Kweichow Moutai, China’s leading liquor maker, is in talks with China Resources Snow Breweries about selling its beer business, according to reliable sources close to the matter.

But the two parties denied any knowledge of the disclosure.

In 2000, the prestigious liquor maker invested 240 million yuan (US$36.45 million) to build a top-end beer production line with annual output of 100,000 tons. It caused a sensation at the time, but the beer, priced at a steep 58 yuan per bottle, was not a commercial success.

China's business press carried the story above on Tursday. China.org.cn has not checked the stories and does not vouch for their accuracy.