Core Viewpoint - Guizhou Moutai is planning to establish joint venture companies in various provinces to stabilize prices and develop regional cultural Moutai products, aiming to create a balance between price control and market expansion [1][2]. Group 1: Joint Venture Company Structure - The joint venture companies will be led by provincial distributors' associations, with registered capital ranging from 50 million to 100 million yuan, depending on the province [1]. - Each joint venture will focus on developing culturally themed products specific to the province, which is expected to enhance channel profit margins and increase non-standard liquor revenue [1][2]. - If all distributors participate, Moutai could potentially raise over 5 billion yuan in capital from the joint ventures, significantly aiding its annual operational goals [3]. Group 2: Price Stabilization Strategy - The establishment of joint ventures is seen as a dual-track approach to maintain price stability while expanding the market. This involves creating a community of interests among distributors and using the joint ventures as a buffer for market price adjustments [2][8]. - The legal structure of the joint ventures allows Moutai to adjust market prices indirectly, thus avoiding legal risks associated with direct price fixing [2][9]. Group 3: Market Context and Challenges - The price of Moutai has experienced significant fluctuations, with the wholesale price of the 53-degree Flying Moutai dropping below 2000 yuan per bottle in June, marking a historic low [4]. - The success of the new cultural Moutai products in the market remains uncertain, especially given the current consumer demand challenges. The outturn price is expected to be above 2000 yuan, which may face difficulties in gaining market acceptance [5][7]. - Previous attempts to establish joint ventures faced challenges due to internal conflicts among shareholders, leading to the termination of such projects in 2019 [5][9]. Group 4: Industry Trends - The trend of creating joint ventures or distributor alliances is becoming more common among leading liquor companies, aiming to stabilize channel operations and enhance cooperation [8]. - Different companies are adopting varied strategies, with Moutai focusing on leveraging its brand power to create operational flexibility for distributors, while others like Wuliangye emphasize fair profit distribution [8][9].