China's Jiugui Liquor Shares Rebound After Cyclamate Tests Come Back Clean
Zhang Yushuo
DATE:  Dec 26 2019
/ SOURCE:  yicai
China's Jiugui Liquor Shares Rebound After Cyclamate Tests Come Back Clean China's Jiugui Liquor Shares Rebound After Cyclamate Tests Come Back Clean

(Yicai Global) Dec. 26 -- Jiugui Liquor's shares have staged a rebound today after the Chinese baijiu distiller's products were found not to contain excessive amounts of sodium cyclamate, a cancer-causing artificial sweetener, while countering a distributor's claim.

Jiugui's stock price [SHE: 000799] climbed 3.1 percent to CNY35.47 (USD5.07) this morning. The shares tumbled by 10 percent on Dec. 23 after the distributor said that a batch of made-in-2012 bottles contained too much of the hazardous additive. 

Central Hunan province's market regulator randomly sampled the Jishou-based firm's products from 30 batches on Dec. 24 and yesterday, and all the tests returned clean, local media outlets reported.

The selection did not involve the drinks sold by the above-mentioned distributor, whose batch was an exclusive edition, according to the distiller. The regulator will not be testing those products, said an official.

In November 2012, Jiugui's products were exposed to be contaminated with plasticizers, liquid-thickening additives, by nearly three times the allowed amount. 

The liquor firm has had a great year in sales. In the first half of the year, the company increased its net profit by 36 percent to CNY156 million (USD22.3 million). 

Founded in 1956, Jiugui counts state-owned China Oil and Food as its controlling shareholder.

Editor: Emmi Laine 

Follow Yicai Global on
Keywords:   Jiugui Liquor,Cyclamate,sweetener