Business / Companies

Moutai targets 9% sales growth

By Lyu Chang and Yang Jun (China Daily) Updated: 2014-03-06 07:18

Kweichow Moutai Co Ltd plans to expand production to 100,000 tons this year, up 25 percent year-on-year, said the company's chairman. Provided to China Daily

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Kweichow Moutai Co Ltd, maker of what is known as the "national liquor" of China, announced on Wednesday it was lowering its sales target this year to 43.9 billion yuan ($7.16 billion) - which, at only 9 percent growth, is the first time the company has projected a single-digit rise in the past five years.

In mid-January, the company said it was anticipating 12.5 percent growth in 2014 and that it expected to break 45 billion yuan in sales.

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Then President Xi Jinping's crackdown on corruption and lavish consumption began being felt as Spring Festival galas and parties were canceled.

However, Yuan Renguo, chairman of the Guizhou-based manufacturer for white spirits, said: "The growth rate is not what we are looking at. The most important thing is to maintain a steady growth..

He added the company is expanding its customer base from the public sector to individual and corporate consumers.

Yuan, also a member of the National People's Congress, said the company plans to expand production to 100,000 tons this year, up 25 percent year-on-year.

"We can't simply rely on sales to government departments; in fact, our sales from the public sector accounted for a mere 7 percent last year," he said on the sidelines of the ongoing national two sessions.

Moutai, a staple of lavish Chinese banquets, dates back to the Song Dynasty (960-1279) and is often served at high-level functions or given as a preferred gift for government officials.

But its price tends to be beyond the reach of the average person.

At upscale locations such as Beijing's Ritz-Carlton hotel, a bottle of the 50-year-old blend can sell for as much 78,888 yuan.