Kweichow Moutai, China’s largest liquor producer, has raised the price of its flagship Feitian Moutai for the second time in 2026, effective July 18. The retail price on its official e-commerce platform increased by 100 RMB to 1,639 RMB per 500ml bottle, while the ex-factory price charged to wholesalers rose by the same amount to 1,369 RMB. The move follows a similar hike in March and ends a price freeze that had lasted since 2023.

The company’s shares climbed as much as 4.2% on the day of the announcement, suggesting renewed investor confidence in the brand’s ability to protect its margins. However, the decision comes against a challenging backdrop for China’s baijiu sector, which has been in decline for over a year. Industry-wide sales fell by nearly 15% in 2025, with major players including Wuliangye, Luzhou Laojiao, and Yanghe all suffering significant losses.

According to the China Alcoholic Drinks Association’s 2025 Mid-term Research Report, 58.1% of liquor companies reported rising channel inventory pressures in the first half of 2025. More than half of distributors and retailers noted worsening price inversion, and over 40% of retailers faced cash flow difficulties. In the first three quarters of 2025, total revenue for 20 A-share listed liquor companies dropped 5.9% year-on-year, while combined net profit fell 6.93%.

For Moutai, 2025 marked a historic low. The distiller recorded its first annual decline in both revenue and net profit since its 2001 listing on the Shanghai stock exchange. Net profit fell 4.5% to 82.32 billion RMB, while revenue slipped 1.2% to 168.84 billion RMB—both figures missing market expectations and the company’s own forecasts.

By raising prices twice in a single year, Moutai is clearly signaling its intent to defend profitability even as consumer demand softens and distributor inventories swell. Whether this strategy can reverse the broader industry hangover remains uncertain, but for now, the price hikes offer a rare bright spot in an otherwise gloomy market.