The directive issued by the Guizhou Discipline Commission singled out the spirits brand, and bans officials, their spouses, children and their children’s spouses from participating in sales of Moutai or any commercial activities linked to the distribution and procuring of a Moutai business distribution license or any type of business facilitation or change of allocation.
Any violation would lead to regulatory and even legal punishment, according to media reports.
The brand is arguably the most sought-after alcohol label within China despite its increased prices. A favourite for banquets and gifting, Moutai’s demand has sustained strong growth, but is also often associated in the downfall of corrupt officials.
Kweichow Moutai’s net profit last year grew 25%, and its revenue grew 23% to RMB 75 billion (US$11 billion).
Growth for 2019 is projected to be +14% in revenue.
