Wuliangye lifts prices to tap demand
By Jin Jing |
February 2, 2011, Wednesday
|
Print Edition
Print Edition
WULIANGYE Yibin Co, a domestic distiller, has raised prices on its mainstream products ahead of the Chinese New Year holiday as it banks on a surge in consumption to boost profit.
China's leading liquor maker issued a notice to ask distributors to increase the price of its products by up to 100 yuan (US$15) before last Sunday. This means that the 52 degree Wuliangye, which now sells for 889 yuan, will cost 12 percent more. The Wuliangye 1618 also will carry a new price of 939 yuan.
Wuliangye's price adjustment came nearly one month after another Chinese alcohol giant, Kweichow Moutai, raised its product prices by the biggest amount over the past 10 years.
Moutai increased the factory price of its 53 degree Feitian Moutai from 499 yuan to 619 yuan while the price of the Moutai-branded alcohol was also raised from 869 yuan to 959 yuan.
Industry observers said it's a tradition for alcohol producers to increase product prices during the Chinese New Year holiday when consumption is expected to surge.
By raising prices, premier distillers, including Moutai and Wuliangye, are boosting the brand image of their products to differentiate themselves from smaller producers in the market, a dealer Wang Xing said.
Demand for alcohol has been rising in China. Shenzhen-listed Wuliangye saw its net profit jump 40 percent to 2.26 billion yuan in the first half of last year.
China's leading liquor maker issued a notice to ask distributors to increase the price of its products by up to 100 yuan (US$15) before last Sunday. This means that the 52 degree Wuliangye, which now sells for 889 yuan, will cost 12 percent more. The Wuliangye 1618 also will carry a new price of 939 yuan.
Wuliangye's price adjustment came nearly one month after another Chinese alcohol giant, Kweichow Moutai, raised its product prices by the biggest amount over the past 10 years.
Moutai increased the factory price of its 53 degree Feitian Moutai from 499 yuan to 619 yuan while the price of the Moutai-branded alcohol was also raised from 869 yuan to 959 yuan.
Industry observers said it's a tradition for alcohol producers to increase product prices during the Chinese New Year holiday when consumption is expected to surge.
By raising prices, premier distillers, including Moutai and Wuliangye, are boosting the brand image of their products to differentiate themselves from smaller producers in the market, a dealer Wang Xing said.
Demand for alcohol has been rising in China. Shenzhen-listed Wuliangye saw its net profit jump 40 percent to 2.26 billion yuan in the first half of last year.
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