What has China Resources been busy with since entering the Sands wine industry?
Text | Selling Wine Wolf Team
ed. | southerly
In October 2022, China Resources Beer announced that China Resources Liquor intends to spend 12.3 billion yuan to acquire Jinsha Liquor through capital increase and share expansion and equity purchase. In January 2023, the equity transfer was completed. After the closing, CR Liquor holds 55.19% of the equity of Jinsha Liquor.
Now, 8 months are fleeting, what changes has China Resources brought since it entered the Sands wine industry? Have these changes contributed to the sales performance of Sands?
▲Fan Shikai, Vice President of China Resources Beer (Holdings) Co., Ltd., Secretary of the Party Committee and General Manager of Jinsha Liquor Industry
In this regard, Fan Shikai, vice president of China Resources Beer (Holdings) Co., Ltd., secretary of the party committee and general manager of Jinsha Liquor Industry, said in an interview with the media that "the main work in the past half a year is team building and quality improvement."
Focus on "people and goods"
"8 months" to lay the foundation
One is people, the other is goods! According to industry insiders, China Resources has been doing these two things since entering the Sands wine industry. First of all, the management of Jinsha Liquor has changed drastically, and CR Department has fully entered the management system of Jinsha Liquor Industry.
In January, Hou Xiaohai, executive director and chairman of the board of directors of China Resources Beer, became the chairman and legal representative of Jinsha Liquor, and Zhang Daohong, former party secretary and chairman of Jinsha Liquor, served as vice chairman of Jinsha Liquor.
In February, Jinsha Wines appointed Fan Shikai as the general manager of Jinsha Liquor, Zhao Xinhua as the deputy general manager of Jinsha Liquor, and Kou Zufeng as the financial director of Jinsha Liquor.
In August, Jinsha Wines experienced personnel changes, Zhang Daohong withdrew from the list of senior executives, and the new director was Liu Hongguang, assistant to the general manager and general manager of the finance department of Hubei Yihua Group.
The "goods" aspect is focused on the two aspects of "destocking" and "increasing quality". As we all know, in the market shrouded by inverted prices, the "summary" and "Jinsha Huisha" under Jinsha Wines have not been the lucky ones. To this end, the Sands Wine Industry under the control of China Resources has launched a series of promotions, which have indeed played an effect...
According to Fan Shikai, "In the first half of the year, Jinsha Wine Industry reduced its inventory by about 1 billion yuan. I visited many dealers, and the sales work was relatively solid, and the inventory was basically digested. ”
In terms of quality improvement, on the one hand, Sands began to gradually establish a technical system and organizational capabilities with "quality improvement" as the core, and on the other hand, stepped up the construction of production capacity. Specific actions include "optimization of the functions of the production center", the establishment of the "Jinsha Liquor Technology Research Institute", and the listing of "sauce-fragrant liquor Jinsha production area".
Next, "force" to rush performance
Fan Shikai pointed out that since July, Sands has the conditions to develop increments and gradually began to attract investment. "Two months after the launch of the investment promotion, Jinsha Wines has added more than 80 distributors."
According to CR's thinking, the expansion of the liquor business can rely on the channel advantages of the group's beer business to expand and upgrade the sales network. Fan Shikai revealed that from the market level, the empowerment of China Resources Beer for the Jinsha wine industry channel has actually just begun.
The data shows that from 2019 to 2021, the revenue of Jinsha Liquor Industry was 878 million yuan, 1.767 billion yuan and 3.641 billion yuan, and the net profit after tax was 156 million yuan, 615 million yuan and 1.315 billion yuan, respectively. In the first half of 2022, its revenue was 2.001 billion yuan, and its net profit after tax was 670 million yuan.
In November 2022, after the evaluation of the Organizing Committee for the Calculation of the Brand Value of Related Alcohol of the China Liquor Circulation Association, the value of the dual brands of "Jinsha Huisha" and "Summary" in Jinsha Liquor Industry in 2022 totaled 169.767 billion yuan. Among them, the brand value of Guizhou Abstract Wine in 2022 was 53.681 billion yuan, achieving an increase of 39%.
An industry insider interviewed believes that in an era of "brand is king", the brand power that Jinsha Liquor already has is the "greatest confidence" to participate in market competition, although China Resources is a newbie to the liquor industry, can only slowly move forward in exploration, but the strong combination of brand and channel, there is still a chance for Jinsha Liquor Industry to break out of the fog and achieve a new brilliance, which is worth looking forward to.