(Yicai Global) Oct. 8 -- Scalpers have had to gulp down large losses as China's famous liquor producer Kweichow Moutai flooded the market with fixed-priced Moutai liquor during the National Day holiday that ran from Oct. 1 to Oct. 7 to keep the cork on prices.

Set-priced 106-proof Feitian brand is available on Moutai's new online and supermarket channels. The Guizhou-based liquor maker offered up to 400 tons of its fiery baijiu on two large electronic commerce platforms, Tmall and Suning.Com, after they became Moutai liquor's ex-factory shops last month via open bidding.

The Guizhou province-based distiller offered Moutai priced at CNY1,499 (USD210) per bottle in its cooperation with two Wumart supermarkets in Beijing, two Hualian supermarkets in Guizhou and a Costco in Shanghai.

"We believe Moutai's price won't fall much in the long run. Judging from supply and demand, the liquor's output is small, while market demand is steady. Also, the upcoming fourth quarter is the peak season for liquor consumption," spirits sector analyst Cai Xuefei told Yicai Global.

Moutai's ex-factory price is at about CNY1,500, but its market price soared to around CNY3,500 early last month. The price has now dropped to about CNY2,300 now as the liquor maker's price restraints have body-slammed speculators. "I lost nearly CNY3 million (USD421,000) in the past month," one Moutai scalper complained.

Moutai became the most valuable share [SHA:600519] on China's A-share market of domestically traded firms when its stock price hit CNY1,001 (USD145) in June. Its shares closed up 2 percent this morning to CNY1,172.96, buoyed by the holiday afterglow.

Distilled from a mash of sorghum, Maotai is named after the town of the same name near Zunyi, Guizhou Province, where distilling has a very long history. Today's Maotai, which originated during the Qing dynasty, came into international prominence after winning a gold medal at the Panama-Pacific Exposition in San Francisco in 1915.

The liquor is served at China's feasts with foreign heads of state and other distinguished guests. Zhou Enlai famously entertained Richard Nixon during the banquet for the latter's state visit to China in 1972 with the country's official baijiu tipple.

Editor: Ben Armour