In an attempt to limit the abuse of its renowned brand by subsidiaries, China’s top liquor maker Moutai is slimming down its total number of brands, to 59 from 214, Caixin reports. The company hopes that this reduction will prevent its franchisees and subsidiaries from passing off substandard quality liquor under its brand name, and from overusing the Moutai label in promotional activities. Kweichow Moutai Group said on Tuesday that all of its eight major subsidiaries must dispose of inventories of the discontinued brands by the end of the year. The move is the latest in a broader campaign by Moutai, began earlier this year, to reform its unruly manufacturing and distribution system. The brand abuse was in part a cocktail of Moutai’s own making. In order to grow its market share, the company had turned a blind eye when some subsidiaries and distributors promoted their beverages with the Kweichow Moutai brand name but made the tipples under different specifications.
You must log in to post a comment.
Yes, I would like to receive emails from China Economic Review. (You can unsubscribe anytime)
Copyright © 2018 SinoMedia Group Limited All rights reserved