China Should Raise a Glass of Moutai in Tough Times
Kweichow Moutai keeping prices high despite an economic slump signals that now is the time to ease up a little.
A toast heard round the world.
Photograph: Universal Images Group/Getty
Kweichow Moutai Co. just did the opposite of what business logic and economic theory would normally recommend. But the Chinese liquor giant is no normal business, and the rest of the country should raise a glass to the company’s confidence amid much national uncertainty.
Its slowest revenue growth in two years led the distiller last week to report sales and revenue for the third quarter that missed estimates. Consumers drank a lot less of its famed baijiu white spirits than expected during the recent Mid-Autumn and Golden Week festivals. Given slumping property prices, escalating youth unemployment, and a declining manufacturing sector, there’s really not a lot celebrate.