Baijiu, Aug. 1 -- old high-proof liquor known for its fiery flavor and strong presence at business banquets, is undergoing a transformation as distillers target younger, health-conscious consumers.

Distilled mainly from sorghum and containing up to 60% alcohol, baijiu is central to Chinese drinking culture and social rituals like the customary gan bei (bottoms up) toast. Yet as modern drinkers shift away from heavy drinking and lavish feasting, baijiu's producers are innovating to stay relevant.

"If you like spirits and haven't tried baijiu, it's like eating noodles but never trying spaghetti," said Canadian wine expert Jim Boyce, founder of World Baijiu Day. The annual event promotes awareness of the spirit outside China, where it's le...