CHINA: Kweichow Moutai to invest in Europe property - report
Baijiu producer Kweichow Moutai is looking to expand into Europe with plans to invest EUR8.8m (US$11.9m) in property in Paris, according to local reports.
It will be the first time the state-owned Chinese drinks firm, which announced the move earlier this month, has invested in property outside of its home market, the South China Morning Post reported. The company has been heavily affected by China's anti-extravagance measures, introduced by the Government earlier this year, according to the paper.
Kweichow Moutai's share price fell around 6% shortly after the measures were introduced.
Analysts quoted in the report suggested the move into Europe is more of a “branding” strategy and the property purchased in France will be used to build branded stores.
The company did not respond to a request for comment, when contacted by just-drinks last week.
Earlier this year, the company was one of two firms to be hit with a fine for price fixing, according to state media.
Sectors: Emerging markets – BRIC
- Interview - Bacardi global marketing boss, whisky
- Has Coca-Cola Jumped From Frying Pan to Fire?
- Constellation grapples with glass as reality bites
- Coca-Cola can unleash Monster with energy plunge
- just The Preview - Carlsberg's Q2 & H1
- Diageo appoints head for Asia marketing unit
- Diageo doubles intake for spirits start-ups scheme
- Second senior exec to depart Bacardi
- Coca-Cola secures US$2.15bn stake in Monster
- Bacardi sees North America president step down