In the 100 hours following the announcement of a price increase for Feitian Moutai, distributors have voiced a pessimistic outlook, citing a significant reduction in their profit margins.
“Moutai has adjusted prices twice. The maximum profit per bottle of Feitian Moutai used to be 330 yuan. After the adjustment, it's now only 270 yuan, a full 20% less. Factoring in various costs, we're earning even less,” a Beijing-based Moutai distributor said pessimistically after the price change.
Last Friday evening, Kweichow Moutai Co.,Ltd. (SHA: 600519) suddenly announced that, effective from midnight the next day, the retail price for the 2026 Feitian Moutai on its iMoutai platform would be adjusted from 1,539 yuan per bottle to 1,639 yuan per bottle. The sales contract price was adjusted from 1,269 yuan per bottle to 1,369 yuan per bottle.
Now, five days after the announcement, what has been the market feedback across different regions? Communication with multiple distributors, large supermarkets, and industry insiders reveals several key points.
Key Market Reactions
First, the simultaneous increase in both the retail price and the sales contract price for Feitian Moutai has compressed distributor profit margins. Their profit per bottle has dropped from an initial 330 yuan to 270 yuan, a common reduction of about 20%, leading to a pessimistic sentiment among wine merchants.
Second, regarding large supermarkets, including Yonghui and Hema, some stores have been out of stock of the 53-proof Feitian Moutai, with only the 43-proof version available for sale. When asked about restocking, both Yonghui and Hema staff indicated they were "not sure." Meanwhile, some Walmart stores have maintained their selling price at 1,799 yuan and have not followed the price hike. Authorized Moutai stores have generally raised their selling prices by around 50 yuan, with current prices ranging from 1,700 to 1,750 yuan.
Third, the capital market has shown little sensitivity to Moutai's recent move. In the three trading days following the announcement, the stock opened at 1,270 yuan on the first day and closed at 1,292 yuan today, a gain of 1.7%. Looking at the stock price performance this year, it reached a high of 1,531 yuan before declining steadily to a low of 1,151.01 yuan.
Impact on Distributor Profits
“After the price adjustment, profits are down 20%. Many peers are getting out of the business,” one distributor remarked.
Recently, Kweichow Moutai Co.,Ltd. (SHA: 600519) announced another price increase for its core flagship product, Feitian Moutai.
According to the announcement, the retail price for the 2026 Feitian Moutai on the iMoutai platform was raised from 1,539 yuan per bottle to 1,639 yuan per bottle, and the sales contract price was raised from 1,269 yuan per bottle to 1,369 yuan per bottle, an increase of 100 yuan for both prices.
This marks the second price hike for Feitian Moutai within half a year.
As early as March of this year, Moutai had already increased the price of Feitian Moutai. At that time, the sales contract price for the 2026 Feitian Moutai was adjusted from 1,169 yuan per bottle to 1,269 yuan per bottle, while the retail price was adjusted from 1,499 yuan per bottle to 1,539 yuan per bottle.
To date, after two consecutive price increases, the retail price of Feitian Moutai has risen from 1,499 yuan at the beginning of the year to 1,639 yuan, an increase of 140 yuan, representing a year-on-year increase of 9.34%. The sales contract price has also risen from 1,169 yuan to 1,369 yuan, a year-on-year increase of 17.11%, significantly higher than the increase in the retail price. This indicates that while the selling price has gone up, distributor profits have not followed suit.
Public information shows that distributor profit margins typically stem from the difference between the retail price and the sales contract price. Before the price adjustment at the beginning of this year, the difference for Feitian Moutai was 330 yuan. After the first adjustment, the difference dropped to 270 yuan, a decrease of 18.18%. Following the second price hike, the difference between the sales contract price and the retail price remains at 270 yuan.
In comparison, after two consecutive selling price increases for Feitian Moutai, distributor profit margins have actually decreased rather than increased.
In fact, the compression of distributor profit margins is not limited to Moutai's core flagship product. Previously, Moutai had implemented a consignment sales system for its non-standard products, where distributor profit margins, originally exceeding 20%, have now been reduced to around 5%.
Taking Premium Moutai as an example, its latest sales contract price is 1,859 yuan per bottle, with a suggested retail price of 2,359 yuan per bottle. Before the consignment system, the distributor's profit margin was about 500 yuan, a profit rate of approximately 26.9%. Under the new consignment model, products must be ordered through "iMoutai," and distributors receive a service fee of about 5% of the sales amount, which translates to a commission of only about 118 yuan per bottle of Premium Moutai.
The situation is similar for other products. For instance, the 15-Year Aged Moutai previously had a sales contract price of 3,409 yuan per bottle and a retail price of 4,279 yuan per bottle, a difference of 870 yuan per bottle. Now, under the consignment model with a 5% rebate, the commission is approximately 214 yuan per bottle.
It is evident that the commissions for both products are roughly equivalent to one-quarter of the previous profits. This may signal the unraveling of the business logic of relying on "earning the price difference."
Regarding the compression of profit margins for products including Feitian Moutai and non-standard items, some Moutai wine merchants feel "uncertain."
At the beginning of Moutai's reform initiative, wine merchant Zhao Heng (pseudonym) remained optimistic, stating, "Distributors can't make big money, but we still have to do the business. I'm not too anxious about the marketization and service-oriented transformation; Moutai is also pushing everyone in that direction."
