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Lao Gan Ma Chili Sauce Spices Up Guizhou's Economy

| Nov 22, 2016 07:54 PM EST

Lao Gan Ma is China's best-selling chili sauce.

Lao Gan Ma, China’s best-selling chili sauce, is supporting one of the poorest provinces in China to keep up with the country’s fast economic growth.

The name “Lao Gan Ma” means old godmother. True to its name, the brand is created by a 69-year-old lady named Tao Huabi.

Tao’s hometown is Guizhou, a poor mountainous region in the southwest of China. Though it is still considered as one of the country’s poorest provinces, Guizhou is now slowly making its way up the economic ladder.

Guizhou has achieved 10.5 percent growth during the first three quarters of this year. This is the fastest of all the provinces in China and far ahead the 6.7 percent national rate.

Tao’s company, Guiyang Nanming Laoganma Food Co., helps the city achieve this growth.
From its humble beginnings, Lao Gan Ma has become one of the most popular Chinese food products.

This chili sauce has made its way to millions of homes around the world. It is now available in selected international stores and e-commerce websites.

On Amazon, the Lao Gan Ma chili sauce and its variants are sold at around $9 per bottle. It has a yearly sale of around 3.72 billion yuan.

Aside from Lao Gan Ma, Kweichow Moutai Co. has also contributed to Guizhou’s growth. This company is the producer of the famous baijiu, China's signature grain liquor distilled from sorghum and wheat.

The shares of Renhuai-based Kweichow have soared up to 42 percent this year—the fourth best gain in the Shanghai Shenzhen CSI 300 Index.

In total, Guizhou’s liquor exports have a 44 percent gain while shipments of chilli sauce and other condiments have a 16.5 percent increase.

Aside for food and beverages, Guizhou’s economy has also benefited from the tech industries. It has received investments from chipmaker Qualcomm Inc., iPhone maker Foxconn Technology Group, and local telecommunications giants China Mobile and China Unicom.

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