The Chinese liquor industry has recently faced a series of unsettling developments.
First, Wuliangye adjusted the pricing of its core product, the Eighth Generation Pu-Wu. Market reports indicate that starting next year, Wuliangye will offer a discount on the ex-factory price of 1,019 yuan per bottle, reducing the invoice price for distributors by 119 yuan to 900 yuan per bottle. This marks the first price cut for the product in nearly a decade. Wuliangye clarified that the ex-factory price remains unchanged, attributing the "price reduction" to subsidy policies.
Meanwhile, the industry benchmark Feitian Moutai continues to struggle with declining prices. Since 2025, the wholesale price of loose bottles has fallen below the 2,000-yuan threshold, hitting a historic low of under 1,700 yuan during the "Double 11" pre-sales. In November, the wholesale price of boxed Moutai further dropped to around 1,530 yuan per bottle. Platforms like Taobao and Pinduoduo even offered flash sales at 1,499 yuan, pushing prices below previous lows.
The liquor industry's downturn persists. Third-quarter earnings reports from A-share liquor companies show that, apart from Kweichow Moutai and Shanxi Xinghuacun Fenjiu maintaining slight revenue growth, most firms faced declines in both revenue and net profit. Wuliangye's revenue fell by over 52% year-on-year, while Yanghe Brewery’s net profit plunged by 158%. Weak sales have become an industry-wide challenge, compounded by price inversions and high channel inventory, increasing operational pressures for liquor companies.
The root cause lies in shrinking consumer demand. On one hand, key consumption scenarios that once drove liquor sales—such as business banquets and gifting—have not recovered as expected, with both corporate and individual budgets tightening. On the other hand, shifting consumer demographics pose a challenge, as younger generations show less interest in traditional liquor culture, favoring low-alcohol beverages, fruit wines, and other emerging categories instead.
Liquor companies have begun self-rescue measures: besides optimizing channel policies and offering subsidies to ease distributor inventory pressure, many are accelerating the launch of low-alcohol and youth-oriented products, experimenting with new consumption scenarios like camping and tea-infused drinks. Some are also exploring cultural collaborations and digital marketing to expand brand reach.
However, these efforts may not be enough to reverse the trend. With the decline of large-scale infrastructure and real estate investments, the era of premium-priced liquor may be over.
Comments