The board of Chinese liquor giant Kweichow Moutai voted to close its e-commerce unit, the company said in a statement Tuesday, after its online distribution plan failed to substantially resolve deep-seated challenges including counterfeiting and hoarding.

The world’s largest liquor company stopped selling products online three months ago, Caixin learned.

Moutai launched its e-commerce platform in 2015 to allow licensed distributors to sell its products directly to consumers.

But distributors later bristled at the company’s aggressive move into the online sphere. In 2017, Moutai told distributors to ensure they sold at least 30% of the goods they received from the company via online channels or see their future delivery quotas slashed, Caixin learned. Moutai increased its online sales target to 40% last year.

However, a Beijing-based Moutai seller told Caixin that distributors habitually ignored the company’s calls to move their businesses online.

Read the full story later the day at Caixin Global.

Contact reporter Mo Yelin (yelinmo@caixin.com)

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