China Liquor Industry Report, 2009-2010
It is in the year of 2009 that Chinese liquor industry witnessed most
significant growth, with the output of liquor peaking 7,069,300
kiloliters ever since 2006, up 23.8% from a year earlier. The output of
liquor continued to grow and rose 29.4% YoY to 4, 125, 000 kiloliters
in China in the first half of 2010. In July, the output of liquor increased
to 563, 000 kiloliters, a 6% YoY rise, but with a sharp drop in the
growth rate against the same period of last year mainly because
the growth rate for the liquor output in Shandong and Henan was
gearing down.
Chinese liquor industry characterizes a relatively high concentration degree since the liquor output of Top 10
provinces in 2009 occupied 79.47% of national total output, of which Sichuan, the largest province of liquor brewage,
enjoyed a share of 22.06% by output. China’s high-end liquor brands are mostly distributed in Sichuan and Guizhou.
Luzhou-flavor, Maotai-flavor and Fen-flavor liquor are the mainstream of liquor market. Kweichow Moutai liquor is
dominating the Maotai-flavor market, Wuliangye liquor takes the lead in the Luzhou-flavor market, and Shanxi Fenjiu
liquor is the representative of the Fen-flavor market.
The operation of liquor enterprises is featured by a ‘pyramid’ shape of output ranging from high to low-grade liquor and
an ‘inverted pyramid’ model of sales profit. Concretely, high-grade liquor enjoys a small share by output but with the
most remunerative profit; medium-grade liquor have relatively balanced output and profit; and low-grade liquor is with
the largest output proportion but the least profit. The enterprises seize the market mainly by low-grade liquor to
strengthen brand awareness and then make more profits through high-grade liquor.
Output of Liquor in Jiangsu, Shandong, Anhui, Sichuan and Guizhou, 2006-2009 (Unit: kiloliter)
Source: Wind; ResearchInChina
As far as regional development is concerned, Shandong Province holds the largest output of liquor in East China
but with certain fluctuation. Sichuan Province possesses large ever growing output of liquor.
Regarding the development of liquor enterprises, high-grade liquor companies have intensified the development
and propaganda of their medium-grade liquor, while medium-grade liquor enterprises have promoted the marketing
work so as to popularize their high-end liquor. Along with the growing income of residents and the expansion of the
middle class, the demand for medium-grade liquor increases in China. In 2010, Wuliangye Group gives priority to
the development of medium and high-priced liquor and focuses on the marketing of ‘Liuheye Liquor’; Kweichow
Moutai Company energetically promotes ‘Moutai Prince Liquor’ and ‘Moutai Ying Bin Liquor’; Lu Zhou Lao Jiao Co.,
Ltd transfers to ‘Tequ Liquor’; while Yanghe Brewery and Lang Jiu Group attach importance to their high-end liquor
of Yanghe Blue Classic series and Honghua Lang Liquor.
Having an insight into the potential growth of Chinese liquor industry, TCC, Diageo, Hennessy, Goldman Sachs
Group Inc., etc. have successively bought the shares of Chinese liquor enterprises.
The report not only analyzes the scale and development trend of Chinese liquor market, the characteristics and
brand development of regional markets, and the competition between high-end and medium-end liquor markets,
but expounds at length the operation, product features, marketing strategy and development orientation of the 16
major liquor enterprises in China.
Table of Contents
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1 Chinese Liquor Market, 2009-2010
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4.1.1 Profile
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1.1 Industry Characteristics
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4.1.2 Operation
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1.2 Brand Competition
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4.1.3 Development Strategy
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4.2 Wuliangye Group Co., Ltd.
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2 Regional Liquor Markets in China, 2009-2010
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4.2.1 Profile
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2.1 North China
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4.2.2 Operation
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2.2 Central China
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4.2.3 Development Strategy
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2.3 East China
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4.3 Lu Zhou Lao Jiao Co., Ltd
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2.4 Northwest Region
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4.3.1 Profile
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2.5 Southwest Region
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4.3.2 Operation
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2.6 Northeast Region
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4.3.3 Business Mode of Qiquan Company
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4.3.4 Development Strategy
3 Competition in Chinese Liquor Industry, 20092010
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4.4 Shanxi Xinghuacun Fen Wine Factory Co., Ltd
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4.4.1 Profile
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3.1 High-end Liquor Market Competition
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4.4.2 Operation
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3.2 Medium-grade Liquor Market Competition
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4.4.3 Development Strategy
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4.5 Hebei Hengshui Laobaigan Liquor Co., Ltd.
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4 Major Liquor Enterprises
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4.5.1 Profile
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4.1 Kweichow Moutai Co., Ltd.
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4.5.2 Operation
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4.5.3 Development Strategy
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4.10.2 Operation
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4.6 Sichuan Swellfun Co., Ltd.
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4.10.3 Development Strategy
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4.6.1 Profile
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4.11 Jiugui Liquor Co., Ltd.
