"Huaxia Wine News" reporter Zhang Yuchen
For a long time, the annual revenue of 5 billion yuan is an important watershed in the territory of China's liquor listed companies, which not only reflects that the enterprise has reached a high level of brand power and market penetration, and has become an indispensable backbone of the industry, and once a liquor company crosses this threshold, it often indicates that the company is expected to achieve more significant doubling growth in the next few years and enter the 10 billion club.
Therefore, if you interpret the performance of the "5 billion" army in 2023, you can better see the competitive pattern and future trend of the wine market.
Who are the leaders, chasers and followers of the "second-line new force"?
From the perspective of revenue ranking, last year, the liquor companies that entered the "5 billion" list were: Shede Liquor, Zhenjiu Lidu, Yingjiagong Liquor, Kouzijiao, Laobai Dry Liquor and Shuijingfang. Among them, some companies have successfully crossed the 5 billion threshold, and in addition, some companies are working hard to move towards the 5 billion goal, which can be roughly divided into three categories: leaders, chasers and followers.
Specifically, Shede Liquor and Zhenjiu Lidu, as the "leader", the former firmly adheres to the old liquor strategy and deeply cultivates the quality, while the latter, although it has just been newly listed on the Hong Kong stock market in April 2023, its ability to "absorb gold" should not be underestimated, and both companies have achieved a performance of more than 7 billion yuan in 2023.
Behind this, on the one hand, is due to their ability to resist market volatility. At present, although the liquor market is highly competitive, it is also full of opportunities. Combing through the annual report, it is not difficult to see that Shede Liquor and Zhenjiu Li Du are able to accurately grasp the pulse of the market, flexibly respond to market changes, so as to differentiate themselves in the competition and occupy a favorable position; on the other hand, these two companies have a firm determination to hit the goal of 10 billion, they are not only satisfied with the current performance, but also have long-term plans and goals. Therefore, a number of institutions have pointed out that with the continuous upgrading of the company's products and the deepening of the national process, the growth points of the two companies will still be solid in the future, and they have given a "buy" rating.
Next, there is the continuous catch-up Yingjia tribute wine and kouzi cellar. Interestingly, as the leading enterprises of Huijiu, the competition between the two wine companies has been extremely fierce in the past two years.
First of all, with its excellent market performance and effective business strategy, Yingjia Gongjiu has successfully surpassed Kouzijiao, especially in several key time nodes in 2022 and 2023, Yingjia Gongjiu has achieved rapid growth in both revenue and net profit. According to the financial report, from January to December last year, Yingjiagongjiu achieved an operating income of 6.72 billion yuan, a year-on-year increase of 22.07%, and a net profit of 2.288 billion yuan, a year-on-year increase of 34.17%, consolidating its position as the "eye" of Huijiu.
In 2023, relying on the growth of high-end product revenue, it will achieve revenue of 5.962 billion yuan, an increase of 16.1% year-on-year, and a net profit of 1.721 billion yuan, an increase of 11.04% year-on-year.
There is also Lao Bai dry wine running side by side with Huijiu "Shuangba".
On April 26, Laobai Dry Liquor released the "2023 Annual Results Announcement". According to the announcement, Hengshui Laobaigan will achieve revenue of 5.257 billion yuan in 2023, a year-on-year increase of 12.98%, and a net profit of 666 million yuan. What aroused the attention of the reporter of "Huaxia Liquor News" is that in the past year, Laobai dry wine has finally changed the style of "Lao Bai Gan", and has achieved double-digit breakthroughs in key cities in the province and major provincial market coverage by continuing to focus on "large single products", continuously optimizing the product structure, and then taking advantage of channel model innovation.
According to the financial report data, in 2023, Laobai dry wine will achieve operating income of 3.039 billion yuan, 979 million yuan, 547 million yuan, 160 million yuan and 273 million yuan in Hebei, Hunan, Anhui, Shandong and other provinces, respectively, an increase of 8.88%, 28.19%, 16.48%, 21.49% and 51.4% year-on-year.
