With multiple holidays fast approaching, makers of premium liquors are jacking up prices on clear Chinese alcohol, as they are popular holiday gifts in China.

Guizhou-based Kweichow Moutai Company announced late Wednesday that it would hike the price of its famed Moutai liquor by around 20 percent beginning January 1, 2011.

The company stated that rising raw material costs and strong market demand are fueling the price increase.

This is a repeat performance for Moutai, after a 13 percent hike January 1, 2010.

A liquor store owner that refused to be named in Beijing's CBD area told the Global Times Thursday that he will be stocking up on Moutai for the Spring Festival before prices rise further.

He added that prices are rocketing up on other labels such as Wuliangye.

"For example, the 106-proof Flying Moutai was priced at some 800 yuan ($120.12) for a 500ml bottle last year, but now the price has increased to more than 1,300 yuan ($195.20)," said the store owner.

Prices for premium liquors like Wuliangye and Yanghe have also seen price increases.

The retail price of 104-proof Wuliangye are around 800 yuan for a 500ml bottle now, up 30 percent compared with that of last year.

Despite a 30 percent rise year-on-year that saw their 104-proof clear liquor shoot up to 800 yuan ($120.08) per 500ml bottle, the Sichuan-based Wuliangye Group denied that they had made any price increases recently.

However, analysts forecast another round of price hikes for clear Chinese alcohol due to Moutai's move.

"It is very possible that Wuliangye would be the next to make a similar announcement," said Chen Gang, an industry analyst with Shanghai-based Sinolink Securities.

It seems people are still ready to lighten their wallets to satisfy their thirst for the bottle.

At an auction in Hangzhou held by Shanghai-based Xiling Yinshe Auction Co, a bottle of Moutai produced in 1958 sold for a record 1.45 million yuan ($217,646).

Pawnshops, which usually abscond from dealing in alcohol, are buying up premium liquor produced in or before the 1980s at the beginning of this month.

Stocks in the liquor sector performed well against the weak stock market, with Moutai climbing 3.13 percent on Thursday.

Analysts say that this price increase would significantly increase the company's profit margin, with Sinolink Securities expecting Moutai sales to surpass 17.86 billion yuan ($2.68 billion) in 2011.