Recent reports indicate that Kweichow Moutai Co.,Ltd. direct stores in regions such as Sichuan and Chongqing have suspended a program allowing tax-paying enterprises meeting certain criteria to purchase the 53-degree 500ml Feitian Moutai at the official retail price. The timeline for resuming this service remains uncertain.
This mechanism, which has existed since 2022, permitted a select group of large enterprises to buy Feitian Moutai at its standard price. However, the eligibility requirements were extremely stringent, demanding high corporate revenue, significant tax contributions, mandatory bundled purchases of non-standard Moutai products, and the return of empty bottles. This was a small-scale, closed group purchase program with no public application portal.
Reclaiming Channel Control
Earlier this year, there were reports that Moutai had moderately relaxed the corporate purchasing rules in some areas, allowing the purchase of Feitian Moutai at the then-suggested retail price of 1,499 yuan per bottle without the requirement to bundle other non-standard products. The company's sales division confirmed the existence of such contracts but clarified they were only for renewals with existing historical corporate clients, with no plans to open new corporate registrations.
Looking at the broader timeline, Moutai is progressively reclaiming control over its distribution channels through product allocation and pricing strategies. This marks a shift from its previous heavy reliance on offline distributors to the current tightening of corporate purchase channels.
At the start of the year, Moutai made Feitian Moutai available for direct consumer purchase at the official retail price on its iMoutai app. Furthermore, through two price adjustments, the company has strengthened its pricing authority, thereby reducing the scope for scalpers to profit from arbitrage.
By the end of the first quarter, the iMoutai platform generated revenue of 21.553 billion yuan excluding tax, a 267% increase compared to the same period last year (5.87 billion yuan). Its contribution to the company's total revenue rose from approximately 11% to nearly 40%, establishing the direct sales system as Moutai's largest sales channel.
Will Shareholders Get Purchase Benefits?
Another topic generating market discussion recently is the suggestion that Kweichow Moutai Co.,Ltd. should offer its shareholders preferential access to purchase its liquor. Some commentators have proposed that the company could introduce exclusive purchasing rights for long-term shareholders as a way to reward investors and boost confidence in the capital markets, a practice reportedly common among some Japanese companies.
This is not the first time such a proposal has surfaced. During the company's earnings briefing in May, an investor inquired about the possibility of establishing a shareholder purchase account on the iMoutai app. Wang Li, the company's Deputy Party Secretary, Director, and Acting General Manager, responded by emphasizing the principle of "equality." She stated that the core of Moutai's current market-oriented reforms is consumer-centric, focusing on addressing consumer pain points related to "fairness, authenticity, and convenience."
She noted that "fairness" is a common demand from both consumers and society. Just as there is equality among shareholders, consumer access should not differ based on identity or profession. The company hopes shareholders will purchase liquor through official channels like everyone else.
An examination reveals that Moutai's "purchase benefits" for shareholders were only briefly implemented in 2018 and have not been reinstated since. That year, shareholders attending the annual general meeting in person could purchase one case of Feitian Moutai and two bottles of zodiac-themed Moutai at the official guide price. In the following two years, the standalone purchase mechanism was canceled, replaced by limited-quantity bundled sets available only to shareholders who won a lottery draw.
Since 2022, the company has formally abolished these purchase benefits. At the AGM venue, only small quantities of aged Moutai and premium Moutai are available for purchase. For Feitian Moutai and zodiac-themed liquor, shareholders must participate in the regular lottery draw on the iMoutai app alongside other consumers, with no special priority.
For many years, Moutai's primary method of rewarding shareholders has been through cash dividends. Data from Tonghuashun iFinD shows that from 2018 to 2021, Kweichow Moutai Co.,Ltd. maintained a dividend payout ratio of around 51.9%, with the dividend amount increasing steadily alongside net profit. From 2022 onward, the dividend ratio has increased significantly, with the total annual dividend exceeding 75% of the period's profit for four consecutive years.
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