Latest news with #Moutai
Mint
9 hours ago
- Business
- Mint
Moutai Posts Worst Growth in Years as Chinese Cut Back on Liquor
(Bloomberg) -- Kweichow Moutai Co. delivered its worst six-month growth in sales or profit in years as China's top distiller struggles with weak consumer demand for premium beverages. First-half revenue increased 9.2% from a year earlier to 91.09 billion yuan ($12.7 billion), while net income climbed 8.9% to 45.4 billion yuan, the company reported Tuesday. Those are the slowest semiannual increases since at least 2016, according to data compiled by Bloomberg. The distiller, which has targeted sales growth of about 9% for the year, has seen flagship liquor Feitian's wholesale price — the fee Moutai distributors charge alcohol retailers — continue to slide and even reach a record low this year, as consumers pulled back on spending amid economic uncertainty in China. Wholesale prices for Feitian 2024 and Feitian 2025 in original packaging have declined by 16% to 17% year-to-date, according to Bloomberg Intelligence analyst Ada Li. In a further blow to liquor prices, China's government in May issued a notice reminding officials to cut wasteful spending on travel, food and office space. The austerity drive could further risk tanking demand for liquor at government banquets and corporate events. The company even replaced its signature liquor with blueberry juice at a buffet during its annual shareholders meeting that month, local media reported. To address falling prices, Moutai distributors in some provinces have adopted supply restrictions to channels including e-commerce platforms, according to a local media report. Still, Moutai's earnings have been largely shielded from the volatility in wholesale prices as it sells its sorghum-based liquor, known as baijiu, to distributors at a fixed price of 1,169 yuan per 500 milliliter bottle. Smaller baijiu makers have been more exposed. Sichuan Swellfun Co.'s profit slumped 57% and sales fell 13% in the first half, according to a preliminary earnings report. Jiugui Liquor Co. has warned first-half net income dropped by at least 90% and revenue to shrank by 43%. 'A strong rebound in baijiu is unlikely through year-end, as new anti-extravagance rules dampen demand and wholesale prices amid destocking and tight inventory controls,' said Bloomberg Intelligence's Li. Still, the fallout from the latest austerity push may be less severe than a crackdown in 2012, thanks to more adaptable producers and already-reduced government demand, she added. Moutai shares have been under pressure due to the wholesale price weakness. The stock dropped 5.7% so far this year, compared with a 5.3% gain in the Shanghai Shenzhen CSI 300 Index. An index of China-listed liquor makers has fallen 8.8% this year. --With assistance from Foster Wong. More stories like this are available on
Bloomberg
13 hours ago
- Business
- Bloomberg
Moutai Posts Worst Growth in Years as Chinese Cut Back on Liquor
Kweichow Moutai Co. delivered its worst six-month growth in sales or profit in years as China's top distiller struggles with weak consumer demand for premium beverages. First-half revenue increased 9.2% from a year earlier to 91.09 billion yuan ($12.7 billion), while net income climbed 8.9% to 45.4 billion yuan, the company reported Tuesday. Those are the slowest semiannual increases since at least 2016, according to data compiled by Bloomberg.
