On January 27, Kweichow Moutai Co.Ltd(600519) (600519. SH) announced that the board of directors of the company passed a proposal and decided to invest 4.11 billion yuan to implement the phase I construction project of Maotai flavored wine Xishui tongminba in the 14th five year plan, and the required funds will be raised by the company itself.
The announcement said that the construction site is located in Tongmin Town, Xishui County, Guizhou Province. After the completion of the project, a series of liquor production capacity of about 12000 tons, koji production capacity of about 29400 tons and liquor storage capacity of about 36000 tons can be formed. The construction cycle is one year.
Xishui expansion project has increased the production capacity of Kweichow Moutai Co.Ltd(600519) series wine again. On January 1, Kweichow Moutai Co.Ltd(600519) announced the production and operation of 2021. Last year, the company produced nearly 30000 tons of liquor based liquor, about 28200 tons.
What is the production capacity limit of Maotai series?
As early as December 24, 2019, Maotai Group announced that the 80000 ton series wine packaging workshop and supporting projects located in Tanchang area were started, with a total investment of about 4.1 billion yuan. As an automatic integration and intelligent optimization packaging project in recent years, the series of wine packaging workshop and supporting facilities project is regarded as the major action of Moutai group focusing on Baijiu main industry.
The 80000 ton series wine packaging workshop and supporting site are located in the circular economy industrial park of Tanchang, Renhuai City, covering an area of about 1600 mu. Focusing on the technical characteristics of automatic process and intelligent integration, the project will build a management area integrating a series of wine packaging workshops, base wine storage, blending, finished product warehouse and logistics office, which is expected to be fully completed within three years.
In other words, the 80000 ton series of wine packaging projects will be completed as soon as 2022 from the start of construction at the end of 2019. Just before the 80000 ton series wine packaging workshop was completed, Kweichow Moutai Co.Ltd(600519) the board of directors decided to invest 7.8 billion yuan to build a packaging logistics park. On December 9 last year, Kweichow Moutai Co.Ltd(600519) issued a notice of the board of directors. The board of directors decided that in order to meet the needs of product packaging, warehousing and logistics, the company invested 7.833 billion yuan to implement the phase I project of packaging logistics park project in Tanchang street, Renhuai City. The funds are raised by the company itself, and the construction period is 24 months.
The person concerned from the publicity department told the 21st Century Business Herald reporter that the phase I project of the logistics park actually includes the original 80000 ton series wine packaging workshop and supporting projects. In recent years, due to the changes in the competitive environment and the Baijiu industry, especially the development of quality Maotai flavor liquor represented by Moutai liquor, the company has adjusted its original investment plan. In the construction of “smart Maotai”, the company increased the investment in logistics projects and upgraded them, upgrading from a series of wine packaging workshop projects to the implementation of phase I project of packaging logistics park project.
Unlike Feitian Maotai liquor, the production capacity is subject to the environment. At present, Kweichow Moutai Co.Ltd(600519) the new management has no ceiling on the production capacity of series liquor. On January 5 this year, at the 2021 Kweichow Moutai Co.Ltd(600519) Maotai flavor series liquor National Dealer Association, Ding Xiongjun, Secretary of the Party committee and chairman of Maotai Group, said that Maotai liquor and series liquor are the same products of Kweichow Moutai Co.Ltd(600519) , with the same root and origin. They have the same production process, blending and evaluation technology and quality management system. They are good wine and good wine.
He said that there are two different points: first, the different producing areas, the Moutai liquor in the upper reaches of the Chishui River, which is produced in the 15.03 km2 Maotai Town core producing area, and the series of liquor is located in the lower reaches of the Chishui River, but is also in the core area of Maotai Baijiu liquor in the world. Second, the cycle is different. Maotai liquor takes at least 5 years from raw materials entering the factory to products leaving the factory, and series liquor takes about 3 years from raw materials entering the factory to products leaving the factory. Therefore, the taste of the series of wines has its own characteristics and flavor diversity.
With the increase of production capacity, Xishui County will become one of the main production areas of Maotai series liquor.
Ding Xiongjun said that the “Maotai flavor series” wine should be doubled in 14th Five-Year at the end of 14th Five-Year, accounting for more than 10% of the group’s total value and entering the second Baijiu national Baijiu camp. Last year, Kweichow Moutai Co.Ltd(600519) series liquor achieved a revenue of about 12.6 billion yuan, a year-on-year increase of 26%, accounting for about 11% of the total operating revenue.
According to the plan of Maotai Group, Kweichow Moutai Co.Ltd(600519) series liquor should build a flagship brand with price dominance and leadership in the whole sauce liquor market in three price bands, and deeply explore the markets of the Yangtze River Delta and the Pearl River Delta. Among the thousand yuan products, Maotai 1935 will become a pillar product; 500 to 1000 yuan products, the main product of Han sauce; Under 500 yuan, Maotai Prince wine takes the lead. The blending of Maotai 1935 is mainly based on the base liquor of heyixing production area, and a considerable proportion of the base liquor of the core production area of Maotai liquor is adopted. It is in a rush to buy state after it was listed and released on January 18.
