Wine industry loans, inventory clearance, many local wine industry associations to support the rescue of wine enterprises

Recently, the latest initiatives launched by local wine industry associations for members have attracted attention
.

On November 29, the Hubei Wine Industry Association issued a red-headed document showing that it will work with Wuhan Rural Commercial Bank to launch an exclusive "Hubei Wine Industry Loan" financial product
for the Hubei wine industry.
According to the announcement, after the recommendation letter of member enterprises issued by the Hubei Wine Industry Association, Wuhan Rural Commercial Bank established a special green channel for approval, giving maximum support in terms of quota, interest rate, service and other aspects, and the maximum loan portfolio for a single family can reach 10 million yuan
.

On November 15, the e-commerce committee of the Henan Wine Industry Association issued a notice, saying that it would assist members in clearing inventory and returning funds
through live streaming and online marketing.

The tight capital chain of wine enterprises is widespread

Approaching the end of the year, companies in various industries are relatively tight on funds, among which, alcohol companies are not having a good time
.
The plunge in performance and the tight capital chain have become a big problem
faced by small and medium-sized wine enterprises.

There are reports that this year, the time of small and medium-sized sauce wine enterprises to go to the sand has been delayed, and the scale of the sand has also decreased
compared with last year.

According to the survey, the overall production scale of small and medium-sized wine enterprises in Renhuai production area in Guizhou Province has decreased by about 30%
this year.
Zhou Shanrong, deputy secretary-general of the Guizhou Liquor Enterprise Chamber of Commerce, also confirmed the above data, saying: "In addition to the head enterprises, the 30% year-on-year decline in the production of Moutai Town Distillery in 2022 is a high probability event
.
”

The main reason for the reduction of the scale of small and medium-sized enterprises is that they generally face the problem of incremental disappearance and stock decline, and wine companies have to worry about cash flow for future
uncertainty.

Judging from the latest disclosed performance data of the third quarter report of listed wine companies, the operating income, net profit and other operating indicators of most large wine companies still maintain a good growth trend
.
However, changes in indicators such as inventory and advance receipts are also worth paying attention to
.

The sale of liquor generally adopts the model of first payment before delivery, and before receiving the order and not shipping, the liquor company recognizes the payment received as a contract liability
.
For liquor companies, contract liabilities are a reservoir
of performance.

The reporter combed through the data of the third quarterly report of listed wine companies and found that the advance receipts of some companies have decreased
significantly.

Contract liabilities also reflect the terminal sales of
liquor products to a certain extent.
The more contract liabilities, the more popular the product and the higher
the enthusiasm of the channel to pay for the goods.

The second half of the year is the peak season for liquor sales, but this year there is an abnormal phenomenon
of "peak season is not strong".
According to the latest data released by multiple retail platforms, during this year's Mid-Autumn Festival and the "November Golden Week", the consumption atmosphere of liquor was flat
compared with the same period.
Distributors also reported that liquor shipments during the two festivals this year were not as good as in the previous two years
.

The sales of liquor can also be reflected from the fluctuation of prices
.
In previous years, near the end of the year, the price of liquor was the norm, but this year not only "can not rise", online platforms and other sales terminals have also discounted promotions
.
Recently, some wineries have been sold at low prices due to their products, and have publicly published articles and e-commerce platforms to "strangle"
.

On November 10, a "suspension of cooperation letter" issued by Luzhou Laojiao E-commerce Co.
, Ltd.
to Beijing Jingdong Century Information Technology Co.
, Ltd.
was exposed
.

The document wrote that Jingdong has recently sold the company's 52-degree national cellar 1573 series products at low prices, which has brought a huge impact on market prices and logistics order, seriously affecting the company's brand value and product price cognition, so Luzhou Laojiao decided to "suspend relevant cooperation between the two sides from now on, suspend business promotion and product supply and other related cooperation in Jingdong", and at the same time require JD.
com to return all inventory of Jingdong's self-operated cooperation with Luzhou Laojiao to suppliers
.

According to the "2022 Annual Wine Merchants Status and Development Report", about 39.
7% of wine merchants have inventory of more than 5 months, and 33.
6% of wine merchants have inventory of 3-5 months
.
In the case that the original inventory on the channel is not low, some dealers directly said that considering the cash flow, there is not much willingness
to stock up next.

Many local associations have organized relief measures

In response to the current situation of the above industry, industry institutions in many places have introduced relief measures to help wine companies tide over difficulties from various aspects such as capital and sales
.

On November 29, the Hubei Wine Industry Association issued a notice saying that in order to better use the national policy loan funds to help Hubei wine practitioners tide over the difficulties, under the guidance of the Hubei Wine Industry Association, Wuhan Rural Commercial Bank will launch an exclusive "Hubei Wine Industry Loan" financial product for wine enterprises and wine merchants in Hubei Province, providing a complete set of credit services for wine enterprises and wine merchants, and solving the problem of
"difficult and expensive financing" in the wine industry.

The documents show that the loan target of the product is a member of the Hubei Wine Industry Association, and the main body is the actual controller of small and medium-sized enterprises and individual industrial and commercial enterprises
.
After the recommendation letter of member enterprises issued by Hubei Wine Industry Association, Wuhan Rural Commercial Bank established a special green channel for approval, with an annual interest rate of 3.
65%, a credit term of 1 to 10 years, a limit of 100,000 to 10 million, a maximum loan portfolio of 10 million yuan for a single family, and a maximum of 5 years
for a single credit.

The reporter noted that on November 15, the e-commerce committee of the Henan Wine Industry Association in another place also issued a notice: the e-commerce committee of the Henan Wine Industry Association intends to carry out live streaming through the member's "Today's Wine Price" platform, entrust the "Today's Wine Warehouse" to sell in flagship stores such as Jingdong and Tmall and jointly build a digital marketing platform to help the members of the association speed up the inventory clearance and quickly return funds
.

In addition to local wine associations, there is also news that other industry organizations have helped wine enterprises bail out from the capital side and sales side
.

On November 5 this year, the Guizhou Liquor Enterprise Chamber of Commerce held a seminar on credit financing with Minsheng Bank Guiyang Branch, where banks and enterprises joined hands to analyze the current situation of the liquor market and discuss how finance can serve liquor enterprises to deal with coping strategies
.
On November 22, the Guizhou Liquor Enterprise Chamber of Commerce held a preparatory meeting for the establishment of the Industry and Finance Digital Economy and E-commerce Special Committee, providing new ideas and new choices for member enterprises in terms of digital economy and e-commerce model, and promoting the transformation and upgrading
of Guizhou's liquor industry.

In recent years, the new marketing channel of e-commerce has become the target
of accelerated efforts of major wine companies.
For example, in May 2021, Luzhou Laojiao established Luzhou Laojiao New Retail Co.
, Ltd.
; In March this year, Kweichow Moutai launched a new e-commerce platform "i Moutai"; In September, Zhang Liandong, chairman of Yanghe Co.
, Ltd.
, personally appeared in the live broadcast room to bring goods
live.

Industry insiders pointed out that if small and medium-sized wine companies want to develop, the future e-commerce sector is indispensable
.
Especially as the generation of Internet "natives" gradually becomes the main force of liquor consumption, the corresponding online e-commerce sales market will undoubtedly become an increasingly prominent part
of various liquor sales channels.

(Feng Fengming)

Preliminary review: Li Song Responsible editor: Xiao Zhihan Review: Ouyang Meihua