China Food

Wahaha sells wine, who will pay?

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Recently, Wahaha launched the “Zong Shuai Jia Baijiu”, which made Wahaha’s liquor business return to the industry’s vision again.
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In January 21, 2022, the official account named “Wahaha eight GUI family” released “the annual flavor you want,” here is a text. The article shows a new sauce wine product – zongshuaijia wine (Maotai flavor type) 53 degrees 500ml.

Zong Shuai Jia sauce wine, the official account of Wahaha eight GUI family
This is not the first time Wahaha has entered the field of Maotai flavor baijiu.
On November 5, 2013, Wahaha, the beverage giant in full swing, held a press conference in Beijing. Zong Qinghou, chairman and general manager of Wahaha Group, announced at the scene that he was hauling haw to enter the Baijiu industry. He also worked with Maotai Town golden sauce wine industry to set up Guizhou Maotai Town Renhuai sauce country Wine Co., Ltd.
Zong Qinghou and his team appeared at the conference site, and a Maotai flavor Baijiu liquor, which is made from Maotai Town, Guizhou, is the first sauce wine of Wahaha. At the same time, it is reported that Wahaha will spend 15 billion to build the sauce and wine industry in Maotai Town, Guizhou Province.
However, many years after the product came out, the sales of Wahaha sauce wine products have not made much progress, and the figure of “leading sauce national wine” is rare in the market. In 2017, Wahaha withdrew from Lingjiang national liquor company, which changed its name with the entry of new shareholders, and Lingjiang national liquor gradually faded out of the public’s sight.
Nowadays, with the rapid development of sauce and wine industry, Wahaha has returned to this field again.
However, today’s Wahaha may need sauce and wine more than ever before. In recent years, Wahaha has fallen into the dilemma of weak growth.
After the highest revenue of 78.28 billion yuan in 2013, Wahaha’s performance began to become weak, falling all the way to 43.98 billion yuan in 2020, back to the revenue level of more than a decade ago.
Today, Wahaha’s position is very embarrassing. It has not only lost its leading position in the traditional packaged drinking water market, but also failed to seek the second growth curve in diversified development. Online insight once wrote in the article《
Baijiu was thought to have failed in cross-border operations. Or so, after the launch of “zongshuaijia sauce wine”, it quietly released the signal of Wahaha sauce wine’s return, which attracted the attention of the industry.
However, the industry is not optimistic. A long-term investor in Baijiu said to Insight. “Cross border sauce is very difficult. And unlike the high-profile action of Wahaha’s special news conference nine years ago, Wahaha only openly sold” Zong Shuai Jia Zhi liquor “through a public official account.” Zong Shuai sauce wine “should not be a new strain. In the early years, it appeared in the” sauce country wine “sub brand. It did not study its Baijiu business in 2008.
No matter what the purpose of Wahaha’s launch of “zongshuaijia sauce wine” this time, now the sauce wine fever is “cooling down”. Whether Wahaha can seize the “waste heat” and make it become an innovative development point and a new revenue growth point again is the focus.
Zong Qinghou does not give up sauce and wine

Wahaha sauce wine is back. A Baijiu liquor called “Zong Shuai Jia Jiu” has made Wahaha enter the sauce and wine industry again.
According to the public information released by Wahaha, this zongshuaijia wine (Maotai flavor) is 53 degrees and 500 ml / bottle. The recommended retail price is 1388 yuan / bottle, and the group purchase price of the internal purchase meeting is 568 yuan / bottle. Mao type wine bottle is adopted, and the logo of the bottle body is the trademark of Wahaha, with the remark “Moutai Town, Guizhou”.
Coincidentally, Insight search found that in January 21st, the official account of the official WeChat public of the golden sauce liquor industry was also announced by the official. It was once again cooperating with Wahaha after the sauce country. “The cooperation between golden sauce and Wahaha has lasted for decades, and the overall sales scale of annuity sauce wine industry has reached a new level in 2021, which is inseparable from the support of Wahaha Group. Zongshuaijia sauce wine is personally transferred by the senior bartender of golden sauce wine industry,” the article said
This means that after 9 years, golden sauce wine industry and Wahaha cooperate again. In fact, “zongshuai family wine” is not the first time.
Insight found a product catalog of “2015 group purchase of Baijiu”. The document shows that at that time, Lingjiang national liquor let Wu Xiubo speak for it, launched zongshuaijia liquor sub brand, and sold a limited product of 1.5kg and the market guide price of 8888 yuan / jar. The purchase of zongshuaijia wine is also accompanied by a collection certificate and Zong Qinghou’s autograph, “which is of great collection value”.
zongshuaijia liquor launched in 2015,
The catalogue of the national wine Baijiu group purchase product
However, the newly launched “zongshuaijia liquor” does not seem to have received the key investment of Wahaha. The product is not yet on the official shopping mall or the third party e-commerce platform, and can only be ordered through the official account number. The ordering customer service explained to wired insight that at present, it only supports telephone purchase, and two bottles can be mailed.
