Moutai sales up despite cooling economy

The fiery spirit Moutai, which is distilled from sorghum and is the most famous product of Guizhou Province.

“China’s most-used freight railway saw November shipments plunge by 7.95 percent year-on-year amid weakening domestic demand for coal,” reports Caixin.

“Sales of excavators by Chinese manufacturers saw sluggish growth this year as infrastructure investments cooled amid slowing economic growth,” says a separate report from Caixin, based on data (in Chinese) released yesterday by the China Construction Machinery Association.

“As the nation’s economy slows and liquidity tightens, its weakest companies are facing repayment woes,” according to Bloomberg (porous paywall): “This, in turn, is creating jitters offshore. Growing participation by Chinese investors in the dollar bond market has led to concentration risk, with such buyers now dumping their holdings at the first hint of trouble.”

Even the Global Times, a publication whose purpose is to boost Party messages, is printing editorials warning of economic headwinds, food inflation, and threats to employment.

But one company bucking the trend is Moutai (aka Máotái 茅台, maker of China’s most famous liquor). Per The Paper (in Chinese), the Guizhou-based company is immediately distributing 7,500 tonnes of its premium firewater originally planned for next year, because of strong demand.

However, Moutai sales may be skewed this year because the 2020 Spring Festival is relatively early — January 25 is Chinese New Year’s Day, suggested a financial analyst cited in the story. In addition, in November, Moutai said that high demand for its products outside China this year had caused a supply shortage that was affecting the domestic market.  

See also: How Moutai became the world’s most valuable liquor maker on CKGS Knowledge.