Leading wine companies are scrambling to expand the production of liquor

Domestic liquor production has been declining for five consecutive years and consumer demand has been weakening year by year.

China's food industry analyst Zhu Danpeng pointed out that behind the increase in capital and production, liquor companies compete in an all-round way in terms of brand tone, service system, quality, and customer stickiness, and Chinese liquor has entered a high-end node

Extensive production expansion

Production has been declining year after year, consumer demand has become more rational, and the pattern of domestic liquor has changed

A reporter from Beijing Business Daily compiled data and learned that in March this year, Shanxi Fenjiu announced that it planned to invest 9.

A reporter from Beijing Business Daily sent an interview outline to Kweichow Moutai on issues such as the progress of expanding the production capacity of high-quality original wine, but relevant persons in Kweichow Moutai did not give a clear reply

Zhu Danpeng said that since 2019, it is not difficult to see from the development trend of the industry that the liquor industry has entered a node and stage of rapid differentiation

Swarm to the high end

There is an inseparable relationship between high-quality original wine and high-end liquor products

Soochow Securities released a special report on the liquor industry and analyzed that the market size of the high-end price band of liquor in 2020 will be close to 150 billion yuan, accounting for 24% of the total revenue of the liquor industry.

It is worth noting that in recent years, the proportion of high consumers who are willing to pay a premium for high-quality products has been expanding

Cheng Wansong, secretary general of the Beijing Liquor Circulation Industry Association, pointed out that although liquor has excess capacity, the proportion of high-quality liquor is relatively small

Behind the introverted battle

The announcements of production expansion and the launch of new high-end liquor products have been released one after another.

Data show that in 2021, liquor enterprises above designated size will achieve an operating income of 603.

Industry insiders pointed out that the development momentum of the new cycle of high-quality liquor has basically taken hold, and the Chinese liquor industry has ushered in a new development trend

Kweichow Moutai analyzed the current pattern and trends of the liquor industry in its 2021 annual report, saying that there are currently three major development trends in the industry

Under the trend of changes in the liquor industry, it is not unreasonable for various wine companies to expand production and look for new growth points

Cheng Wansong said that quality is the cornerstone of the development of wine companies, and production capacity is the cornerstone of quality control of wine companies, because production capacity is the scale advantage that liquor quality control must have.

(Zhao commented on Wang Ao)