Moutai to buy $11.8m property in Paris

Kweichow Moutai Co Ltd, a major manufacturer of white spirits, has agreed to buy property in Paris for about 8.79 million euros ($11.8 million), extending its focus on the European market for business development.

This is Moutai's latest move in establishing an international marketing network that has already expanded into Asia, Europe, the United States, South Africa and major duty-free ports in China.

The company exported nearly 1,000 tons of Moutai liquor in 2012, recording foreign exchange earnings of $175 million, a year-on-year increase of 60 percent.

However, the overseas market still accounts for a small part of the company's total business.

In the first half of this year, overseas markets accounted for 2.71 percent of its revenue, and only 2.59 percent of its profits.

Faced with sluggish sales amid a government crackdown on corruption and lavish consumption using public funds, Moutai is also adjusting its strategy to focus on the European market.

In April, Moutai purchased the Chateau Loudenne wine estate in France for 20 million euros.

http://europe.chinadaily.com.cn/business/2013-11/12/content_17099887.htm