The earliest evidence for the consumption of alcohol in the region that is now Beijing lies in the archeological discoveries of drinking vessels (Gu, Jue, and You) from the Shang[4] and Zhou[5] dynasties, about 3,000 years ago.

[7] The first spirits in the region came with the advent of distillation around 800 years ago after which production processes were developed and expanded into a successful commercial industry.

In the 1680's, during the Qing dynasty, three brothers working as heads of the Yuanshenghao distillery, experimenting with various methods of distillation discovered that their best product came while the second pot of cold water (which served as the condenser) was atop the still.

"[1][2][6][7] This new style of baijiu gained notoriety in and around Beijing over the following centuries and so nearing the Chinese Civil War and prior to the foundation of the People's Republic, 12 distilleries in and around Beijing were nationalized and merged into a single distillery and issued the first business license in modern China, for the purpose of producing baijiu for the festivities surrounding Proclamation of the People's Republic of China.

'Red Star') has grown into one of the nation's most widely consumed spirits (particularly in Beijing itself)[7][8] and its label, designed by a Japanese Red Army enlistee, has become one of the most iconic brands.