Yang Menghan, chief reporter of "Huaxia Wine News".
In 2022, it will start to operate independently from Moutai, with a sales revenue of more than 22 billion yuan in 2023, and Xijiu, which has already entered the first-line camp, why is it still willing to "be a good 'frigate' of Moutai's 'aircraft carrier'"?
For Moutai and Xijiu, not only the equity relationship and the same origin, but also the fact that they are both subordinate to the Guizhou State-owned Assets Supervision and Administration Commission, located in the same production area, and both are famous liquors with sauce-flavored liquor and develop in a staggered manner in terms of product positioning, the two sides naturally form a complementary and mutually supportive relationship.
At the time of the ebb of the "sauce fragrance fever" and the advent of the new consumption cycle, jointly resisting the industry risks that may be faced has become an important reason for enterprises to "hold together".
The relationship between Moutai and Xijiu is still extraordinary
On February 1, Ding Xiongjun, Secretary of the Party Committee and Chairman of Moutai Group, and Wang Li, Deputy Secretary of the Party Committee and General Manager of Moutai Group, led a team to Xijiu for research and exchange.
Ding Xiongjun put forward five views on the common mission of the two sides: first, to jointly shoulder the mission of aesthetic value guidance, second, to jointly shoulder the mission of scientific and technological innovation to drive the development of the liquor industry, third, to jointly shoulder the mission of cultural innovation to empower the liquor industry, fourth, to jointly shoulder the mission of leading the ESG development of the soy sauce liquor industry, and fifth, to jointly shoulder the mission of promoting Chinese liquor to the world.
"The aesthetic value of Moutai was first proposed by Ding Xiongjun, and then proposed by brother enterprises to jointly carry the aesthetic value, which shows that he hopes that the aesthetic value can become the common value of both parties. Some people in the industry believe that the aesthetic value of Moutai has become one of the symbols of the era of Moutai Ding Xiongjun, and now it has been expanded to cover Xijiu, to a certain extent, which reflects that Moutai's influence on Xijiu is still there.
Zhang Deqin, Secretary of the Party Committee and Chairman of Xijiu Group, responded quite interestingly.
Zhang Deqin expressed her satisfaction to the leadership team of Moutai Group for visiting Xijiu and caring about the development of Xijiu in their busy schedules. He also said that Xijiu will keep this kindness in mind and transform it into action, do a good job as the "frigate" of Moutai's "aircraft carrier", and closely focus on the development strategy of the liquor industry of the provincial party committee and provincial government to "build the echelon of Guizhou soy sauce liquor brand", make excellent products, fine quality, and good service, and help build a coopetition and beauty ecology of "each with its own beauty and beauty together".
"To a certain extent, the relationship between Moutai and Xijiu is still much closer than that between other Guizhou soy sauce and liquor companies. Industry insiders believe that this is related to the historical and practical relationship between the two companies.
On July 12, 2022, China Kweichow Moutai Distillery (Group) Co., Ltd. (hereinafter referred to as "Moutai Group") announced that the company intends to transfer 82% of the equity of Kweichow Moutai Distillery (Group) Xijiu Co., Ltd. to the Guizhou Provincial State-owned Assets Supervision and Administration Commission free of charge, and the Provincial State-owned Assets Supervision and Administration Commission will perform the duties of the investor.
According to the announcement, the net assets of Xijiu Company on the base date of the transfer were 11.416 billion yuan, accounting for 4.85% of the net assets of Moutai Group in the consolidated statement of 235.2 billion yuan on December 31, 2021. Since then, Xijiu has started to operate independently with an "independent" attitude.
Jointly promote the development of Guizhou soy sauce wine
It is worth noting that Moutai Group's stake in Xijiu has not been transferred 100%, but still retains 18% of the shares.
Tianyancha information shows that at present, among the shareholders of "Guizhou Xijiu Co., Ltd.", "Guizhou Xijiu Investment Holding Group Co., Ltd." (hereinafter referred to as Xijiu Group) holds 57% of the shares, "Guizhou Qiansheng State-owned Assets Management Co., Ltd." (hereinafter referred to as Guizhou Qiansheng) holds 25% of the shares, and "China Kweichow Moutai Distillery (Group) Co., Ltd." (hereinafter referred to as Moutai Group) holds 18% of the shares.
