Baijiu executive in corruption probe

A top executive of Chinese state-owned Baijiu maker Moutai is under investigation by China’s disciplinary watchdog, as the Chinese government continues its anti-corruption drive.

Fang Guoxing, deputy general manager of the Moutai Group, is suspected of “serious violations of discipline” by the Central Committee for Discipline Inspection, according to reports by Fox News.

Sales of high-end baijiu have been hit since President Xi Jinping introduced a crackdown on extravagant spending and gifting among politicians and the military in 2012, to reduce claims of corruption.

The measures have pushed many producers into deep discounting to boost sales.

Moutai saw its sales slide by 3.4% to 10.7 billion yuan ($1.75 billion) in its latest financial results, while Diageo has been forced to write-down the value of its Shui Jing Fang baijiu £264m.

While volumes of baijiu grew to 1.17 billion nine-litre cases in 2013 from 1.16 billion in 2012, its value has dropped from US$92bn in 2012, to US$83bn in 2013 (IWSR).

According to local reports, the investigation into the affairs of Guoxing, who was also a “party boss” of the city of Renhuai from 2006-2013, are likely to refer to allegations of corruption.

Baijiu is a fiery spirit distilled from sorghum, wheat or rice and has been historically served at government and military banquets.