Special writer Yan Na Reporter Dang Peng reported in Chengdu
Break through 2 billion yuan, cross 3 billion yuan, and move towards 5 billion yuan. This is the three-step strategy during the "14th Five-Year Plan" period announced by Lu Zhongming, general manager of the company, at the 2021 National Distributor Conference of Mianyang Fenggu Liquor Co., Ltd. (hereinafter referred to as "Fenggu Liquor").
Not only that. As one of the "Ten Little Golden Flowers" of Sichuan Wine, Toyotani Liquor proposed to plan to achieve the listing on the main board during the "14th Five-Year Plan" period. This is the second time that Fenggu Wine has mentioned its plan to enter the capital market since it announced its plan to achieve A-share listing in 2022 in 2019.
The reporter noted that with the departure of Ma Bin, the former chairman of Fenggu Liquor, and his team in 2018, the team and controlling parties of Fenggu Liquor have been sorted out: at present, the shareholders of Fenggu Liquor are Sichuan Guoke Management Co., Ltd. (hereinafter referred to as "Sichuan Guoke"), and behind the equity penetration are Sichuan Development (Holdings) Co., Ltd. (hereinafter referred to as "Sichuan Development"), a state-owned enterprise in Sichuan Province, and Mianyang Science and Technology City Development Investment (Group) Co., Ltd. (hereinafter referred to as "Mianyang Kefa"), a state-owned enterprise in Mianyang City.
As a result, the previously ill-fated Toyogo liquor industry is expected to expand rapidly as state-owned assets further strengthen its control over it. Cai Xuefei, an expert in the liquor industry, told the "China Business Daily" reporter that Chinese liquor belongs to the people's livelihood consumer goods, is the carrier of regional folk culture, and is often a large profit and tax household, and the entry of state-owned assets has direct value for integrating local government resources, promoting products to lead consumption, and optimizing the localized operating environment for enterprises. For Fenggu Wine, after the adjustment period, the state-owned asset background can enhance the brand's goodwill and improve the corresponding regional market position. However, he also said: "Due to the institutional problems of state-owned assets, there are also problems such as slow decision-making efficiency and more institutional constraints, which require joint coordination between enterprises and local governments to discuss, build and share together in order to truly achieve a win-win situation." ”
Back to state-owned assets good "cool"
Looking back at the history of Fenggu Liquor Industry, from 2003 to 2013, in the "Golden Decade" of the development of the liquor industry, Fenggu Liquor Industry ushered in a golden period of development. During this period, Fenggu Liquor was acquired by Hanlong Group for 180 million yuan in 2006.
Relevant data show that in 2011, Fenggu Liquor achieved sales revenue of 2.406 billion yuan; in 2012, Fenggu Liquor achieved annual sales of more than 3 billion yuan, and the sales network covered Sichuan, Chongqing, Hebei, Henan, Anhui, Jilin and other provinces and cities.
Public information shows that due to the changes in the actual controllers at that time, Hanlong Group and Liu Han, Fenggu Liquor was implicated. Until 2017, Sichuan Development and Mianyang Kefa successfully bid for Liu Han and Hanlong Group's asset packages at a reserve price of 256 million yuan, including Fenggu Liquor. In the same year, Mianyang Kefa and Sichuan Sanxin Venture Capital Co., Ltd. (hereinafter referred to as "Sichuan Sanxin") funded the establishment of Sichuan Guoke Asset Management Co., Ltd., which is responsible for the operation and management and disposal of Hanlong asset package.
Tianyan's inspection shows that until the end of 2020, many of the original natural person shareholders and private capital of Fenggu Liquor have all withdrawn, replaced by state-owned capital at the provincial and municipal levels, and at present, Sichuan Sanxindai Sichuan Development holds 60% of the equity of Fenggu Liquor, and Mianyang Kefa holds 40% of the equity. The previous Mianyang Fenggu Liquor Group was already revoked in June 2017.
According to relevant information, Sichuan Development was established in January 2009 and is a wholly state-owned enterprise in Sichuan Province. At present, the company has 10 listed companies such as Fresh Environment, Lianshi Aviation, Xinzhu Shares, Tianyun International, Silicon Treasure Technology, Xinhua Wenxuan, Sichuan Chengyu and so on. It can be seen that the development of Sichuan has provided a good sales network and resource empowerment for Fenggu Wine.
