Price hike of 40 yuan! After eight years, Maotai finally adjusted the 'tag price' of Feitian.

Kweichow Maotai has once again taken action regarding the factory price and retail price of its Feitian Maotai.

On March 30, Kweichow Maotai announced that after careful consideration, starting from March 31, 2026, the sales contract price for Feitian 53%vol 500ml Kweichow Maotai (2026) will be adjusted from 1,169 yuan per bottle to 1,269 yuan per bottle, while the retail price within the self-operated system will be increased from 1,499 yuan per bottle to 1,539 yuan per bottle.

Two years ago, Kweichow Maotai adjusted the factory price of Feitian Maotai. In November 2023, the factory price for 53%vol 500ml Kweichow Maotai (Feitian, Five-Star) was raised from 969 yuan per bottle to 1,160 yuan per bottle.

The adjustment of the retail price dates back eight years. In December 2017, Kweichow Maotai announced that starting in 2018, it would appropriately increase the prices of its Maotai products by an average of around 18%. The following month, Kweichow Maotai declared that all levels of subsidiaries under the company and Maotai Group must sell the 53-degree 500ml Feitian Maotai at the fixed price of 1,499 yuan per bottle.

In the eyes of outsiders, this is another significant step in Kweichow Maotai’s market-oriented transformation.

Non-standard products were the first to be adjusted.

In January, Kweichow Maotai (600519.SH) adjusted the prices of its non-standard products.

On the iMaotai platform, the official price for Premium Maotai was set at 2,299 yuan per bottle, down from the previous 3,299 yuan per bottle; the official price for the Classic Zodiac Maotai was adjusted to 1,899 yuan per bottle, previously 2,499 yuan per bottle; and the official price for 15-Year Maotai was lowered to 4,199 yuan per bottle from the earlier 5,999 yuan per bottle. According to media reports, due to the reduction in the official retail price, the factory prices for these products also decreased accordingly. The factory price for Premium Maotai dropped from 2,969 yuan per bottle to 1,859 yuan per bottle, while the factory price for 15-Year Maotai fell from 5,399 yuan per bottle to 3,409 yuan per bottle.

Additionally, the supply of non-standard products will also be reduced. In the same month, Kweichow Maotai announced that it would no longer distribute non-standard products to downstream wholesalers via the “distribution method,” and plans to completely halt the supply of Precious Maotai, reducing production plans for zodiac and other non-standard products by 30%-50%.

Furthermore, Kweichow Maotai’s marketing system is shifting towards a multi-dimensional collaborative model of “direct sales + distribution + consignment sales + entrusted sales.” Compared with the previous marketing system, the distributor system has been abolished, introducing mechanisms for consignment and entrusted sales where ownership rights are not transferred, easing financial pressures on distributors, and strengthening the company’s control over supply adjustments.

Therefore, after a reduction in trading volume and price adjustments, non-standard products were the first to introduce a consignment sales model.In March, media reports indicated that Kweichow Maotai implemented a consignment policy for several non-standard products. The products included in the consignment scope are Aged Maotai (15 years), Premium Maotai, Zodiac Maotai (classic edition and gift box), Drum Music Feitian, as well as all small-capacity products of 53-degree Feitian Maotai (covering 1000ml, 200ml, 100ml, and 50ml), among others.Distributors can apply to participate in the consignment model and pay a deposit, earning approximately 5% commission upon completion of sales.

GJ Securities noted in a research report that compared to the distributor model, the consignment model sets a relatively low commission rate of about 5%. Taking Premium Maotai as an example, the ex-factory price of 1859 yuan under the distributor model versus the retail price of 2299 yuan represents a channel gross profit margin of about 24%. Referring to the planning concept of the consignment model—where ownership does not transfer, a certain deposit is collected, a certain percentage of commission is provided, tiered incentives are implemented, and more sales lead to higher earnings—it is expected that the commission rate may be adjusted based on sales performance during actual implementation.

However, distributors can still make money through the distributor model. GJ Securities stated that for the distributor channel, apart from Feitian Maotai, non-standard Maotai products such as Premium Maotai, fifteen-year-old Maotai, and 43-degree Feitian Maotai have successively determined sales contract prices and signed sales contracts with some channel distributors. Among them, the gross profit margin between the retail price and the sales contract price for Feitian Maotai, Premium Maotai, and fifteen-year-old Maotai is over 20%.

