Wu Liang Ye is looking overseas for sales growth as the domestic demand for baijiu, the traditional Chinese white alcohol, continues to soften because of constraints on lavish spending at government events.
The brand intends to develop varieties of baijiu, possibly less alcoholic, to appeal to consumers outside of China, particularly young people. Meanwhile, Wu Liang Ye lowered wholesale prices to stimulate local sales.
In another development, Wu Liang Ye entered a joint venture with a major agricultural business to recycle distillery waste into animal feed. Baijiu is distilled from sorghum and rice. The Group is an SOE (State Owed Enterprise) whose other interests include printing, pharmaceuticals and logistics.
Net income of Wuliangye Yibin Company, Ltd. fell 31 percent to $649 million on a 25 percent revenue decline to $1.8 billion, in the first half of 2014. For the year 2013, net income. fell 18 percent to $1.3 billion on a 7 percent revenue decline to $3.7 billion. The company is listed on the Shenzhen Stock Exchange.