However, after experiencing the implementation of the consignment system and the compression of Feitian Moutai's profit margins, Zhao Heng expressed pessimism, saying, "Distributors can only earn that little bit. Many peers' businesses are completely gone now; no product is as reliable and convenient as buying directly on iMoutai."
He also noted, "Many Moutai wine merchants who mainly deal in standard products are still considering a transformation, thinking about doing other things."
Retailer Responses Vary
Overall, Moutai's adjustment of the Feitian Moutai retail price from 1,539 yuan per bottle to 1,639 yuan per bottle, an increase of 100 yuan, is not insignificant for actual consumers.
In a public poll with nearly a thousand participants, 28% of netizens stated they "will no longer buy Feitian Moutai, the price is too high to accept," while 21% said they "will still buy it as needed, it doesn't affect them." Over 40% of netizens said they "don't buy Moutai anyway."
However, despite the reduced profits, feedback from distributors suggests the price hike has not yet affected market sales. Moutai distributor Li Rui (pseudonym) stated, "The price increase doesn't affect consumers opening the bottles for consumption."
Another Moutai wine merchant also said, "The current consumption climate is not high, and not many people are drinking Moutai, so these price increases won't create a purchasing barrier for consumers who genuinely open the bottles to drink."
Several senior figures in the alcohol industry also revealed, "Currently, although the real demand for business consumption and gifting that involves opening bottles has not substantially recovered, the subsequent effects will depend on follow-up actions in the second half of the year, such as sales during the Mid-Autumn Festival. After the price adjustment, business procurement budgets have increased slightly, but procurement volume and frequency have not declined significantly. Consumption willingness among high-net-worth business clients, corporate gifting, and high-end banquet groups remains strong."
In terms of price transmission, the attitudes of large supermarkets and tobacco/alcohol retail outlets show a clear divergence.
Visits revealed that some stores, including those of Yonghui and Hema, have been consistently out of stock of the 53-proof Feitian Moutai, with only the 43-proof version available. Regarding when they might restock, relevant staff from both Yonghui and Hema said they were "not sure." Some Walmart stores have maintained their selling price at 1,799 yuan. When asked if they would follow the price increase, staff responded, "There has been no price increase. Earlier it was over 2,000 yuan, then it was gradually adjusted down to 1,799 yuan."
Authorized Moutai stores have generally followed the price increase, raising their selling prices by around 50 yuan, with current prices ranging from 1,700 to 1,750 yuan. One authorized store stated, "It was originally 1,700 yuan, but after iMoutai raised its price, we followed suit and increased it to 1,750 yuan." Another store said it "raised the price by about 40 yuan," adding, "The price is temporarily stable now."
Financial Performance and Channel Shifts
It is worth noting that whether it's the price increase for the flagship Feitian Moutai product or the push for market-oriented reforms, the capital market has shown little sensitivity to Moutai's recent actions.
In the three trading days following the announcement, the stock opened at 1,270 yuan on the first day and closed at 1,292 yuan today, a gain of 1.7%. Looking at the stock price performance this year, it reached a high of 1,531 yuan before declining steadily to a low of 1,151.01 yuan.
On the performance front, Moutai is also facing pressure.
According to its 2025 annual report, Moutai experienced its first-ever "double decline" since listing, achieving operating revenue of 1.72054 trillion yuan, a year-on-year decrease of 1.21%, and net profit attributable to shareholders of 823.2 billion yuan, a year-on-year decrease of 4.53%.
In the first quarter of 2026, Moutai's revenue was 547.03 billion yuan, a year-on-year increase of 6.34%, and net profit was 272.43 billion yuan, a year-on-year increase of 1.47%. However, in terms of channels, revenue derived from distributors decreased significantly, dropping from 273.4 billion yuan in the first quarter of 2025 to 243.82 billion yuan, a year-on-year decrease of 10.82%. Domestically, 261 distributors were "lost," representing an 11% reduction compared to the beginning of the year.
Chinese alcohol industry independent commentator Xiao Zhuqing stated, "Moutai's consecutive price increases directly reshape consumption stratification. Demand from high-net-worth business groups remains resilient, middle-class families purchase small amounts as needed and reduce repurchase frequency, while ordinary salaried workers gradually shift to sub-premium alternatives. Short-term speculative hoarding demand has cooled significantly, Moutai's consumption attribute continues to return, and the era of全民hoarding and speculation has ended. The implementation of Moutai's normalized dynamic pricing mechanism will continue to squeeze out channel投机profits in the long term."
Beverage analyst Cai Xuefei said, "From the consumer side, after two price adjustments, consumer purchasing意愿 may show structural differentiation. Core刚性demand groups such as business banquets, gifting, and high-net-worth collectors are extremely insensitive to the price increase. Their purchasing意愿 is essentially anchored in the certainty and authenticity需求of 'social hard currency.'反而, as the official price approaches wholesale prices and speculative套利recedes, they have gained fairer purchasing opportunities on直营channels like iMoutai. Real demand for opening bottles remains stable. However, relatively price-sensitive边缘self-consumption groups and some大众small-scale送礼者 may marginally流失or shift to sub-premium products due to the higher total cost, though this portion is极小and不足以撼动the基本盘."
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