China's Kweichow Moutai Co., which overtook Johnnie Walker maker as the world's most valuable liquor company in 2017, reported a nearly 4 percent jump in sales for its third quarter which ended on Sept. 30.
The jump in sales was attributed to the increased demand for the products, particularly of baiju, during the Mid-Autumn Festival. The company's revenue increased to $2.48 billion with its net income also climbing nearly 3 percent to $1.2 billion, Bloomberg reported.
Baiju, which literally means white liquor, has always been the favorite among China's leaders. The drink has been gaining popularity among the country's affluent population, as well as the country's middle class.
Baiju's fans have no issues paying for as much as $287 for a bottle even if Kweichow Moutai's suggested retail price is only at $215.
Moutai has surpassed Diageo, a British multinational alcoholic beverages company which is the maker of Johnnie Walker. The company's market capitalization swelled 67 percent since 2017, and its revenues for the first half of 2018 increased by as much as 38 percent year over year to $4.86 billion according to Fortune.
Kweichow Moutai has recently been listed as one of the world's most future-proof company. It was ranked number 2, tied with Apple, in the 2018 FutureBrand Index published on Oct. 9. The list valued the baiju maker at $137 billion. The number 1 on the list was Walt Disney.
The index underscored Kweichow Moutai's ability to reframe the premium and super premium drink sector toward the discerning taste of younger but more affluent consumers.
The 2018 FutureBrand Index ranks the world's largest companies according to their market capitalization by surveying 3,000 senior business executives from around the world.
Factors that help determine how future-proof the company includes a clear vision of the future, establishing a remarkable emotional connection to its consumers, a sustainable market revenue, and the ability to innovate a particular sector.
Jon Tipple, chief strategy officer of FutureBrand Worldwide, said Chinese brands, in general, would continue to lead the market as they have a strong local demand. While emerging Chinese brands may not replace the American brands as being the household names at the global level, companies like Kweichow Moutai would always have an advantage as a more practical option.
Simon Hill, FutureBrand president of North America, said Chinese brands are slowly winning over the preference of the Western consumers as more and more consumers are being aware of the products through globalization and digital connectivity.
