Yanghe steps forward and sharpens the knife in this world, and the pattern of Su Wine and Wine is

Visual China.

Text: Amber Consumer Research Society, author |Five paintings.

Jiangsu, the east of the Jiangnan Province, has long been the holy land of martial arts written by Jin Yong, Gu Long, Liang Yusheng and other famous artists, but the same as the martial arts battle, Jiangsu's liquor competition is also showing a trend of dragon and tiger.

Jiangsu's liquor, mainly with strong aroma, has the characteristics of "rich cellar aroma, sweet and clean, harmonious aroma, long aftertaste", and has the representatives of "three ditches and one river", namely Yanghe, Jinshiyuan, Shuanggou and Tanggou, each with its own style and story.

Jiangsu's liquor is an important part of China's liquor culture.

Su wine has a long history, as early as the Han Dynasty, there are records of winemaking. During the Tang and Song dynasties, Jiangsu's liquor had become a tribute to the imperial court and was favored by the royal family and literati.

During the Ming and Qing dynasties, Jiangsu's liquor reached its peak, forming a Jianghuai style dominated by strong aromas, as well as four famous liquors represented by "three ditches and one river".

Tanggou liquor produced in Tanggou Town, Guannan County (formerly Shuyang County), Shuanggou liquor produced in Shuanggou Town, Sihong County, Gaogou liquor produced in Gaogou Town, Lianshui County, and Yanghe liquor produced in Yanghe Town, Siyang County. The four famous Chinese liquors produced in the Jianghuai region constitute "three ditches and one river".

These four kinds of liquor are all produced by the traditional mixed burning of Lao Wu retort method, with high-quality sorghum as raw material, high-temperature Daqu made of wheat, barley and peas as the starter culture, after long-term slow fermentation at the appropriate temperature in the artificial cellar, layered ingredients, mixed steaming and mixed firing, segmented tasting and interception, graded and closed storage, and carefully blended.

Because of this, "rich cellar aroma, sweet and refreshing, harmonious aroma and long aftertaste" have become the sensory characteristics of Su liquor, and it is also a model of Jianghuai style strong aroma liquor.

It's just that with the changes of current affairs, the four famous liquors in the market pattern of Su liquor have long been gone, and the most open thing to eat is the "one river" of "three ditches and one river", that is, Yanghe wine, not only out of Jiangsu, to the whole country, and even to the world.

Yanghe Liquor not only maintains the traditional brewing process and strong fragrance style, but also continuously carries out product innovation and brand upgrading, and has launched a number of high-end products such as Blue Classic Series, Dream Blue Series, and Handicraft Class Series to meet the needs and preferences of different consumers.

However, the success of Yanghe has a certain relationship with the restructuring of the year, in the context of the three-three system, actively carry out market expansion and marketing promotion, establish a national sales network and channels, create their own brand culture and image, and win wide recognition.

Yanghe has become the leading brand of Chinese liquor, forming a pattern of "Mao Wuyang" with Moutai and Wuliangye, and is a banner of Chinese liquor.

The "three ditches" in the "three ditches and one river", namely Tanggou wine, Shuanggou wine, and Gaogou wine, are all local strong brands, but their popularity is far less than that of Yanghe wine, and they can only be eaten locally in Jiangsu.

The only fortunate thing is that on December 28, 2023, Jinshiyuan announced that it is expected to achieve a total operating income of 100 for the whole yearAbout 500 million yuan. As a result, Jinshiyuan has become the 7th listed liquor company and the 12th enterprise in the liquor industry to exceed 10 billion yuan in revenue.

However, even if it is tens of billions of dollars, it is also related to the obvious regionality of these three wines, which is in line with local eating habits and consumer needs, and still needs to work hard in foreign markets.

Moreover, in addition to Yanghe and the present world, Tanggou and Shuanggou have not kept up with the development of the times, Shuanggou has been integrated into the Yanghe share system, and Tanggou lacks a certain amount of innovation and marketing, has not formed its own brand image and core competitiveness, only a certain regional influence.

