Kweichow Moutai limits production increase of Maotai liquor
Food industry analyst believes the company is trying to bolster the product’s value by controlling the volume
Kweichow Moutai, the Chinese producer and seller of Maotai liquor, announced its sales plan for the year ahead on Monday, Yicai.com reported.
The company plans to sell more than 28,000 tonnes of Maotai in 2018, an increase of 2,000 tonnes from a year earlier. However, it is lower than the 3,000 tonne increment of previous years.
Xiao Zhuqing, the general manager of Shandong Wenhewang Wine Group, thinks the price of Maotai will likely continue to rise, due to the smaller increment in production.
Zhu Danpeng, a food industry analyst, believes the company is trying to insure the product’s value by controlling the volume.
“If the market demand is 10,000 tonnes of increment, but the company only provide 2,000 tonnes, the tight supply will help to prop up the share price and reduce the bubble in it,” Xiao added.