Kweichow Moutai Invests 490 Million Yuan in New Research Company to Boost Innovation in Chinese Liquor Industry
Kweichow Moutai, a leading Chinese liquor company, has announced its plans to invest 490 million yuan in establishing a scientific research company, as part of its efforts to enhance its research and development capabilities and stay ahead in the competitive market.
22 July 2025
Through this new research company, which will be jointly established with its parent company, Moutai Group, Kweichow Moutai aims to integrate its internal and external research resources, as well as those along its industrial chain. The company will focus on developing core technologies related to main business and transforming white wine brewing technology achievements into practical applications.
The news of Kweichow Moutai's plans to establish a research company has been widely discussed on Weibo, a popular Chinese social media platform. Many users have reacted with humor and curiosity, coining terms like "sauce aroma technology" and "Moutai technology" to describe the initiative. While some people have expressed skepticism about the true purpose and efficacy of the research, others have taken a more positive view, seeing it as a move that will benefit the company and the industry in the long term.
According to an announcement made by Kweichow Moutai, the company will contribute 4.9 billion yuan to the research company, accounting for 49% of its shares. Moutai Group will invest 5.1 billion yuan, holding 51% of the shares. The research company will have a registered capital of 10 billion yuan.
Industry analysts have speculated that Kweichow Moutai's move may trigger a trend of industry-wide transformation, with other companies likely to follow suit and increase their investment in research and development. They also expect the research company to focus on developing technologies related to main business, such as raw material cultivation, brewing microorganisms, and digitalized brewing.
On the social level, the establishment of the research company is expected to create high-quality job opportunities, optimize resource allocation, and enhance the public's understanding of and confidence in Chinese white wine. The initiative may also lead to a change in consumers' perception of Chinese white wine, as scientific research will provide a deeper understanding of the products.
From a policy perspective, Kweichow Moutai's move aligns with China's national strategy of promoting innovation and technological development, and the company may receive support and incentives from the government. The research company's establishment may also have implications for the government's regulatory policies on the white wine industry, particularly with regard to production standards, quality control, and market access.
Overall, Kweichow Moutai's decision to establish a research company has significant implications for the company, the industry, and society as a whole, signaling a new era of technological innovation and growth in the Chinese white wine market.
