In 2021, the leading enterprise of yellow rice wine Zhejiang Guyuelongshan Shaoxing Wine Co.Ltd(600059) achieved a revenue of 1.577 billion yuan, a year-on-year increase of 21.19% Kuaijishan Shaoxing Rice Wine Co.Ltd(601579) achieved a revenue of 1.25 billion yuan, with a year-on-year increase of 12.81%. With the disclosure of Kuaijishan Shaoxing Rice Wine Co.Ltd(601579) annual report, the performance of all listed enterprises of Chinese rice wine has been released, and the overall performance of the industry has recovered slightly.
Industry insiders believe that the recovery of the performance of leading enterprises of yellow rice wine may drive the heating up of the yellow rice wine market. Rice wine is trapped in the region, and the national market has not been opened for a long time. To break regional restrictions and expand national consumption, rice wine enterprises need to make a collective voice. Through cross-border joint branding, opening bars and other behaviors, enterprises can let young consumers know about yellow rice wine, and then play the effect of consumer cultivation.
leading performance small recovery
The reporter of Beijing business daily learned from the enterprise annual report that in 2021, the leading enterprise of yellow rice wine Zhejiang Guyuelongshan Shaoxing Wine Co.Ltd(600059) achieved a revenue of 1.577 billion yuan, a year-on-year increase of 21.19%; The net profit was 200 million yuan, a year-on-year increase of 33.21% Kuaijishan Shaoxing Rice Wine Co.Ltd(601579) achieved a revenue of 1.25 billion yuan, a year-on-year increase of 12.81%; The net profit was 280 million yuan, a slight decrease of 1.81% year-on-year Shanghai Jinfeng Wine Company Limited(600616) achieved a revenue of 649million yuan, a year-on-year increase of 6.83%; The net profit realized was a loss of 128458 million yuan, a year-on-year decrease of 204.95%.
On the whole, the revenue of leading enterprises of yellow rice wine is increasing, but the performance gap of net profit is quite large Zhejiang Guyuelongshan Shaoxing Wine Co.Ltd(600059) as a leading enterprise of yellow rice wine, the net profit returned to the 200 million yuan mark every other year, and the net profit of Kuaijishan Shaoxing Rice Wine Co.Ltd(601579) and Shanghai Jinfeng Wine Company Limited(600616) decreased to varying degrees. For the sharp decline in net profit, Shanghai Jinfeng Wine Company Limited(600616) said that due to the increasingly fierce competition in the regional stock market of yellow rice wine, the insufficient growth of the company’s revenue scale, the increase of unit production cost due to the rise of raw material cost and the reduction of output, resulting in a sharp decline in net profit.
In fact, the downturn in the yellow rice wine market has become the norm in recent years. According to public data, from January to December 2021, rice wine enterprises above Designated Size achieved a total sales revenue of 12.717 billion yuan and a total profit of 1.674 billion yuan. From January to December 2020, rice wine enterprises above Designated Size achieved a total sales revenue of 13.468 billion yuan and a total profit of 1.704 billion yuan. According to the data, while the sales revenue of the yellow rice wine industry declined in 2021, the total profit also declined.
The low profits of rice wine enterprises are related to the high channel sales expenses. Xiao Zhuqing, a Chinese consumer goods marketing expert, believes that rice wine is mainly sold in catering channels and supermarkets. The sales expenses of such catering channels and supermarkets are relatively high, resulting in a situation in which many rice wine enterprises have high sales but low profits.
enterprise diversification layout
Due to the lack of cultivation of consumers in the market, consumers’ expected price of rice wine is relatively low, which also hinders the development of rice wine and leads to the continuous downturn of rice wine market in recent years. In the face of this dilemma, rice wine enterprises are constantly seeking new breakthroughs, upgrading their product structure and diversifying their layout.
