It’s a comeback story worthy of a Hollywood blockbuster. Three years ago, China’s once all-powerful liquor maker Kweichow Moutai looked to be on the ropes. President Xi Jinping’s anti-corruption campaign had dealt a vicious blow to the country’s most famous spirit brand—for years a staple on every government banquet table—and the company’s profits and share price had taken a hammering. By January 2014, Moutai’s shares were worth just over RMB 119 ($18.31) per share—a fall of 50% in 14 months. With no end to the crackdown in sight, some questioned whether the legendary distiller would ever recover.
As Chinese authorities implement new regulations to crack down on price-fixers, will consumers be better off or lose out in a pricing race to the bottom? China’s National Development and Reform Commission (NDRC) recently fined Kweichou Moutai and Wuliangye Yibin RMB 449 million (about $72 million) for violating antimonopoly laws. Although this represents only about 1% of the […]
How Mo Yan’s Nobel Prize win had someone else laughing all the way to the bank. Changing times can lead to changing fortunes. Recently, events gaining international attention have changed two enterprises’ fortunes for the better. One is a single-person operation while the other is a multi-billion dollar corporation; but both involve liquor and illustrate […]