KWEICHOW MOUTAI(SH:600519) Mei Ri Jing Ji Xin Wen·2025-07-29 07:55Core Viewpoint - The "manufacturer integration" strategy is being increasingly adopted by major liquor companies, with Moutai and Wuliangye leading the way in establishing joint venture companies to stabilize market prices and develop regional cultural products [1][4]. Group 1: Moutai's Joint Venture Plans - Moutai plans to establish joint venture companies in various provinces, led by provincial distributors' associations, with registered capital ranging from 50 million to 100 million yuan [1][2]. - The joint venture companies will focus on developing culturally themed products specific to each province, aiming to enhance channel profit margins and increase non-standard liquor revenue [2][4]. - The initiative has been temporarily paused due to internal disputes regarding the model, with the specific reasons for the delay remaining unclear [1][9]. Group 2: Wuliangye's Actions - Wuliangye has already initiated the establishment of specialized companies, such as Sichuan Wujun and Sichuan Wujun, with registered capital of 540 million and 570 million yuan respectively, involving over 30 major distributors [3][4]. - This move is seen as a strategic effort to reorganize commercial resources and enhance operational efficiency through capital ties with core distributors [1][4]. Group 3: Industry Challenges - The liquor industry is facing significant challenges, including declining consumer spending, high channel inventory pressures, and widespread price inversion phenomena [4][5]. - Approximately 60% of companies have reported reduced profit margins, and over 40% of distributors and retailers are experiencing cash flow pressures [4]. - The traditional manufacturer-distributor relationship is being redefined, with large distributors now sharing risks and responsibilities rather than merely acting as inventory holders [4][5]. Group 4: Price Stability Efforts - The joint venture model aims to stabilize the price of Moutai, which has been declining since last year, by collectively managing supply [5][8]. - Developing high-margin regional cultural Moutai products is intended to create new revenue streams while protecting existing profit margins [8]. - Achieving long-term price stability will require precise supply control and a dynamic balance with real market demand, posing significant operational challenges for the joint ventures [8][9].