Chinese Premier Wen vows to ban use of public funds to buy 'high-end' alcohol, saying consumption by government officials artificially driving up prices of premium brands

LOS ANGELES , March 27, 2012 () – Warning that corruption may endanger the ruling Communist Party’s survival, Chinese Premier Wen Jiabao pledged to ban the use of public funds to buy “high-end” alcohol, Bloomberg reported March 27.

Wen said that consumption by government officials is artificially driving up prices of premium brands such as Kweichow Moutai Distillery (a 106-proof liquor) and Moutai, a sorghum-based liquor that sometimes sells for twice the sales price set by the company itself.

Wen’s announcement caused shares of both companies to drop by more than 6%.

The primary source of this article is Bloomberg, New York, New York, on March 27, 2012.

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.