According to public data, in 2021, Zhejiang Guyuelongshan Shaoxing Wine Co.Ltd(600059) medium and high-grade liquor achieved a revenue of 1.096 billion yuan, a year-on-year increase of 27.43% Kuaijishan Shaoxing Rice Wine Co.Ltd(601579) middle and high-grade products achieved a revenue of 772 million yuan, a year-on-year increase of 14.8% Shanghai Jinfeng Wine Company Limited(600616) middle and high-grade products achieved a sales revenue of 466 million yuan, a year-on-year increase of 8.5%. From the data, the revenue of medium and high-grade products of yellow rice wine enterprises has increased.
In addition, rice wine enterprises have also extended their hands to the sauce wine market and young consumer groups Zhejiang Guyuelongshan Shaoxing Wine Co.Ltd(600059) previously, it established the sauce wine brand daughter red, and used the sauce wine category to empower the daughter red brand, so as to speed up the promotion of the daughter red brand in the country. The reporter of Beijing Business Daily called Zhejiang Guyuelongshan Shaoxing Wine Co.Ltd(600059) Secretary General’s office for an interview on how the enterprise will layout the sauce and wine market in the future. As of press time, the phone has not been connected. In July 2021, Kuaijishan Shaoxing Rice Wine Co.Ltd(601579) brand new product project 1743 yellow bar was reloaded and launched. In January of the same year, Kuaijishan Shaoxing Rice Wine Co.Ltd(601579) and Guming cross-border cooperation launched the new product “jiuxiangqin Oolong” yellow rice wine milk tea.
Zhu danpeng, an analyst of China’s food industry, said that Zhejiang Guyuelongshan Shaoxing Wine Co.Ltd(600059) as a leading enterprise of rice wine, it has certain advantages in the use and scheduling of funds, so it can try diversified development. However, as a regional category, the price of yellow rice wine is relatively low, resulting in many enterprises not having much profit to support external expansion. Judging from the current volume and comprehensive strength of China’s rice wine, it is too early for most rice wine enterprises to diversify.
Shen Meng, executive director of Xiangsong capital, believes that the main problem in promoting the nationalization of yellow rice wine lies in consumption habits, rather than diversification or youth. Therefore, yellow rice wine enterprises need to be prepared for long-term marketing and gradual promotion of yellow rice wine drinking culture and habits.
national market to be opened
Zhejiang Guyuelongshan Shaoxing Wine Co.Ltd(600059) layout the sauce and wine market and Kuaijishan Shaoxing Rice Wine Co.Ltd(601579) cross border launch of milk tea. Behind many layouts of rice wine enterprises is the nationalization of layout and going out of the core consumer market.
With the gradual rise of young consumers, the young consumer market has also become a new “battlefield” for liquor enterprises Zhejiang Guyuelongshan Shaoxing Wine Co.Ltd(600059) as a leading enterprise of yellow rice wine, while entering the sauce wine market, it will also promote the interaction with young consumer groups in the future, so as to further attract young consumer groups and promote the rejuvenation and upgrading of brands by means of short videos, live broadcasts and other popular ways of young people.
The reporter of Beijing business daily learned that Zhejiang Guyuelongshan Shaoxing Wine Co.Ltd(600059) daughter’s red sauce wine achieved a sales revenue of 18.23 million yuan in 2021, a significant increase compared with the same period last year. The performance of 6 Zhongfu Straits (Pingtan) Development Company Limited(000592) 021 also basically returned to the level before being affected by external factors. Although the growth rate is slow, the recovery of the performance of leading enterprises also indicates that the yellow rice wine market may begin to pick up.
Shen Meng told the Beijing Commercial Daily reporter that the habit of drinking yellow wine is stronger than that of Baijiu or beer, and is not acceptable to consumers outside the traditional core consumer area. The bottleneck of consumption demand for yellow rice wine is not the problem of consumption form, but the problem of consumption habits. If we do not go through a slow process, it is very difficult to make more people accept the unique attributes of rice wine products.
Xiao Zhuqing analyzed that the layout of the sauce wine market of yellow rice wine enterprises is not only a supplement to the original business, but also a new profit growth point of the enterprise. Yellow rice wine is a regional consumption variety in China. It has consumption habits only in Jiangsu, Zhejiang and Shanghai. What rice wine enterprises need most now is to do consumer education and brand communication, and cultivate consumers’ consumption habits and consumer cognition.
