Henan-based Baofeng Wine Co LTD (Baofeng Company) Tuesday filed a case against the Ministry of Commerce (MOFCOM), demanding that the court rule the ministry's administrative choice of Best Selling Chinese Liquors and The Sixth Appraisal of Famous Chinese Liquors as illegal, according to a Beijing News report on Wednesday.

MOFCOM issued a notice and a supplement to the notice on September 25, 2006 and October 18, 2006 respectively to start a nationwide appraisal of liquors to compete for these titles. The appraisal required wine companies and producers to declare their participation during a limited time period for entry.

On April 12, MOFCOM released a preliminary list of The Sixth Appraisal of Famous Chinese Liquors; however, many brands of liquor traditionally dubbed as Famous Chinese Liquors, including Baofeng liquor produced by Baofeng Company, were not on the list.

Baofeng Company filed the case with the Beijing Second Intermediate People's Court. Plaintiff attorney Zhou Ze explained that the company did not declare participation in the MOFCOM appraisal, because the liquor produced by the company had already been declared a Famous Chinese Liquor by related departments through strict procedures. They have also criticized the lack of an open public tasting in the MOFCOM's appraisal process.

While the MOFCOM notice about the appraisal stated participation was free, industry insiders have made claims of certain advantages being offered to those that pay the price. For example, there are three certificates of assured quality available for manufacturers to purchase at a cost of 1000-10,000 yuan from China Alcolic Drinks Industry Association, a national industrial organization. MOFCOM does not officially support this practice, but it is understood by liquor companies that possession of these certificates often increases their chances of winning a title.

After MOFCOM released the preliminary list on Aprial 12, six wine companies signed a petition objecting the ministry's actions, requesting MOFCOM to cancel the appraisal in order to maintain the healthy development of China's liquor industry, according to a Nanfang Metropolises Daily on Wednesday.

Baofeng Company said the appraisal has marred the clean competition among companies and producers and throws those who were not chosen into unfavorable circumstances. The company also said the ministry's move goes against rules set by the State Council and related central departments on prohibition of organizing competitive appraisals among companies.

The Beijing News report said another two wine companies, Guizhou Dongjiu Trading Co. LTD and Wuhan Tianlong Huanhelou Wine Co LTD, are also going to file cases against MOFCOM.

In response to the case, MOFCOM yesterday announced that they will suspend the appraisal due to a recent State Council document asking ministries and departments to review these types of events. "The Ministry of Commerce pays great attention to the promotion of Chinese enterprises' brands. The purpose of the appraisal is to inspire enterprises' consciousness to cherish their brands and build a long-term mechanism of promoting and protecting self-developed liquor brands. The appraisal process is open and well-organized." Ministry Spokesman Wang Xinpei said at a press conference.

From 1952 to 1989, five national liquor-tasting conferences were held to choose famous Chinese liquors. At the Fifth National Liquor Tasting Conference, held on January 10, 1989 in Hefei, capital city of east China's Anhui Province, Baofeng Liquor was awarded the Famous Chinese Liquor gold medal. Dongjiu liquor, Huanghelou liquor, and Baiyunbian kept their titles from the previous conference.

Baofeng Company said the title of Famous Chinese Liquor is of great influence and carries authority. Top Eight Famous Liquors, Top Thirteen Famous Liquors, and Top Seventeen Famous Liquors chosen by the conference have become awards with most lucrative market potential. Once the list is decided, it will cause immeasurable reputation and economic loss to companies who were not chosen, according to the Nanfang Metropolises Daily report.

Most people can still remember these famous brands chosen by the conference: Moutai, Luzhou Laojiao, Fenjiu, Xifeng, Wuliangye, and Gujing Tribute Liquor. Even though years have past, and some may be over the hill, most of them are still popular in today's liquor market.

(China.org.cn by Zhang Yunxing May 18, 2007)