Recently, Baijiu industry news constantly. This car Beijing Shunxin Agriculture Co.Ltd(000860) announced the price increase, and that car “big brother” Maotai announced that it would enter the seed industry market.
According to the official wechat news of ” Kweichow Moutai Co.Ltd(600519) “, on March 19, Maotai Group hongyingzi Agricultural Technology Development Co., Ltd. (hereinafter referred to as hongyingzi) was officially inaugurated and established in Tanchang street, Renhuai City, marking that Maotai Group officially entered the seed industry market in an all-round way.
Maotai said that it has laid out the seed business of brewing raw materials, firmly controlled the strategic safety of sorghum seeds for Maotai liquor, further consolidated the foundation for comprehensively promoting the high-quality development of Maotai, and made another big step in leading industrial development, industry nurturing agriculture and helping rural revitalization.
For the Maotai seed industry market, some netizens said that this is the basic project to build a moat for Maotai in the next century; Some netizens also shouted: “praise Maotai’s entry into the seed industry.”
Maotai seed market
Tianyancha app shows that hongyingzi was registered and changed from a company on March 10, 2022. Maotai Group holds 67% of the shares. The company now has 28 employees, 48 science popularization workers, more than 1000 seed production farmers, a breeding area of more than 7000 mu, and produces more than 1800 tons of sorghum seeds.
The establishment of Moutai red tassel company will further exert a great and far-reaching impact on the development of Moutai. The Moutai industry chain will extend from Maotai Baijiu liquor to the upstream raw material seed resources, and the spirit of Moutai craftsmen will start to grow from the seed end of the raw material, forming a whole industrial chain without dead ends and more strict quality control. It is a powerful measure for Moutai to practice the idea of “quality is the soul of life”. Maotai said.
Sorghum is the main raw material of Maotai liquor. According to the reporter’s past financial reports, among the various costs of Maotai liquor, in addition to labor, fuel, transportation and other costs, direct materials account for 54.76% of the total cost.
“Raw materials are the core of the brewing core and the key of the key. Raw materials determine the brewing quality and are the most important industrial link in the upstream of the brewing industry.” Cai Xuefei, general manager of Zhiqu consulting, said to the reporter of Securities Daily.
“At present, Maotai has become the representative brand of sauce wine in China. It is not only the largest sauce wine enterprise, but also the leading enterprise in the sauce wine producing area.” Cai Xuefei pointed out that Maotai’s entry into the seed industry market is to fundamentally strengthen the quality control of Maotai sauce wine producing area, and also strengthen its leadership advantage in the sauce wine industry chain.
Xiao Zhuqing, chairman of Wuhan Jinkui Technology Co., Ltd., told the Securities Daily: “this also fully reflects that Maotai attaches importance to the safety of liquor products and truly realizes the whole industrial chain from the field to the consumer terminal, with traceable quality.”
the industry said that the proportion of sauce and wine production capacity could be further increased
“Maotai can be said to be the maker of the rules of the sauce wine game. Its entry into the seed industry has great strategic significance for itself and the future competition of the sauce wine producing areas.” Cai Xuefei said.
Xiao Zhuqing stressed that the layout of brewing raw material seeds in Maotai can enlarge the living space of Maotai flavor liquor industry chain. “Because the seeds will be produced more high-quality waxy sorghum, and will produce more sauce Baijiu baijiu. After Moutai’s seed market, the market share of the liquor will change, from the current 8% to a larger capacity.” Xiao Zhuqing further pointed out.
According to statistics from independent industry, the production capacity of Chinese Baijiu wine was about 60 million litres in 2021, which was basically equal to that in 2020, accounting for 8.4% of China’s liquor production capacity of 715.63 thousand liters.
In the context of “sauce and liquor fever”, in fact, Maotai is not the only one, and other sauce and liquor enterprises are also arranging the seed industry market. “Including Northern Style Maotai flavor, Fujian Maotai flavor, Sichuan Maotai flavor, and even northwest Maotai flavor, all have the layout of raw material planting and R & D. entering the seed industry is a necessary step for large-scale liquor enterprises to continue to deepen the industrial chain and enhance market competitiveness.” Cai Xuefei told Securities Daily.
