The food and beverage sector continued its deep correction today (December 9). The Food ETF (515710), which reflects the overall trend of the sector, weakened after opening and fell 1.35% intraday as of writing.
Among constituent stocks, baijiu (Chinese liquor) led the decline. Kweichow Moutai Co.,Ltd. (600519), Luzhou Laojiao, and Gujing Gongjiu each dropped over 3%, while Wuliangye and Jinshiyuan fell more than 2%. Several other stocks, including Shanxi Fenjiu, declined over 1%.
On December 8, Kweichow Moutai Co.,Ltd.'s commemorative product—celebrating the 110th anniversary of its gold medal win at the Panama-Pacific International Exposition—sold out rapidly on the iMoutai platform. The 1.1L bottle, priced at ¥11,000, was available for registered users from December 8 to 10, with a limit of one bottle per person per day.
Analysts noted that the quick sellout highlights the product’s appeal among targeted consumers. The high pricing and rapid sales also serve as a barometer for premium baijiu demand and brand premiumization. For capital markets, the performance of leading consumer brands remains a key indicator of brand equity and strategic effectiveness.
Shenwan Hongyuan emphasized that Moutai’s core strengths remain unchanged: (1) Its strong brand moat and high channel profitability solidify its competitive edge. (2) Its superior business model ensures stable long-term profitability, high-quality cash flow, and sustainable returns. Medium- to long-term growth prospects remain robust.
Notably, Kweichow Moutai Co.,Ltd. is the top holding in Food ETF (515710), with a 14.89% weighting as of Q3 2025.
Valuations for the sector are near historical lows, presenting a potential entry opportunity. As of December 8, the index tracked by Food ETF (515710) traded at a P/E of 20.15x—near the 5.48th percentile of its 10-year range—underscoring its long-term value.
CITIC Securities noted that while Moutai’s wholesale price decline temporarily weighs on the sector, policy-driven consumption catalysts in December could emerge. Current valuations for baijiu and other quality assets are attractive, with structural opportunities in mass-market segments.
Xiangcai Securities highlighted the sector’s low valuation percentile and improving relative returns amid market rotation. It recommended focusing on resilient industry leaders and firms expanding into high-growth niches.
For exposure to core food and beverage assets, investors can consider Food ETF (515710), which tracks the CSI Sub-Industry Food & Beverage Index, with ~60% allocation to premium baijiu leaders and ~40% to dairy, condiments, and beer stocks. Top holdings include Kweichow Moutai Co.,Ltd., Wuliangye, Luzhou Laojiao, and Yili.
*Data as of December 9, 2025.
*Risk Disclosure: Past performance does not guarantee future results. Investments involve risks. Please consult professional advice before making investment decisions.
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