Workers at the packing line of China Kweichow Moutai Distillery Co in Maotai town, Guizhou province. [Photo by Yang Jun/China Daily]

A recovery in domestic liquor consumption has helped China Kweichow Moutai Distillery Co outrank Diageo PLC－which owns brands including Johnnie Walker, to become the world's top liquor producer by market value based on Friday's closing share prices.

After a continuous surge in its stock, Moutai shares rose to 392.87 yuan ($56.7) on Friday, bringing its total value to 493.5 billion yuan, surpassing Diageo's 57.43 billion pounds ($71.23 billion).

Moutai's share price dropped 0.93 percent on Monday to close at 389.2 yuan.

About 95 percent of Moutai's revenue comes from the domestic market, according to the liquor producer.

China's alcohol industry has been recovering since last September, stimulating the surge for Moutai. Wang Ying, an analyst at Hua Chuang Securities, said in a report that Moutai's daily wholesale volume had reached 40 metric tons on average, which had declined since the same time last year in an effort to control wholesale volumes.

Wholesalers have low inventories and demands are strong, said Wang.

Xing Tingzhi, an analyst at China International Capital Corp Ltd, has estimated Moutai's revenue will grow 14.2 percent to 66.6 billion yuan next year and net profit will rise 16.8 percent to 29.1 billion yuan.

Moutai expects its first-quarter revenue to reach 12.8 billion yuan, up 25 percent year-on-year, and net profit to grow to 5.68 billion yuan, up 15.92 percent.

As a global leader in alcoholic beverages, Diageo has about 150 brands including Johnnie Walker, Crown Royal, Buchanan's and Windsor whiskies, Smirnoff, Ciroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray and Guinness.

Compared with Moutai, Diageo's market presence is global.

North America accounts for 34 percent of its sales, Europe, Russia, and Turkey 24 percent, Africa 12 percent, Latin America at 10 percent, with the Asia-Pacific at 20 percent, according to its interim financial report six months ended Dec 31, 2016.

The improving alcohol market has also affected Diageo's business in China.

Last year its Asia-Pacific net sales grew 3 percent, with significant growth in China. On the Chinese mainland, its net sales grew 44 percent as a result of strong underlying momentum in Chinese white spirits and an earlier Chinese New Year, and scotch returned to growth, delivering a net sales increase of 7 percent.

Contact the writers at wangzhuoqiong@chinadaily.com.cn