As the opening year of the 14th Five-Year plan, the overall development of the Baijiu industry has been improving in 2021 under the macro background of continuous economic transformation and consumption escalation, and the competition of the whole industry has entered into a comprehensive competition.
In the first three quarters of 2021, the performance of all liquor enterprises is almost generally rising. Combing the China business newspaper reporter found that the total revenue of 19 listed Baijiu enterprises reached 228 billion 449 million yuan, up 19.61% over the same period last year. The total net profit was 82.486 billion yuan, a year-on-year increase of 19.39%. Among them, Moutai, Wuliangye Yibin Co.Ltd(000858) , the Yanghe River, Fenjiu and Luzhou Laojiao Co.Ltd(000568) account for about 177 billion 672 million yuan of total revenue and 78% of the total Baijiu liquor business revenue.
The Baijiu Baijiu liquor market is constantly expanding, and liquor companies are constantly upgrading their product mix and price belts. The price of Baijiu 500~1000 yuan and more than 1000 yuan has become the national offensive zone for the leading liquor producers and the regional liquor strong brands. At the same time, opposite the Maotai flavor boom, the liquor industry has opened a multi category rise model.
In the policy side, the release of the new national standard has made a clearer definition of Baijiu. Recently, the General Administration of Market Supervision issued the “Baijiu production license review rules (Draft)”, which promoted Baijiu liquor industry to develop more healthfully.
all round competition
Looking back at the Baijiu industry in 2021, we can see that the industry competition has evolved from a single market competition to an all-around competition in product structure upgrading, differentiation construction, and deep channel layout.
High end is still the main theme of wine enterprise competition. In 2021, the high-end Baijiu market was further expanded, and all wine companies increased their prices. The reporter noted that since November, Wuliangye Yibin Co.Ltd(000858) , Luzhou Laojiao Co.Ltd(000568) , Anhui Gujing Distillery Company Limited(000596) , Shede Spirits Co.Ltd(600702) , Jiugui Liquor Co.Ltd(000799) , Jiannanchun and other more than 10 liquor enterprises have announced price increases for their core products.
Obviously, the high-end competition in the industry will step to a new level. The reporter noted that in addition to more than 2000 yuan, the price belt is still unique in Feitian Maotai, and the 1000 yuan price belt is full of competitors. Guojiao 1573, 52 degree puwu, qinghualang, qinghuafen 30, 52 degree hongxifeng and other products are priced in the price band of 1000 yuan. In the sauce wine track, which has set off an upsurge in recent years, “thousand yuan generals” can be found everywhere.
For the price increase, the outside world mostly believes that it is good, and the price increase of wine enterprises can improve their profitability. Ping An Securities Research Report believes that the Chinese Baijiu industry is in the squeeze growth stage of volume reduction and price increase. The overall demand for the industry is stable, and the trend of consumption upgrading and brand concentration is unchanged. As the wind vane of the industry, the successive price increases of famous wines are conducive to opening the volume and price space of the industry, building the certainty of industry growth in 22 years and promoting the improvement of profitability.
Baijiu industry expert Cai Xuefei said: “High-end Baijiu” brand has a higher brand barrier. From the perspective of products, its competition pattern is relatively stable. Whether from speed, volume or profit, the first line famous liquor enterprises are continuing to strengthen, the regional wine enterprises and the national liquor enterprises are widening. But the regional strong liquor, especially the capital holding brand, has obvious advantages in future development, and will form a relative market advantage. 。”
Besides, take cities and seize territory as the competitive force. Baijiu is still the normal competition in the liquor industry. With strong brand power and product power, the first-line famous liquor is continuously exported to the whole country through a mature dealer system, and has an unshakable position in the national market. For example Kweichow Moutai Co.Ltd(600519) , Prince, Yingbin, laimao and other series of wines compete for the national market share, and the regional market is supplemented by Guizhou Daqu and other regional well-known brands for market consolidation; Wuliangye Yibin Co.Ltd(000858) harvest the national market with the brand matrix of 52 degree puwujia series wine, Luzhou Laojiao Co.Ltd(000568) open the mode of “double brands, three lines and five single products”.
