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Moutai challenges Diageo for value top spot
Chinese baijiu producer Kweichow Moutai is closing in on Diageo for the title of most valuable alcoholic drinks firm thanks to a share price surge.
Kweichow Moutai is now the second biggest drinks group in the world by value
Shanghai Stock Exchange-listed Moutai saw its share value climb by more than 53% in 2016 to give a market capitalisation of RMB420 billion (US$60.5bn), according to Financial Times figures.
Diageo, listed on the London Stock Exchange, is valued at US$65bn.
Pernod Ricard’s market capitalisation stands at US$28.7bn.
Moutai’s growth mirrors a resurgence of China’s baijiu industry in 2015/16, following a slump in 2012/13 as a result of the government’s anti-extravagance drive in the country.
According to World Alcoholic Beverage Alliance figures, producers’ net profits in 2015 reached 14.9%, a steady increase from the 13.7% reported in 2014.
Last year, Brand Finance, a London-based consultancy, boosted Moutai 87 placed to 243 in its Global 500 list of most valuable brands.
Diageo’s Johnnie Walker dropped 61 placed to 315.
Baijiu’s appeal is also growing overseas, with Moutai distributor CNS Imports teaming up with Private Cask Imports in 2015 to accelerate the category’s growth in US markets.