The price adjustment of Feitian Maotai: what impact does it have on consumers, channels, manufacturers, and shareholders?

Kweichow Moutai (600519) officially announced on the evening of March 30 that it would adjust the sales contract price and the self-operated system’s retail price for its core flagship product—Feitian 53%vol 500ml Kweichow Moutai (600519) liquor. At a time when Moutai is tightly pushing forward a market-oriented transformation, this move that has been tugging at market nerves is not a simple price adjustment; rather, it is a deep reinforcement of the relationships among consumers, channels, the manufacturer, and shareholders.

Its core logic is clearly visible: use market-oriented means to squeeze out speculative excess, align the product price with value, return channel profits to serving purposes, and ultimately achieve a leap toward a “consumer-centered” approach.

Consumers: aiming to eliminate unreasonable markups, making fair and authentic purchasing possible

In the past, Moutai’s “two-track pricing system” for Feitian produced a large ecosystem of scalpers. The market price was determined by speculators, forcing ordinary consumers to often buy at high prices. This price change of nearly 40 yuan will not affect demand; what consumers care about more is how to buy the liquor fairly and with authenticity guaranteed.

After the market-oriented transformation, prices will be determined by market supply and demand. Since January 1, Moutai has successively reduced the retail prices within its self-operated system for multiple non-standard products, including Boutique Moutai, Zodiac Moutai, and Aged Moutai (15), among others. This adjustment to the Feitian Moutai price can be said to be another manifestation of doing things in accordance with market rules. It will shrink the arbitrage space for speculative demand, and effectively curb price-manipulation behavior. In the long run, a price system guided by market demand helps Moutai return to its attribute as a consumer product rather than a speculative one, safeguarding that real consumers can purchase Moutai fairly and with authenticity guaranteed.

Channels: say goodbye to back-door stock speculation, and transition to earning reasonable profits

For distributors, before the market-oriented transformation, the channel logic was “capital strength + quota game.” Distributors earned the spread between the sales contract price and the retail price in the market, and more profits were intercepted by scalpers.

On January 14, Guizhou Moutai said in an announcement that the distribution model would, based on different products and different channels’ operating costs, operating difficulty, operating risks, and service capabilities, scientifically and reasonably calculate and determine the corresponding sales contract price and adjust it dynamically. In addition, by canceling the distribution system and combination sales, distributors’ returns would have certainty. With the introduction of the “agency sales” model, distributors no longer lock in exclusive rights to the inventory; they do not need to prepay for goods. Instead, they play the role of “service providers,” earning a reasonable return for every bottle sold.

This series of policies significantly reduces distributors’ capital costs, resolves inventory risk, and ensures that their profit margins are reasonably protected. Regarding the adjustment to the core flagship product, Feitian Moutai, it can better guide distributors to shift from being “retailers who sit at their counters” to “merchants who actively operate on the ground,” redirecting effort from “flipping goods” to serving consumers, and becoming a co-creator of value.

Manufacturers: align with market demand, and let scarce products reflect their true value

For the Moutai manufacturer, this price adjustment is a “move that follows the trend” after many years. Looking at historical cycles, Moutai’s last adjustment to the sales contract price of Feitian Moutai was in November 2023. The most recent adjustment to retail prices was in January 2018; it has been eight years since then. In an era of upgrading consumption trends, Moutai liquor’s market demand has already undergone tremendous changes.

According to the results of a questionnaire survey covering 1.53 million people published on March 6 by i Moutai, nearly 75% of people choose to purchase through official channels. More than 2 million users purchased the products they wanted within 65 days, 32.5% of users bought the products they wanted, and the remaining 67.5% of users are still looking forward to buying. In addition, more than half of users chose Moutai liquor for New Year’s Eve dinners.

These data directly show that i Moutai not only activated a large number of terminal users that had previously been unable to be reached due to channel barriers, but also provided Moutai with a more direct and quantifiable basis for actual consumer prices.

In 2024, Moutai proposed a market-oriented transformation, established a pricing mechanism of “pricing in line with the market, with relative stability,” and adjusted prices during the off-season window for liquor after the Spring Festival. Behind this is the company’s confidence in product value—under a long-term market pattern of supply-demand imbalance, for high-end products with scarce attributes, their prices should reflect real market demand.

Shareholders: steady performance, building confidence in long-term value

The capital market’s attention has always focused on the direct impact of this adjustment on the listed company’s profit-and-loss statement.

For shareholders, this means higher-quality investment returns with greater certainty. Moutai is fulfilling long-term value with tangible, steady performance and giving shareholders confidence. Whether it is the previously proposed profit distribution of not less than 75% over three years, or the ongoing share repurchases across two rounds, these are important components of market value management.

Multiple institutions have analyzed that the price adjustment for this core flagship product, Feitian Moutai, will directly help the company develop more steadily. More importantly, by flattening the channel structure, Moutai reduces the interception of profits from intermediate links and strengthens the company’s control over pricing. This new model of “light assets, strong services” helps smooth out industry cycle fluctuations and achieve long-term stable growth in the company’s profitability.

At a time when the liquor industry is saying goodbye to “hard-currency” bubble phenomena and proactively squeezing out price water, Moutai’s adjustment to its pricing system is a strategic choice that balances both “the present” and “the distance.” It allows consumers to buy with confidence; helps distributors operate with peace of mind; enables manufacturers to take initiative; and gives shareholders firm confidence. With the implementation of this series of market-oriented combination moves, Moutai is transforming from a massive vessel that relied on channel propulsion into an engine driven by consumer demand.

（责任编辑：郭健东 ）

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