After fashion accessories and clothing, it is now the turn of domestic alcohols to become the safe long-term investment, and in particular Moutai, a vintage and trendy alcohol among the Chinese population.
Alcohol specialist Kweichow Moutai is one of the world’s giants in the beverage sector.
Its current market value is estimated at 320 billion dollars, or 280 billion euros.
Demand for vintage alcohol in China has increased sharply this year, according to specialists, especially for special domestic collections. The Chinese population is looking for new ways to invest its money safely in these times of global crisis.
Nevertheless, investment options remain very limited for the Chinese population since money transfers abroad are strictly controlled and real estate and the stock market are held back by the government.
Figures show that this has not stopped people from investing in this vintage alcohol: “The financial character of Moutai as an investment became obvious to many during the pandemic, and the price of old Moutai has risen steadily and is now at a historical level.” said Zhu Danpeng, an independent analyst from Guangzhou.
Kweichow Moutai is in the brandy segment, and for years were the flagship drinks of the Chinese government, business community and Chinese elite, fond of international luxury wines and spirits: “Moutai is not just for drinking, it is a social tool, an indicator of identity. As people believe that old Moutai will only be more valuable, there is little risk in hoarding (bottles).” said Cai Xuefei, an independent alcohol industry analyst.
The brand offers bottles at a price of 1,500 yuan, or about 191 euros. Today, Moutai is estimated on the market to be worth more than $300 billion and is said to be the most valuable listed company in the country.
Because of its success, the brand had suffered a lot of plagiarism and fake replicas of its drinks for years and then sold in the country for the same price, an offence now punishable by heavy penalties.
The flagship range in recent years is the Feitian 53, also known as “Flying Fairy“, which is 53% alcohol and sells for around 191 euros. Its success with the Chinese population led the American retailer Costco to sell no less than 10,000 bottles in just two days the previous year, following the opening of its first boutique in Shanghai.
Other special collections are also available, such as the one commemorating national star Jackie Chan, launched in 2012, and the annual range of the Chinese zodiac, its astrological system.
Moutai bottles have been on the market for many years, and represent for a certain part of the population a family heritage story where one learns the real value of a Moutai drink. Yang Nan, a young 30-year-old technician from the south-western province of Guizhou, lived off Moutai drinks with her family in order to build her future: “I feel that more and more people are entering the Moutai collection market and making it harder for people like me to afford it”.
Today we are witnessing the brand’s highest price record, according to the beverage specialists. For example with the special edition “Year of the Rat“, which last year was still worth around 216 euros, and is now worth almost double that, around 382 euros.
However, the company’s economy has not always been successful, particularly following the various anti-corruption campaigns organised by President Xi Jinping in 2012, which had curbed entertainment spending. The brand was able to resume its activity by transforming its distribution network in depth and a change in the company’s management.
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