Price hikes for high-end Chinese Baijiu ahead of Chinese New Year

11th January, 2017 by Natalie Wang

Some leading Baijiu brands have increased their prices by up to 50% ahead of the Chinese New Year – usually the peak season for liquor sales in China – a recent report has revealed.

Baijiu

In some cases, the price hikes happened in little over a year. A report by Chinese official news agency Xinhua revealed that the price for a bottle of ’53 degree Moutai had gone up from 2015’s price of 800 RMB (US$115) to 1,200 RMB (US$173) by December last year.

The jump put in motion what Xinhua called “a massive rising trend” for various well-known Chinese Baijiu brands including Wuliangye, Luzhoulaojiao, Fenjiu, Langjiu and Jianglanchun.

Honghualang, from Sichuan province in southwest China, raised its ex-factory prices for its two most popular brands by 10% on 5 January, while Jianlanchun’s ‘Crystal Sword’ upped its ex-factory price by 10 RMB.

The ex-factory price does not include additional costs including shipping and taxes, which means final retail price is much higher than ex-factory price.

The new round of pricing could be as a result of the anticipated sales growth during Chinese New Year, an overall smaller liquor production and rising demand for personal and business consumption rather than government consumption, a trade official from Hunan province in central China, told Xinhua.

Rising manufacturing costs are also pushing liquor companies to adjust their prices. Xiao Zhuqing, a Baijiu sales expert, pointed out costs from logistics to grains to even bottling materials have gone up by 30%.

In 2017, prices for well-known Baijiu brands will likely continue as both Moutai and Wuliangye announced plans to tighten supplies, the report also said.

To date, Moutai’s market value has hit 442 billion RMB, (US$60.5 billion), making it the world’s second most valuable liquor company after Diageo.

 

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to our newsletters

Job vacancies

UK Brand Ambassador - That Boutique-y Gin Company

That Boutique-y Gin Company
Tunbridge Wells, Kent, UK

Senior National Account Manager – Grocery (Craft Spirits)

Maverick Drinks
Tunbridge Wells, Kent, UK

Senior National Account Manager – Wholesale RTM (Craft Spirits)

Maverick Drinks
Tunbridge Wells, Kent, UK

Digital Marketing Manager

Master of Malt
Tunbridge Wells, Kent, UK

Experienced On Trade Sales Person

Borough Wine Imports
London, GB

3 x Business Development Executive

The Lakes Distillery Company Limited
Newcastle head office and nationwide, UK

Editor

Master of Malt Ltd
Tunbridge Wells(Kent)

Sales Account Manager - On-Trade

Berkmann Wine Cellars
Liverpool

Brand Manager

Hallgarten Druitt
Luton, UK

Experienced On-Trade Salespeople Required

Portal Wines and Spirits
London, UK

Purchasing and Sales (Wine Trader)

JF Tobias
London, UK

Sales Account Manager - On-Trade

Berkmann Wine Cellars
Cambridge / Peterborough / Bedfordshire, UK

The Global Merlot Masters 2017

Deadline : 17th April 2017

db Awards 2017

Deadline : 28th April 2017

The Global Organic Masters 2017

Deadline : 14th April 2017

The Global Sparkling Masters 2017

Deadline : 12th May 2017

Click to view more

Global Chardonnay Masters 2016

Now in its fourth year, the competition will identify the best Chardonnay from all around the world in every price range.

Rioja Masters 2016

Now in its fifth year, the competition will recognise and reward the finest Riojas on the world stage.

Fortified Masters 2016

Now in its third year, The Fortified Masters will reward the best fortified wines on offer.

The Global Malbec Masters 2016

the drinks business is proud to announce the inaugural Global Malbec Masters 2016.

Click to view more