---
title: "Listed Companies' Low-End Liquor Declines Across the Board, Industry Foundation Enters 'Slaughter' Mode"
description: "After Moutai and Wuliangye stabilized, the 'rosy' annual reports of listed companies were seen as further evidence of industry recovery. However, after breaking down and categorizing high-end and low-end liquor from multiple listed companies, Tangjiu Express found that high-end liquor grew impressively while low-end liquor declined broadly. Despite exceptions like Wuliangye and Niulanshan, industry insiders believe the industry's foundation has entered a 'slaughter' mode."
author: "糖酒快讯"
publisher: "New Distribution"
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published: "2017-04-08"
language: "en"
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# Listed Companies' Low-End Liquor Declines Across the Board, Industry Foundation Enters 'Slaughter' Mode

> After Moutai and Wuliangye stabilized, the 'rosy' annual reports of listed companies were seen as further evidence of industry recovery. However, after breaking down and categorizing high-end and low-end liquor from multiple listed companies, Tangjiu Express found that high-end liquor grew impressively while low-end liquor declined broadly. Despite exceptions like Wuliangye and Niulanshan, industry insiders believe the industry's foundation has entered a 'slaughter' mode.

After Moutai and Wuliangye stabilized, the 'rosy' annual reports of listed companies were seen as further evidence of industry recovery. However, after breaking down and categorizing high-end and low-end liquor from multiple listed companies, Tangjiu Express found that high-end liquor grew impressively while low-end liquor declined broadly. Despite exceptions like Wuliangye and Niulanshan, industry insiders believe the industry's foundation has entered a 'slaughter' mode.

**On the Surface**
**High-End Flourishes vs. Low-End Declines**
From the annual reports released so far, several famous liquor companies including Wuliangye, Niulanshan, Jinshiyuan, Yingjia Gong, and Tuopai Shede have achieved 'beautiful' growth in revenue and profit; especially high-end liquor, which saw growth rates exceeding double digits. However, among low-end liquor, except for Wuliangye and Jiugui, the rest experienced negative growth, with most declining by more than double digits.

Given that several listed companies have not yet published their annual reports, Tangjiu Express also reviewed the 2016 interim reports of companies that classify high and low-end products. The contrast between high-end and low-end is even more pronounced; even companies with mature low-end brands like Luzhou Laojiao, Tuopai Shede, and Jiugui Liquor failed to halt the decline.

In summary, the 'rosy' annual reports only reflect the positive conditions in the high-end liquor market and cannot mask the intense competition in the low-end liquor market.

**In Reality**
**After Five Years of Adjustment, the Shakeout in Low-End Liquor Has Just Begun**
To further explore the current state of high-end and low-end liquor, Tangjiu Express analyzed the growth rates of typical companies like Luzhou Laojiao, Jiugui Liquor, and Tuopai Shede over the five years of industry adjustment. The findings are: First, after the adjustment period, both high-end and low-end liquor showed overall downward trends, with Tuopai Shede's low-end liquor declining more sharply in recent years. Second, low-end liquor growth only outpaced high-end in 2013-2014, which explains why the industry then touted the 'mass liquor' dividend. Third, comparing the 2016 interim and annual reports of Tuopai Shede and Jiugui, the overall decline in low-end liquor has slowed, and Jiugui's low-end revenue achieved positive growth for the first time in several years.

*Note: For Jiugui, high-end refers to the Jiugui series, and low-end revenue is from the Xiangquan series.*
*Note: For Tuopai Shede, high-end refers to mid-to-high-end in its annual report.*
*Note: For Luzhou Laojiao, products below the Tequ series are classified as low-end.*

In addition to these brand-renowned companies, regional strong brands like Jinshiyuan and Yingjia Gong, known for their marketing, also show a polarization between high and low-end; despite overall revenue and profit growth, their low-end products (priced under 100 yuan) are also declining.

*Note: For Jinshiyuan, high-end includes Special A+ and Special A categories, others are low-end.*
*Note: For Yingjia Gong, high-end refers to A-class products in its annual report, low-end to B-class products.*

In summary, whether national famous brands or regional strong brands, whether known for brand power or marketing, the leading listed liquor companies are currently underperforming in the low-end segment.

Of course, during the adjustment years, most famous brands could not focus their systems, mechanisms, resources, teams, or energy on the low-end market, which offers relatively lower returns. Given their historical neglect of low-end competition, their current situation is understandable. However, for regional strong brands, which have advantages such as strong price bands for core products, cost advantages of local operations, and team experience in direct competition, their decline in low-end competition suggests that the 'foundation' shakeout is just beginning in this squeezed environment.

**A Wake-Up Call**
**Industry Enters 'Slaughter' of the Foundation**
Tangjiu Express noted that among companies that have published annual reports, Wuliangye and Niulanshan have performed notably well in low-end liquor. Niulanshan, despite slowing overall growth over the past five years, has maintained double-digit growth annually, with scale exceeding 5 billion yuan; it is expanding aggressively nationwide, seemingly in 'harvest' mode.

Wuliangye's low-end liquor, backed by its strong brand, has maintained nearly double-digit growth for several years. At the December 18 conference last year, Wuliangye proposed a 'double 10 billion' strategy for its series liquors, indicating a clear offensive plan. This year, Luzhou Laojiao's five major products, including the first and second Qu, have opened their franchise thresholds, and their push into county and township markets has gained support from many distributors. Currently, low-end products with strategic positioning and super brand backing are gradually showing advantages in competition, and the 'slaughter' in the industry's foundation will intensify.

*Note: Wuliangye's high-end liquor refers to its main products with a sales price (including tax) of 120 yuan or more per 500ml bottle.*

**Source: Tangjiu Express (ID: tjkx99)**
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