VOL. XCIV, NO. 247
★ WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES ★
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Tuesday, December 30, 2025
Wuliangye Yibin Co., Ltd.
000858 · Shenzhen Stock Exchange
Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.
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Overview
Wuliangye Yibin Co., Ltd. is a leading Chinese baijiu producer whose economics are dominated by its flagship Wuliangye-branded products (about 76% of 2024 revenue). The core moat is demand-side brand trust reinforced by wide channel coverage (distribution plus direct-to-consumer stores) and premium positioning, while geographical-indication protection supports authenticity in overseas markets. Other liquor series products extend the portfolio into more competitive price tiers with weaker pricing power. Non-liquor products are a small revenue bucket with limited disclosed differentiation.
Primary segment
Wuliangye-branded Baijiu products
Market structure
Oligopoly
Market share
8%-10% (implied)
HHI: —
Coverage
3 segments · 5 tags
Updated 2025-12-30
Segments
Wuliangye-branded Baijiu products
China baijiu market (sales revenue; producers above designated size)
Revenue
76.1%
Structure
Oligopoly
Pricing
strong
Share
8%-10% (implied)
Peers
Other liquor products (Wuliang NongXiang and other series)
China baijiu market (sales revenue; producers above designated size)
Revenue
17.1%
Structure
Competitive
Pricing
moderate
Share
1.5%-2.5% (implied)
Peers
Non-liquor products (other)
China ancillary and non-liquor products related to the spirits ecosystem
Revenue
6.8%
Structure
Competitive
Pricing
weak
Share
—
Peers
—
Moat Claims
Wuliangye-branded Baijiu products
China baijiu market (sales revenue; producers above designated size)
Brand Trust
Demand
Brand Trust
Strength: 5/5 · Durability: durable · Confidence: 4/5 · 1 evidence
Premium flagship brand with broad consumer base and strong product demand supports premium positioning and repeat purchase/gifting behavior.
Erosion risks
- Anti-corruption and gifting restrictions reducing premium demand
- Younger consumers shifting away from baijiu toward beer/RTD/cocktails
- Premiumization captured disproportionately by competing prestige brands
Leading indicators
- Flagship SKU street price stability vs MSRP
- Sell-through and channel inventory levels
- Gross margin trend on Wuliangye-branded products
Counterarguments
- Baijiu brand preference is culturally sticky but not exclusive; consumers can switch within premium brands.
- Category demand is cyclical and sensitive to macro and policy changes, limiting true pricing autonomy.
Distribution Control
Supply
Distribution Control
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 1 evidence
Large, multi-channel footprint (traditional distribution plus direct-to-consumer/exclusive stores) supports shelf access, price discipline, and faster pull-through feedback.
Erosion risks
- Channel conflict between distributors and direct-to-consumer stores
- E-commerce and new retail formats weakening traditional distribution leverage
- Gray-market diversion undermining price discipline
Leading indicators
- DTC revenue share trend
- Number of exclusive stores and active core POS terminals
- Distributor inventory and receivables aging
Counterarguments
- Well-funded peers can replicate multi-channel strategies and buy shelf visibility.
- Direct-to-consumer expansion may raise SG&A and reduce channel goodwill.
Regulated Standards Pipe
Legal
Regulated Standards Pipe
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 1 evidence
Geographical indication (GI) protection under the EU-China GI framework helps protect the Wuliangye name and origin in the EU, supporting authenticity and premium pricing abroad.
Erosion risks
- Enforcement gaps allowing counterfeit or imitative products
- Consumers may not recognize GI labeling outside China
Leading indicators
- EU enforcement actions or seizures related to counterfeit Wuliangye
- Growth in overseas revenue and duty-free placements
Counterarguments
- GI protection defends naming and origin, but does not stop substitution by other premium spirits.
- Most volume and profit remain domestic, so EU GI protection has limited direct economic impact.
Other liquor products (Wuliang NongXiang and other series)
China baijiu market (sales revenue; producers above designated size)
Brand Trust
Demand
Brand Trust
Strength: 3/5 · Durability: medium · Confidence: 3/5 · 1 evidence
Sub-brands benefit from the parent's reputation and portfolio management, but face heavier competition and weaker prestige than the flagship.
