This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
News
China’s Kweichow Moutai makes its first move into Africa
China’s biggest baijiu producer, Kweichow Moutai, has made its first market expansion into Africa, with its latest brand promotion initiative in Cape Town, South Africa.
Li Baofang, general manager of Moutai, speaking at Moutai’s ‘Meeting in Africa through the Unique Aroma’ in Cape Town, SA. (Photo source: 非洲华侨周报)
The move announced in the backdrop of China’s ambitious ‘One Belt, One Road’ initiative – an economic network to connect China with Asia, Europe and Africa – is seen as the company’s strategic plan to use South Africa, a gateway to the African continent.
According to Moutai’s own statistics, its baijiu expressions were sold in 26 countries along the ‘One Belt and One Road’ Initiative, which accounted for 26.53% of its global sales. However, the African market comprises only 1%, as reported by China Daily.
“This is the first time the company has taken steps to enter the African market,” Li Baofang, general manager of the Guizhou-based distillery, was quoted as saying.
“We chose Cape Town as the gateway for Moutai to enter the African continent, as the city in South Africa holds a strategic position among countries involved in the Belt and Road Initiative.”
Since China’s president Xi Jinping proposed the Initiative in 2013, Moutai has ramped up its global branding campaign, accelerating the momentum of its global expansion. The baijiu distiller’s market value now exceeds US$120 billion, surpassing Diageo to become the world’s most valuable alcoholic beverage producer in the world.
It has already launched branding events in Moscow, Milan, San Francisco and Hamburg. Earlier this year in Australia, the company launched a Moutai cocktail competition to inspire bartenders to incorporate the fiery spirit in their concoction.
The company will continue its promotional trip in Africa to Namibia and Mozambique.
The company and a dozen Chinese companies with operations in Africa, including Huawei, Hisense and Sinosteel, also signed a Proposal for Africa-China Enterprises “Belt and Road” Common Development Alliance during Moutai’s event in South Africa.