Baijiu industry leader Kweichow Moutai saw its shares close 5.67 percent lower on Thursday – the largest drop it has experienced in a year.
At the start of this year, Moutai revisited the perennial effort to attract younger consumers. In September, it formed partnerships with Luckin, a coffee chain, and Dove, a chocolate brand. But to no avail.
Sales of baijiu remain have remained unimpressive all year. Mid-Autumn Festival and National Day are always peak seasons, but sales fell short of the pre-pandemic levels. The future of the baijiu industry is now under question.
In the first half of this year, Moutai reported operating revenue of 69.6 billion yuan (US$9.5 billion) and a net income of 36 billion yuan, up more than 20 percent year-on-year.
