UBS takes the spirit out of China’s distillers by downgrading Moutai, other baijiu brands

Quick Summary:

An intensifying demand-supply mismatch is set to crimp earnings in the world’s biggest spirits market, according to Swiss investment bank UBS.

The combined effect of these changes will pressure margins, pushing the compound annual profit growth rate for key distillers to 8 per cent during the 2023-2025 period, down from the pace of 19 per cent registered between 2020 and 2023, UBS said.

While the six biggest baijiu distillers have increased output by 37 per cent since 2023, the key consumption demographic of males aged between 30 and 59 will decrease, reducing sales by 13 per cent through 2025, according to UBS.

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Article Details

Author / Journalist: Zhang Shidong

Category: Business

Markets: Hong KongChina

Topics: Cent Liquor Kweichow Distillers Yuan Wuliangye Market China’s According Moutai Consumer

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-07-30 @ 13:28:03 (2 hours ago)

News Timezone: GMT +8:00

News Source URL: scmp.com

Language: English

Article Length: 595 words

Reading Time: 4 minutes read

Sentences: 18 lines

Sentence Length: 34 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © SCMP

News ID: 21849319

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