Sept 11 - Chinese spirit maker Kweichow Moutai Co, one of the country's top traditional liquor firms, is considering foreign partnership as it looks to expand internationally.
The Shanghai-listed firm is the top premium distilled liquor maker in China, with its 53-percent Moutai liquor frequently served in official banquets and presented by diplomats as the "national spirit".
But, despite its prestigious brand, overseas sales account for just about 5 percent of the total.
"We reckon there is a huge market potential overseas. It is now up to our agenda to seek overseas expansion," Ji Keliang, a board member of the listed firm and chairman of its largest shareholder, China Kweichow Moutai Distillery Co, told Reuters in an interview at the Hamburg Summit:China meets Europe, a 2-day business and cultural conference backed by the Chinese and German governments.
Ji said the company, which employs 10,000 workers in the western province of Guizhou, might invite strategic foreign investors if that helps it achieve overseas expansion.
"We are looking for partners that can help us to build distribution networks and promote Moutai liquor to western consumers," said Ji.
"They might end up being our shareholders, but nothing is specific at the moment," he added.
The company is also considering setting up overseas offices in the United States and in Europe, Ji said.
Kweichow Moutai, ranked 16th among Chinese enterprises, reported net profit growth of 164 percent to 2.2 billion yuan ($321.7 million) in the first half of 2008, on the back of a 6-percentage-point increase in its gross margin to 89.6 percent.
It raised its selling price by 20 percent in early 2008 and the ex-factory price of 53-percent Moutai is now 439 yuan a bottle, while the retail price is 698 yuan per bottle. Analysts expect Moutai's average selling price to grow 15 percent in 2009 and 10 percent in 2010.