Feitian Maotai raises prices again

After adjusting prices, supply volumes, and sales models for non-standard products, Kweichow Maotai's reform focus has returned to its core product, Feitian Maotai.

This time, Kweichow Maotai adjusted the sales contract price of 53%vol 500ml Guizhou Maotai (2026) from 1169 yuan per bottle to 1269 yuan per bottle, and the retail price within the self-operated system from 1499 yuan per bottle to 1539 yuan per bottle, breaking its previous commitment to 'only raise ex-factory prices, not recommended retail prices,' seen as a signal of Kweichow Maotai further strengthening its control over pricing.

This adjustment only specifies the retail price within the self-operated system; the distributor end will continue to maintain a market-oriented pricing model, adoptinga dynamic price adjustment mechanism based on market conditions. In the 'Guizhou Maotai Market-Oriented Operation Plan for 2026' approved by Kweichow Maotai in January, it was mentioned that in terms of pricing mechanisms, Kweichow Maotai will be market-oriented and establish a dynamic adjustment mechanism for retail prices within the self-operated system characterized by 'market responsiveness and relative stability.' The core algorithm is to scientifically and reasonably estimate channel profit margins based on the retail price within the self-operated system to determine sales contract prices and commissions.

Notably, the reduction in non-standard products is expected to bring additional volume growth for Feitian Maotai. Kweichow Maotai plans to cut the distribution of several product sizes such as 100ml, 200ml, and 1000ml. GF Securities believes that the reduced volume of non-500ml Feitian Maotai will be 'transferred' to the standard 500ml Feitian Maotai and distributed through direct sales channels (such as iMaotai) and consignment models.

At the same time, after Feitian Maotai was listed on iMaotai, it saw further incremental growth. In January, the number of completed orders for Feitian Maotai exceeded 1.43 million. A brokerage firm estimated that each order, ranging from 1 to 6 bottles, corresponded to a January distribution volume of 673 to 4,040 tons. Assuming a midpoint value and considering January's distribution as 25% of the annual total (based on sales turnover), the total annual distribution of Feitian Maotai via iMaotai could exceed 9,000 tons, representing an increase of more than 30%.

For Kweichow Maotai, a slowdown in growth is also an important challenge it faces. From 2022 to 2024, Kweichow Maotai’s revenue growth rates were 16.87%, 19.01%, and 15.71%, respectively, while net profit growth attributable to shareholders was 19.55%, 19.16%, and 15.38%, respectively. In the first three quarters of 2025, both its revenue and net profit growth dropped to single digits—revenue reached 128.454 billion yuan, up 6.36% year-on-year; net profit attributable to shareholders amounted to 64.627 billion yuan, up 6.25% year-on-year.

Therefore, with more incremental growth for Feitian Maotai, its price increase could also improve Kweichow Maotai's performance. Dongxing Securities noted that Feitian Maotai accounts for about 50% of total sales revenue, with direct sales and distributor portions each accounting for half. Considering the assumptions of increased volumes of Feitian Maotai in 2026 and growth in direct sales channels, a rough estimate suggests that this price hike could boost revenue by 2.5%. According to liquor price quotes on March 30, 2026, the price for loose cases of 2026 Feitian Maotai was reported at 1,545 yuan per bottle, leaving a price gap of 276 yuan per bottle compared to the adjusted ex-factory price.At the same time, the price increase has also raised prices within the self-operated system, which is expected to support wholesale prices for Maotai. From the perspective of distributors, the price hike narrows channel profits, but Feitian Maotai remains profitable after the adjustment. This price increase is expected to be implemented successfully.

The simultaneous increase in the ex-factory price and self-operated retail price of Feitian Maotai represents a key step in its market-oriented transformation and marks a further strengthening of Kweichow Maotai's control over the pricing of its core product. On the basis of multiple adjustments to non-standard products, this price hike for Feitian Maotai is not only expected to inject new momentum into earnings growth but also signals Maotai's acceleration towards a more flexible yet stable pricing mechanism. The financial feedback from Kweichow Maotai's market-oriented reforms warrants continued attention.

Author | Wu Ren

Source | Zhengtan Finance (ID: teccj6)

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