China's Moutai brand sees fast growth along Belt and Road

World
Europe

Kweichow Moutai, China’s national liquor, is reaping the benefit of the Belt and Road Initiative as sales in Central and Eastern Europe have jumped by almost 90 percent since its proposal in 2013, said Zhang Deqin, deputy general manager of the Moutai group.

Moutai's overseas sales in the first six months (H1) of 2017 grew by 40 percent year-on-year, according to a company report, with sales in 26 countries along the Belt and Road accounting for nearly 19 percent of all sales.

AFP Photo

"We will explore more markets with better understanding of consumption habits, levels, economic conditions of Belt and Road countries," Zhang said, adding that the group would look for overseas franchise opportunities.

Globally, Moutai is sold in 78 countries and regions, the group earned 314 million US dollars through exports of 1,721 tonnes of Kweichow Moutai and other alcoholic beverages, the company reported.

Bloomberg Photo

Moutai’s shares touched a record intraday high of 500.10 yuan each on August 14, and recently changed hands at 491.27 yuan in Shanghai, giving the company based in the township of Maotai 617 billion yuan (93.7 billion US dollar) in market capitalization. In H1, Moutai’s market value surpassed Guizhou’s gross domestic product.

The Chinese liquor group, best known for making a fiery rice liquor called baijiu, is the world’s most valuable liquor company by market capitalization.

Produced in Guizhou Province, Moutai is often served on official occasions in China, such as state banquets.

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