Recently, a “save price increase” circulated by a group of alcoholics and friends has given rise to discussions that show that some of the soy sauce prices have increased by up to 85 per cent, with the most dramatic increase in the products of the series of soy sauce under the banner, especially in the areas of pail beves, and compliance。
In addition to the rising price of white wine, the stock price of white wine companies has risen. It is worth mentioning that recently, three quarterly newspapers have been published by public liquor companies and that the media have made a ranking based on their performance. The rankings show that, apart from the two leaders of mao tai tatsui, who are far ahead, the latter liquor companies appear to be in an unusual position。
It is surprising, however, that a name that no one expected from the top four liquor companies appeared on the list — sun-yung agriculture。
This suco farming is actually the parent company of the oxen ridge. Since the flag also includes activities such as pig-breeding and slaughtering, the revenues from this portion of the $2 billion revenue, based on financial reports, are still in fact at the top of the six。
In other words, it is likely that the revenues from the cattle-heads of the zhuang agricultural flag exceed those of shanxi wine. Moreover, income growth during the first three quarters was very encouraging, exceeding the 10-per-cent annual increase in iron law in the huts。
Although the oxen canals are also working tirelessly at a high level, they still account for 90 per cent of the income of the whole oxen canals and are low-end bottles of white wine with a price of less than $20。
But today, in the continuing quest for higher product prices, as well as the increasing prices of the pedestals, grains, wine, etc., a liquor company with low-end wine as its core has been able to rank at least six times in the country’s market value。
This is really interesting。
One, the high-priced pedal and the mad cow bar. Mountain
For the alcohol market, annual and even quarterly price increases are the norm。
The increase in retail prices from about 1000 to now nearly $3,000 has been the result of many price increases in the huts, which have also led to the creation of an alternative market for liquor companies, namely, the auction market for hidden and old wines。
In addition, the current marketing pattern of the huts has led to a wave of alcohol companies pursuing high-end products。
Not only is the five grains of the pavilion fast-tracked, but even the wine in the second-line brand continues to be priced at the pavilion, the top of which has risen from $600 to $1,200 in retail prices。
Starting in 2019, all listed liquor companies appear to have a strategy of not showing high-end products in their financial statements, as if they were not keeping pace with the overall development situation。
However, compared to the pavilion, where prices are rising and the demand is not high, the number of cattle in the second pot under the banner of zhuang agriculture was less than 5 billion in 2016, with sales exceeding $10 billion over three years alone。
“the pavilion, which continues to increase at hard prices, is the best metaphor and representative of the pattern of the chinese alcohol market and the division of social wealth, as opposed to the fast-growing cattle-mounted low end”. Zhang xin, a senior journalist in the wine media, responded to the impact on the chinese wine industry。
In his view, the market held by the 800 million bottles of the king of volkswagen two a year had become a gold price slot for white wine, as consumption continued to rise。
In zhang xin's view, this is an area that many media are reluctant to focus on, and that they are watching the expansion of the market for high-end wine, but low-priced bottled wine is the category that dominates absolute market flows。
Moreover, up to now, the net interest rate for the cattle range has remained at around 10 per cent, above the equivalent bid。
"don't look at the maximum price of a cow, that is, $20-30, but the 12 bottles of a cow, the liquor store can leave a profit space of 25-30% for the distributor." zhang xin stated that he believed that it was reasonable to distribute profits through channels, that a group of firms and terminals would have a reasonable margin of profit and that the price plate would remain stable in the long term, which was why the bullhills were still the champions of the liquor market, regardless of how other liquor companies operated。
According to the financial statements of 2019, the cattle and white wine industry in the haushu agriculture industry earned $10. 289 billion, an increase of 10. 91 per cent over the previous year. This means that sales of cattle in the third quarter of 2020 have been flatted for the entire past year. From the point of view of sales, it is likely that this year there will be more than 20 per cent increase in sales。
Such growth, in zhang xin's view, means that a liquor company has become a “sold mad”。
2. The cheapest food wine
In fact, cattle mountains are accepted by a large number of consumers and are associated with the processes they use。