"After the participation of state-owned assets, in addition to empowering funds, it has also played a role in stabilizing the military's morale and revitalizing corporate confidence." Zhang Haoran, an observer of the liquor industry, said that the entry of state-owned assets has multiple benefits for the Previously turbulent Fenggu Liquor Industry.
For Toyotani Liquor, which plans to go public, it is also relatively advantageous to rely on state-owned assets. Ma Fei, a brand management expert and chairman of Jiudu Consulting, told reporters that the entry of state-owned assets into the wine industry will bring a lot of financial support and policy support to enterprises, as well as the tilt of resources. "The listing of state-owned enterprises will be relatively simple, after all, the management norms and policy continuity are stronger."
At the level of personnel appointments, it also highlights the further control of state-owned assets over Fenggu Liquor. In 2018, after the resignation of Ma Bin, the former chairman of Fenggu Liquor, Sichuan Development announced the appointment of Yao Guanghua, secretary of the party committee and chairman of Sichuan Guoke Asset Management Co., Ltd., concurrently serving as the secretary of the party committee and chairman of the board of directors of Fenggu Liquor Co., Ltd. in Mianyang City, Sichuan Province; Lu Zhongming, former deputy general manager of Quanxing Liquor, was appointed deputy secretary of the party committee and general manager of Fenggu Liquor.
According to the official website of Fenggu Liquor, after the personnel change, with the support of the government and Sichuan Development, Fenggu Liquor has resolved its operating debts, and achieved a double breakthrough in revenue indicators. In 2019, Fenggu Liquor achieved sales revenue of 1.278 billion yuan, an increase of 75.5% year-on-year; achieved operating profit of nearly 100 million yuan, and achieved a turnaround for the first time in six years.
As for the company's performance in 2020, the reporter contacted Lu Zhongming many times and failed to get a reply.
State-owned assets dominate the integration of the liquor industry
In addition to Fenggu Liquor, Sichuan Development has been rumored to have acquired Jian Nanchun, Mianyang Fenggu Liquor, Huaguan, Hetao and TanJiu, but in the end they did not land.
In addition, Sichuan Development and Luzhou Laojiao Group jointly invested in the establishment of Sichuan Development Liquor Investment Co., Ltd. (hereinafter referred to as "Sichuan Development Liquor") in 2015, which focused on investing in and acquiring the equity of various advantageous enterprises in the liquor industry chain and the high-quality assets of liquor, aiming to revitalize the market image and market position of Sichuan liquor, but so far it has not splashed too much.
It is understood that there are only two companies under the Sichuan Development Liquor Industry that have been established for many years, which hold 24% of the shares of Sichuan Meijiugu Liquor Co., Ltd. and 75% of the shares of Chongqing Shixian Taibai Luyu Liquor Sales Co., Ltd.
The integration of state-owned assets into the liquor field has long become a trend. Often under the leadership of the government, liquor investment groups are established to integrate small and medium-sized liquor enterprises through mergers and acquisitions. In addition to the development of Sichuan, there are also Guiyang Industrial Development Holding Group (hereinafter referred to as "Guiyang Industrial Control Group" controlled by Guiyang State-owned Assets Supervision and Administration Commission), and Sichuan Liquor Industry Group Co., Ltd. (hereinafter referred to as "Sichuan Liquor Group"), which is controlled by Luzhou Industrial Investment Group under Luzhou State-owned Assets Supervision and Administration Commission.
It is reported that Guiyang Production Control Group set up a subsidiary Guizhou Sauce Wine Group at the end of last year, with a registered capital of up to 5 billion yuan, and there has been no relevant news of the integration development path. Founded in 2017, Sichuan Liquor Group integrates much faster and larger than the former. According to the reporter's understanding, Sichuan Liquor Group has acquired more than 200 small and medium-sized liquor companies through mergers and acquisitions. It mainly includes Brands such as Xufu, Er'e, and Chidu, covering fragrant, saucey and thick sauce and aromatic type.
