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Moutai to boost production by 7.8% to satisfy demand
China’s best known Baijiu brand Moutai is aiming to produce 46,100 tonnes of Baijiu in 2018, bolstered by strong market demand in China, the company has announced.
The production target is a 7.8% increase from 42, 771 tonnes produced in 2017. Supply for the high alcoholic grain liquor was described by the company as “under great strain” since the beginning of the year, due to high demand, as China’s high-end spirits market gradually picks up.
In one instance, the liquor company released 5,600 tonnes of Baijiu stocks to sate fervent consumer demand during China’s National Holiday and Mid-Autumn Festival.
The liquor company aims to produce 120,000 tonnes of Baijiu by the end of 2020 based on its five-year plan.
Sales of the Moutai dipped after China launched an anti-corruption campaign a few years ago that bans alcohol consumption at official functions.
Earlier in August, the company’s stocks slid by 2.9% on the Shanghai stock exchange after the Guizhou province, the home of the liquor company, announced a blanket ban on spirits consumption at official banquets in the province.
Earlier in April, the Baijiu producer saw its market value reach US$71.5 billion, beating Diageo into second place at US$71.1bn.