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4.6.2 Operation
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4.11.1 Profile
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4.6.3 Internationalization through Stock Transfer of
Sichuan Quanxing Distillery Co., Ltd.
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4.11.2 Operation
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4.11.3 Development Strategy
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4.7 Anhui Gujing Distillery Co., Ltd.
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4.12 Jiangsu Yanghe Brewery Joint-Stock Co., Ltd.
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4.7.1 Profile
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4.12.1 Profile
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4.7.2 Operation
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4.7.3 Operation and Marketing Transition
4.12.2 Integration with Jiangsu Shuanggou Distillery
Stock Co., Ltd.
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4.8 Gansu Huangtai Wine-Marketing Industry Co.,
Ltd.
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4.12.3 Operation of Yanghe and Shuanggou
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4.12.4 Competition Strategy and Advantage
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4.8.1 Profile
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4.13 Anhui Golden Seed Winery Co., Ltd
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4.8.2 Operation
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4.13.1 Profile
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4.8.3 Marketing Assistance from Beijing Tongda
Weisi Management Consulting Co., Ltd
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4.13.2 Operation
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4.13.3 Development Strategy
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4.9 Sichuan Tuopai Yeast Liquor Co., Ltd.
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4.14 Sichuan Lang Jiu Group Co., Ltd
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4.9.1 Profile
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4.15 Hubei DaoHuaXiang Liquor Industry Co., Ltd
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4.9.2 Operation
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4.16 Hubei Baiyunbian (Group) Co., Ltd.
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4.9.3 Development Strategy
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4.10 Xinjiang Yilite Industry Co., Ltd.
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4.10.1 Profile
5 Development Outlook of Chinese Liquor
Industry
Selected Charts
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Liquor Output and YoY Growth in China, 2006-1H 2010
Liquor Output of Top 10 Provinces in China, 2009
Regional Distribution of Major Liquor Brand Enterprises in China
Structure of Liquor Consumption in China (by Flavor)
Operating Margin Comparison of Wuliangye Group, Luzhou Laojiao, etc.
Development Trend of Liquor Industry
Liquor Output in Beijing, Hebei and Shanxi, 2006-2009
Liquor Output and YoY Growth in Hebei, Jan.-Jul.2010
Liquor Output and YoY Growth in Shanxi, Jan.-Jul.2010
Liquor Output and YoY Growth in Beijing, Jan.-Jul.2010
Liquor Output in Hubei, Hunan and Henan, 2006-2009
Liquor Output and YoY Growth in Hubei, Jan.-Jul.2010
Liquor Output and YoY Growth in Hunan, Jan.-Jul.2010
Liquor Output and YoY Growth in Henan, Jan.-Jul.2010
Liquor Output in Jiangsu, Shandong and Anhui, 2006-2009
Liquor Output and YoY Growth in Jiangsu, Jan.-Jul.2010
Liquor Output and YoY Growth in Shandong, Jan.-Jul.2010
Liquor Brands and Prices in Anhui, 2010
Liquor Output and YoY Growth in Anhui, Jan.-Jul.2010
Liquor Output in Gansu and Xinjiang, 2006-2009
Liquor Output and YoY Growth in Xinjiang, Jan.-Jul.2010
Liquor Output and YoY Growth in Gansu, Jan.-Jul.2010
Liquor Output in Sichuan and Guizhou, 2006-2009
Liquor Output and YoY Growth in Sichuan, Jan.-Jul.2010
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Liquor Output and YoY Growth in Guizhou, Jan.-Jul.2010
Liquor Output in Three Northeastern Provinces, 2006-2009
Price Raising of Liquor Brands of Kweichow Moutai, Wuliangye Group, Shanxi Fen
Wine Factory, and Yanghe Brewery, 2009-2010
Terminal Price of High-end Liquor, Jan.2008-Jan.2010
Revenue and Growth Rate of China’s High-end Liquor, 2001-2009
Revenue and Growth Rate of China’s Major Medium-end Liquor, 2005-2009
Retail Prices of Major Products of Kweichow Moutai, 2010
