China’s baijiu giants are stumbling their way through a hangover as firms attempt to find new markets for their sorghum-based liquor after an era dominated by bulk government orders came to an end as Beijing removed budgets for high-end liquor at official banquets, Reuters reported. Top producer Kweichow Moutai (600519.SHA) saw total receivables jump to an all-time high of about RMB3 billion (US$484 million) in the first quarter this year, up 500% from a year earlier. Now manufacturers of the spirit have to get individual retailers and retail chains to buy their product, rather than serving essentially as logistics channels for bulk orders.
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