Baijiu Daily China Baijiu Baijiu, a Chinese liquor dealer, cigarette and liquor vendor, has learned that the liquor sales are stable during the Spring Festival and the concentration of high-end liquor sales has been further improved in Chengdu. It is worth noting that the performance of new retail channels such as direct supply of alcohol in 1919 was eye-catching.
Looking forward Baijiu Baijiu market in 2022, independent economist and financial commentator Wang Chikun pointed out that the investment in high-end liquor has been increasing continuously, and the supply of industry has continued to grow. The situation of high-end Baijiu has already appeared structural oversupply, and the era of lie down has disappeared. In 2022, the whole Baijiu industry appeared to adjust its scale of operation, performance and valuation.
Baijiu sales pressure increased
During the visit, China Securities Journal reporter found that Baijiu sales during the Spring Festival were stable and the customers’ willingness to stockpile goods was not strong.
The salesperson of a Wuliangye Yibin Co.Ltd(000858) exclusive store in Jinniu District, Chengdu told the China Securities Journal: “our best-selling wine is the core product puwu. At present, the lowest price of puwu is 1120 yuan / bottle, which is the same as before the Spring Festival. Affected by the epidemic and other factors, the sales during the Spring Festival this year are a little worse than in previous years.”
Puwu exhibition area of Wuliangye Yibin Co.Ltd(000858) specialty store
Reporter Kang Xi photography
In the Guojiao 1573 store on the first ring road in Chengdu, there are not many products on the shelves, and some shelves do not even display products. The salesperson said: “Because the sales were better before the Spring Festival, so the goods sold almost. We are waiting for the factory to replenish the goods after work. During the Spring Festival, our sales volume was almost the same as that of last year. But compared with the previous two years, the Baijiu business is not very good in the past two years. On the one hand, more and more people sell wine, and the competition pressure is getting bigger and bigger. On the other hand, people pay more attention to health preservation, and now they drink more. Enjoy yourself. This change of attitude also has a certain impact on our sales. “
Guojiao 1573 store
Reporter Kang Xi photography
Cigarette and liquor vendor said that “Baijiu has been bad”.
It is worth mentioning that new retail channels such as direct supply of liquor in 1919 have made eye-catching performance during the Spring Festival this year. The salesperson of a 1919 liquor direct supply store in Qingyang District, Chengdu said: “the sales volume of this year’s Spring Festival is much better than that of last year. The company purchases directly from the winery, which has more advantages in price and faster turnover of goods. At the same time, the company also cooperates with platforms such as jd.com, tmall and hungry. Customers can be delivered as soon as 19 minutes after placing an order. Wuxi Online Offline Communication Information Technology Co.Ltd(300959) Integrated linkage to meet the needs of young consumers. “
“In 1919 liquor direct supply stores, the lowest price of Guojiao 1573 can reach 990 yuan / bottle, Wuliangye Yibin Co.Ltd(000858) can reach 1099 yuan / bottle, and all stores are fidelity.” The above salesperson said.
Puwu and Guojiao 1573 are not in short supply during the Spring Festival, while Maotai has been out of stock. Chengdu Maotai store salesperson said: at present, 53 degree flying Maotai can only make an appointment to buy on wechat applet, and there is no spot. The owner of a tobacco Hotel said: at present, the supply of goods in the store is tight. It takes some time to transfer goods to buy a box of 53 degree flying Maotai.
Maotai store
Reporter Kang Xi photography
The reporter of China Securities Journal also found that customers’ willingness to hoard goods is not strong. In the past, customers who bought more than 5 boxes at one time have also bought 1 box or 2 boxes since 2022.
Baijiu industry or welcome to adjust
In recent years, Baijiu giants have announced expansion of Baijiu market.
In January 2022, Kweichow Moutai Co.Ltd(600519) announced that the company plans to invest 4.11 billion yuan to implement the phase I construction project of Maotai flavored wine Xishui tongminba in the 14th five year plan. After the completion of the project, it can form a series of liquor production capacity of 12000 tons, koji production capacity of 29400 tons, liquor storage capacity of 36000 tons, and the construction period is 24 months.
Source: Kweichow Moutai Co.Ltd(600519) announcement
At the Wuliangye Yibin Co.Ltd(000858) 2020 annual general meeting held in June 2021, Wuliangye Yibin Co.Ltd(000858) group party secretary and chairman Li Shuguang said that during the 14th Five Year Plan period, Wuliangye Yibin Co.Ltd(000858) will add 120000 tons of raw wine production capacity, with a total production capacity of 250000 tons. At the same time, the storage capacity of base liquor was increased, and exceeded 1 million tons during the 14th Five Year Plan period.
Wuliangye Yibin Co.Ltd(000858) in July 2020, it was announced that the company plans to start the 120000 ton ecological brewing project (phase I) and build 5 brewing workshops; At the same time, the total investment in the construction of relevant supporting buildings and projects is estimated to be 1.268 billion yuan.
Source: Wuliangye Yibin Co.Ltd(000858) announcement
In January 2022, Wuliangye Yibin Co.Ltd(000858) announced again that according to the company’s “14th five year plan” strategic development plan, the company will increase its original wine production capacity. In order to meet the demand of capacity growth, the company has expanded and transformed the koji making workshop. The main construction contents include koji making workshop and relevant supporting facilities, which are constructed in two phases. The total investment of the project is estimated to be 2.75 billion yuan.
Source: Wuliangye Yibin Co.Ltd(000858) announcement
In December 2021, Luzhou Laojiao Co.Ltd(000568) announced that the company’s wholly-owned subsidiary Luzhou Laojiao Co.Ltd(000568) Brewing Co., Ltd., with its own funds not exceeding 573 million yuan, will participate in bidding for the land use right of the Baijiu liquor Industrial Park in Luzhou, Luzhou, which is publicly sold by the natural resources and Planning Bureau of Luzhou in the public resource trading center of Luzhou. It amounts to 949.57 mu for production and construction projects.
Source: Luzhou Laojiao Co.Ltd(000568) announcement
While Baijiu giants expand their production, capital is also pouring into baijiu. Wang Chikun said that the growth rate of high-end Baijiu market supply has already far exceeded consumption growth rate under the continuous investment and capital support. The white hot Baijiu investment continues to increase, the supply of industry will increase, the balance between supply and demand will be broken, the high-end Baijiu has already appeared structural supply oversupply situation, the industry competition presents the structural white hot trend, the era of lie down won’t exist. In 2022, the Baijiu industry appeared to adjust its scale of operation, performance and valuation.
Cai Xuefei, a liquor industry analyst and general manager of Baijiu consulting, believes that the growth of national famous liquor has not changed. At present, the whole Baijiu consumption has shifted from incremental market to stock market squeeze competition. With the sinking of famous liquor channels and the snatching of consumer resources, many small and medium-sized liquor enterprises guided by low price strategy may not be optimistic in 2022.
