After Moutai officially announced the price increase, some people hoarded Moutai, and under the current market, there is no need

On the evening of October 31, Kweichow Moutai (600519) issued an announcement: from November 1, 2023, the ex-factory price of Kweichow Moutai (Feitian, Five Star) will be raised by 53%vol, with an average increase of about 20%. This adjustment does not involve the market guide price of the product. According to estimates, the ex-factory price after the adjustment is about 1169 yuan / bottle.

On November 1, Kweichow Moutai opened 9.82% higher, approaching the daily limit. As of press time, Kweichow Moutai's share price rose more than 6%.

Ex-factory price increased by 20%

What does it mean for Moutai?

On November 1, the surging news reporter called the relevant personnel of Kweichow Moutai as an investor, and the staff said that the products involved in this price increase are mainly the familiar "Pu Mao" - Feitian 53%vol 500mL Kweichow Moutai, five-star 53%vol 500mL Kweichow Moutai, and other milliliter products of the same series as Feitian, such as: Feitian 53%vol 50mL Kweichow Moutai, Feitian 53%vol 50mL Kweichow Moutai (1×5), Feitian 53% vol 200mL Kweichow Moutai, Feitian 53%vol 375mL Kweichow Moutai, Feitian 53%vol 1L Kweichow Moutai, etc., the ex-factory price will be increased by about 20%. Feitian 53%vol 100mL Kweichow Moutai, Zunpin, Treasure, Boutique, is not within the scope of adjustment.

Nearly six years ago, Moutai raised the ex-factory price from 819 yuan to 969 yuan, which was the last price increase for Moutai in recent years. This time, Moutai raised the price by about 20%, raising the ex-factory price from 969 yuan to 1169 yuan. Relevant statistics show that since the beginning of the new century, Moutai has experienced 9 ex-factory price increases, and from the perspective of magnitude, the 20% increase is at a "medium level". However, relying on its own large base, the ex-factory price of Moutai has also increased by 200 yuan, which is also the highest increase with the ex-factory price raised from 619 yuan to 819 yuan in 2012.

In the context of not directly raising the price of the main product for up to 6 years, Moutai has achieved continuous high growth through a small amount of "volume increase" and all-round product structure adjustment and channel adjustment. The impact of this direct price increase on Moutai is also crucial, laying a solid foundation for sustained high growth in the next few years.

Let history tell the future

A glimpse from the last round of price increases

Moutai's development in the next two years

The ex-factory price of Moutai has always been a topic of great concern to Moutai manufacturers, the liquor industry, the capital market and the society, and this time the price increase has been raised again after 5 years and 10 months, and it is also the longest interval between the two price increases of Moutai since its listing. In fact, there was a gap of more than 5 years before Moutai's last price increase, and from a historical point of view, the far-reaching impact of Moutai's price increase also has a certain reference value for the present.

On December 28, 2017, Moutai issued a price increase announcement, announcing that from January 1, 2018, the ex-factory price will be increased from 819 yuan to 969 yuan, which also means that the ex-factory price of Moutai is approaching the price of 1,000 yuan. Looking back at Moutai's last price increase, it also served as an important booster for Moutai's speed-up and shift development in the past few years.

A glimpse of the future from history, and in the last round of ex-factory price increases for Moutai, we can also see the comprehensive dividends brought by the price increase to the development of Moutai. According to the development plan, Moutai's revenue is expected to reach about 150 billion yuan this year, which is more than twice as high as the revenue of nearly 60 billion yuan in 2017 before the last round of price increases.

Active, intelligent and scientific price increase

The multiple signals released by Moutai's price increase

In fact, since Ding Xiongjun became the chairman of Moutai in September 2021, the price of Moutai has been mentioned many times by the outside world, and Ding Xiongjun has also said many times that the price of Moutai must comply with the provisions of relevant laws and regulations, but follow market rules, respond to market demand, and reflect reasonable value.

At the 2022 Annual General Meeting of Shareholders of Moutai in June this year, Ding Xiongjun said that the price of Moutai should indeed be viewed scientifically and comprehensively, and the relationship between supply and demand is one of the economic laws.

Now it seems that Moutai chose to respond to the concerns of the industry and society by raising the ex-factory price of Pumao at the end of 2023 without mentioning the market guidance price. Judging from the impact of this price increase, it is also an active, scientific and intelligent positive move by Moutai's management.

On the second day of the price increase announcement on November 1, Moutai performed well in the capital market industry, and as of the close of the day, Moutai's share price rose by 5.72%. This also shows that the capital market and social sentiment highly recognize Moutai's price increase.

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