The Star
3 days ago
- Business
- The Star
China's fiery baijiu spirit evolves to attract younger drinkers
The centuries-old fiery Chinese spirit baijiu, long associated with business dinners, is being reshaped to appeal to younger generations as its makers adapt to changing times. Mostly distilled from sorghum, the clear but pungent liquor contains as much as 60% alcohol. It's the usual choice for toasts of "gan bei,' the Chinese expression for bottoms up, and raucous drinking games. "If you like to drink spirits and you've never had baijiu, it's kind of like eating noodles but you've never had spaghetti,' said Jim Boyce, a Canadian writer and wine expert who founded World Baijiu Day a decade ago. The annual event aims to promote the traditional liquor, which is far less known internationally than whiskey or vodka. Shirley Huang, out with friends on a Friday night at the bar in Sanlitun, talks about the baijiu spirit at a bar in Beijing, China, Friday, June 13, 2025. (AP Photo/Ng Han Guan) Moutai, a kind of baijiu made in mountainous Guizhou province in southwestern China, is known as the country's "national liquor.' Perhaps its biggest endorsement came in 1974, when U.S. Secretary of State Henry Kissinger banqueted with Deng Xiaoping, who would later become China's top leader. "I think if we drink enough Moutai, we can solve anything," Kissinger said. "Then, when I return to China, we must take steps to increase our production of it,' Deng replied, according to an archived document from the U.S. State Department's Office of the Historian. A bottle of a popular brand of the fiery Chinese baijiu spirit is seen at a bar in Beijing, China, Friday, June 13, 2025. (AP Photo/Ng Han Guan) Price fluctuations of Feitian Moutai, the liquor's most famous brand, serve as a barometer for China's baijiu market. This year, its price has dropped by 36% after four consecutive years of decline, according a report by the China Alcoholic Drinks Association. The report forecast China's baijiu production will likely fall for the eighth straight year in 2025. Baijiu consumption has dropped as people spend more cautiously, cutting back on banquets and drinking due to a weaker economy. Perennial anti-corruption campaigns by the ruling Communist Party targeting lavish official dinners have taken a harsh toll. In May, the party issued new rules banning cigarettes and alcohol during work meals. A worker test the baijiu from a vat at Jiangxiaobai Liquor Co.'s Jiangji Distillery in southwestern China's Chongqing on May 19, 2025. (AP Photo/Andy Wong) China's drinking culture is evolving, with younger people keen to protect their health and less inclined to overindulge or be bound by rigid social conventions. Faced with far more choices, they might instead opt for whiskey, wine or non-alcoholic alternatives. "There is an old saying in China: 'No banquet is complete without alcohol.' It means in the past, without alcohol there is no social lubricant,' 30-year-old Chi Bo said while having cocktails with friends in Beijing's chic Sanlitun area. "People no longer want to drink alcohol or tend to drink less but they can still sit together and even discuss serious affairs,' Chi said. "Most of the people don't want to drink alcohol unless they have to.' A worker shows the Green Plum Liqueur, a mix handcrafted single sorghum baijiu with plum juice to reporters during a media organized tour at Jiangxiaobai Liquor Co.'s Jiangji Distillery in southwestern China's Chongqing on May 19, 2025. (AP Photo/Andy Wong) Baijiu makers are responding with creative innovations like baijiu-flavored ice cream. Kweichou Moutai partnered with China's Luckin' Coffee last year to introduce a Moutai-flavored latte that reportedly sells 5 million cups a day across China. Bartenders also are designing cocktails using a baijiu base. "There are so many choices right now,' Boyce said. "It's just about fighting for attention in terms of choice.' Jiangxiaobai, a newer brand made in southwestern China's Chongqing, has targeted young consumers from the beginning. It offers fruit-infused baijiu with an alcohol content below 10%, packaged in smaller, more affordable bottles adorned with philosophical or sentimental phrases meant to resonate with Chinese youth such as, "Unspoken words. In my eyes, in drafts, in dreams, or downed in a drink.' "Our promotion of products combines the culture and lifestyle young people advocate," Jiangxiaobai marketing director Fan Li said. "From our products to our branding, it's a process of embracing the younger generation." Shirley Huang, out with friends on a Friday night in Sanlitun, said she had never touched baijiu at age 27, preferring cocktails. But that night, something new on the menu caught her attention: a baijiu-based cocktail. "Baijiu is quietly making its way into our lives. We just haven't noticed,' she said "It may not appear as itself, but it reemerges in new forms.' – AP
South China Morning Post
02-08-2025
- Entertainment
- South China Morning Post
Baijiu ice cream? Chinese drinks makers target Gen Z as alcohol sales drop
Long associated with business dinners, the fiery Chinese spirit baijiu is being reshaped to appeal to younger generations as its makers adapt to changing times. Distilled mostly from sorghum, the clear but pungent spirit contains as much as 60 per cent alcohol. It is the usual choice for toasts of gan bei, the Chinese expression for bottoms up, and raucous drinking games. Jim Boyce, a Canadian writer and wine expert, founded World Baijiu Day a decade ago. The annual event aims to promote the traditional spirit, which is far less known internationally than whiskey or vodka. Canadian writer and wine expert Jim Boyce founded World Baijiu Day. Photo: AP Moutai, a kind of baijiu made in mountainous Guizhou province in southwestern China, is known as the country's national spirit. Perhaps its biggest endorsement came in April 1974, when US Secretary of State Henry Kissinger banqueted in New York with Deng Xiaoping, who would later become China's top leader. 'I think if we drink enough Moutai, we can solve anything,' Kissinger said. 'Then, when I return to China, we must take steps to increase our production of it,' Deng replied, according to an archived document from the US State Department's Office of the Historian.