However, with the increase of integration, enterprises may face the problem of multi-brand integration. For example, earlier Wuliangye was reported by the media to report the phenomenon of "infighting" among sub-brands caused by too many factor brands and chaotic management. After Wuliangye "broke away", cleaned up multiple brands, and focused on the main brands, the above phenomenon was improved.
In this regard, Cai Xuefei said that multi-brand often means that the group's resources cannot be focused, and multi-brand often involves multiple price band operations, facing different consumer markets, competitive environments and opponents, so it is difficult to aggregate development, most of them belong to independent expansion, and it is difficult to integrate itself.
In addition, in Cai Xuefei's view, state-owned assets often mean that the administrative management traces are heavier and the strategy is relatively conservative, so in the highly market-oriented Chinese liquor competition market, it is bound to face the decision-making problems of marketing strategies, brand pre-investment, and channel resource integration, which contradict short-term benefits and long-term benefits.
High-end, nationwide expansion
At the distributor conference, Fenggu Liquor revealed that it will implement a double-line layout of the market. The specific market layout method is: "focus on the province, expand outside the province, and sell online throughout the country; focus on doing in the province, do the key outside the province; high-end in the province and nationalize outside the province".
At the same time, Fenggu Wine has launched 3 new products, namely the Fenggu Wine King Classic priced at 498 yuan / bottle, the Fenggu Wine King Treasure at 680 yuan / bottle, and the Fenggu Wine King Craftsman with 780 yuan / bottle. According to the introduction of Fenggu Wine, together with the previously priced 1680 yuan / bottle of Fenggu Wine King private collection, 2680 yuan / bottle of Fenggu Master seal, the five products jointly built a Fenggu wine industry sub-high-end and above product matrix.
At the meeting, Lu Zhongming stressed that Fenggu Wine will continue to lay out ultra-high-end products to higher value and higher price segments, and further promote the price band of Fenggu products. As for the current sales of high-end products of Fenggu Wine, Lu Zhongming did not reply.
The reporter inquired about the Tmall and Jingdong flagship stores of Fenggu Liquor industry and found that the sales volume of Fenggu Wine King privately hidden in the two online platforms was zero, while the historical sales volume of Fenggu Master sealed in Jingdong was 2 pieces, and the sales volume on Tmall was zero. The reporter also learned that in the offline channel 1919 liquor direct supply and convenience stores, Fenggu high-end brands are not considered best-sellers. A clerk said: "More than a thousand yuan of Fenggu is rarely bought, and even the Fenggu wine king is not easy to sell for 20 years, and the cheaper wine king is ten years (the market price is 458 yuan / bottle), and it sells relatively well." ”
In the sales of Toyotani Liquor's products, there is a phenomenon of "price inversion". It is reported that in the offline store, the actual sales price of many products is lower than the market price, such as the market price of 188 yuan / bottle of 52 degrees Fenggu Special Qu Boutique, the actual sales price is 128 yuan, 168 yuan range, before in the Double Eleven promotion period, the sales price of individual platforms is even lower than 100 yuan / bottle; the market price of 458 yuan / bottle of 48 degrees Fenggu Wine King's actual sales price of 358 yuan. It is worth observing how Fenggu Wine will use high-end market performance as a growth engine in the future.
On the national path, Fenggu Liquor will implement the "3 + N" market development plan, that is, to create 3 10 million-level model markets outside the province, including 30 million-level Linyi market, 20 million-level Zhangjiagang market, 10 million-level Liaocheng market, and rapidly develop N opportunity markets outside the province. According to public reports, Fenggu Liquor officially launched its nationalization in the second half of 2018, and successively carried out strategic layout in Beijing, Heilongjiang, Shaanxi, Shanghai and other places.
"What Fenggu Wine wants to lay out is the market that first-line famous wines and other regional famous wines are competing for, which is a test for its capital, channels and promotion execution." Zhang Haoran said that under the current squeeze development trend of the liquor industry, when regional liquor companies promote nationalization and high-end, due to insufficient brand tension, it is difficult to resist the encirclement and suppression of local liquor and first-line famous wines. "The entry of state-owned assets may alleviate the difficulties of Fenggu Liquor in the development of capital and channels to a certain extent, but whether it can continue to achieve rapid growth in the future remains to be observed by the market."
(Editor: Yu Haixia Proofreader: Yan Jingning)