At the beginning of the new year, we never forget the way forward. Despite the impact of the COVID-19 epidemic in the past year, the Baijiu industry still lacks the heat and the topic.
Taking stock of the ten hot issues in the liquor industry in the 2021 year, we can say that “rising” has become a top priority for the industry. Moutai is still the topic king. The sauce wine is not too hot. Let’s once again review the 2021 of the Baijiu industry.
event 1: a capital Carnival
“Sauce and wine fever” was an unavoidable topic in the industry in the past year. The performance of sauce and liquor enterprises represented by Maotai has made rapid progress all the way. On the last night of 2021, Kweichow Moutai Co.Ltd(600519) released the announcement on production and operation in 2021, which said that in 2021, the company is expected to achieve a total operating revenue of about 109 billion yuan, a year-on-year increase of about 11.2%, and a net profit attributable to the parent company of about 52 billion yuan, a year-on-year increase of about 11.3%. The “100 billion Maotai” was officially born.
With the “sauce wine fever” brand and capital competing, more and more other flavor wine enterprises and foreign capital have joined the “sauce dyeing wave”.
In March this year, the revised pharmaceutical industry publicly said that it would enter the sauce and wine industry and become the second pharmaceutical enterprise making sauce and wine after Tasly Pharmaceutical Group Co.Ltd(600535) . It also inspected some wineries in Maotai Town, and the momentum of “dyeing sauce” was strong.
In April 30th, the five leaf group signed an investment agreement with Renhuai to start the annual production of 5000 tons of Maotai flavor Baijiu liquor production in the thick workshop wine industry, and said that “we expect to reach 10000 tons of capacity and exceed 3 billion output value by 2025”.
On May 19, sun Hongbin, chairman of the board of directors of rongchuang China, joined hands with Deng Hongqiang, the “exhibition king”, to build Hengchang Shaofang, 1915 double production bases and wineries in the core area of Maotai Town, signed a contract with an overall investment of more than 10 billion, a four-year planned capacity of 30000 tons, and the phase I project will be completed within one year. After the completion of phase I project, the annual production capacity will exceed 10000 tons. Since then, on August 9, the liquor retail enterprise announced that rongchuang was an affiliated enterprise with 200 million yuan to subscribe for 2749500 shares of the company, and the “drunkenness” of real estate boss sun Hongbin once again attracted attention.
In June 7th, Shanghai Laiyifen Co.Ltd(603777) responded to investor questions, saying that to satisfy the diversity of consumer demand, Shanghai intoxicated Wine Co., Ltd., a wholly owned subsidiary of the company, launched its own brand Maotai Baijiu liquor in early 2020.
On June 20, Flammulina velutipes Tianshui Zhongxing Bio-Technology Co.Ltd(002772) announced that it planned to acquire 100% equity of Maotai Shengjiao Liquor Co., Ltd. and cross-border involved in sauce liquor.
On October 19, Xiamen Jihong Technology Co.Ltd(002803) announced that the company planned to acquire no less than 70% equity of Guizhou diaotagong Liquor Co., Ltd. in June 2021, and then hold the assets of Guizhou Renhuai Maotai Gujiao Liquor Co., Ltd.
Luhua, the “king of peanut oil”, launched Luhua soy sauce classic products with a price of 999 yuan / bottle, which caused a sensation in the two markets of grain and soy sauce wine.
In addition to foreign capital entering the sauce wine market, other flavor wine enterprises are also ready to layout the sauce wine track.
At the end of April, Hai Nan Yedao (Group) Co.Ltd(600238) announced that its wholly-owned subsidiary Hai Nan Yedao (Group) Co.Ltd(600238) liquor Development Co., Ltd. and muddle headed liquor industry, Maotai Town, Renhuai City, Guizhou Province jointly invested to establish a joint venture with a registered capital of 300 million yuan. On June 26, Hai Nan Yedao (Group) Co.Ltd(600238) held the coconut island sauce wine closing ceremony and new product launch in Zunyi, Guizhou, and announced the establishment of Maotai flavor wine joint venture. Subsequently, Hai Nan Yedao (Group) Co.Ltd(600238) launched Maotai flavor wine products with a high profile.
On April 9, Sichuan Swellfun Co.Ltd(600779) issued an announcement on foreign investment, saying that it would invest in Guizhou Sichuan Swellfun Co.Ltd(600779) Guowei Liquor Co., Ltd. in the form of joint venture, and the registered capital of the joint venture is at least 800 million yuan, Sichuan Swellfun Co.Ltd(600779) plans to contribute in cash, accounting for 70% of the registered capital of the joint venture.
