fite’s 2009 vintage was trading at $1,930 per 750-ml bottle, but now has dropped to $970. Similarly, in 2011, the average bottle of Moutai cost more than $323, and aged Moutais from the 1980s sold for $5,000 per bottle. In early 2012, the prices began dropping and now hover at around $164.Jeannie Cho Lee MW reports that consumer demand for wine in China has softened as a result of the March leadership change and a recent austerity drive by the Chinese government.
In the report, she noted that Château Lafite and the high-priced Moutai were “expensive staples in Chinese banquets a few years ago”. However, they have now become the symbols of excessive extravagance and have banned by the well-documented government austerity measures.
In the first half of 2013, more than 60% of fine-dining restaurants in China have seen a decline in their business, with 30% of the decline directly linked to the stopping of government-sponsored banquets.
In addition, within the wine industry, most importers claimed that sales were either flat, or slightly higher than last year, but in general, they made less profit.
According to the report, it’s not just high-end Chinese restaurants that have been affected. More than 50% of China’s medium- to large-sized companies have cut down their corporate spending on banquets and entertainment, with more than 40% saying they reduce their expenditure because of the government policy.