Wahaha’s ambition to Baijiu also starts in 1990s when Wahaha had a strong entry into the Baijiu industry. Wahaha Group and Fuling municipal government of Sichuan Province invested in the establishment of Hangzhou Wahaha Group Fuling Co., Ltd. In 1994, the company launched “Wahaha” Guandi wine, which was highly expected. Zong Qinghou also believes that Wahaha’s brand ability will make products fire.
Baijiu and Baijiu industry are not working properly. The channel differences between liquor making industry and beverage industry are gradually emerging in the market operation. The short life cycle of liquor brands and the confusion of the industrial environment have made Zong Qinghou quit the Baijiu industry.
By 2004, the market continued to spread the news that Jin Liufu, a liquor enterprise, might marry Wahaha and sell liquor together. The two may learn from the cooperation mode between Coca Cola and Nestle and share channels, but it will not end in the end.
However, Zong Qinghou did not give up the Baijiu industry.
China’s Baijiu Baijiu low spirited in 2013, after the wave of plasticizer and the three official business expenses, and so on, which ended the rapid development period. At that time, Zong Qinghou killed a comeback and Wahaha entered the wine industry again. This move was once called “bottom reading” in the industry.
In November, Zong Qinghou held a news conference in Beijing, announcing that the liquor industry was officially launched as a symbol of Maotai Baijiu “Baijiu”.
Zong Qinghou at the press conference, tuyuan Wahaha official website
Wahaha entered the Baijiu industry, then the Maotai Town golden sauce wine industry. Wahaha and the latter established Lingjiang national liquor and Lingjiang National Liquor Sales Co., Ltd. respectively. Among them, Wahaha occupies 80% of the shares of sauce national liquor company and is responsible for sales and brand promotion; Golden sauce wine industry takes a stake in technology, accounting for 20%, mainly responsible for production.
It has to be said that this is also another diversified path breakthrough of Zong Qinghou under the fierce competition in the beverage industry.
In addition to outside attention, Zong Qinghou was also full of confidence at that time. In 2014, Zong Qinghou told the interview at the ninetieth national sugar and wine conference that Wahaha Baijiu plan was going public in 3-5 years. However, the actual results of the final Lingjiang national wine are far from Zong Qinghou’s expectations again.
Because of poor sales, in 2014, Wahaha sent a hard task to apportion “Lingjiang national liquor” to some internal employees. At that time, the regional manager was asked to buy 3000 yuan per person, while the customer manager was asked to buy 650 yuan per person.
According to the daily economic news, the sales revenue of Lingjiang national liquor company was 78.32 million yuan in 2014, but it shrank sharply to 32.6985 million yuan in 2015.
In the following years, Wahaha, a market with a high position in the high-end Baijiu Baijiu market, began to try to turn to the low-end Luzhou flavor liquor market. But it has not recovered the decline of its Baijiu plate business. In the relevant information of “sauce and wine”, Wahaha’s figure is less and less.
Since then, Wahaha has begun substantive disposal of Baijiu assets. In September 2017, Wahaha withdrew from the ranks of shareholders of Lingjiang liquor industry, and Huajiang commerce and trade of Shunping County acquired 80% of the shares held by Wahaha. Lingjiang liquor industry was also renamed as hualingguo liquor industry in Maotai Town, and the legal representative was changed from Zong Qinghou to Liu Fuhui.
A year later, Zong Qinghou no longer served as the legal representative of lingjiangguo Liquor Sales Co., Ltd. and also withdrew from the senior management team of the sales company.
However, after the withdrawal of Wahaha, the flavor of sauce and wine has become more and more well-known by the public from the relatively small flavor in the past, and all kinds of capital began to rush in madly.
Sauce and wine have been hot since 2019 and hot at the end of 2020. In 2021, the drama of “wine madness” of sauce and wine was staged in the capital market. The share prices of many listed companies stained with the concept of sauce and wine soared, and the P / E ratio of some companies was often thousands of times.
However, the turning point of this “hot wine” began in August 20, 2021 on the convening of the Symposium on Baijiu market order. At that time, the wording of “hunting sauce wine” by regulators was very strict and meaningful.