Rice wine leading enterprise Zhejiang Guyuelongshan Shaoxing Wine Co.Ltd(600059) also tried to take a share and launched daughter’s red sauce wine; In addition, swan wine group, which has been struggling in the wine industry, also announced its entry into the sauce wine market and released its first sauce wine product – Tibet brewing Institute.
Combing the off-site capital of “dyed sauce”, it is not difficult to find that many players enter the game with the color of “unexpected and reasonable”.
After the official announcement of “dyeing sauce”, the share price of Tianshui Zhongxing Bio-Technology Co.Ltd(002772) rose by 6 word boards; Xiamen Jihong Technology Co.Ltd(002803) gain 3 boards in 8 days; The share price of Shanghai Laiyifen Co.Ltd(603777) rose nearly 60% in nine trading days; In the drama of rising with “sauce”, the craziest one is Guizhou Changzheng Tiancheng Holding Co.Ltd(600112) , because it is rumored that some liquor enterprises will backdoor and rise the limit continuously. At the highest time, the share price of Guizhou Changzheng Tiancheng Holding Co.Ltd(600112) rose by more than 200%.
History is always so strikingly similar. After the soaring share price of “dyed sauce”, enterprises such as Tianshui Zhongxing Bio-Technology Co.Ltd(002772) , Xiamen Jihong Technology Co.Ltd(002803) , Sichuan Swellfun Co.Ltd(600779) bid farewell to the sauce and wine track one after another. The reason is that “due to changes in the macro environment of the market”.
We might as well think calmly about whether behind the “sauce and wine fever” is a “Carnival” of “cutting leeks” or really making money by selling wine?
event 2: regulatory Symposium causing industry shock
In August 20th, the market supervision and Administration Bureau of price supervision Competition Bureau issued the notice on meeting of the Forum on Baijiu market regulation. The symposium mainly focused on capital hunting sauce liquor and how to control the rising price of Maotai liquor. It caused industry shock and cooled the hot sauce and wine.
Zhonghua.com wine industry paid a field visit to China Price Association on that day. The symposium is divided into two sessions in the morning and afternoon. The morning session is dominated by the suggestions of industry experts, and the afternoon session includes wine enterprises such as Wuliangye Yibin Co.Ltd(000858) , Yanghe, Jiugui Liquor Co.Ltd(000799) , Shede Spirits Co.Ltd(600702) , Sichuan Swellfun Co.Ltd(600779) , Xiamen Jihong Technology Co.Ltd(002803) , Eternal Asia Supply Chain Management Ltd(002183) .
The news came out, and the industry was in an uproar, Baijiu shares fell. At the close of the day (August 20), Jiugui Liquor Co.Ltd(000799) , Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) touched the limit; 16 stocks such as Shanghai Bairun Investment Holding Group Co.Ltd(002568) , Anhui Kouzi Distillery Co.Ltd(603589) , Shede Spirits Co.Ltd(600702) , Sichuan Swellfun Co.Ltd(600779) , Wuliangye Yibin Co.Ltd(000858) , Jiangsu Yanghe Brewery Joint-Stock Co.Ltd(002304) , Luzhou Laojiao Co.Ltd(000568) all fell by more than 5%; Kweichow Moutai Co.Ltd(600519) once fell by more than 5%, below 1600 yuan for the first time in nearly a year, and the total market value fell below 2 trillion.
event 3: Renovation of Maotai distillery
With the momentum of sauce well spray development, distilleries in Maotai town have sprung up, forcing nearly 3000 large and small distilleries in Maotai Town, which is already small. However, there are only more than 500 companies with real strength and formal licenses. In this context, the disorderly competition between liquor enterprises has further intensified, and the ecosystem of Maotai town has been damaged.
Therefore, on August 26, 2021, Renhuai municipal government held an important meeting. The meeting focused on the current ecological environment problems and the “small, scattered, weak” phenomenon in Renhuai Baijiu industry. Through the way of “opening the road”, “setting production”, “reducing total quantity, controlling increment and ensuring quality”, we can achieve merger, reorganization, integration, shutting down, upgrading, transformation and development of Renhuai Baijiu industry. After the meeting, Renhuai municipal government started the rectification of small wineries. They first selected several regions as pilot projects and closed, demolished and reorganized small wineries in the region.
