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Moutai targets luxury ranking

Updated: 2011-11-25 16:29

By Yan Weijue (chinadaily.com.cn)

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High-end Chinese liquor Moutai is targeting a place on the luxury list, according to multiple sources.

A recent Chinese luxuries report published by the World Luxury Association (WLA) and a luxury research center at the University of International Business and Economics names Chinese liquor, or baijiu, as the most promising luxury brand, with Moutai and Wuliangye at the top of the list.

Largely purchased for banquets, often with public funds, in China, Moutai has witnessed a tenfold price increase in the past decade, from 200 yuan?($31) per bottle?in 2000 to the current 2,100 yuan; and the price looks set to rise yet further.

Yuan Jinri, manager of a Chinese liquor company belonging to Moutai Co Ltd, revealed recently that the price of Moutai will exceed 5,000 yuan within three years, and the company is applying to become a luxury brand.

A WLA chief representative in China confirmed to the Beijing Morning Post on Thursday that it is in talks with Moutai on its application. He said WLA will publish a report on the world's top 100 luxury brands in January; and Moutai will appear in the spirit category.

However, Moutai keeps playing down its ambitions. When reached by the Beijing News on Thursday, staff in multiple departments inside the company said they had no idea about its plan of being regarded as a luxury brand.

Ji Keliang, former chairman of the group, declared in April that Moutai would not become a luxury brand.

Although Yuan Renguo took over the company in October, he is not expected to shift direction too soon, according to experts who, nevertheless, believe Moutai has met the standards of a luxury brand.

Zhao Yufei, deputy secretary general of the wine association in Changchun, said the regional production and tradition make Moutai unique enough to be a luxury.

"Moutai liquor is not Moutai liquor if it is not (produced) in the town of Moutai. The traditional process rules out the possibility of mass production."

But opinions on the liquor's qualification also vary in professional circles.

Zhou Ting, a researcher of luxury goods, says Moutai needs to deepen its cultural value and become an internationally recognized luxury brand - one that can bring people pleasure and provide an enjoyable experience.

According to Tang Qiao, chairman of Wuliangye Group, another Chinese liquor producer in China, Moutai's price level is not high enough to make it a luxury brand.

He said the price and value of Chinese high-end liquors such as Moutai and Wuliangye is "far from the level" of a luxury brand. Only those world-famous red wines valued at thousands of dollars or more count.

He also said Wuliangye has no plans for a price hike this year.

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