In order to “go global”, regional liquor enterprises have begun to explore new channels. The reporter noted that many regional liquor enterprises are improving consumer link efficiency through channel digitization, building a united front through the community operation of core opinion leaders, core group buying units and core consumers, and forming a community of interests with core dealers and core terminals. For example, the new general generation model of Sichuan Swellfun Co.Ltd(600779) and the urban partner model of Guizhou Zhenjiu have made great progress in 2021.
In the face of the strong expansion of first-line famous liquor, regional liquor enterprises are also exploring to maintain market share through differentiation. For example, Jingzhi liquor industry highlights its differentiated advantages by creating characteristic flavor categories of Zhixiang; Qinghai Huzhu Barley Wine Co.Ltd(002646) with tianyoude highland barley wine as the core, create a characteristic whole industry chain from highland barley planting to highland barley acquisition, to highland barley brewing and distiller’s grains recycling; Golden seed is also making strong fragrance and fragrance to deal with competition with differentiated innovation.
Yang Chengping, a Baijiu industry expert, said that enterprises need to improve all the time. Brand value construction, product structure, channel construction, cultural connotation mining, category cultivation, and internal organization management are all the supporting points of the brand’s future competition. At the same time, enterprises also need to find more differentiation and create unique advantages.
from hot sauce and wine to multi category hegemony
In the first half of 2021, the sauce and wine boom continued. At that time, many foreign capital announced that Baijiu and Sichuan Swellfun Co.Ltd(600779) had also been transferred to the sauce and wine industry. It is easy to see that the eye-catching performance of Baijiu industry has attracted a lot of attention from off shore capital.
But the industry eventually returned to calm. On August 20, 2021, the price supervision and Competition Bureau of the State Administration of market supervision gathered relevant experts and enterprises to hold a symposium, mainly focusing on the price control of capital hunting sauce liquor and Maotai liquor. In response, some industry analysts said the forum was aimed at maintaining the Baijiu market order.
As Cai Xuefei said, the Baijiu industry is facing the rise of many kinds of products. The market share of Fen flavor Baijiu increased to 12% from 12% five years ago, and Haig consulted that it will increase to 20% in the next 2~3 year. Fen Fen Baijiu, the representative of Qingfen liquor, increased from 4 billion 400 million yuan in 2016 to 14 billion yuan in 2020, while the first half of 2021 has reached 12 billion 100 million yuan.
Luzhou Baijiu, which has the largest share of the market, is also trying to defend its position. For example, Yibin proposed 5 years of redevelopment of a Wuliangye Yibin Co.Ltd(000858) , Mianzhu production area to dig deep Jiannanchun value, Luzhou will build intensive cluster of Baijiu industry, Qionglai strive for three years to form qiongjiu liquor revenue doubled.
It is worth mentioning that Jianxiang and Fengxiang are also struggling to catch up. At present, there are many liquor enterprises with concurrent flavor, such as “Xiaolang liquor” and “shunpinlang” of Langjiu shares, Anhui Kouzi Distillery Co.Ltd(603589) , and Xufu liquor industry. Among them, Anhui Kouzi Distillery Co.Ltd(603589) the revenue and net profit in the first three quarters increased by more than 30%.
Yang Chengping believes that the category pattern may change greatly in the future. All flavor types have opportunities in the future, and each flavor type will develop on the existing basis.
policy action to end chaos
Recently, the market supervision administration has drafted and issued the “Baijiu production license review rules (Draft)” (hereinafter referred to as the “rules”), and made public comments for the public, with a deadline of January 15, 2022.
The rules of the Baijiu liquor production process were standardized from 6 aspects, namely, the production place, equipment and facilities, equipment layout and process flow, personnel management, management system, and trial product inspection. Baijiu labels should not be marked “special offer”, “exclusive”, “special”, “special”, “special needs” and so on.
“At present, one of the problems in the vintage wine market is that the meaning of the year marked on each product is different, but there is no unified standard to regulate. Blending is a process method, which is in line with the regulations, but it is obviously unreasonable to define the wine blended with a few years of raw pulp as vintage wine. Foreign countries also allow the wine of different storage years to be mixed with each other, but only the lowest wine can be mixed after blending Age. ” Wine analyst Ouyang Qianli once told reporters.