Then, the news that “more than 600 small distilleries in Maotai town will face closure” spread wildly in the circle of friends. For a time, it caused a lot of forwarding and hot discussion among many wine merchants.
event 4: the bumpy listing of the second share of sauce and wine
Although the sauce liquor is very hot, it is said that there is only one listed enterprise in Maotai in the whole sauce liquor market. Who will be the “second share of sauce liquor”? Become the focus of the industry.
On May 18, 2020, Guotai liquor submitted the application draft of IPO prospectus. On June 4, 2021, Guotai liquor industry appeared in the list of enterprises applying for termination of review of initial public offering in 2021 published on the website of the CSRC. The list shows that the decision time of termination of review of Guotai liquor industry is June 2, 2021. Subsequently, the chairman of Guotai liquor said in a public response that he planned to report the IPO materials by the end of October at the latest.
In the race track for the runner up of sauce and wine, Langjiu is a very outstanding player. It can even be said that it has formed a balance with Jiuxi and Taiwan.
Since the first planned listing in 2007, Langjiu’s “listing dream” has lasted for 14 years, and the road of Langjiu’s IPO is not smooth. On May 28, the official website of the CSRC disclosed that the CSRC put forward 53 feedback opinions on the IPO of Langjiu. Subsequently, Langjiu updated its prospectus on June 11. The triple digit revenue growth made Langjiu’s IPO voice rise again.
event 5: the “price rise tide” throughout the year
In addition to “sauce and wine fever”, another high-frequency word “price rise” in 2021. From the beginning of the year to the end of the year, Baijiu enterprise can be said to have staged a “price raising relay race”, especially in the near future.
At the beginning of 2021, Luzhou Laojiao Co.Ltd(000568) , Anhui Gujing Distillery Company Limited(000596) , Jiannanchun, Sichuan Swellfun Co.Ltd(600779) and other liquor enterprises issued price increase notices, Anhui Gujing Distillery Company Limited(000596) even raised the prices of more than 20 series of products to varying degrees. In the middle of the year, Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) , Xifeng and Jinsha liquor enterprises also raised product prices. Since the second half of the year, the range of price increase has been wider, and a large number of sub high-end famous liquor enterprises have participated in the wave of price increase.
Not long ago, Wuliangye Yibin Co.Ltd(000858) raised the price of the eighth generation Wuliangye Yibin Co.Ltd(000858) of its core product from 999 yuan / bottle to 1089 yuan / bottle, the planned price was 889 yuan / bottle, and the contract volume inside and outside the plan was 3:2. It is estimated that, taken together, the ex factory price of the eighth generation Wuliangye Yibin Co.Ltd(000858) has increased from 889 yuan to 969 yuan, an increase of nearly 9%.
Luzhou Laojiao Co.Ltd(000568) followed up. On December 20, Luzhou Laojiao Co.Ltd(000568) Guojiao Liquor Sales Co., Ltd. decided to adjust the recommended group purchase price of 52 degree Guojiao 1573 classic package (500ml * 6) to 1100 yuan / bottle and 38 degree Guojiao 1573 classic package (500ml * 6) to 800 yuan / bottle.
In fact, Luzhou Laojiao Co.Ltd(000568) has frequently raised prices for its products this year. Previously, on December 15, Luzhou Laojiao Co.Ltd(000568) sales company had issued a document saying that the planned quota supply prices of 38 ° and 52 ° Guojiao 1573 classic packaging terminal channels in southwest and Central South regions of the company were proposed to be increased by 40 yuan / bottle and 70 yuan / bottle respectively, and the unplanned quota supply prices were adjusted to 750 yuan / bottle and 1080 yuan / bottle respectively.
In August, July and January this year, Luzhou Laojiao Co.Ltd(000568) sales company also issued documents for price adjustment for many times. On August 24, Luzhou Laojiao Co.Ltd(000568) again issued the notice on the increase of Guojiao 1573 price system, and decided to increase the settlement price of 52 degree Guojiao 1573 classic packaging by 40 yuan / bottle and 38 degree Guojiao 1573 classic packaging by 30 yuan / bottle from September 10, 2020.
On August 15, Luzhou Laojiao Co.Ltd(000568) sales company issued a document in North China (northeast) region, informing that the channel supply price of 38du Guojiao 1573 classic (500ml * 6) wine store will be increased by 50 yuan / bottle from September 16, 2021.
