according to Lu Dongliang, the cost of producing refined beer is mainly in raw materials, processing and packaging materials, accounting for about 5:2:3. Compared with traditional industrial beer, refined beer has higher raw material consumption and processing cost, but its price is also higher, and there is a huge margin in the middle.
take Fanbo fine brewing as an example. According to Sam, “the materials and processing costs of Fanbo fine brewing account for only 8% ~ 12% of the export price of the whole finished product.” Because their raw materials are cell liquid instead of dry input, the cost of raw materials can be further reduced, which can be reduced by 40% compared with the industry average level.
“in fact, once mass production of many fine brewed beer, the production cost can be reduced by about half.” Sam said.
what is the average gross profit margin of the brewing industry?
, the founder of a fine brewed beer brand specializing in retail channels, introduced to all-weather technology that the cost price of their “German wheat” beer is 2800 yuan per ton, and the cost of 500 ml is only 1.4 yuan. Even with the bottles and labels required for materials, it is only a cost of more than 2 yuan. But on the market, such a bottle of beer costs 19.9 yuan, with a gross profit margin of 80%.
and such “huge profits” have also become the most attractive bait on the refined “big cake”, attracting countless profit seeking entrepreneurs.
in fact, although the gross profit of many brands is very high, the profit of many brands is not high or even negative. “Some people make money by selling 9 yuan, while others can’t make money without selling 30 yuan.” These people said.
“like that niche brand, it can’t do it without 300% gross profit.” The person in charge of a beer acting foreman revealed, “because now the fine brewing is not sold, on the premise of not selling, its fixed cost (including depreciation cost) is very high.” And relatively speaking, the shelf life of refined beer is usually shorter than that of industrial beer.
he explained for example that if the brands can sell all the 10000 tons, the gross profit margin of 20% will be very good. However, the de commercialization rate of many brands is not high. For example, only 2000 tons are sold. If the price is not increased, it is even difficult to recover the cost.
and the most critical issue is whether the channel can be opened up and whether the consumer market is willing to pay for the brand. The channel of
liquor market is still dominated by offline channels due to its “ready to drink” nature. The six beer giants have already firmly controlled the channels leading to dining tables and entertainment places. It is difficult for fine brewing brands to break out of the siege surrounded by the giants.
and the circulation channels they can take are direct bars and retail through convenience stores, supermarkets and e-commerce.
but fine brewing for retail is not favored. “If you don’t enter the direct marketing channel, first, he can’t sell. Second, he can’t establish recognition. Go directly to retail. There are all kinds of brands in a row of cabinets in convenience stores. Why do others buy it?” Xiao Hua said.
“what business pays attention to is a place where turnover and resources can be put into a virtuous circle.” Xiao Hua said, “some people find a good channel. If they dig deep into one channel, they can get through. But in shopping malls and convenience stores, this cycle can’t roll out.”
once the dynamic sales of refined products can not afford, the whole capital chain will be difficult to sustain, and the product prices of sketch brands will be more difficult to lower. In contrast, big brands that have accumulated funds can take the lead in fighting a price war under the advantages of channels and costs.
taking Beijing fine brewing brand “Jing a” as an example, Carlsberg acquired a small stake in Jing a in 2019. Alex, founder of Jing a, introduced during the all-weather science and technology dialogue that Jing a has four core brewed beer, which are processed and produced by Carlsberg’s factory and sold through Carlsberg’s channels.
due to the realization of mass production and the use of existing channels, the selling price of these four beers in the official flagship store of Taobao Carlsberg beer is controlled at about 10 yuan / bottle, at the same price as the common medium and high-end beers such as 1664 in the market.
can achieve relative “parity” with other brands such as Boxing cat acquired by Budweiser, panda fine wine with high financing, and xuanbo, which completed three rounds of financing in 2021. Taking xuanbo as an example, the price of 330ml refined beer is about 3.9 yuan, which is almost the same as that of a bottle of industrial beer.
under the huge price gap, the Matthew effect of refined beer is intensifying, and it is more difficult for start-up brands to develop without strong capital support.
in fact, the giants have not yet made full efforts in fine brewing.
