Leading China’s high-end liquor market, Kweichow Moutai has survived the country’s frugality campaign and aims to top the world liquor market. Just as Russia has its vodka, China has its own distilled spirit called baijiu, a kind of white spirit made from sorghum, wheat or rice. And Moutai is the best. With a history traced back to the 1st century B.C., Moutai first impressed foreigners with its mellow aroma at the 1915 Panama Pacific International Exposition…Full Article: Xinhua May 2015

Key Point

  • In 2012, a 500ml bottle of Kweichow Moutai 53-degree liquor (the company’s primary product) cost CNY 2,000 (~US$316). In 2015, the price for Moutai 53-degree liquor dropped to CNY 1,000 (~US$161) per 500ml bottle.

ChinaAg Comments

  • In August 2014, Kweichow Moutai announced forming a joint venture with Yonghui Superstores and Shenzhen Guomaoyuan Commerce and Trade Co Ltd. Through the JV, Moutai would sell its liquor in Yonghui supermarkets. The profit breakdown would be 60% for Moutai and 20% each for Yonghui and Shenzhen Guomaoyuan.
  • In February 2013, China’s NDRC (National Development and Reform Commission) fined Kweichow Moutai CNY 247 million (US$39.5 million) due to price fixing.
  • In January 2013, the NDRC and Price Bureau in Guizhou Province investigated Kweichow Moutai in accordance with China’s 2008 Anti-monopoly law. Moutai was forcing distributors to sell at high prices
    In November 2012, Chinese product safety officials found excessive levels of plasticizers in a sample baijiu liquor that was manufactured by Jiugui Liquor Co.
  • Established in 1999 in Guizhou province (southwestern China), Kweichow Moutai is a state-owned enterprise in China, specializing in the production and sales of Maotai liquor, together with the production and sale of beverage, food and packaging material, and development of anti-counterfeiting technology.

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