BAIJIU BRANDS MARKET CAP: MOUTAI OVERTOOK LVMH, WULIANGYE BIGGER THAN DIAGEO
By Tony Zhu
The growth in Chinese top baijiu brands’ market capitalisation is unstoppable. After overtaking Coca Cola as world’s most valuable drinks brand in May, leading baijiu giant Kweichow Moutai recently overtook Moët Hennessy Louis Vuitton (LVMH) as world’s most valuable consumer goods company.
While China’s second biggest baijiu brand, Wuliangye Yibin, has overtaken Diageo to become world’s second most valuable alcoholic drinks company after Kweichow Moutai.
As of today, market capitalisation of China-listed Kweichow Moutai rose 56% from start of this year to reach RMB2.32trillion (USD354billion), while market capitalisation for LVMH stood at €247.18b (USD300.84b).
Paris-listed LVMH is a conglomerate of luxury houses owning brands straddling six sectors, including Hennessy, Moët Chandon, Dom Pérignon, Louis Vuitton, Christian Dior and TAG Heuer.
Kweichow Moutai, on the other hand, is an one-brand company with humble roots from China’s inland Guizhou province.
The brand was already world’s biggest alcoholic drinks company by market capitalisation at the start of 2020 having overtaken Diageo. It went on to overtake Coca Cola in May to become world’s most valuable drinks company. Now it is the world’s most valuable consumer goods company as well.
Baijiu is a spirit distilled from grains with sorghum as the main ingredient. Kweichow Moutai is known for its complex soya sauce aroma along with the liquor’s fiery sensation and has long been the leading baijiu brand in China.
Meanwhile, the second most popular baijiu brand Wuliangye Yibin has seen its share price more than doubled in 2020, taking its market capitalisation to RMB1.07t (USD163b).
The Wuliangye brand is now more valuable than global alcoholic drinks giant Diageo. Market capitalisation for the London-listed Diageo stands at £67.87b (USD90.26b).
Once the world’s biggest alcoholic drinks company, Diageo owns a host of well known brands including Johnnie Walker, Guinness and Smirnoff.
(the writer can be contacted at: email@example.com)
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