Revenue soared 134% in the first three quarters, whether alcoholic liquor can bring rich opportunities

Trainee reporter Zhang Hanwen, www.chinatimes.net.cn, reported from Beijing

On October 22, The Alcoholics released its third quarter report for 2021. In the first three quarters of this year, the company achieved revenue of 2.64 billion yuan, an increase of 134.2% year-on-year; net profit of 720 million yuan, an increase of 117.69% year-on-year. Among them, in the third quarter, the company achieved revenue of 926 million yuan, an increase of 128.66% year-on-year; net profit of 210 million yuan, an increase of 43.43% year-on-year.

On October 22, Cai Xuefei, a liquor marketing expert, also expressed his optimism about drunkard liquor in an interview with the "China Times" reporter. He said, "At present, the entire Chinese liquor consumption is developing towards a diversified trend, and the liquor has the endorsement of cultural liquor and the quality basis." At present, the liquor in the national market, especially some dot-shaped consumer market has a certain opportunity advantage, in general, after COFCO intervened, it has given the drunkard a great help at the level of capital channels and the national market network, and has also paved the way for the future development of the liquor, and the prospects are better. ”

Internal reference power

"As the only liquor business sector under the COFCO business sector, COFCO still attaches great importance to it." At the 105th Autumn Sugar and Wine Commodity Fair (hereinafter referred to as "Autumn Sugar") held in Tianjin on October 19, a salesman at the liquor booth introduced to reporters, and his words were full of pride. At this time, more than five years have passed since the COFCO management team officially entered the alcoholic liquor in 2016.

When the reporter asked how the market sales of the internal reference series were in terms of alcoholic liquor, he replied that "after all, the internal ginseng liquor belongs to the high-end line products of the group, and the sales volume in a short period of time cannot be compared with other series such as alcoholics." According to the 2021 semi-annual report of the alcoholic liquor, the current sales volume of the internal reference series was 494 tons, while the sales volume of the alcoholic series and the Xiangquan series were 2836 tons and 1814 tons, respectively.

However, from the perspective of the semi-annual report, the gross profit margin of the internal reference series, which contributed 30% of the revenue of the alcoholic liquor, was as high as 92.58%, far exceeding the 79.5% of the alcoholic series. For the improvement of performance in the first three quarters of this year, the alcoholic liquor also said that it was mainly due to the increase in revenue of the internal reference series and the alcoholic series.

Debon Securities recently released a research report pointing out that from the feedback of channel research, the internal reference wine has controlled the price of the province this year, and still achieved 30% + growth, and the growth rate is much faster than other competitors in the province. From the perspective of the market outside the province, the internal ginseng wine continues to benefit from the rapid expansion of the price band of 1,000 yuan, and the development of the market outside the province is progressing well, and the revenue outside the province is expected to increase to about 45% in 2021.

The alcoholic liquor of the middle and high-end common layout is constantly approaching the "small goal" set that year. In March 2019, the alcoholic liquor first mentioned the short-term target of 3 billion, the medium-term target of 5 billion, and the long-term target of 10 billion. In 2018, the revenue of alcoholic liquor was only 1.187 billion yuan. For the alcoholics at that time, the short-term goal of 3 billion was also a big goal.

According to the financial report information, in the first three quarters of 2021, the revenue was 2.64 billion yuan, an increase of 134.2% year-on-year; of which the company achieved revenue of 926 million yuan in the third quarter, an increase of 128.66% year-on-year. According to this year's revenue growth rate, the annual revenue achieved 3 billion yuan.

Is the opportunity for the tulip coming?

The market is moving upwards, and recently there have been two sauce and wine companies about the acquisition of blowing up. On the evening of October 15, Zhongxing Mushroom Industry issued an announcement that due to changes in the macro environment of the market and other reasons, on August 25, 2021, the company decided to terminate the acquisition of Guizhou Moutai Town Shengjiao Wine Co., Ltd. On the evening of October 19, Jihong also issued an announcement announcing the termination of the acquisition of Guizhou Diaoyutaigong Liquor Co., Ltd.

Does this indicate that the hotly hyped soy sauce market may "cool down"? Li Shiyi, founder, chairman and president of Baoyao Group, publicly stated at an event in autumn sugar that the sauce wine market has entered an industry cooling-off period, and the era when a random bottle of sauce wine can be sold in the past will pass, and the entire channel should be treated more rationally in the future after a year of madness.

Isn't the sauce "fragrant"? A liquor company insider introduced to the "China Times" in a recent interview: "In the short term, it will still be the market for sauce wine, because the sauce wine companies represented by Moutai have told a good brand story, so they are sought after by the market." But in the next cycle, it may be a fragrant and fragrant market again. ”

So, for alcoholic liquor, what does the internal ginseng liquor rely on to impact the high-end market? Cai Xuefei told reporters that as a regional famous wine, the representative of Xiangxi culture, and the representative of China's tulip type, the liquor itself has the gene of famous wine is its foundation. On the other hand, the sack designed by the art master Huang Yongyu is also a major feature.

Talking about the market prospects of internal ginseng liquor and the rapid development of alcoholic liquor in recent years, Cai Xuefei said, "Although internal ginseng liquor is still a minority in China, it is still a representative product with a very strong consumption base. So from this point of view, as a result of the liquor's vigorous product structure upgrade in recent years, it can be said that it has stimulated the rapid growth of the entire profit. From a macro point of view, liquor has also caught up with a big trend in this round of china's high-end liquor expansion, so the combination of the two has brought about performance growth. ”

It is foreseeable that relying on the alcoholic liquor of COFCO Group, whether it can make the "incense" of the tulip out of Xiangxi in the future, how to tell the brand story is still the key.