on April 5, 2009 by admin in Uncategorized, Comments Off

No Carcinogens in Our Products, Claims China’s Liquor Industry

One of the leading China’s liquor manufacturers Kweichow Moutai Company strongly denied rumors of carcinogenic substances in any of its products. The company officials stated the reports are baseless as we do not use any cancer-causing materials in our products, and appealed the media to discourage such reports.

The furore was triggered by some China’s financial internet portals circulated news of adulterated production practices in the Chinese liquor industry. China’s liquor industry feels this is a calculated move to tarnish their image and gain undue advantages.

Yantai Changyu Pioneer Wine Co. another leading distiller also came up with a similar statement to counter the rumors. They released a statement after the company’s share prices fell by 10 percent in a day’s trading, a steep fall as compared to the index marginal discount of 1.56 percent.

China Foods, a major player in food and beverage industry, a unit of the country’s largest grains firm COFCO also came in support of the breweries. Interestingly, the company’s shares were suspended for some time in the Hong Kong Stock Exchange in the wake of the rumors.

The recent quality issues related to Chinese products have prompted the authorities to take stringent action on standards of food production as well as others. Chinese Ministry of Commerce (MOFCOM) have ordered its local agencies to heighten quality supervision to ensure export-oriented foods, medicines, toys and furniture products, etc. fulfilled international criteria. The time of the release suggests that the government is keen on avoiding any collision with the global community in a worsening economic situation around the world.

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