Erosion risks
- Price competition and downtrading in weaker demand cycles
- Brand dilution if too many SKUs compete within similar price bands
Leading indicators
- Mix shift between flagship and series products
- Gross margin trend for other liquor products
Counterarguments
- Mid-tier baijiu markets have many substitutes; marketing spend can be a bigger driver than intrinsic brand advantage.
Distribution Control
Supply
Distribution Control
Strength: 3/5 · Durability: medium · Confidence: 3/5 · 1 evidence
Can leverage the company's broader channel buildout, but distributor incentives may prioritize higher-turn SKUs across competing brands.
Erosion risks
- Distributor rationalization reducing shelf presence for weaker SKUs
- Online discounting eroding brand positioning
Leading indicators
- Sell-through velocity for key series SKUs
- DTC penetration in mass-premium price bands
Counterarguments
- Distribution is not exclusive; peers compete for the same distributors and retail endpoints.
Capex Knowhow Scale
Supply
Capex Knowhow Scale
Strength: 3/5 · Durability: medium · Confidence: 3/5 · 1 evidence
Large-scale production and storage capacity can support unit economics and supply reliability across tiers, but peers can also invest.
Erosion risks
- Industry capacity expansion leading to oversupply and price pressure
- Capital intensity without commensurate demand growth
Leading indicators
- Industry inventory and price trends
- Company capex vs volume growth
- Utilization and finished goods inventory
Counterarguments
- Other leading baijiu companies also have large capacity and storage; scale is not exclusive
Non-liquor products (other)
China ancillary and non-liquor products related to the spirits ecosystem
Portfolio adjacency / captive demand
Demand
Portfolio adjacency / captive demand
Strength: 2/5 · Durability: medium · Confidence: 2/5 · 1 evidence
Non-liquor businesses appear as an ancillary bucket in disclosures; treated as a weak moat case where adjacency to the core baijiu franchise may provide steady internal demand, but external competitiveness is uncertain.
Low-confidence: disclosures aggregate this bucket as 'Non-liquor products' without detailing sub-markets; assume limited standalone moat.
Erosion risks
- Commodity-like competition in packaging/materials/services
- Subscale economics vs specialized suppliers
Leading indicators
- Revenue or segment margin volatility
- Share of internal vs external sales (if disclosed later)
Counterarguments
- If sales are mostly external, adjacency to the baijiu franchise does not translate into durable advantage.
Evidence
Strong-flavoured baijiu is the category with the highest market share, and Wuliangye has a wide and solid consumer base.
Quote adapted from the English report for readability; supports brand demand strength.
16,000 new core point-of-sale terminals and over 1,700 exclusive stores currently in operation.
Supports broad and expanding channel coverage and direct-to-consumer presence.
Wuliangye; origin: Yibin, Sichuan; EU registration: Wuliangye / Wu Liang Ye; registration type: PGI.
Translated from Chinese; GI list shows Wuliangye registered and protected in the EU under the agreement.
Sales revenue of RMB 796.4 billion (China baijiu producers above designated size, 2024).
Provides market-size denominator used for implied share.
Wuliangye-branded Baijiu products operating revenue RMB 67,875,345,534.24.
Provides numerator (segment revenue) used for implied share.
Showing 5 of 10 sources.
Risks & Indicators
Erosion risks
- Anti-corruption and gifting restrictions reducing premium demand
- Younger consumers shifting away from baijiu toward beer/RTD/cocktails
- Premiumization captured disproportionately by competing prestige brands
- Channel conflict between distributors and direct-to-consumer stores
- E-commerce and new retail formats weakening traditional distribution leverage
- Gray-market diversion undermining price discipline
Leading indicators
- Flagship SKU street price stability vs MSRP
- Sell-through and channel inventory levels
- Gross margin trend on Wuliangye-branded products
- DTC revenue share trend
- Number of exclusive stores and active core POS terminals
- Distributor inventory and receivables aging
Curation & Accuracy
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