Food Sterilizer,Food Processing Machinery Parts,Fish Processing Machines

Food Sterilizer,Food Processing Machinery Parts,Fish Processing Machines

Poster News Reporter Shen Tong reported from Jinan

When it comes to “Luhua”, people’s first impression is the grain and oil series products it produces. But it is such a grain and oil giant, recently, but quietly crossed over to the field of liquor and started a sauce and fragrant liquor business.

Luhua brand liquor: peanut flavored?

Open the homepage of the Luhua Member Mall Mini Program, and the promotional slogan of “Luhua Sauce Classic, Glory Listed” comes into view. It is reported that the merchant has launched two products of Luhua Sauce Classic (Yellow) Maotai Town Core Production Area 53 Degree Sauce Aroma Baijiu and Luhua Sauce Classic (White) Sauce Wine with sales prices of 5994 yuan / box (equivalent to 999 yuan / bottle) and 2994 yuan / box (499 yuan / bottle) respectively. At present, 399 orders of 53-degree sauce-fragrant liquor have been sold in the core production area of Luhua Sauce Classic (Yellow) Maotai Town, and 438 orders of Luhua Sauce Classic (White) have been traded. It is worth mentioning that consumers have given praise to the liquor products produced by Luhua, saying: “The taste is good, and the price is cost-effective.” But some netizens ridiculed the grain and oil companies selling wine: authentic peanut-flavored sauce fragrant wine.

(Netizens ridicule: authentic peanut flavored sauce fragrant wine)

The reporter noted that at present, these two products are only sold in the Luhua member mall, and offline channels and e-commerce platforms have not seen related products on the shelves.

(Luhua Member Mall Mini Program)

It is reported that the manufacturer of Luhua sauce classic wine is Daduhe Wine Industry Co., Ltd., Maotai Town, Renhuai City, Guizhou Province, and the enterprise investigation shows that the enterprise was established in June 2000, located in Shangping Village, Maotai Town, is an industrial enterprise above designated size in Renhuai City, and is also one of the key brewing enterprises recommended by the Renhuai Municipal Government.

According to public information, Shandong Luhua Group Co., Ltd. is a national enterprise committed to being a leader in high-end edible oil and a national key leading enterprise in agricultural industrialization. Luhua Group spans edible oil, condiments, rice noodles and other industries, and now has 47 production bases, with an annual production capacity of 1.5 million tons of edible oil, 300,000 tons of condiments, and an annual processing capacity of 500,000 tons of rice noodles. After years of development, Luhua Group has now formed two pillar industries: one is to use 5S physical pressing technology to produce peanut oil as the main production of edible oil industry chain supplemented by sunflower kernel oil, rapeseed oil, corn oil, soybean oil and other categories. The second is to use unique biological fermentation technology to produce high-end “natural fresh” sauce-flavored soy sauce. At present, Luhua Group has established 268 sales branches across the country, forming a marketing network covering the whole country. In 2020, Luhua Group’s sales revenue was 39 billion yuan, achieving sustained growth for more than 30 years.

Why do grain and oil giants “drink” across borders?

As a giant in the grain and oil industry, why did Lu Hua suddenly make wine across the border?

In fact, as early as 10 years ago, Luhua began to lay out the wine industry. On November 9, 2012, Luhua International Famous Wine Industry Co., Ltd. was registered and established with a registered capital of 10 million yuan. The company is wholly owned by Shandong Luhua Group Co., Ltd., and was renamed Shandong Luhua International Wine Industry Co., Ltd. in 2015 and Shandong Luhua International Wine Industry Co., Ltd. on September 1, 2021. The reason for the layout of the liquor field may be because of the huge market prospects of the liquor industry.

(Data source: Qichachai)

As we all know, the main products of the liquor market are divided into strong aroma type, sauce aroma type, clear fragrance type, combined aroma type and other aroma type, among which, the strong aroma type has occupied more than half of the market share for many years, and the market share of sauce aroma liquor ranks second. However, relevant people said that although sauce is still only a small category in liquor products, its market share has a lot of room for improvement.

The data shows that the market size of sauce-flavored liquor in 2015~2020 shows a state of fluctuation and rise. According to the “2020~2021 China Sauce and Wine Industry Development Report”, in 2020, China’s sauce liquor production capacity will be about 600,000 kiloliters, a year-on-year increase of about 9%, accounting for 8% of the total production capacity of China’s liquor industry; Achieved industry sales revenue of about 155 billion yuan, a year-on-year increase of about 14%, accounting for 26% of China’s liquor industry sales; The industry sales profit was about 63 billion yuan, a year-on-year increase of about 14.5%, accounting for 39.7% of the profit of China’s liquor industry.

