By Susan Ning, Liu Jia and Kate Peng

China’s famous producers of premium liquor, Kweichow Moutai Co Ltd. (Maotai) and Wuliangye Group Co., Ltd. (Wuliangye) recently announced that they would correct their behaviors suspicious of AML violation.  The corrections were said to be made after the companies being “inspected” by the National Development and Reform Commission (“NDRC”) and the relevant provincial pricing administration. It has been the hottest topic on China’s Anti-monopoly Law (the “AML”) after the resounding LCD panel case closed by NDRC in early this month.

Maotai and Wuliangye are both famous Chinese premium liquor brands and the price of their products is relatively high in tradition.  In early January, the companies issued notices respectively announcing punishments on the distributors who sold their products at a price below the lowest resale price set by the companies.  Maotai also punished the distributors who made cross-regional sales. It is reported that the chairman of Maotai even stated in a recent countrywide distributor meeting that the retail price of Feitian Maotai can not be less than 1,519 yuan and the price of group-purchase can not be less than 1,400 yuan, and that Moutai would sternly punish those who breach the price “fortress”. 
Continue Reading NDRC Say No to Resale Price Maintenance – Company should be Cautious on Pricing Strategy