Since then, the “sauce wine fever” has cooled significantly. Is it a good opportunity for Wahaha to cooperate with golden sauce wine industry again? Can we seize the outlet of sauce wine and make Baijiu products an innovation and development point? Many questions still need time to be answered.
Why Wahaha loves Baijiu
Zong Qinghou doesn’t like drinking, but Wahaha loves drinking.
On June 30, 2021, Zong Qinghou wrote at the beginning of his signed article in the Chinese Entrepreneur Magazine: “on May Day, 1987, the weather was a little muggy. At the age of 42, I rode my bike out of the house and was ready to do an adventure – relying on the borrowed 140000 yuan to take over a school-run enterprise that lost money for years. This enterprise later became Wahaha.”
For Wahaha, who has devoted his whole life, Zong Qinghou began to look for new innovations from the period of rapid development of the latter. Baijiu is Zong Qinghou’s treasure house.
Rather than love Baijiu, Zong Qinghou needs Baijiu and capital markets and baijiu.
As we all know, Zong Qinghou doesn’t like drinking. In March 2013, Zong said publicly, “I don’t like drinking too much, that thing hurts my body, I can’t make baijiu. I don’t do well in that industry.” But after six months, Zong Qinghou went to the Baijiu industry that he did not think much of before. He explained to the outside world that “I am an industrial man, and I can not invest without drinking.”
This reversal also shows that Wahaha needs Baijiu “help”.
Under the impact of e-commerce and new consumer brands, consumers no longer love to buy Wahaha, a basic beverage, and the development of the latter has slowed down. Public information shows that Wahaha has been going downhill since its revenue reached the peak of 78.2 billion yuan in 2013. In 2014, the revenue was 72 billion yuan. In 2015, the revenue plummeted to 49.4 billion yuan. In the following years, the revenue has remained around 50 billion yuan.
By 2020, Wahaha’s business contraction will be reduced to 43.98 billion yuan, which will suddenly fall back to the revenue level of 2009, a new low in recent ten years. Wahaha ranks only 227 in the list of China’s top 500 private enterprises in 2021 released by the all China Federation of industry and commerce.
The Baijiu, known as “liquid gold”, has attracted everfount cross-border challengers with high gross margins.
Therefore, through Baijiu, the consumers of higher ages and attracting more investors are becoming the common choice of Wahaha and other fast moving giants.
In 2013, Zong Qinghou explained why Wahaha entered the Baijiu industry. China’s ingrained Chinese Baijiu culture is deeply rooted. The consumption of liquor has not been reduced. China’s Baijiu industry has entered a low development level and is rather difficult. China has a long history of liquor culture, and the revitalization and inheritance of its industry requires strong enterprises to join.
A long-term investor in Baijiu liquor explained further to Insight. “Baijiu Baijiu” is a unique wine in the whole liquor industry. The fund managers of heavy liquor have also been very successful in the past few years, such as Yi Fang Da and Zhang Kun in the public offering. Because Baijiu has luxury attributes, the higher the price, the more scarce it is, the more luxury it is sought. With the increasing number of high-end liquor users, the production of wine is in short supply, so the luxury of high-end Baijiu is in short supply. The product attributes are relatively stable, and the logic of price increase is relatively fixed. For long-term holders, Baijiu is a good target.
Therefore, even Zong Qinghou who does not like drinking, loves Baijiu and loves it. Moreover, the Baijiu development momentum is stronger.
Chinese Baijiu Baijiu, represented by Wuliangye, occupies more than half of the country’s liquor market in the past 20 years. In the past two years, Baijiu in liquor has been on the rise. Maotai Baijiu Baijiu, which is dominated by Moutai, is much higher than the average growth rate of the industry. The market share of Luzhou flavor liquor is on the decline.
For a time, “dyeing sauce will rise” has become the “wealth password” of capital inside and outside the industry. The data of China Wine Industry Association also confirmed the huge profits of sauce wine. In 2020, the total output of Maotai flavor liquor was about 600 thousand tons, accounting for about 8% of the total capacity of Baijiu Baijiu, but realized a profit of 63 billion yuan, accounting for 39.7% of the total profit of the industry.
In addition to their own participants in the sauce and wine track, they have expanded production capacity to try to seize the first opportunity, and there are more and more cross-border people.
Since 2020, many foreign capitals, such as giant group, rongchuang China, amendment pharmaceutical and laiyifen, have also been cross-border sauce and wine, often claiming to invest 10 billion in sauce and wine.
According to the Chinese Baijiu Baijiu industry market demand and investment strategic planning analysis report, the sales revenue of Maotai flavor liquor industry will increase year by year in the past 2021-2026 years. In 2026, the sales revenue of Maotai Baijiu liquor industry will reach 255 billion 600 million yuan, and its annual growth rate will remain at 6.50%.
