​China Alcohol Ban Hurts Distillers In Communist Party​​

By: | 12/25/2012 05:31 PM ET
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Communist Party chief Xi Jinping’s most recent China anti-corruption tactic of placing an alcohol ban on military banquets has hurt distillers in the country. The Communist Party is putting changes in place, even though they do not take control until March.

They are already making an effort to improve their image.

On Monday, Chinese distiller Kweichow Moutai Co Ltd, which specializes in the production and sales of Maotai liquor, felt the consequences of the Jinping’s act.

Xinhua, the official news agency, said over the weekend that the Central Military Commission had declared that alcohol would now be banned at functions, and officials would no longer be allowed to attend “ribbon-cutting” or “cornerstone laying” ceremonies.

“The receptions will also be free of welcome banners, red carpets, floral arrangements, formations of soldiers, performances and souvenirs.”

Shares in Moutai, whose premium white spirits are much favoured by the Chinese military, were down 5.8 percent in Shanghai at 2.07 a.m. British time, unwinding modest December gains.

Bloomberg reported that shares in Wuilangye Yibin, the second-largest baijiu producer, were down by 4.7 per cent while Sichuan Swellfun fell by 3.6 per cent.

White spirits, such as Moutai, are also normally given to officials in China as gifts by those seeking favors.