Kweichow Moutai, a homegrown luxury liquor brand, has partnered with Mars Inc-owned Dove to make liquor-filled chocolate, in a bid to make its products more appealing to the country's younger generation.

The product, which is expected to retail from Saturday, is priced at 35 yuan ($4.81) for a gift box of two pieces and 99 yuan for a box of six, according to Moutai's WeChat mini program. Products with less sugar are priced at 39 yuan for a box of two, 109 yuan for a box of six and 179 yuan for a box with a dozen pieces.

Moutai announced the partnership with Dove on Thursday, just 12 days after it teamed up with China's largest coffee chain Luckin Coffee on a liquor-coffee drink which sold 5.42 million cups and reached sales of 100 million yuan on launch day.

Mid-Autumn Festival that falls on Sept 29 is the primary gifting season for chocolate and alcoholic products in China.

The Moutai-Dove tie-up has buoyed the chocolate market mood — which experienced growth challenges during the past three years — and is set to make the Moutai brand more accessible to young consumers in the country, said Jason Yu, general manager of Kantar Worldpanel China.

Since young consumers often pursue healthy lifestyles, the consumption of chocolate has grown slowly in China, thereby entailing greater innovation in taste and packaging.

According to market research firm Euromonitor International, the retail value of the chocolate confectionery sector in China has grown marginally in recent years, from 21.5 billion yuan in 2018 to 22.3 billion yuan in 2023. The sector is forecast to reach 25.6 billion yuan in 2028.

The partnership means more in terms of branding than sales volume, said Zhu Danpeng, an independent food and beverages analyst.

"Behind every collaboration, the corporate value and persistence in long-term development make the longevity of a brand, not a one-time deal," he said. In recent years, "liquor plus" has become a driving force for Moutai to grow revenue and to get closer to consumers, he added.

The domestic chocolate market is dominated by international confectionery brands. According to a 2021 report by iiMedia that ranked chocolate brands in China, Dove, Ferrero Rocher and Snickers were in the first tier, with sales higher than all other brands combined.

Moutai has of late paid more attention to diversification and internationalization.

In May, the nation's most renowned liquor brand said it had rolled out six types of ice cream products and begun to develop liquor-filled chocolate.

The company said it now has 11 types of ice cream with the Moutai flavor, selling nearly 10 million cups this year. In 2022, sales of Moutai-flavored ice cream hit 262 million yuan, according to the company.

Moreover, culturally innovative products, such as Moutai-themed blind-box gift sets, have been developed since 2022, contributing to nearly 600 million yuan in revenue last year.

"Dove's global branding and reputation offer Moutai a pivot to double down on its expansion in the home and overseas markets," said Zhu.

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