Liquor-maker Luzhou Laojiao has announced plans to spend 420 million yuan ($62.9 million) on the development of a themed village.
The themed village will be located in the company’s hometown in interior China’s Sichuan province, reports Caixin.
Luzhou Laojiao follows many of its peers who have made similar developments. The move follows one of the worst slumps Chinese liquor makers have faced in recent memory – caused by Beijing’s rollout of a frugality campaign four years ago.
Luzhou Laojiao will spend the equivalent of about 400 million yuan after tax. The company will acquire a former school property located on 8 acres in Luzhou.
The company has recently seen revenue and profit rise 20% and 35% respectively in the first six months of the year.
Other, larger, brands such as Kweichow Moutai Co. Ltd were more impacted by the government clampdown. They were one of the first to develop a theme park to offset the downwards pressure – building a Moutai Museum and exhibition centre in the Guizhou province. Moutai said they generated 30 million yuan in tourism revenue in the first eight months of last year.
https://www.caixinglobal.com/2017-08-16/101131293.html