At this point, the number one Su liquor that can be ranked in the liquor market, in addition to Yanghe, is the fate of this world.

Crossing the river by touching the Yanghe River is the most convenient and fast way for all Sujiu to grow, taking Jinshiyuan as an example, the footsteps of Jinshiyuan have been following behind Yanghe.

Today, Shiyuan has a very good growth, but today, when the benefits of Matthew in this industry are highlighted, the market share of Jinshiyuan in Jiangsu Province hovers at a high level of about 95% all year round, and it has hardly gone out of the province.

The provincial income of the present world has increased from 29 in 2014800 million grew to 73 in 2022700 million, accounting for 948% to 929%。Today, Shiyuan is facing strong competition from Yanghe in the provincial market, as well as the penetration of other national brands. Today, the provincial market is close to saturation, and it is difficult to have a large growth space.

Outside the province, the performance of the world in the market outside the province has been unsatisfactory, although it has improved in the past two years, but it is still not enough to shake the status of Yanghe. The income of the current world outside the province increased from 1. in 2014600 million grew to 5800 million, accounting for 52% to 71%。

Nowadays, Shiyuan has taken great pains to catch up with the "big brother" Yanghe, and if the famous wine wants to continue to grow, there are only two ways to go. Either upgrade the first-class system, or expand the market.

At the 2024 Jinshiyuan Development Conference, Hu Yuewu, deputy general manager of Jinshiyuan Liquor, made it clear that after crossing the line of 10 billion, Jinshiyuan will focus on the national plate, and it is necessary to plan market investment outside the province with "no profit in three years, 3 billion in three years", and focus on the "10+N" key prefecture-level plates.

Obviously, the current world is anchored in the market outside the province.

In 2013, Yanghe shifted its focus from government and enterprise consumption to business consumption, and at the same time, promoted the in-depth distribution model that was originally only for low-end products to the whole product line.

The full range of products was deeply distributed, and the "Skynet Project" was officially introduced into the provincial market. In 2013, Yanghe's marketing team managed more than 7,000 dealers and directly controlled more than 30,000 ground promotion personnel.

The benefit of this is that in the industry during the adjustment period, Yanghe is one of the few enterprises in the liquor industry that has achieved positive growth.

Data show that in 2013, the revenue of the liquor industry fell by 11 year-on-year5%, net profit decreased by 22 year-on-year1%。In 2014, the revenue of the liquor industry fell by 2% year-on-year9%, net profit decreased by 8 year-on-year6%。In 2015, the revenue of the liquor industry increased by 1 percent year-on-year6%, net profit increased by 08%。

It can be seen that the liquor industry has experienced a deep adjustment from 2013 to 2015, and the overall growth rate has been sluggish, or even negative. During this period, although Yanghe was also affected to a certain extent, compared with the industry average, it still maintained a high growth rate, and the energy of the channel is self-evident.

It was also from this point in that the growth of Yanghe showed an explosive trend, and now Shiyuan seems to have a chance to catch up with Yanghe by touching Yanghe to cross the river.

Table 1: Yanghe's revenue table from 2015 to 2021.

Both Yanghe and Jinshiyuan have made certain achievements in different aspects. Yanghe is more successful in the national layout, and now Shiyuan has performed well in the provincial market.

Both companies have their own development strategies. Does this Shiyuan have a chance to catch up with Yanghe's pace? This depends on whether Jinshiyuan can effectively solve the problem of cross-regional development and brand premiumization. The success of Yanghe is not a shortcut to the fate of the world, only the market knows.

Yanghe's performance in 2023 is very impressive.

According to the disclosed financial report, in the first three quarters, it exceeded that of last year, and the financial report showed that from January to September 2023, its operating income was 3028.3 billion yuan, a year-on-year increase of 1435%。

As early as 2016, Yanghe's revenue was about equal to one Luzhou Laojiao plus two Fenjiu or I don't know how many Jinshiyuan, and the net profit was equivalent to three Luzhou Laojiao or ten Fenjiu, n Jinshiyuan.

