Just a few years back, Googut Spirits was primed for growth: with investment pouring in from state-owned Everbright and its high-profile merger of YesMyWine.com, dubbed as“number one global wine e-commerce platform” by Bordeaux École de Management. Now it’s embroiled in a wave of controversies related to labor issues and financial strains. Last week, a live stream hosted by the company was taken over by angry former employees demanding overdue wages, blowing its cashflow issue wide in the open.
An established wine and spirits company in China founded in 2012, Googut Spirits carved out a niche in aged liquor operations, liquor brand agency, online and offline retail, and investment mergers. In 2019, the company received a RMB 1 billion investment from a subsidiary of China Everbright Group, the Chinese state-owned financial conglomerate. According to its company records, it has a registered capital of RMB 184 million (US$ 25.83 million) and net assets exceeding RMB 1.6 billion (US$ 224.59 million).
However, on October 21, it was thrust into the center of controversy when “Googut Fine Wine Store Authorized Account” (歌德名酒专营店授权号), the certified account of Googut Spirits on Douyin (the Chinese version of TikTok) abruptly began a live broadcast filled with angry wage-seeking messages, starkly written in bold black on white paper.
“Googut should pay wages, Googut owes wages!!!” one sign emphatically declared. Another read, “Googut boss Liu X Wei, it’s only right to repay your debts; it is intolerable to withhold wages.”
The dramatic scene unfolded against a backdrop of rising tension, drawing widespread attention and igniting discussions throughout the industry amid a cooling market for premium spirits, where demand for baijiu has waned.
An online commenter, claiming to be an employee of Googut Spirits, stated that the company “indeed owes several months’ wages and one year’s annual commissions.”
Yicai (第一财经), a Chinese financial news platform affiliated with the state-owned Shanghai Media Group, reported that a Douyin user under the handle “When will Googut pay wages” (歌德什么时候发工资) has been posting multiple videos since October 10, demanding overdue wages from the company.
“It is the 52nd day since Googut stopped paying wages, and today marks my 11th day seeking help on Douyin. The bidding account of Hangzhou Googut is still live broadcasting. Wu Shuai, the Hangzhou head, only promised to pay the wages of the current employees,” said the Douyin user in his or her video.
Vino Joy News also found netizens discussing being owed money by Googut Spirits in the Douyin comment section. One user pointed out, “Googut Spirits owes money to many of us; the accounts of wage-seekers have been maliciously reported.”
Following the incident, Googut Spirits acknowledged that the company has disputes over payment amounts with some former employees and is currently in communication to resolve them.
“The company’s live streaming room was left unlocked, allowing former employees to unlawfully enter and conduct a live stream,” stated Hangzhou Googut Culture Media Limited, a subsidiary of Googut Spirits, in response to local media.
Liu Xiaowei, Googut Spirits’ chairman, added that the company has reported the incident to the local police, and assured that the company’s current operations are normal.
This is not the first time Googut Spirits has faced allegations of wage dispute. In 2019, Beijing Googut Spirits Trading Co., Ltd. (北京歌德盈香贸易有限公司), a subsidiary of Googut Spirits, was sued by employees for withholding commissions. The Beijing First Intermediate People’s Court ordered the company to pay RMB 59,800 (US$ 8,394) to the employees.
Beyond wage disputes, the Googut Group is entangled in various legal and financial challenges. According to Qichacha (企查查), a Chinese company information database, Googut Spirits has faced multiple legal cases as a defendant, and its executive equity has been frozen several times. Between 2023 and 2024, chairman Liu Xiaowei has been listed as an executed person four times, with the frozen equity amounting to RMB 71.3 million (US$ 10.01 million).
Additionally, Ningbo Googut Spirits Liquor Industry Co., Ltd. (宁波歌德盈香酒业有限公司) invested in Sichuan Quanxing Liquor Industry Co.Ltd., (四川全兴酒业有限公司) a well-known Chinese Baijiu producer, becoming its second-largest shareholder. Liu Xiaowei served as a director at the distillery. However, the RMB 198 million (US$ 27.79 million) equity held by Googut Spirits in Sichuan Quanxing has been frozen.
Googut Spirits gained considerable fame through the acquisition of YesMyWine.com, though the move has been contentious. In 2015, Googut Spirits spent RMB 1 billion (US$ 140.37) to acquire YesMyWine.com, a prominent Chinese online wine platform with 8.5 million registered members.
Following the purchase in 2015, Googut Spirits swiftly acquired the Shanghai-based veteran liquor chain operator “Jiu Laoban” (酒老板), focusing on wine O2O and opening physical stores under the YesMyWine.com brand. However, rumors of a rift between Jiu Laoban executives and Googut Spirits surfaced shortly after the acquisition, accompanied by frequent high-level personnel changes at YesMyWine.com.
All signs indicate that Googut Spirits’ retail strategy is faltering. Currently, both the online and offline businesses of YesMyWine.com are largely stalled . According to Yicai, a few years ago, Googut Spirits expanded aggressively through joint ventures with local liquor companies in Henan province, planning to open over 1,000 offline YesMyWine.com stores by 2021. However, these companies are now inactive . Henan YesMyWine Network Technology Co., Ltd. (河南也买酒网络科技有限公司) was deregistered in November 2023. Furthermore, it is noteworthy that even the official YesMyWine.com website is no longer accessible.
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