Prior to 1980, the second pot technology and branding was used only by red star's one wine factory, a traditional process that had been passed down from the mingqing beijing well brewing. In the late 1980s, in order to encourage the local alcohol industry in beijing, red star companies deliberately disclosed the second pot of technology and allowed the various branches of the flag to develop themselves. And that's when bull's mountain started to hit its own second pot。
The caucasian wine factory was established on the basis of a bar in 1952 and is located in the town of caucasian mountain in the shuyi district of beijing. It is the only wine factory in china with standards for the implementation of qingxiang geographical indications。
This means that, at the marketing level, cattle mountains have more base stories than red stars. After all, the red star is a wine factory that was built after the founding of the country, and the cattle mountains actually have a very long history of brewing。
And on the basis of red star's published two pothead technology, the cattle mountains have made many adjustments to their history. On the one hand, it sets a precedent of double-touching before the second pot of brewing leaves the factory, making the second pot's taste softer; on the other hand, it initiates an attempt to convert the staple food selected for the second pot。
So, even though they're all brothers of a family's second-pot technology, now comparing product ration tables, you'll find that the two brands differ markedly in food selection。
Compared to the red star, which has always held back its historical tradition, the bull mountain has invested a lot of resources in the technology of making two pots, making a lot of innovations, and making it taste different from red star。
It is undeniable, however, that the highest value for money is in the same range, which is why it sells best across the country。
It is also because the two producers of bull's mountain and red stars are using traditional second pots of wine, making this white bottle, which does not exceed $20, the cheapest food to buy。
Moreover, the masters of the cattle field play the market for low-end pv bottles, which is not the same logic as the consumption of high- and middle-end wines, which is based on hospitality, and has strong fast-forward properties。
The consumer population is predominantly low-income, with high-frequency sub-drinking as the main drinking scene, at a price of between $10 and $20. In general, if the consumer does not have sufficient budget, the price of the relative may allow this group to consider the wine first when choosing it。
“this may also be the basis of the fast-moving and fast-growing cattle-mounted mountains”, zhang xin believes that, while the cattle-mounted mountains have also introduced low-end, solid, alcohol-based white wine for the sake of efficiency, “it is clear from the financial data of the cattle-mounted mountains that even the white wine that the cattle-mounted by the stench method will produce more than 50 per cent of the base wine itself”
Three is for drinking, not for investing
“the fact that the bull mountain sells 800 million bottles a year without saying anything tells us another reason.” kang yi (alias), a public relations servicer for a liquor company, told us about the whole white wine market。
“i think that, along with the upward trend of white wine, which has been suggested by mao tai, the white wine market is now increasingly becoming more expensive than product-seeking.” he said that a lot of liquor companies were now rolling out their wine, and that even 50 or 100 years of wine had been put on the market or had entered the market for auctions。
“the liquor store i used to serve is a second-line brand, but there's, in fact, a couple of decades of unsold wine in the house, and in recent years the liquor market has been popular.” in his view, this is a manifestation of the pathological development of the wine market: “the whole market is not concerned about whether or not the wine is drinkable and has no value to store
Turning to the news of the alcohol market, one would be surprised to find white wine auctions an important component。
According to the latest information, in august there were 9 bottles of a 53-degree peddle in an auction, which was taken at a cost of $90,000, while in other auctions held during the same period, the products of several second-line liquor companies, a box of 12 bottles of high-end white wine of less than 10 years old, were also taken at a cost of $30,000 per box。
“i have been to the regular liquor auctions, and it is normal to have very few fluents, and the price is three to five times higher than the price of a single retail product.” ginger said。
He believes that this has become a major problem in the alcohol market. “even you will see news, and some rich people are proud to show you, hoarding a house full of huts or five grains.”
He felt so desperate that it was because the secondary market for alcohol circulation had been established that the white wine was so passionate about high-end branding. “there are, in fact, relevant ways of addressing the liquidity problems of investors after buying alcohol, which makes white wine, especially high-end white wine, now a target for investment. In the case of a wine factory, it is the production chain in which the benefits are enormous.”
