News

CHINA: Kweichew Moutai, Wuliangye hit with price-fixing fines - report

Most popular

Another drinks CEO steps down - But, why?

Pernod Ricard Performance Trends 2014-2018 - data

What's coming up in soft drinks in 2019?

Bar Nøne launch proves Coca-Cola is faster

MORE

Two of China's leading baijiu makers have been fined CNY449m (US$72m) for price fixing, according to state media.

//i2.aroq.com/1/china.jpg

Local price regulators ordered Kweichew Moutai and Wuliangye to pay CNY247m and CNY202m respectively, the China Daily reported on Saturday (23 February). It is the biggest fine since China's anti-monopoly laws were introduced in 2008, the newspaper said.

The report added that the fines, which represent 1% of the companies' annual sales, could have been bigger as the anti-monopoly laws allow for a penalty of up to 10% of annual sales.

Torsten Stocker, partner at strategy consulting firm Monitor-Deloitte Greater China, told just-drinks that the ruling is unusual because, in the past, the Chinese Government “has not paid too much attention to this type of channel price setting, which is banned under China’s anti-monopoly law”. 

He added that baijiu makers have been hit hard recently by the government’s measures to limit the number of official occasions during which white spirit is consumed.

Late last year, China launched a crackdown on high-level luxury banquets, bringing down Moutai's share price.


Related Content

China spirit - How Diageo reinflated the baijiu bubble - Part II

China spirit - How Diageo reinflated the baijiu bubble - Part II...

China spirit - How Diageo got burned by the baijiu bubble - Part I

China spirit - How Diageo got burned by the baijiu bubble - Part I...

Ultra-premium baijiu set for fast growth as consumer profiles hit the

Ultra-premium baijiu set for fast growth as consumer profiles hit the "sweetspot" - study...

Is Heineken risking too much to chase Anheuser-Busch InBev in China? - Comment

Is Heineken risking too much to chase Anheuser-Busch InBev in China? - Comment...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?