Shares in Kweichow Moutai, one of China’s most valuable businesses and whose premium spirit is sold for about $200 a half-litre bottle, jumped 6 per cent on Wednesday after it raised distributor prices for the first time in six years.The company, which is synonymous with the strong grain-based liquor known as baijiu that was a favourite of the People’s Republic founder Mao Zedong, announced a 20 per cent increase in the price of its flagship product to Rmb1,169 ($160).
Steeped in domestic folklore and widely seen as a proxy for China’s vast consumer market, Moutai’s drink is a fixture at toasts in official and informal gatherings across the country and has helped the company emerge over the past decade as the world’s most valuable alcohol producer.
Its market capitalisation of more than Rmb2tn is the second highest in China, behind tech group Tencent, and it has for years been a core component of foreign exposure to the country.