The ex factory price of qinghualang exceeds that of Feitian Maotai.
On April 15, the surging news reporter learned from people familiar with the matter that Sichuan Gulin Langjiu Sales Co., Ltd., the sales company of Sichuan Langjiu Co., Ltd. (hereinafter referred to as “Langjiu”), issued a notice of price adjustment. From now on, the factory price of 53 degrees 500ml qinghualang will be increased by 100 yuan / bottle.
The ex factory price of qinghualang was 909 yuan / bottle. After the increase, the ex factory price of qinghualang reached 1009 yuan / bottle, exceeding 969 yuan / bottle of the ex factory price of Feitian Maotai. Up to now, the suggested retail price of qinghualang is still 1499 yuan / bottle, comparable to the market guidance price of Feitian Maotai.
Langjiu has always been another symbol of Maotai Baijiu that the capital market expects. Now Baijiu raises its core price, or intends to stabilize the position of Qinghua Lang in the high-end liquor market.
In fact, Langjiu has repeatedly raised the ex factory price of a single bottle of qinghualang. According to the prospectus updated by Langjiu on June 11 last year, on June 1, 2019, the company raised the ex factory price of qinghualang single bottle by 79 yuan, and on December 16 of the same year, it raised the ex factory price of qinghualang single bottle by 50 yuan again.
According to the prospectus data, Baijiu liquor’s high-end liquor sales in 2020 were 4 billion 230 million yuan, and the proportion of total revenue has increased from about 25% in 2018 to about 45%. The sales volume of high-end products has also increased continuously, with a significant increase of nearly 54% year-on-year (compared with the same period of the previous year) in 2019 and about 13% year-on-year to about 2814 tons in 2020. The gross profit margin of high-end products is also rising, and the gross profit margin has exceeded 94% in 2020.
It is worth noting that the price of Langjiu is mainly raised by controlling the quantity and supporting the price. In March 28th, the chairman of the company’s internal control standards of Wang Junlin’s liquor products announced that the sales of Baijiu liquor sold in 2021 were 11 thousand tons. In 2022, the sale of Maotai Baijiu liquor will continue to be controlled, with a planned quantity of 1.3-1.5 million tons, compared with 10 thousand tons in 2020.
The prospectus shows that the company focuses its resources on high-end products, expands the brand influence and market recognition of high-end products, and drives the improvement of the company’s sales revenue and the continuous expansion of market share. The company’s price increase for qinghualang highlights the added value of high-end products and promotes the income, sales and price of high-end products.
On January 17 this year, Wang Bowei, vice chairman of Langjiu, announced at the launching ceremony of honghualang China Festival 2022 that honghualang, the company’s sub high-end core product, will “return strongly” this year.
This time, Lang Liquor pushed the ex factory price of qinghualang to 1000 yuan, or to further focus on the qinghualang brand.
Langjiu prospectus pointed out that since 2017, due to the continued increase in demand for high-end Baijiu, the industry has seen a decline in total Baijiu production but total profit rise. It was also in this year that Langjiu launched the blue and white Lang strategy to seize the 1000 yuan price segment in advance.
Cai Xuefei, general manager of CIC, believes that the price increases will be further promoted by Baijiu, and the brand will be further focused on Qinghua Lang, and the brand premium of Langjiu will be strengthened, and the status of Qinghua Lang in the high-end liquor market will be strengthened.
Langjiu has been known for over 1000 years. Its Baijiu brands include “blue and white”, “Honghua Lang”, “Lang special tune” and “small Langjiu”, which include Maotai flavor, Luzhou flavor and thick sauce and flavor products. Among them, Qinghua Lang is the representative of its high-end liquor, Honghua Lang is the main liquor of Baijiu Baijiu, both of which are Maotai flavor products.
At this year’s Conference on the internal control standards of Maotai flavor products enterprises, chairman Wang Junlin said that the sales return of Langjiu in 2021 exceeded 15 billion yuan. This year, or Langjiu sprint 20 billion key nodes.
