KWEICHOW MOUTAI REPLACED COCA-COLA TO BECOME WORLD’S MOST VALUABLE DRINKS COMPANY
By Tony Zhu
Source: Kweichow Moutai
China’s leading baijiu brand Kweichow Moutai surpassed Coca-Cola to become world’s most valuable beverage company with market capitalisation of some USD226 billion as of 30 April compared to about USD200b of Coca-Cola.
Kweichow Moutai reported a 17% increase in profit to RMB13.1b (USD1.85b) in the first quarter of 2020 despite that the Chinese market was marred by coronavirus outbreak for the whole quarter.
The company reported that revenue for the period was RMB25.3b (USD3.58b), up 13% compared to same period last year.
Kweichow Moutai’s market capitulation is now biggest among companies listed in China. Though Chinese tech giants Alibaba and Tencent are more valuable, they are listed in New York and Hong Kong respectively.
Compared to other global wine and spirits manufacturers, Kweichow Moutai is by far the most valuable. In second place is Diageo - owner of brands including Guiness, Johnnie Walker and Smirnoff - with market capitalisation of about £64b (USD79.4b).
Apart from Kweichow Moutai and Coca-Cola, PepisCo is the only other beverage giant with market capitalisation over USD100b at about USD180b.
Meanwhile, China’s second most popular baijiu manufacturer Wuliangye Yibin also reported double digit growth in first quarter 2020. Net profit for the quarter rose 19% to RMB7.7b, while revenue grew 15% to RMB20.24b.
The company also said that 2019 net profit jumped 30% to RMB17.4b as high sales volumes and an uptick in selling prices boosted revenue.
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