest, alcohol market in the world, with revenues expected to grow to US$385.6 billion by 2027, according to one estimate.

Angostura has a substantial global reputation and already operates in 170 jurisdictions and recently made entreaties to tap into markets in Kyrgyzstan, Nepal, El Salvador, Colombia and Panama.

So it makes sense to head to China, too.

Further, TT must push its non-energy sector. The State has a role in encouraging Angostura, in which it has a stake, to leverage its heritage and history in transforming export possibilities.

That’s one way to encourage economic momentum.

According to the Central Bank, real GDP grew by 1.5 per cent year-on-year in the first quarter of 2024, driven by resilience in the non-energy sector.

Unemployment fell from 5.1 per cent to 4.8 per cent in the second quarter of the year.

Entrenching one’s presence in global markets is a must for exporters now, at a moment when the global economic outlook is relatively stable.

The International Monetary Fund projects 3.2 per cent growth for 2024, slightly below the 3.3 per cent recorded in 2023, even amid geopolitical conflicts.

Yet storm clouds loom.

Tariff wars have been threatened because of Donald Trump’s return to the White House and China is a particular bone of contention for the Republican party leader.

In the event of some global trade being stymied, this may turn attention to alternative trade relationships – which could present some companies with fresh opportunities. Angostura must prepare.

However, from the perspective of "soft diplomacy" alone, the move also makes sense.

In this regard, it is a hopeful tonic in a globalised order increasingly under threat.