This is Moutai.
It’s 53% alcohol, tastes like fire water, and a bottle can cost tens of thousands of dollars.
Moutai is the national liquor of China, so it’s many people’s go-to drink.
As Moutai’s popularity grows, so has its share price.
In June 2020, it surpassed China’s biggest bank, climbing to reach a valuation of over $500 billion in 2021.
Today, Moutai is the world's largest beverage company by market value.
The company is now worth $295 billion.
That’s more than double the market cap of the company that owns Budweiser,
and more than 10 times the parent company of Jack Daniels.
But there are challenges ahead, particularly among Chinese youths unwilling to splurge,
and international consumers who know little about Moutai.
So, what’s next for China’s premier liquor brand?
This is the economics of Moutai.
Before we get into the details, how do people drink Moutai?
It’ll be consumed in these tiny five or six ml baijiu glasses.
The reason why it's so small is because it's much stronger than your usual spirits.
Because it’s in such a small glass, you can sip your way over the course of a long banquet with many different dishes.
Ganbei!
Moutai is rooted deep in Chinese history, earning a reputation as the drink of diplomacy.
During the Chinese Civil War in the 1930s,