RISING WITH CHINA’S FORTUNES
As the country’s fortunes rose, so did Moutai’s. No longer a beverage for parched soldiers, the pricey bottles became status symbols ubiquitous at weddings, business dinners and state functions – culminating in a record market capitalisation of US$506 billion in February 2021. At the time, the distiller was worth much more than Coca-Cola or Toyota.
A 16-ounce bottle of the flagship Flying Fairy label cost about US$550 at its peak. Detractors may call it firewater, but admirers appreciate the 53 per cent alcohol for its smooth umami notes and long, spicy finish.
Families would hoard supplies for future celebrations, hoping they would appreciate in value. That wasn’t an outlandish idea when houses like Sotheby’s auctioned cases of old vintages for more than US$1 million.
But the Moutai stock’s two-decade bull run ended abruptly in 2021. That was deep into the banquet-free pandemic and about the same time Beijing decided to allow the property sector to collapse in favour of a new economic model centred around technological breakthroughs. Those industries, including chips and artificial intelligence, powered stock market gains in 2025.
Real estate, which once accounted for as much one-third of gross domestic product, became yesterday’s news. Because so much wealth was concentrated in property, consumption-related businesses began to lose their shine.
https://www.channelnewsasia.com/commentary/moutai-price-china-liquor-invest-baijiu-5771256
