Controversies

Huanghelou Distillery, Controlled by Gujing Gongjiu, Displayed “Wuhan Marine Machinery Special Supply” Liquor, Accused of Fraudulent Marketing

In February 2023, media reported that Huanghelou Distillery, controlled by Gujing Gongjiu, used liquor products bearing wording such as “Wuhan Marine Machinery Special Supply” in displays and promotions. Under relevant rules, product promotions are prohibited from using wording such as “special supply” and “dedicated supply” to imply specific relationships with state organs, state-owned enterprises, and the like; the report alleged suspected irregular marketing and consumer fraud. The report also noted that Gujing Gongjiu signed a performance bet when acquiring Huanghelou Distillery, and that Huanghelou Distillery completed the bet targets “on the line” for several consecutive years, with half-year revenue growing only 8.53%. Impact and handling: the report did not disclose the result of regulatory penalties. Progress: media report. Involved entities: Huanghelou Distillery Co., Ltd., Anhui Gujing Gongjiu Co., Ltd. Related scope: product promotion by Huanghelou Distillery bearing “special supply” wording.