Moutai chalks decline up to cutbacks

Kweichow Moutai Co, China's biggest liquor producer, said Thursday that public expenses accounted for about 40 percent of the company's business.

Central government campaigns to reject extravagance and reduce public expense over the past months have had some impact on China's liquor industry, company chairman Mao Renguo told a shareholder's meeting Thursday.

Mao said the high-end liquor producer is shifting from official receptions to consumption by private entrepreneurs and the general public.

The sales volume of 53-degree Flying Moutai declined 23.8 percent year-on-year and Mao said the company management still has confidence in its products.