As the first batch of cross-border sauce and wine, Wahaha can no longer sit still.
Wahaha, who entered the bureau early in 2013 and was out in 2017, missed the golden period of sauce wine development, or considered the accumulation of sauce wine business before, so with the help of the gift giving scene of this year’s Spring Festival, Wahaha joined hands with golden sauce wine industry to launch another impact on the sauce wine market.
In the layout of sauce and wine, Wahaha “got up early and caught up with the late set”. For Wahaha, now 35, there seems to be few opportunities to grab the cake.

Can Baijiu become the second growth curve?
Zong Qinghou looked forward to Baijiu as the second growth curve, but this curve is difficult to shape.
Chinese food industry analyst Zhu danpeng once explained to wired insight: “every line is like a mountain. If an enterprise’s main business development is uncertain and its talent system is not perfect, it will rashly carry out diversified development, and the success rate must be very low.”
Wahaha’s “leading sauce national liquor” lost Maicheng in just a few years, which is related to a series of strategic mistakes.
First of all, in terms of product development, Wahaha is mainly responsible for sales and brand promotion. Instead of having its own R & D team, Wahaha employs professionals in the blending of traditional sauce and wine by relying on the introduction of external or part-time personnel. This makes Wahaha far behind other Maotai Baijiu liquor enterprises in its R & D, and the quality of products is hard to be recognized by the market.
The idea of running liquor with fast food products also made Wahaha go into the Baijiu Baijiu industry.
At that time, the investment mode of Wahaha Baijiu business was to set up full-time salesmen in each province to take charge of market investment. Part of the distributor is Baijiu, a professional liquor dealer. Another part of the sales staff is Wahaha’s original market distributor, so that it can expand the Baijiu business.
This led to the fact that Wahaha not only did not take into account the interests of channel and terminal operators, nor found a balance between beverage channels and Baijiu channels.
In addition, the Chinese Baijiu liquor has been relying on Wahaha brand, and has become a stumbling block for the development of liquor brands.
The Baijiu main Baijiu has always been a beverage. Its lack of experience in the liquor market, especially the Maotai flavor liquor market, has led to some decisions made by Wahaha and can not meet the real demand of the Baijiu market. Moreover, the financial support given by Wahaha is not high, so it is difficult to mobilize the enthusiasm of liquor dealers.
For the recent Wahaha sauce, a long-term follow-up investor in Baijiu Baijiu said to Insight: “Wahaha’s old problems in liquor still exist, and still do not look good at this business.”
Today, Wahaha still relies on classic products such as AD calcium milk to support half of the country. Although many track attempts were started early, most of them failed on the way. Baijiu became the innovative business with the longest number of trials and longest duration.
For the question of whether Wahaha can counter attack with the help of “zongshuaijia sauce wine” this time, the above-mentioned investors said to wired insight: “it is difficult to make sauce wine across borders. Because the cost of sauce wine is high, most of the products above the middle end, and this price band has high requirements for the origin of famous brands, Wahaha obviously does not meet this requirement.”
zongshuaijia sauce wine, tuyuan jinsauce Wine Industry Office
As everyone knows, Maotai Baijiu Baijiu liquor must be produced by traditional solid state fermentation. Compared with other flavor liquor, the production cost is the highest and the production cycle is the longest. The production of high-quality sauce wine is in accordance with the strict process, and it takes at least five years.
Therefore, it is not appropriate for Wahaha to take the low-end route, but it is difficult to surpass it because of the benchmark of Maotai, Langjiu, Xijiu and other famous wines.
In addition, the market influence of Wahaha Baijiu products has been very weak in recent years. In recent years, it has not insisted on deep ploughing Baijiu, consumer market and investment market.
Nowadays, Maotai Baijiu liquor is more and more reliable in the minds of consumers. The Wahaha will take time and accumulate brand influence, so that it is possible to chew the hard bone. But Wahaha, eager to seek a new business growth curve, may find it difficult to spend so much time and money on incubation.
Article: Zhang Fei; Editor: Li Xin; Source: Online insight (ID: lxinsight), reprint has been authorized. Reprint authorization and media business cooperation: Amy (wechat: 13701559246); Join the community: Cherry (micro signal: 15240428449). foodaily daily food joined hands with the world’s top business and industrial partners to build fbic222 global food and beverage Innovation Conference & the first foodaily Expo daily food innovation Expo “new food era – brand ecology” in Shanghai from May 31 to June 2, 2022. We invite you to witness it together. (click the picture to see the detailed introduction). food people are “watching”

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