---
title: "Beverages and Alcoholic Drinks: Stabilizing the Market Is the Only Way to Counter Uncertainty!"
description: "In the first half of 2022, the sudden outbreak of the pandemic posed a major test for FMCG companies, with alcoholic beverages and drinks being the hardest hit due to reduced mobility and consumption. While categories like grain, oil, condiments, and daily chemicals saw growth in home consumption, beverage giants faced immense sales pressure. This article emphasizes the importance of solidifying basic market fundamentals and adapting to changing retail channels as the key strategy to navigate uncertainty."
author: "New Distribution"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
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published: "2022-06-20"
language: "en"
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# Beverages and Alcoholic Drinks: Stabilizing the Market Is the Only Way to Counter Uncertainty!

> In the first half of 2022, the sudden outbreak of the pandemic posed a major test for FMCG companies, with alcoholic beverages and drinks being the hardest hit due to reduced mobility and consumption. While categories like grain, oil, condiments, and daily chemicals saw growth in home consumption, beverage giants faced immense sales pressure. This article emphasizes the importance of solidifying basic market fundamentals and adapting to changing retail channels as the key strategy to navigate uncertainty.

******Click to read the original text for details******
In the first half of 2022, the sudden outbreak of the pandemic posed another major test for FMCG companies.
Looking across the major FMCG categories such as food and beverages, grain, oil and condiments, and daily chemicals and paper products, the most severely affected were the alcoholic beverages and drinks categories.
With pandemic lockdowns, reduced population mobility, and people staying home, consumption of alcoholic beverages and drinks plummeted. In contrast, categories like grain, oil, condiments, and daily chemicals, which are primarily consumed in household settings, actually saw growth in various regions due to reduced mobility.
The decline in on-the-go and foodservice consumption has put enormous sales pressure on major FMCG beverage and alcoholic drink giants. Visiting frontline market terminals and observing the date codes on various beverages, one can see old stock everywhere...
A couple of days ago, I had the opportunity to exchange views with Mr. Pan Lihua, Sales Director of the East Guangdong Operations Center of Swire Coca-Cola. Despite various market challenges and pressures, he remains confident about the future.
This confidence stems not only from the solid foundation of past market infrastructure but also from the comparative advantages in a fiercely competitive market.
**1**
**The Best of Times, the Worst of Times**
In the first half of 2022, the pressure and challenges for beverage companies came not only from the pandemic but also from the weather.
As is well known, the southern region has always been a "stronghold" for beverage sales, but the prolonged rainfall in the first half of the year directly led to a decline in beverage sales.
According to data from the National Climate Center, since May (May 1 to June 15), precipitation in most of South China, most of Southwest China, southern East China, and southern Hunan has been 20% to 100% higher than the same period in normal years. Among them, the average regional precipitation in Fujian, Guangdong, and Guangxi reached 621 millimeters, the highest for the same period since 1961.
**If there's no demand, where's the market!**
Pan Lihua frankly stated that this is the real frontline market environment we face. In addition to weather and the pandemic, there are also macro-environmental factors such as the Russia-Ukraine war and the global economic downturn. From an objective perspective, these are certainly the worst of times.
But the worst of times often breed the best opportunities.
The past five years have been a golden period for FMCG development, with the rise of numerous new consumer beverage brands.
During the golden period, frankly speaking, it was difficult to defeat competitors. Because competitors were riding the wave, morale was high, and good resources naturally gathered around them.
But now the external environment has changed: traffic is gone, channels are gone, capital is gone, and the ability to withstand risks naturally becomes weaker.
This is our best opportunity.
F1 legendary driver Ayrton Senna once said: "In good weather, you can't overtake 15 cars, but in rainy weather you can."
**2**
**The harder the times, the more important it is to solidify the fundamentals**
The harder the times, the more important it is to solidify the fundamentals. At such times, there are no shortcuts. When the industry is good and there are many opportunities, you can grab a bit here and a bit there, and together, the business gets done.
But in difficult times, all you can do is bend down and work solidly on the fundamentals.
What are the fundamentals? Pan Lihua said, "Whether you have enough sales points, whether products are well distributed, whether the team's capabilities are improving, and whether market execution is solid."
The harder the times, the less you should think about clever tricks. On the frontline market, do the basic work solidly.
Coca-Cola's fundamentals include not only roadside business but also online e-commerce, new retail home delivery, and foodservice business. Compared to competitors who rely solely on roadside business, Coca-Cola is more stable and solid.
A big ship and a speedboat: in calm seas, the speedboat will definitely outrun the big ship; but when storms and heavy rain come, the big ship can stand firm, while the speedboat may disappear.
Doing solid work on frontline terminal displays, product bundles, etc., is the fundamental of the frontline market.
**3**
**In the face of the pandemic, the only way is to strengthen the body**
June is coming to an end, and the pandemic is gradually dissipating. The environment seems to be clearing up, but we cannot let our guard down. Looking back at past events, we didn't anticipate them; similarly, we cannot predict the future.
In mid-2020, after half a year of the pandemic, everyone thought it would soon be over. But by mid-2022, who would have thought that two years later we would still be fighting the pandemic?
In today's market environment, the only thing we can do well is to strengthen the body and solidify the fundamentals.
Of course, the fundamentals here do not mean following the old path without change or upgrade, but rather centering on consumption scenarios and target groups, placing products closer to them, and putting different products in corresponding consumption scenarios.
When retail channels change, proactively adapt. But what remains unchanged is that the location must be good, the display must be right, the assortment must be diverse, and promotions must be available.
**Summary:**
**From July 12 to 14, 2022, 'New Distribution' will hold the (7th) China FMCG Channel Innovation Conference in Chengdu** , with the theme "Seize the Opportunity, Stabilize the Market." What is the opportunity? It is the trend forecast based on the current environment. What is the market? It is the fundamental channel of the current mainstream business.
Look up at the sky to understand channel trend changes and plan ahead; bow down to work, stabilize the current channel business, and solidly practice market fundamentals.
This is not an unstable era; responding to change and consolidating the foundation is everyone's task.
Great article! Must like, share, and forward.


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