Wuliangye Sets Minimum Price of RMB 800 for Eighth-Generation, Penalizes Low-Price Cross-Region Sales
Wuliangye has notified distributors to cancel certain channel policies and set a minimum ex-factory price of RMB 800 per bottle for its eighth-generation liquor, with penalties for low-price cross-region selling. As of August 13, wholesale prices hovered around RMB 780, up nearly RMB 50 from early August, while e-commerce prices ranged from RMB 800 to RMB 840. The effectiveness of the measure ahead of the Mid-Autumn and National Day holidays remains to be seen.
On August 13, multiple distributors revealed that Wuliangye had issued a notice about a week earlier, cancelling some previous channel policies and specifying that the ex-factory price for the eighth-generation Wuliangye must not be lower than RMB 800 per bottle. For low-price cross-region selling and low-price dumping, the brand will impose penalties such as fines depending on the severity. Some distributors said that as long as it is not large-scale malicious cross-region selling, penalties are generally not easily enforced in practice. As of press time, Wuliangye had not issued a written document or public response.
Recent market data show that on August 6, distributors in multiple regions raised the ex-factory price of the eighth-generation Wuliangye, with the whole-case quotation in Henan market rising by RMB 90 in a single adjustment. Wholesale prices in Hebei, Shanghai, Sichuan, Shandong and other regions rose in tandem, with the wholesale price of the eighth-generation Wuliangye collectively breaking through RMB 760 per bottle, and some regions recording a maximum weekly increase of more than RMB 30 per bottle. As of August 13, the circulating wholesale price of the eighth-generation Wuliangye was about RMB 780 per bottle, up nearly RMB 50 cumulatively from the beginning of the month.
Currently, the price of the eighth-generation Wuliangye on mainstream e-commerce platforms remains in the range of RMB 800 to RMB 840. With the Mid-Autumn Festival and National Day consumption peak season approaching, the actual execution effect of Wuliangye's channel price-limiting measures remains to be seen.
Why this event matters
The event has a measured impact on 1 industry. The strongest current signal is positive for Alcoholic Beverages, with intensity 60/100 and 70% confidence over a short term horizon.
Impact figures are analytical estimates that combine direction, intensity, confidence and event importance. They are not investment advice.