Luzhou Laojiao lowered the price of its premium baijiu, Guojiao 1573, and launched three new mid- range products. The company also investigated options for increasing its ecommerce presence.
These price positioning and distribution initiatives responded to the ongoing pressure on sales resulting from government policies aimed at limiting extravagant spending at official events.
Luzhou Laojiao is currently sold in over 40 countries, primarily to Chinese customers. An SOE (State Owned Enterprise), Luzhou Laojiao was listed on the Shenzhen Stock Exchange in 1994.
Net income declined 47 percent to $155 million on a 31 percent decline in revenue to $559 million, in the first half of 2014.
For the full year 2013, net income decreased 20 percent to $559 million on a 5 percent revenue decrease to $1.6 billion.