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Moutai's stockout triggers price-increase in liquor market

By Gao Yuan (chinadaily.com.cn)
Updated: 2011-01-04 17:51
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Moutai spirit, one of China's most prestigious liquor brands, sold out, which triggered a new round of price-surging in the liquor market after its producer set a new retail price this year, China Business News reported Tuesday.

Kweichow Moutai Co Ltd raised its factory price by about 20 percent on Jan 1, 2011. The liquor producer also lifted the maximum retail price for normal Moutai from 869 yuan ($131.5) to 959 yuan, the report said.

"Moutai's 30-some franchised stores in Beijing are almost all in short supply," one store manager in Beijing's Haidian district said.

Another franchisee in Haidian district told the newspaper only big markets -- such as Wal-Mart and Carrefour -- have the 53-degree Moutai on sale, but the prices have risen by about 300 yuan to more than 1,200 yuan.

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A Moutai insider said the company can only control the price in franchised stores, but they can do nothing about increasing prices in other markets, the newspaper reported.

Moutai's price increase and sellout has given second- and third- tier liquor brands space for price hikes , the report said.

The prices for Swellfun and Wuliangye have already gone up. Moreover, with Spring Festival approaching, more liquor brands chose to increase the price to maintain a reasonable price gap with Moutai, it reported.