Henan-based Baofeng Wine Co LTD (Baofeng
Company) Tuesday filed a case against the Ministry of Commerce
(MOFCOM), demanding that the court rule the ministry's
administrative choice of Best Selling Chinese Liquors and The Sixth
Appraisal of Famous Chinese Liquors as illegal, according to a
Beijing News report on Wednesday.
MOFCOM issued a notice and a supplement to the notice on
September 25, 2006 and October 18, 2006 respectively to start a
nationwide appraisal of liquors to compete for these titles. The
appraisal required wine companies and producers to declare their
participation during a limited time period for entry.
On April 12, MOFCOM released a preliminary list of The Sixth
Appraisal of Famous Chinese Liquors; however, many brands of liquor
traditionally dubbed as Famous Chinese Liquors, including Baofeng
liquor produced by Baofeng Company, were not on the list.
Baofeng Company filed the case with the Beijing Second
Intermediate People's Court. Plaintiff attorney Zhou Ze explained
that the company did not declare participation in the MOFCOM
appraisal, because the liquor produced by the company had already
been declared a Famous Chinese Liquor by related departments
through strict procedures. They have also criticized the lack of an
open public tasting in the MOFCOM's appraisal process.
While the MOFCOM notice about the appraisal stated participation
was free, industry insiders have made claims of certain advantages
being offered to those that pay the price. For example, there are
three certificates of assured quality available for manufacturers
to purchase at a cost of 1000-10,000 yuan from China Alcolic Drinks
Industry Association, a national industrial organization. MOFCOM
does not officially support this practice, but it is understood by
liquor companies that possession of these certificates often
increases their chances of winning a title.
After MOFCOM released the preliminary list on Aprial 12, six
wine companies signed a petition objecting the ministry's actions,
requesting MOFCOM to cancel the appraisal in order to maintain the
healthy development of China's liquor industry, according to a
Nanfang Metropolises Daily on Wednesday.
Baofeng Company said the appraisal has marred the clean
competition among companies and producers and throws those who were
not chosen into unfavorable circumstances. The company also said
the ministry's move goes against rules set by the State Council and
related central departments on prohibition of organizing
competitive appraisals among companies.
The Beijing News report said another two wine
companies, Guizhou Dongjiu Trading Co. LTD and Wuhan Tianlong
Huanhelou Wine Co LTD, are also going to file cases against
MOFCOM.
In response to the case, MOFCOM yesterday announced that they
will suspend the appraisal due to a recent State Council document
asking ministries and departments to review these types of events.
"The Ministry of Commerce pays great attention to the promotion of
Chinese enterprises' brands. The purpose of the appraisal is to
inspire enterprises' consciousness to cherish their brands and
build a long-term mechanism of promoting and protecting
self-developed liquor brands. The appraisal process is open and
well-organized." Ministry Spokesman Wang Xinpei said at a press
conference.
From 1952 to 1989, five national liquor-tasting conferences were
held to choose famous Chinese liquors. At the Fifth National Liquor
Tasting Conference, held on January 10, 1989 in Hefei, capital city
of east China's Anhui Province, Baofeng Liquor was awarded the
Famous Chinese Liquor gold medal. Dongjiu liquor, Huanghelou
liquor, and Baiyunbian kept their titles from the previous
conference.
Baofeng Company said the title of Famous Chinese Liquor is of
great influence and carries authority. Top Eight Famous Liquors,
Top Thirteen Famous Liquors, and Top Seventeen Famous Liquors
chosen by the conference have become awards with most lucrative
market potential. Once the list is decided, it will cause
immeasurable reputation and economic loss to companies who were not
chosen, according to the Nanfang Metropolises Daily
report.
Most people can still remember these famous brands chosen by the
conference: Moutai, Luzhou Laojiao, Fenjiu, Xifeng, Wuliangye, and
Gujing Tribute Liquor. Even though years have past, and some may be
over the hill, most of them are still popular in today's liquor
market.
(China.org.cn by Zhang Yunxing May 18, 2007)