"What About Those Who Paid 220,000 Won?"... Chinese Maotai Faces Major Setback and Plummeting Prices

Controversy Over False Indication of Origin Leads to Price Plunge

Manufacturer’s Address on Social Media Differs from Actual Location

"Premium Image Damaged"

China's renowned liquor, Maotai 1935 from the Maotai series produced in Guizhou Province, has become embroiled in a controversy over its origin.

According to China National Radio on June 16, suspicions have recently been raised on social networking services (SNS) regarding discrepancies between the manufacturer’s address printed on the Maotai 1935 box and the actual location, sparking debate.

Maotai Liquor from Guizhou Province. Baidu, China.

The report states that the actual address of the manufacturer differs from what is printed on the box. A search for the listed manufacturer yields a different address than the one printed on the packaging. In response to the controversy, Kweichow Maotai issued an official statement citing China’s national food safety standards, asserting that there are no legal issues. The company explained that the manufacturer named on the box is a branch of Kweichow Maotai, so there is no problem, and emphasized that the head office is responsible for the product.

Regarding the origin labeling controversy, the company explained, "There is no issue because the label reflects the final place where the blend was made after mixing base spirits from other regions." The company claimed that listing the region is a legitimate indication that covers the locations of production, blending, and packaging. It added that the label changes were made in accordance with new food labeling supervision and management regulations set to take effect in March next year.

Launched in 2022, Maotai 1935 has established itself as a popular product in the Maotai series and was a key driver of approximately 30% sales growth. However, amid the recent slump in the liquor market, Maotai 1935 has also struggled with poor performance. According to China National Radio, the wholesale price of Maotai 1935, which once reached 1,000 yuan (about 220,000 won) per bottle, was 580 yuan (about 130,000 won) per bottle as of June 16. On e-commerce platforms, it is available for less than 700 yuan (150,000 won).

An industry insider commented, "Regardless of legality, the mere revelation that base spirits produced outside the core region are blended damages its premium image. The industry is already struggling with shrinking demand and collapsing prices, and if the origin controversy is not resolved, the downward trend could accelerate further."

Recently, China’s baijiu (traditional Chinese liquor) market has been experiencing sharp declines due to the overall slump in the country's alcoholic beverage industry. According to data from the National Bureau of Statistics of China, baijiu production by enterprises above a designated size stood at 3,549,000 kiloliters in 2025, down 12.1% year-on-year. Compared to the peak of 13,584,000 kiloliters in 2016, cumulative production has fallen by more than 74%. This downward trend in output is expected to continue this year. According to statistics from the National Bureau of Statistics, from January to April this year, cumulative baijiu production (65 proof, commercial standard) by enterprises above a designated size nationwide was 1,198,000 kiloliters, a 2.8% decrease compared to the same period last year.

Experts have pointed out that the reason for the industry downturn is the loss of price competitiveness due to ongoing overproduction in the liquor sector amid volatile demand. As generations change, Maotai liquor is losing its place in the market. Recently, China’s younger generation has tended to prefer milk tea, fruit juice, non-alcoholic beverages, and beer, so the sluggish sales of Maotai are seen as an inevitable outcome.

This content was produced with the assistance of AI translation services.