As year-end approaches, a major pricing development involving leading liquor producer Wuliangye Yibin Co., Ltd. has drawn significant market attention.
Market sources indicate that in 2026, Wuliangye may adjust pricing for its core product—the 52-degree 8th Generation Wuliangye—offering discounts on the factory price of 1019 yuan per bottle. Dealers’ invoice prices could drop by 119 yuan to 900 yuan per bottle. Factoring in additional subsidies and rebates, the actual cost for dealers might even fall below 800 yuan per bottle.
In response, Wuliangye clarified that the factory price of 1019 yuan per bottle remains unchanged. The perceived "price cut" stems from the implementation of subsidy policies rather than an official reduction.
Amid a structural adjustment phase in the liquor industry, pricing and channel strategies of major players like Wuliangye carry industry-wide implications. Could this move impact Wuliangye’s 2026 revenue? Might it prompt competitors to follow suit?
Dealers and industry sources corroborate the adjusted invoice price of 900 yuan per bottle, with potential further reductions to the 800-yuan range after subsidies. However, Wuliangye reiterated that the factory price stays firm at 1019 yuan, attributing lower market prices to policy-driven subsidies.
Price inversion—where market prices fall below factory prices—has become common in the sector. Current e-commerce platforms list the 8th Generation Wuliangye between 820–850 yuan per bottle, below the official factory price.
The liquor industry saw a wave of price hikes from late 2023 to early 2024, with brands like Kweichow Moutai and Luzhou Laojiao raising factory prices. Wuliangye last increased its 8th Generation product price by 50 yuan to 1019 yuan in February 2024, maintaining it since.
Analysts view this adjustment as a "structural concession," drawing parallels to Wuliangye’s 2014 price cuts during an industry downturn. Back then, the move led to a 15% revenue decline and a 26.8% drop in net profit—its steepest annual decreases.
Today’s market conditions differ vastly. Industry experts interpret Wuliangye’s policy as incentivizing dealers to focus on end consumers rather than bulk reselling. By rewarding genuine sales efforts—such as consumer scans—the company aims to strengthen retail engagement.
Liquor analyst Xiao Zhuqing praised the decision as pragmatic, easing channel pressure and redirecting resources toward real consumption. He noted that transparent pricing reduces subsidy exploitation risks, allowing dealers to prioritize consumer experience.
The financial impact of this adjustment and its long-term effects on Wuliangye’s growth trajectory remain key points for ongoing observation.
Comments