MingZhu Logistics to acquire Baijiu distributor Guizhou Alliance Liquor Management

MingZhu Logistics, a Nasdaq-listed logistics and transportation services provider, will acquire Guizhou Alliance Liquor Management, a China-based distributor of Baijiu, a colorless Chinese liquor.

In this regard, the parties have entered into a non-binding memorandum of understanding.

The financial terms of the proposed deal were not disclosed.

However, MingZhu Logistics and Guizhou Alliance Liquor Management revealed their intentions to invest further in and develop a commercial liquor distribution business in China.

Guizhou Alliance Liquor Management is a liquor distributor which concentrates on the distribution of Baijiu made from Maotai town in the mountainous province of Guizhou.

Baijiu is widely regarded as China’s national beverage and is the main spirit sold in the local China market. The “white liquor” is served as part of a normal tradition at every occasion such as family gatherings and business banquets.

After the acquisition is over, Guizhou Alliance Liquor Management will develop its own Baijiu brand and premium alcohol customization OBM (original brand manufacturer) services.

The acquisition is part of MingZhu Logistics earlier unveiled strategic plan, under which the latter intends to expand into the commercial distribution market, based on synergies and the adjacency to its current operations. It initially involved collaborating with a Chinese distributor of Baijiu as well as other spirits to improve its distribution of commercial liquor across China subject to the finalization of an agreement.

MingZhu Logistics is also looking into the distribution of its own line consisting of Premium Chinese Baijiu, along with a wider portfolio comprised of spirits made by other third-party producers. It is currently planning to market them under the name of Alliance of Baijiu.

Jinlong Yang — MingZhu Logistics Chairman and CEO said: “With the reopening of the economy and business returning to a more normal pace, traditions and customs have returned. With larger gatherings and celebrations once again commonplace staples like Baijiu are now highly sought after.

“These trends reinforce our positive view of the Chinese spirits market and ability to leverage our market position, which we have been building for over 2 years. The industry has never appeared heathier, with incomes increasing and expenditures on Baijiu and other spirits continuing to grow.”