China’s No. 2 Liquor Brand Declares War on Instant Retail as Price Wars Deepen

Once the symbol of Chinese prestige, Wuliangye — the Sichuan-based distiller often called the nation’s “second national liquor” after Moutai — has found itself caught in the fierce price wars of China’s e-commerce age. The high-end baijiu producer recently made an unusual move: it published a list of 46 unauthorised online sellers, including some of China’s biggest retail platforms such as Meituan, Taobao, Douyin, and JD.com.

The announcement quickly sent shockwaves through the drinks industry. Why would household-name platforms — many running self-operated stores — be publicly blacklisted? The answer, insiders say, lies less in questions of authenticity and more in a deepening battle over pricing and control.

Authenticity or price war?

In a public notice issued on October 19, Wuliangye warned consumers that some online platforms were selling its products without official authorisation, exposing buyers to potential risks such as counterfeit goods, poor quality control, and a lack of after-sales protection. The company urged consumers to shop only through its certified stores and to request receipts for verification.

But among the 46 “grey-listed” sellers are some of the country’s largest and most trusted e-commerce channels — including Meituan’s “Waima Alcohol Delivery,” Taobao’s “Billion-Yuan Subsidy” section, Douyin’s “Douyin Supermarket,” JD Select, and liquor chain 1919. These platforms have built their reputations on authenticity, making Wuliangye’s warning appear less about fakes and more about falling prices.

At Wuliangye’s official flagship store on JD.com, a 500ml bottle of Wuliangye No. 8 sells for RMB 1,000 (US$137), or RMB 905 per bottle when bought in a two-pack. On Tmall, the same product lists for RMB 1,020. Yet the same bottle sells for RMB 769 (US$108) on Taobao’s subsidy channel, RMB 797 at Meituan’s “Famous Liquor” store, RMB 825 on JD Select, and RMB 887 on Waima Alcohol Delivery — a price gap of up to RMB 250 (US$35).

For a brand that has long stood as a benchmark for China’s luxury spirits, such price inversions are nothing short of an existential threat to its image and its retail hierarchy.

E-commerce subsidies rewrite the “famous liquor” rulebook

China’s liquor market has struggled with chronic price distortions in recent years, driven by aggressive e-commerce promotions and subsidy wars. Instant retail platforms like Meituan and Ele.me lure consumers with coupons and discounts, often driving retail prices below both traditional e-commerce and wholesale levels.

For merchants, this has created a lose-lose dilemma: join the platform campaigns and lose money, or stay out and lose customers. “Some big-brand liquors on instant retail channels aren’t just zero-profit — they’re negative margin,” one retailer told Vino Joy News.

For platforms, however, high-recognition brands like Wuliangye are perfect for grabbing traffic and building user loyalty. But for the brands themselves, and their vast network of authorised distributors, the result is chaos — a pricing system torn apart by algorithms and subsidies.

The issue extends beyond baijiu. Imported wine brands such as Penfolds Bin 407, Cloudy Bay, and Château La Tour Carnet have also seen their prices undercut by online discounts, threatening their positioning in China’s once tightly controlled premium market.

The real problem

According to Wu Yonglei, general manager of Xiamen Fond Wines, Wuliangye’s announcement reflects frustration more than confrontation.

“Platforms like JD and Meituan help brands sell — no one wants to stop that,” Wu said. “But when price wars make offline distributors look bad, brands have to issue public notices to show they’re doing something. If they truly wanted to block sales, they’d sue — not just name a ‘grey list.’”

Wu believes that much of the discounted inventory originates from Wuliangye’s own authorised dealers, pressured by sales quotas and prepayment targets. “Distributors buy large quantities in advance to keep their annual allocations. When sales slow, they unload to e-commerce platforms at lower prices. It’s a structural mismatch between production, policy, and real demand,” he explained.

That model worked during the boom years, but in a sluggish economy, it’s proving unsustainable. “Wine brands also have inventory pressure,” Wu added, “but most still maintain stable pricing. That’s why, at this year’s Autumn Sugar & Wine Fair, the baijiu halls were quiet — too much stock, no profit, no incentive to buy more.”

A struggle that goes beyond one brand

Wuliangye’s “grey list” is more than a consumer warning — it’s a window into the broader identity crisis of China’s high-end liquor market. As e-commerce subsidies collide with legacy distribution systems, even the biggest names are losing control of their prices and image.

Caught between the need to maintain premium pricing and the reality of declining consumption, Wuliangye’s battle with instant retail platforms is emblematic of an industry in flux.

How the distiller balances control, transparency, and sales volume could define not only its future — but the fate of China’s entire “famous liquor” hierarchy in the digital age.