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.
China Economic Review