Kweichou Moutai enters medicated wine market
Shanghai. August 13. INTERFAX-CHINA - Famed Chinese spirits producer Kweichow Moutai Co. Ltd. launched a medicated wine product in Beijing this week, state media reported on Aug. 12.
According to China Securities Journal, the launch of Baijin wine will mark Kweichow Moutai's entry into China's medicated wine market. The company expects to sell Baijin wine, which comprises of 18 types of traditional Chinese medicinal materials including red ginseng, dang gui, luo han guo, wolfberry, safflower, jujube, cinnamon and mulberry, nationally by the end of this year.
"As the most well-known Chinese spirits brand in China, Kweichow Moutai's Baijin wine will be a serious competitor to existing popular medicated wine brands in the market such as Wuliangye Group Co. Ltd.'s Gold wine and Jing Brand Co. Ltd.'s Jing wine," Chen Chen, a wine industry analyst from China Investment Consulting Co. Ltd., told Interfax on Aug. 13.
According to the China Alcohol Drinks Industry Association, the annual sales revenue of China's medicated wine market amounted to RMB 10 billion ($1.46 billion) in 2008 and is expected to hit RMB 13 billion ($1.90 billion) by 2012.
"Currently, medicated wine sales account only for 0.5 percent of the entire wine market in China, much lower than the global average of 2 percent. As such, we expect to see further growth in the sector," Chen said.