The liquor's success has to now relied on prestige rather than advertising. Chinese people in a country that loves its liquor have long been quite familiar with the name, one of the three most famous brands in the world, but until recently rarely had the chance to drink it. But in a growing market economy, its brewers are thinking more of profit than politics.

Not only Mao, but other former leaders including Deng Xiaoping and Zhou Enlai also loved drinking Maotai. Traditionally, the liquor has been used officially to feast foreign heads of state and distinguished guests visiting China, and is the only alcohol given as official gifts by Chinese embassies in foreign countries and regions.

A native product of Guizhou Province, southwest China, the "mother of all Chinese liquors" was originally produced by three private workshops, which later merged into the state-owned Maotai Liquor Plant after the founding of New China in 1949. Maotai liquor was named a national liquor in 1951.

Owing its success to being a cocktail of politics and alcohol, Maotai has been used to toast many important occasions: the grand ceremony marking the founding of New China; victory in the war during which the Chinese army fought US aggressors in Korea in the early 1950s; the Geneva Conference, the establishment of diplomatic relations between China and the United States; the resumption of Chinese sovereignty over Hong Kong and Macao; victory over floods; successful bidding for hosting the 2008 Summer Olympic Games; and China's accession to the World Trade Organization.

"In the world, few commodities have the close relationship Maotai does with politics," said Yuan Renguo, general manager of the Maotai Group, adding "Maotai liquor has played a very important role in China's political life and diplomatic affairs. And that is the Chinese characteristic of the alcohol."

For this reason, the Maotai brewery never advertised its products for many years. Under the planned economic system, the liquor was designed for special purpose and common people almost had no chance to drink it. Quite often, people had to obtain a written permit from the leaders before they could buy the liquor.

Now however, the Maotai brewery has not only appeared on TV and newspapers, but has also sponsored various welfare events and entertainment activities.

The reason is that Maotai people have begun thinking more about profits than political honors in tandem with the rapid development of a market economy in China. In addition, fierce competition in the liquor industry poses a grave challenge to its status as a national liquor.

At present, the output of Wuliangye, another famous brand of Chinese distilled spirit, has exceeded that of Maotai. There are more private and Sino-foreign joint breweries aiming to take a piece of the large Chinese liquor market.

"We must aim at the needs of common people," said Yuan, the Maotai general manager, "We should no longer stress that Maotai is a political liquor."

Maotai brewery has developed rapidly ever since it adopted a strategy to develop products to meet various demands on the market. The brewery registered a sales income of 800 million yuan (US$96.38) for 1998 and the figure for last year was 2 billion yuan (US$240).

Recently, the brewery announced a plan to expand its production capacity from 6,000 tons to 10,000 tons annually, and to produce beer and red wine. The Maotai brewery has taken over another liquor plant in Guizhou to expand its production scale.

At the same time, Maotai is varying its products to meet the demand of different consumer groups.

"The development history of Maotai brewery is actually that of China," Yuan said.

(Xinhua News Agency September 29, 2002)