According to the news of the wine industry on April 23, the supply of wine will be controlled by all dealers starting from the second quarter of 2024.Slotbonus100to10xMarketing strategy. Guizhou Xijiu sales Co., Ltd. sent a "notification letter" to the distributor at the end of March, saying that Xijiu had suspended the company's product supply in the second quarter because the dealer's inventory rate was higher than the red line, a Xijiu dealer said.

Interface News verified from the channel that the suspension of wine supply is aimed at some dealers whose inventory rate is higher than the red line, and dealers with better mobile sales will not be affected. Some wine merchants believe that Xi Liquor hopes to control the price of goods in the off-season.

Interface News called Xi Jiu for verification, and its staff said that the official response of the company would prevail. However, as of April 24, platforms such as Xijiu's official website, official Weibo and Wechat official account had not made a specific response to the statement.

Wine industry sources said that the suspension of product supply involves nearly 100 dealers, which is the first time in the history of wine development.

In late March 2024, when Interface News visited a liquor store along the Chishui River, it was found that there were unsold goods in front of the door. "I haven't picked up the goods yet after the New year." Li Ming, the store owner, saidSlotbonus100to10xHe took the goods from upstream dealers in the form of cash. On April 24, Li Ming told the Interface News that part of the stock of wine from a month ago had not been sold out.

In Li Ming's liquor store on the bank of Chishui River, there are unsold goods / Photography: interface News

Li Ming, who started the wine business in 2022, clearly felt the difficulty of selling last year. In Li Ming's view, the dilemma of wine learning is also the dilemma of the whole soy sauce and wine industry. "the sales of big brands have decreased, and the situation in their own workshops that make Kun Sauce is even worse." In 2024, Li Ming's own small winery has stopped production, the stored wine can not be sold, the cash flow can not come back.

Since the second half of 2021, there has been news on the market that the fever of soy sauce has gone down. Prior to this, soy sauce and wine enterprises expanded production, the industry investment enthusiasm is high, Xijiu has also experienced a wave of great progress in the heat wave of the industry. According to data released by Xijiu, the company joined the ranks of 10 billion alcohol enterprises in 2020 and further exceeded 20 billion in 2022.

In addition to practicing wine, soy sauce enterprises in the 10 billion camp also include Guotai Liquor Industry and Lang Liquor, and Guizhou Jinsha Pit Liquor and Precious Liquor can also reach more than 5 billion in revenue.

However, in 2023, in addition to Maotai, almost all soy wine enterprises with shoulder and below are facing the dilemma of poor moving sales, and high channel inventory and upside-down prices have become a common problem for enterprises.

In the soy sauce circle, Xijiu used to be a relatively unique existence, it once belonged to Maotai for a short time, and grew rapidly. According to public data, Xi Liquor is a Daqu Maotai-flavor liquor originally produced in Xijiu Town, Xishui County, Zunyi City, China.

Since Maotai put forward the development strategy of "giving priority to one industry and diversified economy" in 1992, Maotai has tried to diversify its business and even invested in the semiconductor field, but with mediocre results. Only acquired Xijiu, which was on the verge of bankruptcy at that time, and made achievements, bringing Xijiu back from the dead and stepping into the 10 billion camp.

In July 2022, Maotai Group no longer actually controlled Xijiu and became an enterprise directly under the State-owned assets Supervision and Administration Commission of the people's Government of Guizhou Province.

The main products of Xijiu include Junpin series, cellar series, golden diamond series, etc., and single high-end series, mainly Junpin Xijiu and cellar 1988, etc.

Since 2023, Xijiu has suffered a serious price inversion. According to the Securities Daily, the selling price of Xijiu 1988 in 2023 is 569 yuan per bottle, but the wholesale price on the market is around 500 yuan per bottle. The main product of Xijiu is 53 degrees, and the wholesale reference price of 500ml Junpin Xijiu is about 800yuan / bottle, while the dealer's payment price is 919RMB / bottle, which is in a state of upside down.

According to Dagong.com, Ouyang Qianli, an expert in China's wine industry think tank, believes that the upside-down price of wine products has nothing to do with breaking away from Maotai. The enterprise pursues the achievement, the market appears the moving sale is not smooth, the price will hang upside down.

Wang Wei, a liquor dealer, once told the Interface News that while wine companies handed over high growth and more than 10 billion yuan in performance, they were transmitting layers of pressure to downstream dealers. During the three years of the epidemic, many dealers were unable to complete their tasks, and the goods were placed in the warehouse. "the annual tasks given by manufacturers to dealers are only increasing, and dealers will put pressure on downstream dealers at the end of the year in order to get rid of inventory."

Wang Wei said that the dealers made annual payments to the manufacturers according to the contract, but the backlog of goods led to the inability to return the funds, and many dealers' businesses collapsed and chose to ship the goods at low prices to withdraw the funds, resulting in the supply of goods much lower than the official guidance price to enter the market. The backlog of inventory cleared by dealers at low prices will also cause liquor prices to hang upside down.

In the liquor industry, when inventory is overstocked and prices are upside down, once fast-growing spirits are not immune, and enterprises try to solve the problem from the channel.

At the half-year marketing meeting in 2023, Xijiu announced that sales in the first half of the year reached 11.6 billion yuan, and sales revenue increased by 13% in the first half of the year. Net profit, sales expenses and other data were not published. Zhang Deqin, party secretary and chairman of Xijiu Group, said in a speech at the conference of Xijiu dealers at the end of 2023 that the company had achieved its set goals in 2023, but did not disclose specific figures.

(Li Ming and Wang Wei are aliases in the article)