Nixon toasted US-Chinese relations with Moutai

The fiery liquor with a distinct after-taste achieved international fame when it was served up to Richard Nixon during his visited to Beijing in 1972.

Now Kweichow Moutai plans to float on China's domestic stock market to raise 2bn yuan ($241m) with which it will expand its production by two-thirds.

The company needs to upgrade its technology and output to compete with foreign whiskeys and brandies that have cut its market share.

'2000' years old

Moutai liquors and rice wines were originally produced in three small workshops in southern China's Guizhou province before they were purchased by the government in 1951.

A standard bottle of 53% Moutai Liquor sells for about 180 yuan

The company, which says it has produced the wine for 2,000 years, began making the more potent liquor from wheat and sorghum in 1862.

The liquor takes about 5 years to produce and a bottle costs about 180 yuan (�15), with 100-year old vintage bottles selling from more than 10,000 yuan (�846).

Over proof

In the past 20 years, Moutai Distillery Group has developed into a diversified group with investments in hotels, restaurants and package material manufacturing across China.

The company has about 4,000 employees, annual pre-tax profit of approximately 200m yuan and it earns $10m from exports to over 100 countries.

Moutai, will be listed on the Shanghai stock exchange on 31 July and only Chinese investors will be able to buy shares.