From the perspective of market supply and demand, the current capacity demand gap of sauce and aroma wine is about 250,000 kiloliters, and at the same time, production capacity has also become a key factor restricting the rapid development of sauce and aroma wine enterprises, especially the production capacity of high-end sauce wine. Therefore, expanding production capacity has become the primary task of China’s mainstream sauce and aroma wine manufacturers.

According to data from the Prospective Industry Research Institute, at present, mainstream wine companies such as Moutai, Langjiu and Xijiu are stepping up their efforts to expand production capacity, and the total production capacity after expansion can reach 416,000 tons, which will effectively fill the gap. Specifically, after the expansion, Moutai’s production capacity is the largest, reaching 56,000 tons, followed by Langjiu and Xijiu, both with a production capacity of 50,000 tons after expansion.

At the same time, local wine industry associations have also issued a series of corresponding policy support to promote the development of the local soy wine industry to support local soy wine enterprises.

Among them, as a major province in the sales volume of sauce wine, the Sichuan Liquor Industry Association proposed to give an amount subsidy, and Luzhou will give subsidies of 2,000 yuan per mouth to wine enterprises that build 200 to 400 sauce cellars in the city; In Henan, a major wine consumption province, the sales volume of sauce wine has exceeded 20 billion yuan, surpassing strong fragrance to become the largest aroma type of liquor consumption in Henan, and the Henan Liquor Association has proposed that the maximum subsidy for a single enterprise wine pool should not exceed 3 million yuan; In the Guangdong market, which has a capacity of 26 billion liquor, the sales volume of sauce wine has reached 12.6 billion, accounting for nearly 50%, in order to activate the market and encourage consumption, Guangdong proposed to give preferential treatment of “one enterprise, one policy”.

According to data from the China Liquor Industry Association, in the next 10 years, the market share of sauce-flavored liquor will continue to increase and is expected to reach 30%. And according to the “14th Five-Year Plan for the Development of China’s Liquor Industry (Draft for Comments)”, the development goals of the liquor industry in the 14th Five-Year Plan show that by 2025, the sales revenue of the liquor industry will reach 800 billion yuan. It is enough to see that in the future, the development of sauce and fragrant wine has broad prospects.

Why have listed companies failed to sell alcohol across borders?

Perhaps seeing the broad market prospects of the wine industry, since this year, many listed companies have also begun to “sell wine” across borders, but the final result is not satisfactory.

On June 20, Zhongxing Mushroom, a large A-share enoki mushroom company, announced its intention to cross the liquor industry and acquire 100% of the shares of Shengjiao Liquor Industry, but on October 15, the company disclosed that it terminated the acquisition of Shengjiao Liquor Industry.

On October 19, cross-border e-commerce company Jihong Co., Ltd. issued an announcement that the company terminated the acquisition of no less than 70% of the equity of Diaoyutai Gong. The acquisition agreement was signed on June 27 and after waiting nearly four months, the acquisition was terminated. The company said that after the signing of the “Equity Acquisition Intention Agreement”, the company actively carried out due diligence work, hired auditing, appraisal and other intermediaries, and appointed special personnel to conduct detailed understanding and investigation of various assets and financial data of Diaoyutai Gong, during which the company communicated and negotiated with the counterparty, the target company and the intermediary on the transaction matters for many times, and reached a preliminary consensus. Due to changes in the macro environment of the market, the company decided to terminate the acquisition.

On the evening of November 2, oil exploration and development company *ST Baode issued an announcement that the company intends to terminate the purchase of a controlling stake in Famous Saga Wine Chain Co., Ltd. by paying cash. The company said that this was mainly due to changes in the market environment.

In addition, Dahao Technology, which began to engage in cross-border technology last year, was also suspended by the CSRC on August 20 this year, and the reason for the cross-border failure was that Beijing Tian Yuan Law Firm, a law firm hired by the company, was placed under investigation by the CSRC for legal services provided by other companies.

In this regard, industry insiders said that cross-border mergers and acquisitions are more difficult than industrial mergers and acquisitions. Since before the merger, listed companies are not familiar with assets in related fields, and it is inevitable that there will be certain deviations in the judgment of value. At the same time, due to the excessive capitalization of Chinese sauce wine in the past two years, a large amount of speculative capital has flooded the industry, causing the bubble of the industry as a whole. Too fast and too high capitalization also aggravates the difficulty of industry management.