In addition to the leaders and chasers in 2023 have handed over satisfactory answers, the performance of the "follower" Shuijingfang can not be ignored, from the annual report, it is only less than 500 million away from 5 billion, considering its position in the provincial wine leader, the base market is firm, the national market layout is extensive and other factors, there is no suspense in the future.
In general, the frontrunners, chasers and followers of the "second-tier new force" all play an indispensable role. Through clever strategies and innovative methods, they have not only occupied a place in the increasingly white-hot market, but also promoted the progress and development of the entire industry.
The lineup has been adjusted, and the waist strength of the wine industry has become stronger
However, it cannot be ignored that compared with 2022, although this list has not changed much, the rise in overall revenue, coupled with the entry and exit of some brands, means that the competition between major wine companies at the "waist" level of the wine industry is becoming more and more intense.
First of all, the original 5 billion leading enterprise - Jinshiyuan, through multi-brand strategic planning, single-channel deep cultivation and effective expansion of the core market, has shown a strong growth momentum, and will make great strides into the 10 billion club in 2023, achieving operating income of 10.098 billion yuan, a year-on-year increase of 28.07%, a net profit of 3.136 billion yuan, a year-on-year increase of 25.3%, and a non-net profit of 3.136 billion yuan, a year-on-year increase of 25.57%.
Secondly, the drunkards who performed better in the past unexpectedly fell behind, and their performance fell sharply, from 4.050 billion yuan to 2.830 billion yuan, a decrease of more than 30%. It is worth noting that among the listed liquor companies with a market value of more than 10 billion, Jiuguijiu is the only one that has experienced a decline in revenue and net profit. In addition, the decline continued to the first quarter of this year, and the quarterly report disclosed by Alcoholic Liquor showed that its revenue and net profit fell by 48.8% and 75.56% year-on-year respectively.
"In the past year, although the domestic consumer market has gradually recovered, it is still showing a moderate trend, and the liquor industry is still in a critical period of deep structural adjustment. In this context, the market resources show an obvious trend of concentrating on advantageous production areas and well-known brands, and the situation of the strong is becoming more and more obvious. Yan Wenchen, a liquor analyst, pointed out that especially in the sub-high-end liquor camp, the head brand continues to expand to the sub-high-end field with its strong brand influence and market operation capabilities, squeezing the development space of the camp, and the company is also under top-down pressure.
Affected by this, the explosive and high-speed growth model of liquor enterprises in the past has been difficult to replicate, and has been replaced by a sustainable development model that pays more attention to quality improvement, brand building, refined management and innovation-driven.
Indeed, from the perspective of the development path of each company, wine companies are seeking differentiated competitive strategies, strengthening product research and development, optimizing sales channels, and strengthening consumer experience, so as to adapt to the new normal of the market and achieve steady and quality growth.
But in any case, the expansion and contraction of the 5 billion camp shows that the "second-line new force" of the wine industry is constantly getting stronger. They either effectively break the barriers of the market outside the province, or rely on strong high-end flagship products to support the high growth of enterprises, or even both, and continue to "rise to the sun" in the fierce competition.
Based on the data from ten years ago, at that time, the revenue benchmark of provincial liquor companies in mainland China was roughly between 2 billion and 3 billion. Today, with the increasing demand of consumers for quality, taste and culture, the industry situation has changed significantly, and the measurement standard of new "second-tier" wine companies has been greatly increased to 5 billion. In other words, if you want to advertise yourself as a famous wine or a people's wine, its annual revenue must not be less than 5 billion yuan.
This is of far-reaching strategic significance for the industry. It not only reflects the growth of the overall scale and concentration of the liquor industry, but also indicates that the "second-tier" liquor companies have basically had the foundation and weight to impact the "first-line", after all, after 5 billion, 10 billion is not far away. Then, the expansion of the 10 billion "legion" will have an immeasurable impact on the wine industry.