THE FINANCIAL EYE ASIA Is China’s beloved drink ready to make a comeback? Find out how this popular tipple is bouncing back from its hangover!
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Is China’s beloved drink ready to make a comeback? Find out how this popular tipple is bouncing back from its hangover!

Is China’s beloved drink ready to make a comeback? Find out how this popular tipple is bouncing back from its hangover!

Unveiling the Unlocked Insights of the Editor’s Digest without Cost

Embark on a journey through the world of baijiu, China’s fiery national spirit that challenges the palate with its unique characteristics and potent alcohol content. Let’s delve into the intriguing story behind this iconic Chinese spirit.

  • Baijiu, distilled predominantly from sorghum, boasts an impressive alcohol content of around 50 per cent, making it a formidable contender among spirits worldwide. Pairing impeccably with deep-fried and spicy Chinese cuisine, this drink holds a special place in the hearts of many.
  • For years, Kweichow Moutai, the leading distillery group in China, reigned supreme as the most valuable stock in the Chinese market, surpassing even renowned companies like Diageo. However, with changing consumer trends and a slowdown in high-end liquor demand, the company faced a decline in market value.
  • Despite the challenges, Kweichow Moutai continues to showcase resilience. While prices of their liquor dropped significantly, the company’s operating income soared, maintaining an impressive operating profit margin of 67 percent. The drink’s popularity is not limited to China, as exports to various regions like Asia, Europe, and North America are on the rise.

  • Recent developments, such as Hong Kong’s decision to reduce liquor duties and China’s retaliatory tariffs on European brandy, have added unexpected twists to the story. These factors, along with the company’s strategic initiatives like share buybacks, may provide the much-needed boost to reignite baijiu sales.

In conclusion, the tale of Kweichow Moutai and baijiu serves as a testament to the ever-evolving landscape of the spirits industry. With a blend of tradition, innovation, and global appeal, this iconic spirit continues to captivate palates and markets worldwide. As we raise our glasses to the future, let us toast to the enduring legacy of baijiu and the possibilities that lie ahead.

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