China 2015: BRAND PROFILE | 14. Moutai
COMPANY Kweichow Moutai Company, Ltd.
BRAND VALUE US$ 7.6 Billion
YEAR-ON-YEAR CHANGE -28%
YEAR FORMED 1951
Lower prices and increased online sales helped sustain business for this premium baijiu, despite government discouragement of the extravagant official spending that had helped drive consumption of traditional white alcohol.
In an effort to become more accessible, the brand entered a joint venture to sell its products in Yonghui Superstores. And it ended its presence on websites that sell liquor to avoid pricing schemes that could dilute the brand.
In 1951, the Chinese government combined several Moutai producers into a single state-owned venture. That company was restructured into the current corporate entity in 1997. Moutai was listed on the Shanghai Stock Exchange in 2001.
Net income increased slightly to $1.2 billion on a 3 percent rise in revenue to $2.2 billion, in the first half of 2014. For the full year 2013, net income rose 17 percent to $2.5 billion on revenue of $4.6 billion, a 22 percent increase.