A view of Kweichow Moutai liquor sold in a supermarket Photo: IC
Kweichow Moutai Group, parent company of Shanghai-listed distiller Kweichow Moutai Co, has set its 2019 sales target at 100 billion yuan ($14.47 billion), its chairman told an annual shareholders’ meeting Wednesday in Southwest China’s Guizhou Province. Analysts said that the company’s products will remain in short supply and the prices will stay high.
Moutai is under pressure by setting such a high target but the company will try its best, said Li Baofang, chairman of Moutai Group.
Sales of the listed distiller are set to grow about 14 percent this year, Li said, adding that the targets reflect optimism that the company could maintain growth momentum in 2019.
Revenue rose 26.5 percent last year to 73.64 billion yuan, according to its financial statements.
As part of efforts to an overhaul, Kweichow Moutai Group Marketing Co was established on May 5, aiming to better manage dealers.
Moutai will not recruit new dealers for the time being, according to the company. The 2017 annual report said the company had 3,038 dealers.
Boom times are coming for the baijiu industry, said a report by China International Capital Corp on Monday. According to the report, Moutai and Wuliangye, another liquor company, are expected to increase both revenue and profits more than 10 times in the next decade. The wholesale price of Moutai is likely to jump from 969 yuan per bottle to 4,000 yuan per bottle by 2028.
Moutai shares closed at 911.91 yuan on Wednesday, up 2.7 percent, after peaking at nearly 925 yuan during the day.
“The market is still optimistic about Moutai,” said a stock analyst who asked to remain anonymous. “The liquor market’s big selling season will start in September, and the price of Moutai products is very likely to go up.”
The online store on Moutai’s website showed that all of its products were sold out.