Cai Xuefei believes that although the detailed rules do not clearly define “vintage wine”, if the expression and provisions on vintage wine in the detailed rules are implemented, it will better safeguard consumers’ right to know and contribute to the healthy development of the industry.
In addition, “special” products will no longer exist. “This regulation is of positive significance to purifying the industry environment, and also indicates that consumers’ awareness of rights protection is becoming stronger and stronger, which will promote more standardized operation and sales of the liquor market in the future.” Cai Xuefei said.
Reporters noted that in addition to the above production rules, 2022, the new Baijiu national standard is coming. In June 1, 2022, the two national standards of GB/T 15109-2021, Baijiu industry terminology and GB/T 17204-2021 “beverage alcoholic terminology and classification” will be formally implemented.
The Baijiu Baijiu liquor has been defined by the new GB. The Baijiu liquor and the liquor of liquor making are also clearly defined as non alcoholic food additives. The Baijiu Baijiu was classified into the classification of liquor and removed from liquor category. Outside voices believe that the release of the new national standard will raise the industry threshold, accelerate the reshuffle of medium and low-end products in the industry, and become the “catalyst” to accelerate the adjustment of the industry.
In this regard, Ouyang thousand miles think that for the Baijiu industry, there will be real sense of pure grain wine, non pure grain wine. After the implementation of the new national standard, the low-end Baijiu will gradually become differentiated. Some low-end grain Baijiu will accelerate to become a high-end bottle of wine.
Cai Xuefei believes that there are two tracks that can not be met by the new standard. First, the definition of new liquor is returned to the market. Two, we should continue to the original technology route, choose to become “Baijiu” or choose “Baijiu”.
setting 2022
In 2021, for many Baijiu enterprises, it is a crucial year. The high-end and nationalization are going deep and continuous. All kinds of wine enterprises are deepening reform. After continuing the offensive strategy in previous years, they pursue the high quality development and become the common choice of most Baijiu enterprises.
After Ding Xiongjun, the new leader of Kweichow Moutai Co.Ltd(600519) took office, he continued to release the signal of “stabilizing the price and stabilizing the market”, and successively implemented measures such as increasing market investment, changing empty bottles, pilot “bottle opening consumption”, canceling room reservation and wine purchase of Maotai International Hotel, and gradually canceling the “unpacking order”, so as to promote the return of prices to a reasonable range.
There is also Wuliangye Yibin Co.Ltd(000858) in pursuit of stable development. In mid December, Li Shuguang, chairman and Secretary of the Party committee of Wuliangye Yibin Co.Ltd(000858) group, pointed out that in the face of the new era, Wuliangye Yibin Co.Ltd(000858) must accurately grasp the general keynote of stable word and steady progress, and the underlying logic and value drive of the continuous structural growth of Baijiu industry in the long term trend of consumption upgrading.
At the same time, there are also pursuers. Yuan Qingmao, who has just taken the lead in Fenjiu, said he should go ahead with the first camp of the Baijiu industry. He said, “the next three years will be a major strategic development period for Fenjiu. 2022 is crucial and we should move towards better structure, better efficiency and higher quality.”
Cai Xuefei believes that with the end of the expansion bonus of the secondary high-end and high-end liquor market, the upgrading of the overall liquor consumption structure slows down and social drinking further strengthens, China’s liquor industry will enter an industrial stability period, especially under the market environment of stock squeeze, the strong division adjustment of China’s liquor industry is gradually coming to an end, China’s wine industry has begun to collectively enter the value consumption era with brand and quality as the core. In the next few years, the pattern of China’s wine industry will show a solidification trend, and famous wines will gather in different price bands.
“The polarization phenomenon appears under the trend of strong differentiation. On the one hand, the social attributes of famous wine products are further strengthened, and the brand potential continues to grow, forming a stronger advantage in the high-end and sub high-end price belt. Some winery wine enterprises based on regional culture and characteristics will also gradually rise in the environment of diversified consumption, brand culture, regional quality, high-quality production capacity and consumer experience And other factors have become the competitive content and direction of China’s wine industry in the next stage. ” Cai Xuefei said.
(China business network)