Not only did the head wine enterprises play the “price tag”, regional Baijiu enterprises and yellow wine enterprises also joined the wave of price rise.
In December 24th, Beijing Shunxin Agriculture Co.Ltd(000860) announced that it would adjust the price of Baijiu mountain liquor, and the price range was 20 yuan -50 yuan / bottle.
On December 16, Zhenjiu announced an increase of 10-100 yuan in the price of various products of the company; On December 13, Shede Spirits Co.Ltd(600702) announced that the ex factory price of taste shede (Collection) was increased by 30 yuan / bottle, and the ex factory price of wisdom shede (Collection) was increased by 50 yuan / bottle.
On December 23, Zhejiang Guyuelongshan Shaoxing Wine Co.Ltd(600059) adjusted the company’s blue and white drunk, pure (alcohol) and Library series by 5% – 20%. For fruit wine, relief, color varieties, champion Red and other products, the price increase range is 5% – 20%.
In addition, Qinghai Huzhu Barley Wine Co.Ltd(002646) , Li Du wine, Jingzhi liquor and other regional Baijiu enterprises have issued notice of price adjustment.
According to incomplete statistics, since the end of October, Baijiu liquor industry has accumulated 14 wine companies to raise or stop the price, involving up to 20 products.
event 6: Maotai “unpacking order” lasting 10 months
Contrary to the Baijiu enterprises, the liquor companies are not worried about the price rise of the liquor companies.
Since the ex factory price of Maotai liquor increased from 819 yuan to 969 yuan at the end of 2017, the ex factory price of Maotai liquor has not changed in the past four years. Therefore, the voice of Maotai liquor price increase and market rumors are heard everywhere.
Although the official price has not been raised, the market price of Maotai has been rising all the way. In order to “control the price and stabilize the market”, in January 2021, the leading group headed by Gao Weidong, the former chairman of Maotai Group, issued a “unpacking order”: it was proposed that 80% of the original cases of Maotai liquor in the exclusive store should be unpacked and sold at the price of 1499 yuan / bottle per month. Even if the customer specified to buy six bottles, the exclusive store must unpack six cases of “original cases of Maotai” at the same time, then draw one bottle each and combine them into one case for sale. The manufacturer will irregularly go to the exclusive store to check the unpacking sales and the number of boxes. If it is found that the number of boxes does not meet the standard, the winery will punish the dealer accordingly.
Half a month later, Maotai upgraded the unpacking policy from “80% unpacking rate” to 100%, and 100% cartons should be retained. By August, Maotai’s “stabilizing the market and price” policy was launched again, requiring strict implementation of 100% unpacking, 100% inventory clearing and 100% invoicing. “100% unpacking order”, which is also regarded as “the most severe price control measure in the history of Maotai”.
On August 30, 2021, Ding Xiongjun, former party secretary, director and party secretary of Guizhou Energy Bureau, will take over Gao Weidong as chairman of Maotai Group. On October 11 Kweichow Moutai Co.Ltd(600519) after “Xinshuai” took office, the “unpacking order” was completely cancelled, and the ordinary 6 bottles of Feitian Maotai were no longer forced to open the box for sale. At the same time, starting from December 13, Maotai will increase the sales of 12 bottles of Feitian Maotai per box, which is specially for unpacking sale to meet the different needs of consumers who want to buy the whole box and zero pay bottles of the original factory. So far, the “unpacking order” that lasted about 10 months ended.
After the “unpacking order” was completely cancelled, the price of Maotai liquor also fell.
event 7: Mao Yangfen’s “change of command”
On February 23, Jiangsu Yanghe Brewery Joint-Stock Co.Ltd(002304) announced that the first extraordinary general meeting of shareholders in 2021 elected Zhang Liandong as the chairman of the seventh board of directors of the company; On August 30, the website of Guizhou Provincial People’s government issued a “notice”: the provincial people’s government agreed to recommend Ding Xiongjun as the chairman of Maotai distillery and the candidate of Kweichow Moutai Co.Ltd(600519) chairman. On December 19, Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) announced that Li Qiuxi retired at the age of and recommended yuan Qingmao as the chairman of the eighth board of directors of Fenjiu.
