Last night, Wuliangye suddenly raised its price, almost three years after the last Wuliangye price increase.
According to 21st Century Business Herald, it was learned from many sources that the price of the newly signed contract of Wuliangye dealers next year has changed, and the unplanned price of the 52nd degree eighth generation of Wuliangye has increased from 999 yuan / bottle to 1089 yuan / bottle, the planned price is 889 yuan / unchanged, and the planned contract volume inside and outside is 3:2. It is estimated that, in summary, the factory price of the eighth generation of Wuliangye has increased from 889 yuan to 969 yuan, an increase of nearly 9%, which is consistent with the factory price of 53 degrees 500 ml of Feitian Moutai wine.
It is understood that ordinary Wuliangye is the most common "crystal bottle" Wuliangye on the market, which has been gradually upgraded from the first generation to the eighth generation, and the last price adjustment was in 2019, when the eighth generation of Puwu was launched, so far nearly three years.
Some dealers told the e company reporter that the price increase is indeed such a matter, and another dealer said that the new price increase policy is expected to be officially announced at the Wuliangye dealer conference on December 18 this year. The reporter of e company called Wuliangye Company, and the staff said that they were not aware of it at present.
In fact, Wuliangye is not the first liquor company to start a liquor price increase war. On November 26, Shandong Jingzhi Baijiu Sales Co., Ltd. issued a notice of product price increase: In view of the significant increase in the cost of packaging materials, energy consumption, labor, etc., in order to better ensure product quality, the company decided to increase the invoice price of multiple series of products from December 1, 2021.
On November 27, there was news that the high-end product of Jiannanchun, Crystal Jiannanchun, will be raised by 20 yuan per bottle, and Jiannanchun has released the price adjustment range in 2022, and due to the relationship of "one place, one policy", at present, many provincial and regional merchants are successively communicating the price adjustment to the terminal according to the same range.
Combing found that in the past year, Jian Nanchun has raised prices for many consecutive rounds, including another high-end product, the 52-degree treasure-grade Jian Nanchun, which has raised a price of 100 yuan / bottle in December 2020, and the terminal price has been raised from the previous 788 yuan / bottle to 888 yuan / bottle. On August 20, 2021, the collector's grade sword Nanchun once again announced a price increase of 40 yuan / bottle.
For the reasons for this price adjustment, some experts said that due to factors such as upstream raw materials and rising production costs, the price increase of the whole industry of liquor may have to open the curtain.
According to the research data of Xinhua Finance, Wang Guochun Era (1985-2007) Wuliangye insisted on price increases, from 1989 to 1994, Wuliangye through several price increases, the product price in turn surpassed Luzhou Laojiao, Fenjiu and Maotai, becoming the most expensive liquor in China's liquor industry, laying the foundation for consumer cognition of Wuliangye's high-end brand; active expansion provided a supply guarantee for Wuliangye's subsequent share of the high-end liquor market. The price increase and production expansion together laid the foundation for Wuliangye to dominate the high-end liquor market for a while, but the buyout business model it promoted also laid hidden dangers for future development.
In 2008, the factory price of Puwu was surpassed by Moutai, and in 2012, wuliangye's revenue was surpassed by Moutai in Guizhou, while the price strategy suffered a major blow, superimposed on the existing brand chaos and sluggish demand and other factors, Wuliangye entered a period of deep adjustment. In 2015, the liquor recovery cycle began, in 2017 Wuliangye entered the Li Shuguang era, in the same year, Wuliangye's secondary entrepreneurship began, involving products, brands, channels, management, incentives, etc. A series of reforms have landed, Wuliangye once again rejuvenated, driving into the fast lane of development.
Historically, Wuliangye's price increase strategy has not been successful every time. At present, the price of Moutai has not been raised, and the difficulty of raising is relatively high. From the perspective of retail prices in the market, the price of Scattered Flying has continued to decline recently. Due to the economy and the epidemic, the current consumption situation is not good.
Financial data show that from January to September, Wuliangye achieved operating income of 49.721 billion yuan, an increase of 17.01% year-on-year; net profit attributable to the mother was 17.327 billion yuan, an increase of 19.13% year-on-year.
In the secondary market, Wuliangye closed at 218 yuan / share yesterday, down 2.99%.
China Merchants Securities released a research report on November 24, maintaining the highly recommended rating of Wuliangye with a target price of 295 yuan. As of the reporting date, the company's latest closing price was 224.42 yuan, which is 31.45% of the upside from the target price.
(Part of the article is comprehensive 21st Century Business Herald, Southern Metropolis Daily, Brokerage China, Tencent News Client)
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