Saving The Nation By Curve? Revise Pharmaceutical Industry'S March Into Sauce Wine "Blue Ocean"

Recently, according to media reports, the revised liquor industry under the revised pharmaceutical industry is negotiating with Maotai town liquor enterprises, intending to purchase sauce liquor enterprises, and has inspected many distilleries such as Chinese wine industry, Shenlong liquor industry and official cellar of Song Dynasty.

According to a person familiar with the matter, the details of the acquisition are still under negotiation, with the focus on the valuation of Laojiu liquor and the equity distribution of its future listing. "The determination of the pharmaceutical industry to enter the wine industry has been fixed, and the nationwide talent reserve and recruitment will soon be launched."

As early as ten years ago, the amendment pharmaceutical industry had a cross-border wine industry. In 2010, taking advantage of the then popular "water testing" health wine industry, in 2017 and 2018, the amendment, together with Maotai and Wuliangye, well-known enterprises of Luzhou flavor liquor and Maotai Maotai liquor in liquor industry, jointly launched two brand series products of "modified Guoding" and "modified healthy sauce". However, it was always "loud thunder but little rain", and the business situation was not good.

Shi lichen, founder of Beijing Dingchen consulting, pointed out to the 21st century economic reporter that the revised pharmaceutical industry has been involved in the wine industry for many years. This time, he chose sauce liquor to add new categories. On the other hand, he also hoped to make use of the famous development of Maotai and Maotai town. "Now the capital market has a high recognition of wine, so the amendment certainly wants to enter the Bureau."

The determination of pharmaceutical industry to enter the liquor industry has been fixed, and the nationwide talent reserve and recruitment will soon be launched. Visual China

March into "blue ocean" of sauce wine

After revising the industry's trial of water health wine and beer, it again entered the "blue ocean" of sauce liquor.

Before that, the news that the amendment group aimed at sauce wine had been rumored repeatedly. On September 23, 2020, according to the report of Renhuai financial media center, the Forum on Revising the investment project of wine industry group was held in Renhuai City. Wang Nengke, deputy secretary of the municipal Party committee and mayor, said in a speech at the meeting that he hoped to revise the liquor industry, give full play to the advantages of large enterprises, take the route of merger and reorganization, and absorb and create a professional Maotai flavor liquor production team.

Correction group may be the second pharmaceutical group to enter the sauce and wine industry after tianlisi.

In recent years, the sauce wine industry has entered the golden age, and the consumption scale and category market have been expanding. According to industry statistics, from January to December 2020, China's sauce liquor industry will achieve a production capacity of about 600000 kiloliters, with a year-on-year growth of about 9%, accounting for about 8% of the capacity of the liquor industry; the industry's sales revenue is about 155 billion yuan, with a year-on-year growth of 14%, accounting for 26% of the liquor industry's sales; the industry's sales profit is about 63 billion yuan, with a year-on-year growth of 14.5%, accounting for 39.7% of the liquor industry's profits. Some industry insiders said that in the next 10 years, the sauce wine market size will exceed 500 billion yuan.

In the background of soy sauce wine fever, the industry believes that it is not too late for the correction group to enter the Bureau of sauce wine.

Zhu danpeng, an analyst of China's food industry, told the 21st century economic report that "Maotai flavor liquor belongs to a part of the blue ocean, and there are not too many players entering this area, so it is still very good to correct the overall layout of Maotai flavor liquor in the pharmaceutical industry."

Zhu danpeng pointed out that the survival and development cycle of many FMCG products is becoming shorter and shorter, while liquor is not only of high value, but also has no shelf life. According to the medium and long-term strategy of the whole enterprise, the opportunity of sustainable development and the growth of the valuation of the whole group, the layout of liquor industry conforms to the development trend of the whole industry and the rigid needs of the medium and long-term development of the enterprise.

So, which Maotai town liquor enterprises will be acquired by the revised liquor industry?

"The amendment pharmaceutical industry is likely to choose to purchase the Chinese wine industry, because they have already had a mature negotiation with the Chinese merchants. I think the opportunity for the Chinese wine industry is the greatest." Zhu danpeng believes that the Chinese wine industry is the best in terms of brand, quality and commercial value.

The amendment has been in the wine industry for a long time.

Liu Wei, a researcher in the big health industry of CIC consultant, pointed out that the revision of the pharmaceutical industry needs to explore new sources of profits. There are similarities between health wine and pharmaceutical products, and it is relatively difficult for pharmaceutical enterprises to operate cross-border health wine.

As early as 2010, the revised pharmaceutical industry took advantage of the heat to "test" the health wine industry, but it did not achieve the desired results. Ten years ago, China's health wine industry entered a new period of growth, with an average annual growth rate of 30%. However, the scale effect did not form at that time. In 2016, the pharmaceutical industry entered the health wine industry twice, but the marketing channel was still short board.

