Chairman of China’s second largest baijiu brand detained
Wuliangye Yibin Co, China’s second biggest baijiu producer, has confirmed that its chairman Zeng Congqin has been detained by authorities.
Shares in the Sichuan-based baijiu maker have dropped by 1% since the news of its boss’s detention in the city of Yibin.
In a filing to the Shenzhen stock exchange over the weekend, the producer said it had been notified that Zeng was under detention and that a case had been opened.
Wuliangye confirmed that its other senior staff members were working as normal. It said no further impacts on production or operations were expected.
Tough times
Wuliangye, a state-controlled, publicly-listed spirits producer, is the country’s second high-end baijiu maker, with Kweichow Moutai taking top spot.
Zeng’s predecessor, Li Shuguang, was expelled from the Communist Party in October over alleged violations of discipline and law.
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In 2025, China’s baijiu producers weathered a sharp downturn, as wary consumers slashed spending amid economic uncertainty, and the Beijing government’s push for greater austerity among officials.
What’s next for baijiu?
Last year, overall baijiu category sales fell by an estimated 15%. Wuliangye’s sales growth slowed to 4.2% in the first six months of 2025, down from 7.1% in 2024 and 12.1% in 2023.
Many distillers are introducing reduced-alcohol products, and introducing innovative fruit wines and RTD cocktails, to try and win over a new wave of customers.
According to Morningstar senior analyst Jennifer Song, China’s younger generation rejects the “intense sensation of high-alcohol baijiu”. She told the drinks business: “We believe expanding low-alcohol baijiu offerings is a long-term trend, driven by demographic change and rising health awareness.”
On the bright side, there are some signs of early success for Wuliangye’s light baijiu. On Alibaba Group’s Tmall, 29° Crush On generated more than six million yuan in September sales, becoming the company’s third most popular brand.
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