Xijiu makes a clear account: sold 3.4 billion less, but earned 35% more

Ask AI · What Industry Lessons Lie Behind Xijiu’s Speed-Down and Transformation?

Produced by | China Visit Network

Reviewed by | Li Xiaoyan

While the baijiu industry is still fixated on “scale worship,” Xijiu, with a 19.0 billion yuan (2025) results report, has proactively stepped out of the 20 billion yuan camp. Amid the industry’s cold spell, it has completed a profound “de-bubbling” transformation. This seemingly “shrinking” performance is, in fact, a rational choice by leading firms to say goodbye to an inflated look and return to the essence of consumption. It provides a brand-new reference sample for high-quality development in the baijiu industry—especially the Maotai-flavor (jiangxiang) sauce-liquor segment.

In 2023, Xijiu once reached a sales peak of 22.447 billion yuan, becoming a core force in the Maotai-flavor track second only to Moutai. But over the following three years, the industry environment quietly changed—consumption returned to rationality, the financial attributes of Maotai-flavor liquor cooled off, and channel inventory soared. The hidden risks buried by high-speed expansion gradually came to the surface. Xijiu decisively chose to “reduce its size proactively,” trading short-term fluctuations in scale for long-term development quality.

Data is the strongest proof: in 2025, Xijiu’s social inventory fell to 4.6 billion yuan, down nearly 15% year over year, reaching the lowest level in recent years. Daily bottles opened reached 120,000, up more than 30%, and the number of bottles opened for core products surpassed 39.93 million, with an approximately 35% year-over-year increase. This means that the “channel-number bubble” that once supported 20 billion yuan in sales has been gradually punctured. In its place is the real terminal consumption and healthier channels behind 19 billion yuan.

To help clear inventory, Xijiu invested more than 300 million yuan throughout the year, helping distributors digest inventory of about 4 billion yuan—using hard cash to relieve channel pressure. At the same time, it took a tough approach to market order: during the year, it investigated and handled 270,000 bottles of non-compliant products, cracked down on 113 locations involved in counterfeit and infringement, shut down more than 1,400 illegal live streaming rooms, and fortified the price-system defense line. This “bone-scraping and poison-dispelling” style adjustment may have cost the industry ranking in the short term, but it repaired channel trust and freed the company from the vicious cycle of “overloading (inventory) → crash.”

Xijiu’s speed-down is a microcosm of the entire Maotai-flavor track bidding farewell to savage growth. Over the past few years, Maotai-flavor liquor benefited from spillover effects from Moutai and the value-appreciation expectations created by stockpiling. It fell into a vicious cycle of “blind capacity expansion → high-price speculation → inventory buildup,” with a strong, feverish atmosphere across the industry. As consumption rationality returns and Maotai-flavor liquor returns to the nature of a consumer product, the cooling of financial attributes and the reconstruction of the price system have become inevitable.

Shortcomings in product structure have also been exposed. Xijiu is overly dependent on two major core single products—Zangjiu 1988 and Junpin Xijiu. High-end price tiers lack absolute dominance; the foundation at mid- and low-end tiers is insufficient; and the balance of the product matrix needs improvement. In the 1,000-yuan price band, Junpin Xijiu—while in a prolonged battle with Moutai 1935 and Qinghua Lang—still does not stand out enough in brand-premium advantages, and the pressure of competition in the market is significant.

The drawbacks of channel models are also apparent. In the past, an expansion strategy centered on bundling gifts and pushing inventory has, against a backdrop of weaker consumption, turned into hidden risks of price inversion. Distributors’ confidence has been shaken. Xijiu’s proactive speed-down is precisely the clearing of “old accounts” in the industry: only by clearing inflated inventories and standardizing the price system can the way be cleared for subsequent benign growth—shifting the Maotai-flavor track from “scale frenzy” to “high quality on a high plateau.”

Xijiu’s transformation reflects a deeper split in the “T9” leading camp in baijiu. Back then, at T9 summits, the competition was about “who can run faster.” Now, the core of competition has shifted to “who can stand more稳.” Moutai has proactively set the tone for slowing down to prioritize “stability,” while Yanghe’s profit being halved reveals diminishing marginal effects of traditional distribution models. And Xijiu’s 19 billion yuan results show a pragmatic path for brand re-building after “leaving Moutai” to become independent.

In 2026, the logic of competition for the leading camp will be completely rewritten: from “channel control strength” to “terminal sales momentum,” from “getting performance from distributors” to “getting bottles opened from consumers.” Behind this shift is the industry’s transformation from “incremental expansion” to “a game of existing stock.” Consumption scenarios return to rigid demand such as business activities and banquets; mass consumption becomes the ballast; product quality and true sell-through capability become the core competitive strengths.

Xijiu’s exploration could not have come at a better time. At the distributor conference, Xijiu proposed advancing a Marketing 2.0 reform in 2026, deepening the “Xijiu + Zhijiao” dual-brand strategy. It will focus on seven major directions: “grasping integration, controlling supply, expanding the market, shaping the brand, stabilizing prices, promoting growth, and improving efficiency.” This series of arrangements is a precise response to the core logic of competition among leading firms—and also provides a transformation reference for other liquor companies.

19 billion yuan is not the end of Xijiu, but a new starting point for high-quality development. In 2026, Xijiu needs to focus on three core tasks to complete the leap from “healthy adjustments” to “steady growth.”

First, consolidate the fundamentals and reinforce the product foundation. With Zangjiu 1988 as the core, optimize the product matrix, strengthen the layout of mid- and low-end products, and build a complete system of “high-end leading, mid-end supporting, and mass coverage,” filling the shortfall in high-end upgrading. Second, deepen the sell-through reform and invigorate terminal momentum. Continue to advance the Marketing 2.0 transformation, focusing on nurturing consumers, expanding terminal coverage, and ensuring that growth in the rate of bottles opened can be continuously converted into an increase in sales revenue. Third, optimize the channel ecosystem and strengthen factory-supplier coordination. Continue inventory-support policies, improve the price-control system, enhance distributors’ profitability, and create a stable and healthy channel alliance.

For the entire baijiu industry, Xijiu’s transformation has sounded a crucial warning bell: in a cold snap, an inflated size is the least able to withstand the freezing. Only by returning to the essence of consumption and focusing on real value can the industry weather the cycle. In 2026, the industry will enter a deep adjustment period characterized by “de-stocking, stabilizing prices, and focusing on sell-through.” Competition among leading firms will shift from a myth of scale to a contest of quality, from brand glamour to terminal strength.

Xijiu’s choice is an inevitable trend of industry transformation—and also a piece of wisdom for ensuring sustainable development. From 22.4 billion yuan to 19.0 billion yuan, Xijiu uses “subtraction” to define what high-quality development means: giving up short-term number bubbles in exchange for long-term healthy growth; bidding farewell to blind scale expansion and focusing on quality and sell-through. When the tide recedes, companies that have solidified the consumption base and repaired the channel ecosystem will ultimately stand firm in shallow waters. In 2026, the baijiu industry does not need a heroic-scale carnival. What it needs is the kind of cautious, practical advancement exemplified by Xijiu—walking on thin ice with pragmatism—because that is the core confidence for surviving the cycle.