Price Raising of Moutai Liquor, 2001-2010
Operating Data of Kweichow Moutai, 2007-Q1 2010
Financial Data on Main Businesses (by Sector & by Product) of Kweichow Moutai,
2009
Main Business Revenue of Kweichow Moutai (by Region), 2009
Retail Price vs. Factory Price of Moutai Liquor, 2006-2009
Price Difference between Factory Price and Terminal Price of High-end Liquor, 2009
Retail Price of Major Products of Wuliangye Group, 2009
Operating Data of Wuliangye Group, 2007-Q1 2010
Retail Price of Major Products of Lu Zhou Lao Jiao Co., Ltd, 2009
Gross Margin of Lu Zhou Lao Jiao Co., Ltd by Liquor Type, 2002-2009
Operating Data of Lu Zhou Lao Jiao Co., Ltd, 2007-Q1 2010
Main Business Revenue of Lu Zhou Lao Jiao Co., Ltd (by Product), 2008-2009
Revenue of Lu Zhou Lao Jiao Co., Ltd (by Region), 2009
Quarterly Sales Expense Ratio of Lu Zhou Lao Jiao Co., Ltd, Q1 2007-Q1 2010
Operating Cost and Gross Margin of Lu Zhou Lao Jiao Co., Ltd, Q1 2007-Q1 2010
Operating Tax Rate and Expense Ratio of Lu Zhou Lao Jiao Co., Ltd, Q1 2007-Q1
2010
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Major Liquor Products and Factory Prices of Shanxi Xinghuacun Fen Wine Factory
Co., Ltd, 2009
Operating Income and YoY Growth of Shanxi Xinghuacun Fen Wine Factory Co., Ltd,
1H 2006-1H 2010
Net Income and YoY Growth of Shanxi Xinghuacun Fen Wine Factory Co., Ltd, 1H
2006-1H 2010
Future Product System of Shanxi Fenjiu
Liquor Product System Positioning and Rough Pricing of Hengshui Laobaigan
Main Business Revenue of Hengshui Laobaigan (by Product), 2009
Main Business Revenue of Hengshui Laobaigan (by Region), 2009
Operating Data of Hengshui Laobaigan, 2007-2010
Operating Data of Swellfun, 2007-Q1 2010
Financial Data of Swellfun (by Sector & by Product), 2009
Operating Income of Swellfun (by Region), 2009
Major Product System of Gujing Distillery
Price Raising of Gujing Distillery, 1H 2010
Operating Data of Gujing Distillery, 2006-Q1 2010
Growth Comparison of Gross Margin, Net Profit Margin and Operating Profit of Gujing
Distillery, 2005-Q1 2010
Operating Cost Proportion of Gujing Distillery, 2007-Q1 2010
Main Business Revenue Structure of Gansu Huangtai Wine-Marketing Industry Co.,
Ltd. by Product, 2009
Main Business Profit of Gansu Huangtai Wine-Marketing Industry Co., Ltd. by
Product, 2009
Main Business Revenue and Gross Margin of Gansu Huangtai Wine-Marketing
Industry Co., Ltd., 2005-2009
Major Product System of Sichuan Tuopai Yeast Liquor Co., Ltd.
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Factory Price of Shede Liquor, 2001-2009
Operating Data of Sichuan Tuopai Yeast Liquor Co., Ltd., 2006-Q1 2010
Major Liquor Product Series, Price and Sales Volume of Yilite
Operating Data of Yilite, 2007-Q1 2010
Operating Income and Profit Margin of Yilite, 2009
Main Business (Liquor) Revenue of Yilite by Region, 2009
Gross Margin Comparison among the High and Low-end Products of Yilite, Luzhou
Laojiao, and Wuliangye
Major Product System of Jiugui Liquor
Operating Income and Net Income of Jiugui Liquor, 2007-Q1 2010
Main Business Revenue of Jiugui Liquor by Sector & by Product, 2009
Main Business Revenue of Jiugui Liquor by Region, 2009
Major Brands and Rivals of Jiangsu Yanghe Brewery Joint-Stock Co., Ltd.
Major Product System of Jiangsu Yanghe Brewery Joint-Stock Co., Ltd.
Future Structure Framework of Jiangsu Yanghe Brewery Joint-Stock Co., Ltd.
Operating Income and Net Income of Shuanggou Distillery, 2007-2009
Product Series of Shuanggou Distillery
Operating Income and Net Income of Jiangsu Yanghe Brewery Joint-Stock Co., Ltd.,
Q1 2009-Q1 2010
Revenue Structure of Jiangsu Yanghe Brewery Joint-Stock Co., Ltd., 2007-2009
Inside & Outside-Province Sales Growth of Jiangsu Yanghe Brewery Joint-Stock Co.,
Ltd., 2006-2009
Inside & Outside-Province Revenue Growth of Jiangsu Yanghe Brewery Joint-Stock
Co., Ltd., 2006-2009
Gross Margin of Jiangsu Yanghe Brewery Joint-Stock Co., Ltd. by Product, 20072009
Factory Price and Terminal Price of Golden Seed Liquor Series
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Operating Income and Net Income of Anhui Golden Seed Winery Co., Ltd , Q1 2009Q2 2010
Integrated Gross Margin of Anhui Golden Seed Winery Co., Ltd , Q1 2009-Q2 2010
Revenue and Growth Rate of Sichuan Lang Jiu Group, 2002-2009
Revenue and Growth Rate of Hubei DaoHuaXiang Liquor Industry Co., Ltd, 20022009
Revenue and Growth Rate of Hubei Baiyunbian (Group) Co., Ltd, 2002-2009
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Publication date: Aug. 2010
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