(Yicai Global) Aug. 26 -- Following the success of Kweichow Moutai’s recent boozy ice-cream offerings, the Chinese distiller has branched into mooncakes, a traditional Chinese pastry eaten during the Mid-Autumn Festival. Its gift sets, which sold out nearly two months ago, are now fetching high prices on the resale market.

A set of Kweichow Moutai’s mooncakes, which do not contain any of its famous baijiu liquor, was reselling for as much as CNY698 (USD101). This is a huge mark-up from the original prices of CNY188 (USD27) and CNY318 a set.

Buyers should boycott mooncakes sold at such extortionate prices, distributor Moutai International Hotel said on its WeChat account on Aug. 24. Around 100,000 sets of mooncakes made by Guangdong Rimei Food and retailed through Kweichow Moutai’s hotel arm had sold out by July 1.

The Moutai brand has become a symbol of high-end luxury and so the Zunyi, southwestern Guizhou province-based firm will make great efforts to develop more sideline products, Zhu Danpeng, deputy director of Guangdong Food Safety Promotion Association, told Yicai Global.

Mooncakes are big business at this time of the year as they are a very popular gift during the Mid-Autumn Festival, which falls on Sept. 10 this year and marks a time of family reunion. They cost very little to make but can command a high profit margin of as much as 60 percent.

Guangzhou Restaurant, for instance, has a profit margin of 60 percent on some of its mooncakes and its revenue from mooncake sales has been rising year by year, Yicai Global learned from looking at the pastry makers annual reports.

Chinese bakery Ganso earned CNY1.5 billion (USD218.8 million) through the sales of Chinese and Western cake and pastry gift sets last year with a gross profit margin of 51.5 percent, according to its 2021 financial report.

Editors: Shi Yi, Kim Taylor