“in fact, it is not suitable for large-scale fine brewing. The giants dare not rush to promote the global single products of fine brewing, because it is also peacekeeping with the original intention of fine brewing,” Shen Rui believes, “but it is easy for them to do fine brewing.”
according to the data of enniu, the number of investments in the four years from 2018 to 2021 was 3, 5, 1 and 11 respectively. 2018, 2019 and 2020 were the financing lows of the industry, and only increased in 2021.
. However, even if the number of investment increases, the financing mostly stays in the primary stage of angel round and a round. Except for making low-end refined xuanbo beer and being a cat member of liquor channel, the investment amount obtained by other brands is not high. Investment institutions are still in the water testing stage of small investment.
in the middle of 2021, Xiao Hua (a pseudonym) participated in the investment of a fine brewing brand. According to him, in the first half of 2021, many VCs saw the new wine circuit and expressed interest in fine brewing, but there were not many projects invested as a whole.
according to its introduction, investors pay attention to fine brewing in two directions. One direction is to look at offline space, such as offline chain pubs such as Helen’s and Er Ma. It mainly looks at the user positioning, business characteristics and urban attributes of such brands, and tries to find the next chain fine brewing bar brand that can open hundreds and thousands of stores. The other direction of
is products.
first is to see if this product has the potential to become a large single product. After his investigation, Xiao Hua found that there is no shortage of small and beautiful brands in the fine brewing track. Many brands that have survived from their early development still have their own fixed customer groups, but his consumer groups are fixed in the senior lovers of fine brewing beer, and the taste and flavor are difficult to be accepted by the public. Such brands are also difficult to commercialize.
secondly, it depends on their solution to the channel. Products sold only in their own bars are difficult to expand due to the limitation of self operated space; Those who choose supermarkets and convenience stores as their starting channels are regarded by Xiao Hua as “the most garbage solution”.
investors prefer to see a channel solution similar to Taishan raw pulp.
first developed the concept of “beer puree”, staggered the direct competition with industrial beer, and took the lead in playing a medium and high-end market. In terms of channels, they are densely arranged near the catering business area by means of stores and wine stations, and timely delivered by means of takeout, rather than directly entering the retail channel or going to the catering store to fight directly with the giants.
in this way, Taishan has found a way to survive and released its production capacity in the Shandong market where snowflakes and Qingdao are fighting the most fiercely. Then it continued to expand to the northern market. With the increase of brand influence, it attracted franchisees and further expanded the market, forming a virtuous circle.
but Taishan’s method is not suitable for most refined beer. Taishan’s main raw pulp and fresh beer are actually the upgrading of industrial beer, which is aimed at a larger consumer market. Moreover, the early-stage cost of arranging outlets is too high, which can not be borne by fine brewing start-ups.
many brands are also trying to give different answers. Taking Jing a as an example, in addition to the self operated bar channel, on the one hand, four core products are launched offline through Carlsberg’s channel, which has accounted for half of its annual sales.
on the other hand is to open the channel of “exclusive supply” and supply wine to the bar. In many offline bars in Beijing, you can drink Jing a’s barreled beer. Whether such channels can be opened depends on whether the brand itself has sufficient recognition in the industry and reputation.
“although investment institutions were also looking at fine brewing last year, they were looking for those with more than 80 points, and those with less than 80 points won’t see it.” Xiao Hua said. In his opinion, there are not many brands that can reach the level above 80 points on the whole track.
witnessed the three years when the OEM business of fine brewed beer was booming. Lu Dongliang also felt that the industry was ebbing, “I think it will be cold from 2022.”
among the OEM brands of Qiandao Lake beer, some brands decided to change careers after testing the market; After a mass production, some brands continue to reduce production and difficult to maintain.
according to the “pioneer state frontline” report, due to the reduction of orders, factories at the end of the supply chain also began to close down. An interviewee said, “of the 10 factories I saw, 3 or 4 were transferred this year, which can’t be opened at all.”
but for the deep cultivators of the craft track, the rise and fall of the tide will not affect them. Alex, founder of Jing a, told all-weather technology: “their coming in also let many people know the fine brewing, which is a good influence.”
in this undeveloped market, the industry is waiting for a real outbreak, which may be the popularity of a large single product, the launch of a brand, or the birth of a new channel.
and capital is not really far away, just waiting for a better answer.
Author: Hu zhe; Source: All Weather Technology (ID: iawtmt), reprint has been authorized. Reprint authorization and media business cooperation: Amy (wechat: 13701559246);
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