In 2017, the Group signed a strategic cooperation framework agreement with Maotai, a famous Maotai liquor company, and decided to carry out strategic cooperation in the research and development, production and sales of health wine, and jointly build a health wine enterprise with "Southern liquor and Northern medicine". The amendment also reached cooperation with Wuliangye, a well-known Luzhou flavor liquor enterprise in liquor industry, in 2018. With this momentum, the company quickly launched two brands of "xiuguoding" and "Xiujian sauce".

In 2018, the amendment group and Zhejiang Xinlian holding company acquired Huzhou Qianchang liquor industry Co., Ltd., and planned to invest 5 billion yuan in Changxing to lay out a large health industry, including 2.2 billion yuan in Sinan Huashan Industrial Zone to produce yellow rice wine, liquor and health wine.

In 2019, the amendment upgraded the liquor sector to establish a liquor company. However, the Amendment's entry into the wine industry has been spared, and the "wine business" has not yet become a climate. After searching, the 21st century economic reporter found that Taobao platform can search for the revised liquor store. Only 12 products were put on the shelves, and the sales volume was dismal, including the puerarin liquor "modified Guoding" which cooperated with Wuliangye, and the health wine brand "modified health sauce" which was known to be launched jointly with Maotai was not found. Jingdong platform can search for the revised wine flagship store, which is similar to Taobao store, which also has 12 products on the shelf and has poor sales. It is worth noting that Jingdong store's homepage indicates that the revised liquor flagship store will be closed on March 31, 2021 due to business adjustment.

"Saving the country by curve"

Xiulaigui, the founder of the amendment group, once pointed out that the great health industry has become the trend of the development of the whole society, and national liquor and Chinese medicine should play a better role in serving the development of great health.

The advertising words on the official website page of the amendment group are: "revise the medicine focusing on conscience, rest assured and effective medicine!" In fact, the revised pharmaceutical industry has carried out a multi category and multi field layout in addition to the main drug industry.

Liquor industry is only a part of revising the concept of "big health" industry in pharmaceutical industry. From its official website, its group products cover a wide range of products, including gastrointestinal products, gynecology products, tonic and tranquilizing drugs, external medicine, rheumatic osteopathy, cold and cough relieving category, etc., as well as products in other fields such as alcohol, daily chemicals, infants and children, medical equipment and so on.

Zhu danpeng pointed out that many enterprises had carried out diversified layout earlier in the past, but how to cash in after sideline business is a problem. "For the amendment, after entering the diversified development, it is likely to face the dilemma of weak main business, too many sidelines and too long front."

According to the official website of the revised pharmaceutical industry, the group is a large-scale modern private pharmaceutical enterprise integrating scientific research, production and marketing, drug chain operation and standard cultivation of traditional Chinese medicine. In 2020, "China's 500 most valuable brands", the revised Pharmaceutical Group's revenue in 2019 was 62.418 billion yuan, and the revised pharmaceutical brand continued to lead the pharmaceutical industry with a value of 30.559 billion yuan, ranking 214.

Behind the bright financial report is the correction of the pharmaceutical industry's difficult listing road.

As early as 2003, after the completion of the joint-stock reform of the pharmaceutical industry, it began to plan for listing. However, the revised pharmaceutical industry has tried A-share, Hong Kong stock, backdoor listing and other means, but in the end they all failed.

On July 11, 2019, Jilin Pharmaceutical Holdings issued the announcement on suspension of major asset restructuring, and planned to purchase 100% equity of modified Pharmaceutical by issuing shares. According to the announcement, the acquisition constitutes a major asset restructuring, and the trading of Jiyao holdings will be suspended from July 11, 2019, and the suspension is expected to be no more than 10 trading days. This "snake swallows the elephant" type backdoor reorganization has aroused the market attention. However, shortly after that, Jiyao holdings announced that it would terminate the acquisition of modiifed pharmaceutical, which took only 14 days to complete the listing of the company.

The repeated failure of correction attempts to go public has something to do with its negative news. In Shi lichen's view, the reasons for the failure of the revised pharmaceutical industry were complex. But one of them must be that it has too much negative news. Even if it is listed in Hong Kong, it has to be reviewed.

It seems that the purpose of correcting the pharmaceutical industry's frequent efforts in the wine industry is to "save the country by curve".

In this regard, Zhu danpeng believes that there has been a ceiling effect in the pharmaceutical industry. Therefore, if we want to go public in the future, we must have growth points and high-quality plates. "On the whole, he is right to lay out Maotai flavor liquor."