High-end wine up a high-end rice wine with the wind price of 10%

The sales season is approaching, and high-end liquor has long been a "upswing." Some studies have pointed out that Guojiao 1573 has verbally informed dealers that the price of funds is temporarily raised from 519 yuan to 619 yuan (including 20 yuan deposit). Maotai and Wuliangye are expected to raise prices by 80-100 yuan and 60-80 yuan respectively in the fourth quarter. Yanghe Blue Classics (sea blue, sky blue, dream blue), blue and white porcelain wine, Shuijingfang and other liquors will also follow the price increase.

While liquor companies have increased prices significantly, Huang Yue, the leader of rice wine, is not far behind.

Yesterday, Gu Yue Long Shan (600059) announced that due to the market conditions of rice wine and the prices of raw and auxiliary materials, the company will increase the ex-factory price of over 9 years of high-end wine products (non-gift boxes) from October 1, 2010 onwards. The average price increase is about 10%. Or affected by this price increase news, yesterday's stock price gapped higher open, and then all the way to shock lower, eventually closing at 13.20 yuan, up 0.46% over the previous trading day.

Rice wine continues to increase prices

It is understood that Gu Yue Long Shan rice wine products have gradually raised the ex-factory price since the beginning of 2010, in which, since May 27, 2010, the ex-factory price of altar wine products has been raised, and the average price increase is about 8-9%; since 2010, From June 1, the ex-factory price of the Qing alcohol series and ordinary bottled wine products was raised, and the average price increase ranged from about 6-9%.

Analysis of the reasons for this price increase, the investment adviser in the food industry researcher Zhou Siran pointed out to the "Securities Daily" reporter that it does not rule out the upcoming consumer season, but the underlying reason lies in the expansion of the rice wine market and rising raw material prices. Furthermore, with the progress of the nationalization of the rice wine industry, the collection value of aged rice wine has become increasingly prominent. The market is booming and enters a period of rapid expansion. The rise in prices of raw materials such as glutinous rice and transportation costs has also prompted Gu Yue Longshan to increase its aging rice wine. price.

Of course, rice wine is about to enter the peak season and the price of raw and auxiliary materials is rising. This is the direct reason for the price increase of Gu Yue Long Mountain.

Senior Marketing Planner, Win Advisor Senior Consultant of FMCG Marketing Center Mu Feng pointed out that, in addition, this price increase and Gu Yue Longshan has been promoting the “original wine sales” is also related, because this type of futures sales model is the name of the year concept Is intended to make more profits.

The early price increase effect has appeared

Gu Yue Longshan this year's semi-annual report shows that the company achieved a net profit of 51.96 million yuan in the first half of this year, an increase of 31.25%; income of 517 million yuan, an increase of 50.18%. The gross profit rate was 34.85%, an increase of 0.84%. From the main business perspective, the operating revenue of alcoholic beverages increased by 54.89% year-on-year, and the operating profit margin decreased by 4.13% compared with the same period of last year. In contrast, last year's annual report showed that the company achieved operating income of 740 million yuan last year and net profit of 76.479 million yuan.

It can be seen that since the beginning of this year, with the gradual recovery of the brewing industry, the market is gradually picking up, and the overall development of the company has improved. The profitability of the company has been improved. It can be predicted that with the arrival of the sales season, the annual performance of Gu Yue Longshan will increase significantly. .

At the same time, however, due to the impact of inflationary expectations, major or uncontrollable factors such as changes in the production costs of raw and auxiliary materials, including food, have increased.

Since the beginning of this year, Gu Yue Longshan raised the ex-factory price of some of its products. As can be seen from the Gu Yue Long Shan 2010 semi-annual report, the company's income and net profit have all achieved substantial growth in the first half of the year. .

Zhou Siran pointed out that this positive and effective performance has enhanced the company's confidence in raising product prices this time, or that the net profit growth of more than 30% year-on-year has helped the company's price increase to some extent.

Zhou Siran believes that with the gradual implementation of the price increase, the second half of the year and even the full year's results will achieve effective growth. At the same time, the expected increase in prices will also encourage dealers to increase inventory, the company’s product sales in the third quarter will have The increase will effectively promote the growth of the three quarterly and even annual product sales and performance.

High-grade rice wine still has a large price increase

Compared with the giants of the liquor industry, the gross profit margin of Gu Yue Long Shan Rice Wine has been relatively low. Therefore, Zhou Siran believes that there is still a huge price increase for high-end rice wine. As far as the liquor industry is concerned, its high price and high gross profit rate are not inborn, but with the rapid growth of the liquor industry, the leading enterprises have taken the lead in increasing prices year by year. For high-grade rice wine, its nutrition and health are no less than that of white wine. The most fundamental reason for its lower gross profit margin is that the industry is still in the primary development stage, the market is not mature enough, and the value of aged rice wine has been increasing. Many consumers believe that with the gradual growth of the rice wine industry, its price increase will gradually become more prominent.

However, Mu Feng believes that although rice wine is one of the three major ancient wines in the world, it only accounts for 5% of the total wine production in the country. The total national assets of rice wine last year was only equal to the total beer assets of Beijing in the whole year and the total value of liquor assets in Shandong Province. From the overall data, from 1999 to 2009, the total assets of China's rice wine industry has only doubled. From the market share, it can be seen that high-grade rice wine cannot have the price increase space and price increase environment such as Maotai and Wuliangye. Moreover, rice wine has always been regarded as “low-end wine” because of low prices. Consumers have already formed this awareness and it is difficult to change in the short term.

Doing great brands is still a long way to go

At present, the biggest problem with yellow wine is that the market share is too small.

Mu Feng pointed out that the competition in this market is not competition between peers, but rice wine and liquor, beer, wine and other competition for the market. In other words, the yellow wine leading companies such as Gu Yue Longshan bear the important responsibility of the joint education market, which is the basis for the company to become bigger and stronger, otherwise the industry does not have much significance. In addition, Gu Yue Longshan will also increase its efforts to do brand culture, brand rejuvenation and enhance brand value.

To do a big and strong category, brand is not a matter of overnight.

Zhou Siran also pointed out that Gu Yue Longshan, the leading enterprise of yellow wine, should make efforts from the following aspects: First, the market expansion still needs efforts. At present, the rice wine consumer market in Jiangsu, Zhejiang and Shanghai is nearly saturated, and is affected by other beverages such as beer, wine, and liquor. The market size is small, and the industry needs to continue its efforts to expand the consumer market in other regions. Second, increase the intensive cultivation of sales and marketing channels for rice wine, and at the same time patiently carry out the dissemination and education of rice wine culture. Moreover, as a leading wine maker, Gu Yue Long Shan can give full play to the industry's leading role, build an exchange platform, and set an industry benchmark. In the development of the industry, they will jointly regulate the industry environment, reduce internal consumption, and curb some behaviors that are not conducive to the healthy development of the industry.