Guizhou alcohol, Zhijiang, Lin Lang, green wine, Zhu Wei where is the end of the industry integration?

In an interview with the media on the newly inaugurated Guizhou Alcohol, Zhu Wei, chairman and general manager of Guizhou Alcohol, said that the next 10-20 years will be a key stage of industry integration, "do not want to miss this opportunity, want to participate in and promote this round of industry integration."

At the beginning of 2020, Zhu Wei operated Guizhou Alcohol, taking the "true year" as the core strategy, through innovation at the product, management, market, channel and other levels, Guizhou Alcohol turned a loss into a profit in June 2020, with a profit and tax of 100 million yuan in the year. Since 2021, Guizhou alcohol has maintained a sales growth rate of 200%.

After Guizhou Alcohol, Zhu Wei acquired the second wine company, Hubei Zhijiang Wine, in July 2020, and continued to take root in the vintage wine market, launching a "true vintage" series of high-end new products featuring "zero additive, aged, grain wine", and the ex-factory price of the new product reached 140 million yuan in 12 months.

In September 2021, Zhu Wei announced the opening of the "merger and acquisition model" and acquired the third liquor company, Sichuan Linlang Liquor. Located in Gulin, Sichuan, the "hometown of China's sauce wine" on the Chishui River, this liquor company is a sauce liquor company with a winemaking capacity of 10,000 tons, of which more than 6,000 tons of 5 to 12 years old wine are stored. The acquisition of Lin Lang Liquor industry not only enriched the base wine reserves of Guizhou alcohol, but also made Guizhou alcohol the third largest sauce wine production capacity enterprise in the country.

On September 28, Zhu Wei announced the launch of the guizhou green wine acquisition plan. As a famous wine in Guizhou for three consecutive years, Qingjiu was the second largest enterprise in Guizhou in terms of sales after Moutai in sales in 2012, and also has deep brand roots and rich reserves of old wine. At present, the acquisition of green wine has basically landed.

After a series of mergers and acquisitions, under zhu Wei's operation, a "real vintage" liquor group has begun to take shape.

Where is the end point of Zhu Wei's industry integration?

In the industry open letter issued by Zhu Wei at the beginning of his new Guizhou alcohol, he clearly put forward the future development plan. At the level of industry integration, Zhu Wei said that "to build a Chinese liquor group similar to Diageo". At the capital level, the different brands and different categories of liquor companies acquired by the liquor group are unified, but their operations and markets are relatively independent. Zhu Wei believes that "this is a more feasible and realistic way to integrate the industry in the future, and we will also take such a path."

Nowadays, although Zhu Wei has won Guizhou Alcohol, Zhijiang, Lin Lang and Qingjiu, but the group operation has not yet landed, how to complete the group management of the enterprise after the acquisition (there will be more and more enterprises to join in the future), to ensure the coordination of the overall action, will be a problem that must be solved.

With the acceleration of the industry integration process, the capital advantage of the head enterprise will be more obvious in the future, and the high-quality M&A target may have to rely on grabbing. How to attract more attention from the capital level, so as to help integrate the great cause, is also a "big topic" for Zhu Wei.

In any case, Zhu Wei has taken a crucial step.