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World’s biggest booze brand lowers growth forecast
China’s Kweichow Moutai has cut its sales growth forecast for this this year to 9% following a run of eight years of increasing double-digit expansion. The post World’s biggest booze brand lowers growth forecast appeared first on The Drinks Business.
China’s Kweichow Moutai has cut its sales growth forecast for this this year to 9% following a run of eight years of increasing double-digit expansion.
The cut also marks the first time since 2022 that Moutai has lowered its sales growth target. Last year, revenue rose 16% to CNY174.1 billion (US$23.8 billion).
In present circumstances, those are figures that other drinks industry groups can only dream of while they wrestle with the complexities of President Trump’s tariff barriers.
Although he has slapped import duties of 54% on imports from China, this will little affect Moutai, which has minimal business in the US, where its products are available in only limited amounts and then only on e-commerce platforms.
Overall, the company’s exports last year comprised just 3.2% of its sales.
Despite the forecast slowing of sales growth, Moutai presented its shareholders with a positive business plan for the year with the longer-term growth strategy remaining strong.
The net profit increased by 15% to CNY86.2 billion (US$11.8 billion) in the year to the end of December, largely driven by price increases despite the consumer struggling against a slowing economy and rising inflation.
The cut also marks the first time since 2022 that Moutai has lowered its sales growth target. Last year, revenue rose 16% to CNY174.1 billion (US$23.8 billion).
In present circumstances, those are figures that other drinks industry groups can only dream of while they wrestle with the complexities of President Trump’s tariff barriers.
Although he has slapped import duties of 54% on imports from China, this will little affect Moutai, which has minimal business in the US, where its products are available in only limited amounts and then only on e-commerce platforms.
Overall, the company’s exports last year comprised just 3.2% of its sales.
Despite the forecast slowing of sales growth, Moutai presented its shareholders with a positive business plan for the year with the longer-term growth strategy remaining strong.
The net profit increased by 15% to CNY86.2 billion (US$11.8 billion) in the year to the end of December, largely driven by price increases despite the consumer struggling against a slowing economy and rising inflation.
