August 31 -- Wuliangye Yibin (000858) announced yesterday that it will raise the ex-factory prices of its Wuliangye Series by 20 to 30 percent starting September 10, reports China Business News.

Rival firm Kweichow Moutai (600519) raised the ex-factory price of Moutai liquor by 20 percent at the end of 2010. Guotai Junan Securities forecasts Kweichow Moutai will lift prices by another 10 to 15 percent at the end of this year as well.

The ex-factory price of 52-proof crystal Wuliangye is 509 yuan, and the selling price is around 880 yuan. The ex-factory price of 53-proof Moutai is 619 yuan and its selling price is ranges from 1,500 to 1,800 yuan.

Bottles of 52-proof crystal Wuliangye will be priced at 1,000 yuan apiece after the company raises ex-factory prices by 20 to 30 percent.   

Huang Lei, partner at Beijing Shengchu Market Consulting, says Wuliangye’s price hike is intended to increase its brand value, as it is in the same product bracket as Moutai. However, the selling prices of the Wuliangye series are currently much lower than the Moutai series.

Source:capitalvue