Regional Price Hikes Hit Eighth Generation Wuliangye as Market Demand Surges

Driven by market supply and demand dynamics, the price of the Eighth Generation Wuliangye has increased in multiple regions.

On the afternoon of August 6, market sources indicated that the wholesale price (dealer transfer price) of the Eighth Generation Wuliangye has risen in various parts of the country. Dealers in Henan, Hebei, Shanghai, Sichuan, and Shandong have disclosed product price increases.

The extent of the price hike for dealers of the Eighth Generation Wuliangye varies. Some dealers reported a price increase of about 30 yuan per bottle compared to last week, while others noted a "transfer price increase of 100 yuan per case (6 bottles, roughly 17 yuan per bottle rise)."

Regarding the price increase, some dealers in Guangzhou confirmed that the price of the Eighth Generation Wuliangye has indeed risen over the past week. "In my view, the main reason for the price increase is related to increased terminal demand for the product; some areas are already experiencing shortages."

Data from third-party platforms shows that the recent wholesale price of the Eighth Generation Wuliangye ranges from 730 yuan to 830 yuan per bottle. Some platform data indicates that the price of Wuliangye has risen by about 15 yuan per bottle compared to earlier periods.

Industry insiders believe that as the core flagship product accounting for over 80% of revenue for Wuliangye Yibin Co.,Ltd., the wholesale price hike of the Eighth Generation Wuliangye will positively impact the product's value recovery in the market. Additionally, this price increase by dealers comes less than half a month after the second price hike of Feitian Moutai, suggesting that the upward adjustment of the "price ceiling" has provided some "breathing room" for the 1,000 yuan price range spirits.

Huachuang Securities research report suggests that in the second quarter, only leading brands can maintain normal turnover and shipment. In terms of scenarios, premium-tier Moutai and Wuliangye are seeing stable sales momentum under the current price system. Looking ahead, after the accelerated clearance in the second-quarter financial reports, a marginal turnaround is expected in the second half of the year from a low base. "By price segment, in the second quarter, Moutai and baijiu companies in the 100-yuan mass-market price range may show relatively more resilient financial reports, while other companies are expected to accelerate the clearance process."

Alongside the product price increase, the listed company Wuliangye Yibin Co.,Ltd. announced progress on its major shareholder's stock purchase plan. On the afternoon of August 6, Wuliangye Yibin Co.,Ltd. released an announcement titled "Progress on the Increase in Shareholding of the Company's Stock by Sichuan Yibin Wuliangye Group Co., Ltd." The content shows that the company recently received a notification from its major shareholder, Wuliangye Group. As of the announcement date, Wuliangye Group has cumulatively increased its shareholding in the listed company by 2.4113 million shares through centralized bidding, accounting for 0.06% of the total share capital, with an aggregate purchase amount of approximately 199 million yuan.

According to information, Wuliangye Group plans to increase its holdings of the listed company's stock through the secondary market over a six-month period starting from May 7, with an intended purchase amount of no less than 3 billion yuan and no more than 5 billion yuan.