Unstoppable Kweichow Moutai: China’s Most Valuable State-Owned Alcohol Company

Kweichow Moutai, a state-owned company in China, is a dominant force in the Chinese alcohol market and holds a significant place in Chinese society. Despite facing challenges during the Mao era, it has survived and thrived as one of China’s oldest brands. Known for its fiery, translucent baijiu, it is the most popular alcoholic beverage in the country.

In 2021, Kweichow Moutai briefly reached a market capitalization of $500 billion, making it one of the most valuable Chinese listed companies. However, its market capitalization has since dropped, with some attributing this decline to President Xi Jinping’s anti-corruption efforts. Prior to the crackdown on graft, prized bottles of Kweichow Moutai were sometimes used as forms of bribery instead of cash.

Despite these challenges, Kweichow Moutai remains a dominant force in the Chinese alcohol market and continues to hold a significant place in Chinese society. Vintage cases of the baijiu can command high prices, with some fetching tens of thousands of dollars. In 2020, state TV accused Kweichow Moutai of benefiting from bribery, causing $25 billion to instantly disappear from its market capitalization. However, despite these challenges, Kweichow Moutai continues to survive and thrive as one of China’s oldest brands.