CTV News
01-08-2025
- Business
- CTV News
China's fiery baijiu spirit evolves to attract younger drinkers
A worker shows the Green Plum Liqueur, a mix handcrafted single sorghum baijiu with plum juice to reporters during a media organized tour at Jiangxiaobai Liquor Co.'s Jiangji Distillery in southwestern China's Chongqing on May 19, 2025. (AP Photo/Andy Wong) BEIJING (AP) — The centuries-old fiery Chinese spirit baijiu, long associated with business dinners, is being reshaped to appeal to younger generations as its makers adapt to changing times. Mostly distilled from sorghum, the clear but pungent liquor contains as much as 60% alcohol. It's the usual choice for toasts of 'gan bei,' the Chinese expression for bottoms up, and raucous drinking games. 'If you like to drink spirits and you've never had baijiu, it's kind of like eating noodles but you've never had spaghetti,' said Jim Boyce, a Canadian writer and wine expert who founded World Baijiu Day a decade ago. The annual event aims to promote the traditional liquor, which is far less known internationally than whiskey or vodka. Moutai, a kind of baijiu made in mountainous Guizhou province in southwestern China, is known as the country's 'national liquor.' Perhaps its biggest endorsement came in 1974, when U.S. Secretary of State Henry Kissinger banqueted with Deng Xiaoping, who would later become China's top leader. 'I think if we drink enough Moutai, we can solve anything,' Kissinger said. 'Then, when I return to China, we must take steps to increase our production of it,' Deng replied, according to an archived document from the U.S. State Department's Office of the Historian. Price fluctuations of Feitian Moutai, the liquor's most famous brand, serve as a barometer for China's baijiu market. This year, its price has dropped by 36% after four consecutive years of decline, according a report by the China Alcoholic Drinks Association. The report forecast China's baijiu production will likely fall for the eighth straight year in 2025. Baijiu consumption has dropped as people spend more cautiously, cutting back on banquets and drinking due to a weaker economy. Perennial anti-corruption campaigns by the ruling Communist Party targeting lavish official dinners have taken a harsh toll. In May, the party issued new rules banning cigarettes and alcohol during work meals. China's drinking culture is evolving, with younger people keen to protect their health and less inclined to overindulge or be bound by rigid social conventions. Faced with far more choices, they might instead opt for whiskey, wine or non-alcoholic alternatives. 'There is an old saying in China: 'No banquet is complete without alcohol.' It means in the past, without alcohol there is no social lubricant,' 30-year-old Chi Bo said while having cocktails with friends in Beijing's chic Sanlitun area. 'People no longer want to drink alcohol or tend to drink less but they can still sit together and even discuss serious affairs,' Chi said. 'Most of the people don't want to drink alcohol unless they have to.' Baijiu makers are responding with creative innovations like baijiu-flavored ice cream. Kweichou Moutai partnered with China's Luckin' Coffee last year to introduce a Moutai-flavored latte that reportedly sells 5 million cups a day across China. Bartenders also are designing cocktails using a baijiu base. 'There are so many choices right now,' Boyce said. 'It's just about fighting for attention in terms of choice.' Jiangxiaobai, a newer brand made in southwestern China's Chongqing, has targeted young consumers from the beginning. It offers fruit-infused baijiu with an alcohol content below 10%, packaged in smaller, more affordable bottles adorned with philosophical or sentimental phrases meant to resonate with Chinese youth such as, 'Unspoken words. In my eyes, in drafts, in dreams, or downed in a drink.' 'Our promotion of products combines the culture and lifestyle young people advocate,' Jiangxiaobai marketing director Fan Li said. 'From our products to our branding, it's a process of embracing the younger generation.' Shirley Huang, out with friends on a Friday night in Sanlitun, said she had never touched baijiu at age 27, preferring cocktails. But that night, something new on the menu caught her attention: a baijiu-based cocktail. 'Baijiu is quietly making its way into our lives. We just haven't noticed,' she said 'It may not appear as itself, but it reemerges in new forms.' ___ Associated Press video producers Olivia Zhang and Wayne Zhang in Beijing contributed to this report. The Associated Press
