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Moutai’s Decline Adds Pressure to China’s Most Indebted Province


Photo by FMT
Photo by FMT

Summary


  • Kweichow Moutai, China's leading producer of baijiu, faces declining demand, impacting both its sales and the local economy.

  • The company’s sales have slumped due to changing consumer tastes and deflationary pressures, leading to a decline in share prices.

  • Kweichow Moutai plays a crucial role in Guizhou province's economy, helping the region manage its significant debt.


 

Kweichow Moutai, the world’s largest liquor producer and China’s most iconic baijiu manufacturer, has seen its demand shrink in recent years. Traditionally consumed during weddings, state functions, and business dinners, Moutai has long been considered a luxury product. However, as consumer confidence falters in China, demand for Moutai has taken a hit. During the recent Lunar New Year period, fewer tourists flocked to Maotai village to purchase the renowned spirit, signaling a broader issue with the Chinese economy.

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