Moutai overtakes Diageo as world’s most valuable liquor firm

Baijiu distiller sees market capitalisation hit record US$71.55bn, overtaking Johnnie Walker whisky maker Diageo’s market value of US$71.05bn

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Kweichow Moutai, the Chinese premium alcohol giant, has unseated Johnnie Walker producer Diageo as the world’s most valuable liquor company. Photo: Bruce Yan

Published: 4:49pm, 10 Apr 2017Updated: 10:58pm, 10 Apr 2017

Kweichow Moutai, the Chinese premium alcohol giant, has unseated Johnnie Walker producer Diageo as the world’s most valuable liquor company on Friday, propelled by a return of Chinese thirst for its so-called “liquid luxury”, despite President Xi Jinping’s frugality campaign.

The distiller of fiery liquor baijiu – also known as the Chinese vodka – saw its market capitalisation hit a record US$71.5 billion in Shanghai on Friday, overtaking Diageo’s market value of US$71.05 billion, according to Thomson Reuters data.

Moutai’s share price has nearly quadrupled to 389.5 yuan since 2014, making the company the most pricey of China’s 3,100 traded stocks.

That is helped by a remarkable price rally in Moutai’s throat-scorching baijiu, or white liquor, which has regained its popularity among retail consumers after it had fallen off the banquet menu due to President Xi’s signature crackdown on gift-giving and lavish spending by Communist Party cadres.

The price of its classic Feitian label has surged from 800 to 1300 yuan (US$115.9) per bottle, roughly three times of France’s Martell V.S.Cognac, and a third of the monthly disposable income of inhabitants in Beijing and Shanghai. And it’s predicted by Industry Securities analysts to climb further.

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