"Xijiu Group" is 100% owned by the State-owned Assets Supervision and Administration Commission of the People's Government of Guizhou Province (hereinafter referred to as Guizhou SASAC), "Guizhou Qiansheng" is 99.0033% owned by "Guizhou SASAC", Guizhou Financial Holding Group Co., Ltd. (Guizhou Guimin Investment Group Co., Ltd. (hereinafter referred to as Guimin Investment) holds 0.9967% of the shares, and Moutai Group is 90% owned by Guizhou SASAC and 10% owned by Guimin Investment, respectively.
In other words, Xijiu and Moutai Group are the same owner (Guizhou State-owned Assets Supervision and Administration Commission). In terms of affiliation, they can be called the two brothers under the Guizhou State-owned Assets Supervision and Administration Commission, while Moutai Group still retains 18% of the shares of Xijiu.
Historically, Xijiu declared bankruptcy in 1996. In 1997, under the auspices of the Guizhou Provincial Government, Kweichow Moutai acquired Xijiu Distillery for 35 million yuan.
In October 1998, Moutai Group established Kweichow Moutai Distillery Xijiu Co., Ltd., which is wholly owned by Moutai Group, and by 2022, the direct affiliation between the two parties lasted for 24 years. Before and after independence, coinciding with the "sauce fragrance craze", Xijiu also embarked on the road of rapid development.
In 2019, Xijiu achieved annual sales of 7.98 billion yuan, in 2020, Xijiu's annual revenue exceeded 10 billion yuan, and in 2021, Xijiu deepened its national market layout and achieved annual revenue of 15.58 billion yuan.
After the implementation of non-complete "independence" in 2022, Xijiu still maintained a rapid development speed, and its annual revenue exceeded 20 billion yuan that year.
On December 27, 2023, at the 2024 National Distributor Conference of Guizhou Xijiu, the person in charge of the company announced that in 2023, Xijiu successfully completed the established annual goals and tasks, and achieved sales revenue of more than 22 billion yuan.
It can be seen that at the juncture when the sauce boom is ebbing and the wine industry is entering a new consumption cycle, the development speed of Xijiu has slowed down significantly, and the growth rate in 2023 is far less than that in 2022 and before.
Complement each other and jointly continue the "sauce fever"?
"In terms of positioning, there is no major conflict between the two companies, so there is a saying that Xijiu escorts Moutai. Some industry experts said that the product system of Xijiu was formed in the era of Moutai Group, even if it was later adjusted, it did not constitute a major conflict with Moutai's products, and the historical positioning of the brand of Moutai Group also gave it more reasons to "escort", seize the market space that Moutai could not take into account, and increase its own strength.
At the "2024 National Distributor Conference", Wang Diqiang, deputy secretary of the Party Committee and general manager of Xijiu Group, proposed that in accordance with the market strategy layout of "supporting Junpin, stabilizing cellars, expanding gold diamonds, supporting direct sales, and cultivating e-commerce", we should make good use of cultural IP and event marketing in an all-round and systematic way. Seize the commanding heights in the new market wave and win new opportunities.
That is to say, for a long time in the future, Junpin, Cellar, and Golden Diamond will constitute the main structure of Xijiu, and there is no direct competition between this main structure and Moutai.
Judging from the current product series of Xijiu, Junpin Xijiu occupies the high-end and gradually replaces the main position of "Cellar 1988", and further down, the Golden Diamond series is expanding, and these three series do not have much conflict with Moutai's main products.
According to the current market, the batch price of Junpin Xijiu is about 815 yuan, which is far from Feitian Moutai, and there is also a gap with the Moutai sauce fragrance series "Moutai 1935" - the batch price of the latter is about 1050 yuan.
The main Xi Liquor Cellar series is the main Xi Liquor Cellar 1988 batch price of about 475 yuan, which is close to some products of Moutai Sauce Fragrance. The wholesale price of Jinzuan Xijiu is about 218 yuan, which is close to the wholesale price of 230 yuan for Lai Mao (Duanqu).
"In general, the main product series of the two companies do not conflict much in terms of positioning, and each has its own brand blessing. Industry experts believe that, in general, Moutai takes Feitian as the core, and Xijiu takes Junpin and Cellar as the core, which does not constitute a direct conflict. With the blessing of the brands of Moutai and Xijiu, they can each attract a group of consumers, thus forming a sought-after effect on Guizhou sauce.
This is particularly important for the liquor industry in Guizhou, which is gradually ebbing in the "sauce fever".