In the first three quarters of 2023, although Yanghe, which is still the first in terms of revenue, can no longer ignore the companies that are catching up behind it, especially in terms of net profit, Luzhou Laojiao has surpassed Yanghe. In terms of revenue, Luzhou Laojiao and Fenjiu have been extremely close, and Luzhou Laojiao's revenue in the first three quarters was 2194.3 billion yuan, a year-on-year increase of 2521%；Fenjiu's revenue in the first three quarters was 2674.4 billion yuan, a year-on-year increase of 2258%。

In the national market, Luzhou Laojiao and Fenjiu were not willing to live behind, but also launched an attack on the position of Tanhua, and issued their growth performance. In recent years, the competitive landscape of these three companies has changed dramatically, and Shanxi Fenjiu and Luzhou Laojiao have continued to narrow the gap with Yanghe.

According to its external disclosure, the preliminary accounting of this Shiyuan is expected to achieve a total operating income of 100 in 2023about 500 million yuan, a year-on-year increase of 27About 41%, and in the Jiangsu market, the market share of Jinshiyuan is rising.

Yanghe's position in the market began to have countless challengers, and there were Mao, Lu, and Fen in the national market, and even the little brother of Sujiu's base "Jinshiyuan" seemed to have the power to fight.

Although Yanghe is far ahead in terms of volume and profits, Yanghe seems to have stagnated in terms of growth, and in the first three quarters of 2023, tens of billions of wine companies are counting down.

Revenue and year-on-year growth rate (unit: 100 million yuan), data**: Dongcai choice

You must know that the concentration of the liquor industry will become more and more concentrated, and Luzhou Laojiao, Fenjiu and Jinshiyuan must have found their own starting point.

Fenjiu has taken a large-scale attack on the southern market, and strengthened the work of selecting, optimizing and supporting merchants in the market south of the Yangtze River, and the number of controllable terminals in the country has reached 1.2 million; Luzhou Laojiao continues to focus on consumer cultivation and strategic market building, the construction of the online sales store matrix has been completed, and the 100 cities plan is steadily advancing.

It seems that in such a situation, there are both internal and external worries, but the objective law tells us that the more important and critical the time, the more changes and opportunities will occur.

In 2021, Zhang Liandong, the new head of the company, took office and put forward the development strategy of "double famous liquor, multi-brand, and multi-category", and Shuanggou Liquor Industry also ushered in new development opportunities.

Moreover, Yanghe in the domestic market seems to be a little dissatisfied, and at the end of last year, Yanghe became the first batch of "partner-level members" in the liquor industry of the World Economic Forum. Not long ago, Yanghe Dream Blue became the wine used for the tasting of the 2023 Summer Davos Forum "Tianjin Cultural Night", starting from the 1915 Panama International Exposition, Yanghe's international road has also gone through a hundred years.

It is in such a growth environment that Yanghe is looking at the world, and behind him, Fenjiu and Luzhou Laojiao are looking at the position of the "third child", and Jinshiyuan is looking at the big brother silently.

Mao Wuyang", "Mao Wulu", "Mao Wufen"? Now it is still "Mao Wuyang", occupying the top three thrones in the liquor market.

The third place in the liquor industry has always been a fierce competition field. In the case that the champion and runner-up positions of Moutai and Wuliangye are unshaken, Luzhou Laojiao and Fenjiu have the strength and ambition to compete for "Tanhua".

Judging from the current situation, Yanghe is still the third oldest liquor, but its advantages are weakening. In the first three quarters of 2023, Yanghe's revenue and net profit growth rates are lower than those of Luzhou Laojiao and Fenjiu, and its high-end product line lacks market voice and mainly relies on the sales of mid-range wine.

Luzhou Laojiao has high-end products such as Guojiao 1573, which has a high degree of market recognition, and the proportion of revenue of high-end wine also exceeds that of Yanghe; Through large-scale market investment, Fenjiu has successfully opened up the southern market and achieved rapid growth. The growth rate of Fenjiu's revenue and net profit is higher than that of Yanghe and Luzhou Laojiao.

However, Yanghe's resilience is still there, and the company's management and strategy are also remarkable.

But what if it's the fate of this world?