Kweichow Moutai to enter tea market

China's most renowned liquor brand, Kweichow Moutai, is planning to enter the tea market, a company representative said on Tuesday.

Kweichow Moutai decided to establish a joint venture with National Guizhou Tea Co and take advantage of the tea company's management team and experience in the tea business.

The joint venture aims at winning market share from China's leading tea companies, such as Wuyutai Tea, Tenfu's Tea.

"With a 466,000-hectare tea plantation in Guizhou province, support from governments at all levels, and close cooperation between tea companies, I think we can realize it in the near future," said Zhang Lianzhao, Kweichow Moutai's Beijing representative.

"This is a marketing strategy system dominated by the Guizhou provincial government," said Wang Jian, vice-president and general manager of the joint venture company. "The reputation of the Moutai brand and its chain stores provide a platform for selling tea and sharing other resources."

The company plans to launch 500 exclusive shops selling wine and tea across the country in three years. The estimated annual sales revenue of one such store is two million yuan, which would help about 50 tea growers' households get out of poverty.