The three new commanders are all “airborne soldiers” of the government. The personnel change reflects the new thinking of the local government on the development plan of the wine industry and how wine enterprises can better promote the local economy.
event 8: capacity expansion under high-quality development of wine enterprises
With the upgrading of the national consumption level, consumer awareness is constantly awakening, and the demand for brand, quality and health has been gradually improved. However, for the whole liquor industry, the quality Baijiu is still scarce. In order to meet consumers’ increasingly yearning and pursuit for a better life and consider the growth of wine enterprises, capacity expansion is imperative.
On October 14, 40000 tons of Langjiu sauce wine was put into operation. Wang Junlin, chairman of Langjiu, said: after 20 years of expansion (2001-2021), the production capacity will reach an all-time high of 40000 tons this year. It is expected that the five ecological brewing areas of Langjiu manor will be fully completed and put into operation in Chongyang next year, and the annual production capacity can be expanded to 55000 tons at that time. It is estimated that by 2027, the storage capacity of high-end sauce wine will reach 300000 tons.
On October 29, Guizhou Xijiu’s “14th five year plan” technical transformation (phase I) project started intensively. In phase I alone, 18000 tons of Maotai flavor wine and its ancillary projects are planned to be added. The construction contents include 33 wine making plants, 35 Tanzhuang wine warehouses, 8 tank warehouses, 4 Koji making plants and other facilities.
Also in October, the 5000 ton base liquor expansion project of Jinsha liquor industry was put into operation. Previously, the first phase of the 30000 ton base liquor expansion project of Jinsha liquor industry was completed.
In 2021 Jiugui Liquor Co.Ltd(000799) also proposed in the semi annual report to speed up the construction of new three production areas and expand the production capacity of Qu liquor; The new production zone 3 covers an area of 328 mu with a total investment of 2.3 billion. After the completion of the project, it will realize the production capacity of 10800 tons of fragrant base liquor and the storage capacity of 17800 tons of base liquor.
On November 3, Guotai liquor announced the merger and reorganization of MaoYuan liquor. According to the plan, the future production capacity of MaoYuan liquor industry will be planned to 15000 tons.
In addition, regional brands such as Zhenjiu, Jinpai, anjiu and danquan also reported the implementation plan of reconstruction and expansion projects.
incident nine: Baijiu new national standard issued
In June, the General Administration of market supervision (NSDC) issued two national standards, namely the Baijiu terminology and the terms and classification of alcoholic beverages, and re defined the definition of Baijiu. The Baijiu Baijiu has two main points: first, it is clear that liquor should not be used as food additive, and the liquor is classified from Baijiu liquor, and it is clear that it belongs to the blending liquor. Two, we should make clear that Baijiu and Baijiu liquor must not be used in liquor making and liquor processing. In June 1, 2022, Baijiu “new national standard” will be formally implemented.
In August, a number of media reports reported that the State Administration of market supervision and administration of price supervision Competition Bureau issued a notice on the convening of a forum on Baijiu market regulation. In December 14th, the Guizhou provincial market supervision bureau posted a notice on the strengthening of Baijiu production license after the supervision of the five departments of the provincial market supervision bureau and the strict implementation of the main body withdrawal according to law. In December 15th, the State Administration of market supervision and Administration issued a notice on Soliciting Opinions on the rules for the examination of Baijiu production (Draft). The draft said that Baijiu labels should not be marked “special offer”, “exclusive supply”, “exclusive”, “special”, “special needs” and so on.
event 10: record breaking Chengdu sugar and Wine Fair
Speaking of industry memorabilia, there is the 104th national sugar and wine fair, which still surprises the industry under the pressure of the epidemic. The exhibition area of 215000 square meters not only makes the exhibition scale record, but also brings together characteristic exhibits brought by 4106 exhibitors from 42 countries and regions. 50000 kinds of products compete on the same stage, and its exhibition scale reaches a record high.
The national sugar and Wine Association is known as the “wind vane” of China’s wine industry. At this sugar and wine meeting, the sauce and wine heat lasted for a period of time, and it will rise again with the help of sugar and wine.
It is reported that the 106th Chengdu spring national sugar and Wine Fair in 2022 will be held in Chengdu from March 24 to 26.
To sum up, it is not difficult to see that whether the price of Baijiu products is increasing, Moutai’s “control price” and the expansion of production capacity have become the main theme of the industry in the past year.
Bid farewell to 2021 and usher in 2022. In the new year, I wish the wine industry better performance, quality and reputation
(zhonghua.com Finance)
