How China’s ‘Firewater’ Became the World’s Most Valuable Liquor Brand | WSJ The Economics Of

Moutai is the national liquor of China and is the world’s largest beverage company by market value. The alcohol company is now worth over double the market cap of the company that owns Budweiser and Corona and more than 10 times that of the parent company of Jack Daniel’s.

WSJ looks at the unique history that made Kweichou Moutai the Chinese drink of diplomacy and the business strategies behind the liquor brand’s success.

Chapters:
0:00 National liquor of China
1:01 How to drink Moutai
1:28 History of Moutai
2:08 Brand awareness
3:07 Bellwether stock
4:04 High prices
5:21 Challenges and risks

The Economics Of
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#Moutai #China #WSJ

[holycrapchris]

White bottle w/ red cap: looks like a bottle of lighter fluid.

....which it pretty much is.

[HarishankarPM]

Bruh this thing is packaged in an engine oil bottle.

[atlas]

As a Chinese I can tell ya, this ‘moutai’ liquor is commonly used as gifts for the social status it carries. The actual taste doesn’t matter much and most people who have it would rather display the bottle on their wine rack than drink it. Genius marketing from the brand though.

[scarletscarlet]

My mom bought some shares of Moutai back in 2007 when it was one of the most expensive stocks on the Chinese stock market at around 80 CNY, it went down 20% over a week, as soon as it went back up to 90 CNY, she sold them immediately feeling a sense of relief and swore to never buy its stock again. Then it soared up ever since to about 2500 CNY with handsome dividends each quarter. She regrets it everyday.

[celestialnubian]

From the bottle, I assumed that this was something to pour into my car. I'm still not convinced that it isn't.

[TheNewLooter]

Are bluds really paying $350 for a bottle of straight ethanol 💀

[jamo]

That’s insane! 350$ is wild! But what foreigners don’t understand is that 1.4b people means you don’t need a foreign audience

[FUZASHIII]

Never put this one and bleach close together 💀

[poker_puppy]

Moutai is like the birkins of the handbag market. WSJ did not mention the resale values of these bottles, the secondary market, etc, which is arguably one of the most important aspects that make Moutai interesting. Because they control the supply, it is hard to get these bottles from the company directly at retail prices and generally people buy from resellers which charge a premium. The prices you pay for one bottle are generally at least double the retail price. It has a stable and ever growing secondary market prices. You buy a box of Moutai and give it to someone, he/she can sell it for the same prices, if not more, in 1, 2, 10 years. It is a commodity, a store of currency, you name it. Kind like gold for the Chinese.

Chinese people don't talk about important business on the dinner table if there is no Moutai on the table, quite literally. SO it is not "firewater" more like "goldwater" if you understand the culture. Moutai is a symbol of status and respect for your guests. Imagine the demand by imagining how many important business dinners happening every day in China. It is hardly a bottle of alcohol. It is a ticket that sells for at least double its retail prices if you want to play the game.

It is possibly one of the most well known brand in world if you take Chinese population into account. I do not know one single Chinese person that does not know what Moutai is. Why would anyone in his/her 20s buy Moutai branded and flavored latte or icecream and show it on social media? Would you buy Dom Periognon flaovred latte? Would everyone on social media buy Opus One flavored icecream and post about it? Maybe people who appreciate Dom and Opus would. But the whole generation of young Chinese would know and try Moutai flavored products. Let that sink in. The attention the brand commands in all generations of the Chinese society is simply unprecedented.

Also, it does not taste like ethanol. It is actually quite smooth. WSJ's description "ethanol" is misleading for people who have not had experiences with Chinese liquor. Moutai is strong and smooth. There are vodkas/wines/tequila that taste like alcohol and ones that taste smooth. Expensive wine bottles, thousands of dollars per bottle. Now why do people pay for those for the same percentage of alcohol? Yea. it is smoother, but is the smoothness worth $1000? I find it funny how people talk the taste/packaging of Moutai and find it not worth the money. Is it about the taste or the packaging tho?

Buy i do agree that the bottle looks cheap if you do not know what Moutai is. lol. But if you know you know.

[HONG]

As a person live in PRC. I can tell you why. Its market price strategy is similar to Rolex and even better. It’s hard to get a retail priced bottle (200 usd), but if you get one, you can sell to liquor deal for 350 usd right away. And most of ppl cannot get the retail price ones, and you can only buy market price ones from dealer for 450 usd. And the price is quite fixed, no huge fluctuations. As a product like this, no one care its value. They care about the superior price only, and purchase it as a conspicuous goods or luxury gift🙃 I knows it’s hyper overpriced, so I only consume Italian wines in China 😁 I hope my English make sense, cuz it’s my second language

[rg]

That was my dads favorite liquor back in the 90s. Used to cost about $20 per bottle. Price has since skyrocketed. It's insane

[chkee]

Moutai is not just an alcoholic beverage, but also a representation of affluence.

[pauliewalnuts]

Definitely seen this in the automotive section. Looks like a bottle of octance booster or injector cleaner.

[rayflective]

Finding genuine moutai is tricky, with so many counterfeits around the market.

[dirkvanderven]

been drinking it for 20 years (European working in Chinese construction) only the last 3 years I start to enjoy it

[stoonookw]

I lived in China for 2 years in the early 2010s and I have to say, a lot of liquor there tastes pretty crude like Moutai. However, it's that crude taste that makes you really feel alive haha!

[kadeemmayers]

In Trinidad and Tobago we have a drink called puncheon which is 75% alcohol… this is the real fire water 🔥

[muzammilm.nurdin]

$295bn??? They can literally pay Malaysian national debt

[frontlinewitness]

I prefer Sichaun wuliangye Baijiu 四川白酒五粮液. Its more akin to US version of spiced rum. But it can also be kind of expensive. I really wish more people would bring attention to chines alcohol industry and artistry. I think almost all everyone knows is Baijiu and of course Chinas famous Tsingtao beer.

[ErnestJay]

Basically it just a lighter fluid 😂
But the brand itself is like a "Chinese champagne"