Beijing, Dec 16, 2010 – (ACN Newswire) – As New Year draws near, Kweichow Moutai and Wuliangye have started raising prices. Himfr.com is expecting that high-end liquor price increases will exceed 10%, and middle-end brand liquor prices will surge higher.
Himfr.com analyzes that although Kweichow Moutai and Wuliangye prices continue increasing, still demand exceeds supply, such as 53-degree Moutai Feitian which is already out of stock.
During the second half of the year, high-end liquor retail price continue to soar. Some think that the cost of production increase caused this phenomenon, but himfr.com analyzes that food costs in liquor price are proportionally less than 10%, which is not a real reason, the reason is out of stock. Himfr.com knows that at present high-end Kweichow Moutai is not available to sell, although single-bottle price rises greatly increase profits, but because of the lack of goods, retailers do not earn much money.
Himfr.com analyzes that retail prices rise successively, also driving liquor wholesale prices to soar, and currently the wholesale price of Moutai Feitian has exceeded 1,200 RMB/bottle. Analysts think that ex-works price usually adjust in December. Prices expectations stimulate recent Moutai stock, and retail prices and wholesale prices continue to increase.
Besides the supply and demand reason, in March this year, the sorghum production area experienced a drought, in August there appeared an early-ripe phenomena, large areas reduced output, and sorghum prices increased that improved wine production cost, which may also drive liquor price increases.
Himfr.com analyzes that in the long run, the retail price of Moutai will rise because the spending power of Chinese consumers is rising.
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