Following extensive reforms, the profits of Moutai distributors have been significantly compressed, with a net reduction of 261 distributors in the first quarter.
On the afternoon of May 11th, Kweichow Moutai Co.,Ltd. held its 2025 annual and 2026 first-quarter earnings briefing. Unlike previous occasions, the market's primary focus was no longer on the price and growth targets of Feitian Moutai but on the market changes during the company's "first year of reform."
In 2025, Kweichow Moutai Co.,Ltd. reported revenue of 172.054 billion yuan and a net profit attributable to shareholders of 82.32 billion yuan, both showing declines. This ended the "growth myth" the company had maintained for over two decades since its listing, as the traditional "faith" in baijiu was shattered by the "alcohol restrictions" and the industry's deep adjustment cycle.
The situation this year is also not optimistic. In the first quarter, Kweichow Moutai Co.,Ltd. achieved revenue of 54.703 billion yuan, a year-on-year increase of 6.34%. However, the net profit attributable to shareholders grew by only 1.47%, with its growth rate lagging behind the revenue growth.
iMoutai Contributes 40% of Revenue Moutai's management has clarified that this year, specific operational targets will no longer be set. Instead, reform will be the focus of work, with a series of adjustments made to products, channels, and prices since the beginning of the year.
The most notable action was the regular listing of the flagship product Feitian Moutai on the iMoutai app at a price of 1,499 yuan, which directly boosted iMoutai's performance.
In the first quarter of this year, the iMoutai platform achieved non-tax revenue of 21.553 billion yuan, a 267% increase compared to the same period last year (5.87 billion yuan). Its contribution to the company's total revenue rose from about 11% in the same period last year to nearly 40%, helping the direct sales system become Moutai's largest channel.
The question lies in the fact that the company's total revenue growth rate was only 6.34%. How much of iMoutai's high growth is "creating incremental revenue," and how much is "shifting existing revenue"?
Last year, Moutai's direct sales channel surpassed wholesale and agency for the first time, with a revenue gap of only 300 million yuan between the two channels, representing a 50:50 split. However, the gap widened significantly this year. In the first quarter, direct sales channel revenue reached 29.5 billion yuan, accounting for nearly 54%, significantly higher than the wholesale channel (24.382 billion yuan).
An investor raised this question during the earnings briefing, asking whether the company's reform initiatives were intentionally weakening distributors to further expand the self-operated system.
In response, Wang Li, Deputy Party Secretary, Director, and Acting General Manager of Kweichow Moutai Co.,Ltd., stated that after market-oriented reforms, the business models between manufacturers and distributors would become more diverse. Distributors need to accelerate their adaptation to the new situation and transform into "channel partners." She pointed out that the relationship between online and offline is not one of opposition and competition but of synergy and symbiosis. Online channels are responsible for efficiency and user reach, while offline channels are responsible for transaction conversion and service experience.
Wang Li further emphasized that Moutai and various channel operators have never been in a competitive relationship where one gains while the other loses, nor a trade-off relationship of mutual substitution. Instead, they are in a synergistic relationship where each has its advantages and cooperates for mutual benefit, forming a closely connected community of shared destiny and interests.
Average Distributor Revenue Decreases by 1.01 Million Yuan The profits of Moutai distributors are being significantly compressed.
According to the operational data disclosed by Kweichow Moutai Co.,Ltd., in the first quarter of last year, there were 2,283 Moutai distributors, achieving a total wholesale revenue of 27.36 billion yuan. Based on this calculation, the average quarterly revenue per distributor was approximately 11.9842 million yuan.
This year, there are 2,222 distributors, achieving wholesale revenue of 24.382 billion yuan. The average revenue per distributor is approximately 10.973 million yuan, a decrease of 1.0112 million yuan year-on-year, down 8.44%.
At the end of March, Moutai adjusted the price of its classic Feitian Moutai (53度, 500ml), increasing the ex-factory price by 100 yuan to 1,269 yuan, while the retail suggested price was raised by only 40 yuan to 1,539 yuan.
This "asymmetric adjustment," where the ex-factory price increased more than the retail price, compresses the per-bottle profit margin for distributors from the source.
Previously, if distributors procured goods at 1,169 yuan per bottle and sold them at the suggested price of 1,499 yuan or even higher market prices, the per-bottle price difference was at least 330 yuan. After this price adjustment, the per-bottle difference between the procurement price and the suggested price has shrunk to 270 yuan, a reduction of 60 yuan, compressing profits by at least 18%.
Compounded by the weakening market conditions for Feitian Moutai, even though the manufacturer raised prices, distributors did not dare to follow suit.
It was learned from stores that after the retail price of Feitian Moutai increased by 40 yuan, many tobacco and liquor shop owners did not maintain a corresponding increase. Some stores raised prices by 10 to 30 yuan, while others chose not to increase prices because "raising prices too much makes it hard to sell."
Some distributors have begun to "exit."
In the first quarter of this year, the number of domestic Moutai distributors decreased by 261. Such a large-scale exit has never occurred in the past few years. The company pointed out that the changes in distributors mainly occurred in the series liquor segment.
Moutai's sauce-flavored series liquor includes products such as Moutai 1935, Prince Liquor, and Lai Mao. Originally seen as the company's "second growth curve," this segment has faced difficulties in operational growth and severe price inversions. Last year, the segment's revenue was 22.275 billion yuan, a year-on-year decrease of 9.76%, becoming the main factor dragging down the company's overall performance.
The core product Moutai 1935 experienced severe price inversion. By the end of last year, its market price had fallen below the 600 yuan price range, nearly halving compared to the official price and even lower than the procurement price at that time (798 yuan). Distributors lost nearly 200 yuan for each bottle sold, eroding their profits.
This year, Moutai has lowered the procurement price and market price of Moutai 1935 to alleviate channel pressure. However, the product still lacks competitiveness in the market. The large-scale exit of distributors has further exacerbated the instability of the channel.
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