Lee believes that this is contrary to the intent of the development of the alcohol market。
“after all, the wine is for drinking, not for auctioning. And the volatile nature of alcohol, the fact that you're hiding it in your own home, the fact that you're not in the storage environment of a wine factory, and the constraints of other factors, is actually a less expensive investment。
When all brands are pursuing high-end transformation, the alcohol market is becoming increasingly impulsive. “everyone is telling stories, trying to dig into their brand and put forward their own high-end theories, thereby supporting their high selling prices. But how to increase the value of alcohol products and how to make consumers feel better about it does not seem to be the case at this time.”
In his eyes, the current alcohol market appeared to be in a state of collective disenchantment。
4. The cows mountain crisis
While the market as a whole is pursuing high-endification, it still stands up to low-priced, high-quality products. Even with 800 million bottles sold last year, it is estimated that more than a billion bottles will be sold this year, still facing its greatest crisis。
The long-standing sale of low-cost and high-quality bottles of white wine has kept the profitability of cattle-coalder factories from rising, and has declined in the last two years because of the need to respond to various market contingencies。
In terms of the māori rate alone, the māori rate for parent companies in pro-saloon agriculture is much lower than the average for the white sector, and when compared to the lead guizhou pagoda, the māori rate is only one quarter of that of guizhou pagoda。
According to the financial data, between 2017 and 2019, the sale of white wine in haushu agriculture was 429,000 litres, 621,000 litres and 718,000 litres, an increase of 28. 75 per cent, 44. 66 per cent and 15. 56 per cent, respectively. The corresponding white wine operations received $6,451 million, $9,278 million and $10,289 million respectively, an increase of 24. 0 per cent, 43. 8 per cent and 10. 9 per cent respectively。
Growth rates can be measured, and the problem is the māori rate in the white wine business. The figures for the first half of 2017 - 2020 were 54. 86 per cent, 49. 63 per cent, 48. 08 per cent and 38. 89 per cent, respectively, and the decline in the māori rate has been significantly exacerbated since 2020。
Moreover, even worse, the price increases are difficult because of low-priced white wine, which means that the māori rate in subjugated agriculture will hardly increase significantly。
In addition to this, the challenges faced by zhuang agriculture are increasing. Against the background of high-end white wine enterprises with low-priced white wine, the market for the oxen cane has been further reduced。
It is therefore an indisputable fact that the financial chain has been strained in recent years。
The financial statements show that in the first half of 2020, the net cash flow from the pro-king farming activities was approximately $729 million, a decline of 344. 40 per cent over the same period; the net increase in cash and cash equivalents was - $882 million, a decrease of 273. 63 per cent over the same period。
At the end of the first half of 2020, the asset-indebtedness rate in the haushu agriculture was 60. 3 per cent, which was the same as in the previous three years, but it was too high in comparison with the industry average of around 30 per cent。
At the beginning of july, junyuan agriculture had just announced its intention to issue a billion yuan medium-term paper. The issuance period is not more than three years, and the funds collected are used to repay or replace bank loans and to supplement liquidity。
Shortly after the announcement, a piece of undeveloped land was returned to the people's government of wenchang, from which compensation of $42. 9 million was received under the agreement between the two parties。
It is clear to all that this is a “lack of money” because of the sale of land, the issuance of bonds and the thinking of various ways of doing so. However, because of its dependence on the ntc, there is a wealth of sources and means of financing and, for the time being, there is no need to worry about the fragmentation of the financial chain。
On the one hand, the bull's bonfire maintains its position as a “sell-out” for the wine market, leaving much room for imagination for the whole market, while on the other hand, financial constraints and declining sales profits in the operation of the parent company cast a shadow over the prospects for further development。
But, in any case, there is still much hope for a stable long-term development if the balance between product prices, profits and capital is addressed。
After all, this is a “rational wine” for the general population, and the label “cow two” means that the bull's head has long been part of the lives of many consumers。
