Wine prices ushered in a price rise at the end of the year.
On the evening of December 24th, Beijing Shunxin Agriculture Co.Ltd(000860) announced that the company intends to adjust the price of some of the Niu Lanshan Baijiu products, with a price range of 20 yuan -50 yuan / bottle.
Source: company announcement
On the evening of the 23rd, “the first brother of yellow rice wine” Zhejiang Guyuelongshan Shaoxing Wine Co.Ltd(600059) just announced a price increase, involving a price increase of 4.65% – 20%.
Previously, Shede Spirits Co.Ltd(600702) , Xi Jiu, Anhui Kouzi Distillery Co.Ltd(603589) and other Baijiu brands announced the price increase, Luzhou Laojiao Co.Ltd(000568) core products were also confirmed by dealers, Wuliangye Yibin Co.Ltd(000858) is more than a few times will be announced to raise prices.
Insiders said that the Baijiu period of the liquor industry has been opened in the peak season, and the price increase will continue to deduct. The certainty of the season will continue to strengthen.
wine enterprises usher in a price rise
On the evening of December 24th, Beijing Shunxin Agriculture Co.Ltd(000860) announced that the company was going to adjust some of its products, of which 42 degrees 500ml Baijiu mountain liquor (Fu Niu) raised 20 yuan / bottle. 42.6 degrees 500ml hundred years of Niulun mountain Baijiu (Jubilee cattle) up to 30 yuan / bottle; 42.9 degrees 500ml hundred years of Niulun mountain Baijiu (national cattle) raised 50 yuan / bottle, the price adjustment plan is implemented in January 1, 2022.
The day before yesterday, “the first brother of yellow rice wine” Zhejiang Guyuelongshan Shaoxing Wine Co.Ltd(600059) just announced a price increase. Among them, the price increase range of qinghuazui series is 10% – 20%, that of pure (alcohol) series is 4.65% – 12%, and that of Treasury series is 5% – 15%. The total sales of the above products in 2020 is 334 million yuan, with an average gross profit margin of 44.37%; The price increases of fruit wine, relief, color varieties, champion Red and other products are 5% – 20%. The total sales of the above products in 2020 is 359 million yuan, with an average gross profit margin of 29.88%. The price adjustment plan will be implemented from January 20, 2022.
Source: company announcement
Another yellow rice wine “boss” Kuaijishan Shaoxing Rice Wine Co.Ltd(601579) also said on the interactive platform that since the product price is mainly affected by many factors such as cost and market, the price adjustment of the company’s yellow rice wine products will be comprehensively considered according to various factors such as material cost and market demand; At the same time, the company has gradually improved the value of yellow rice wine by optimizing the structure, upgrading products and launching new models, so as to realize the return of the value of yellow rice wine.
Previously, the price increase notice on Luzhou Laojiao Co.Ltd(000568) core products was also confirmed by many dealers. According to the relevant notice, it is suggested that the planned quota supply prices of 38 ° and 52 ° Guojiao 1573 classic packaging terminal channels in North China (northeast) and other regions of the company should be increased by 40 yuan / bottle and 70 yuan / bottle respectively, and the unplanned quota supply prices should be adjusted to 750 yuan / bottle and 1080 yuan / bottle respectively; Luzhou Laojiao Co.Ltd(000568) the 52 degree Tequ liquor in the eastern region of Tequ liquor is proposed to rise to 40 yuan / 500ml in the plan and 388 yuan / 500ml in the unplanned plan.
In addition, Shede Spirits Co.Ltd(600702) , Xijiu, Anhui Kouzi Distillery Co.Ltd(603589) have also announced price increases. A dealer in East China told the China Securities Journal that although Wuliangye Yibin Co.Ltd(000858) was not “officially announced” at this year’s dealer conference, the price increase news was true.
Liquor enterprises have announced price increases one after another. Without exception, the main reason is the rise of production costs such as raw materials and labor costs. The “fist products” of some liquor enterprises are also among the price increases.
For example, Guojiao 1573 is one of the core products of Luzhou Laojiao Co.Ltd(000568) . After the company implements the integrated operation of medium and high-grade products, it is classified as medium and high-grade liquor in the company’s product category together with Luzhou Laojiao Co.Ltd(000568) Tequ and Centennial Luzhou Laojiao Co.Ltd(000568) cellar age liquor. According to the Luzhou Laojiao Co.Ltd(000568) semi annual report, in the first half of this year, the company’s medium and high-grade liquor revenue totaled 8.218 billion yuan, accounting for 88.21% of the company’s total revenue, and the gross profit margin was more than 90%.
Baijiu price is expected to continue to cash in
After entering December, the price of Baijiu is expected to gradually increase and continue to be realized.
Ouyang Yu, chief food and beverage analyst at Huachuang securities, told the China Securities Journal that Wuliangye Yibin Co.Ltd(000858) as a wind vane of industry demand, the recovery of wholesale price will directly affect its own operation, the confidence of industry investment promotion channels and the expectations of the capital market. In the case of large volume this year, it is expected that the sales volume of Wuliangye Yibin Co.Ltd(000858) will increase in single digits next year, of which the general five contributes 10% and the classic Wuliangye Yibin Co.Ltd(000858) contributes additional growth.
Insiders said that Baijiu enterprises announced the price increase in turn, the cost of supply side was gradually transmitted to downstream demand side. Meanwhile, Moutai’s “unpacking order” has already decided to channel dealers. The optimization of retail policy is expected to increase the coverage of Moutai liquor sales.
In the Research Report of Huachang securities, the annual price of Baijiu is starting point for Moutai’s price increase this year. The market is gradually expanding with the policy of macro bottom, the feedback from the marketing plan and the encouragement of the national cellar. “After the current market is expected to heat up, we believe that the market in the next year and peak season is still not at the end. The feedback of wine enterprises on payment collection is positive, laying the foundation for a good start in cash flow, so as to ensure that the performance of the first quarter report is highly deterministic and the plate still has strong support.”
Guotai Junan Securities Co.Ltd(601211) online grassroots research of Anhui, Henan, Hunan, Jiangsu, Shandong and other Baijiu channels later said that in mid December this year, dealers in various regions opened up a series of red wine for 2022 famous wines, and the price of famous liquor was generally stable at the end of 2021. In addition, the channels generally feedback that the local price belt will move up in 2021.
(China Securities Journal)
