Baijiu Provincial Annals| Hubei: The fragrance of rice and flowers in Baiyunbian sticks to the middle end, and the bulk wine market is huge

Blue Whale News, March 6 (Reporter Zhu Xinyue)In the early morning of the river fog, the streets and alleys of Hubei woke up in the charcoal fire. On Changdi Street, the sound of dough beating, the heat of rice flour steamed meat and the oily aroma of the dough nest intertwined. At a small table at the end of the alley, thick porcelain bowls are full of white wine.

The tradition of drinking too early in Hubei can be traced back to the quay rivers and lakes a hundred years ago. At the intersection of the Yangtze River and the Han River, workers carrying and pulling fiber need to use strong liquor to dispel the cold and dampness in the early morning. Fishermen take a sip of hot wine to warm themselves up before dawn. When Shashi Wharf was at its peak, workers used enamel vats to hold bulk white wine, supplemented by stewed dried beans and spicy radishes, and squatted on the green stone steps to drink it hurriedly. The alcohol and sweat were steaming in the morning mist.

This genetically engraved drinking memory carries the Jianghu spirit of Chu ‘s disobedience to the Zhou Dynasty. It continues to this day in the crisp sound of wine bowls touching each other, giving birth to a unique Hubei liquor market.

Luzhou-flavor liquor dominates

Hubei is bordered by Anhui Province, Chongqing City in the west, Shaanxi Province in the northwest, Jiangxi Province and Hunan Province in the south, and Henan Province in the north. It is an indispensable and key link in the central region. The terrain here is surrounded by mountains on the east, west and north sides, and the central area is relatively low and flat, forming a unique geographical feature. The climate is distinctive, with cold winter, hot summer, warm and pleasant spring, and refreshing and pleasant autumn. Such natural conditions have given rise to the unique charming Jingchu culture.

In this land with profound cultural heritage, wine culture occupies a pivotal position.

Xiao Laqing, deputy secretary-general of the Wuhan Liquor Industry Association, told the Blue Whale Financial reporter that the liquor market in Hubei Province reaches about 30 billion yuan, with mainstream degrees including 42 degrees and 45 degrees, 52 degrees and 53 degrees, and a small number of 70 degrees and 75 degrees; The market pattern shows a competitive trend of distinctive regional characteristics and the coexistence of national liquor companies. In this market, real estate wine occupies a dominant position, and there is also no lack of penetration and competition from national first-tier wine companies.

Xiao Laqing further pointed out that the Hubei liquor market presents a dumbbell-shaped structural characteristic. Well-known local wine companies such as Daohuaxiang, Baiyunbian, Huanghelou, and Zhijiang have the upper hand in the range of 100-400 yuan. However, the market in the price range below 100 yuan and above 400 yuan is occupied by national wine companies such as Maotai, Wuliangye, Shanxi Fenjiu, Yanghe, Niulanshan, Xifeng Liquor, and Jiannanchun. In Hubei Province, consumers ‘alcohol taste is biased towards soft and sweet, and dual-flavor, Luzhou-flavor and Fen-flavor liquors occupy a significant advantageous position in the Hubei market.

An industry veteran revealed to the Blue Whale Financial reporter that the sales volume of Wuliangye’s full range of products in Hubei in 2024 is expected to reach about 450,000 pieces, with sales of about 2.5 billion to 2.6 billion yuan; Yanghe wine, known for its soft taste, has been invested in Hubei for many years, and its annual sales have exceeded 2 billion yuan; In addition, with the fragrance becoming popular, Bofen continues to make breakthroughs, and Fenjiu’s annual sales in Hubei are also quite considerable, ranging from 500 million to 600 million yuan. Moutai’s quota in the Hubei market last year was more than 300 tons.

Significant geographical advantages

Compared with national wine companies, real estate wine has shown more significant geographical advantages in the Hubei market. Some dealers estimate that Baiyunbian’s annual sales in 2024 are expected to be approximately 8 billion yuan, of which sales in the province account for as high as 6 billion yuan. Its main products include Baiyunbian’s 12, 15 and 20 years. ldquo; Baiyunbian’s local market is very stable, and its aroma and flavors are very suitable for Hubei people. The salesmen cover towns and cities, and the channels are very stable. Last year, Baiyunbian increased by about 10%.” rdquo;

As the second largest brand in Hubei Province, the strength of Daohuaxiang Wine Industry cannot be underestimated. ldquo; Sales in the Hubei market last year reached about 3 billion yuan, and nationwide sales may be close to 4 billion yuan. Daohuaxiang has extremely strong market penetration in Hubei Province. Some county markets have even reached the level of only drinking Daohuaxiang, and the annual sales of a single market can exceed 100 million yuan. ”Local industry insiders revealed to Blue Whale News.

Xiao Zhuqing, a liquor marketing expert, told Blue Whale News that the sales of Jinjiu’s Maopu and Shennongjia brands in Hubei Province are also considerable, expected to reach about 4 billion yuan. Bawangzui and Shihua Wine Industry followed closely, with volumes ranging from 600 million to 700 million yuan.

In addition, foreign wine companies are also trying to get a piece of the Hubei market. In 2016, Gujing Gong Liquor (000596.SZ) spent 816 million yuan to acquire a 51% stake in Huanghelou Liquor, thus officially entering the Hubei market. According to the financial report, Huanghelou Liquor Industry will achieve revenue of 1.7 billion yuan and net profit of 210 million yuan in 2022; by 2023, its revenue will exceed 1.8 billion yuan and net profit will increase to 220 million yuan.

It is worth noting that in 2024, Zhang Daohong, who once led Jinsha Liquor Industry to achieve remarkable results, came to Zhijiang Liquor Industry. According to industry estimates, Zhijiang Liquor Industry will grow by about 10% in 2024. The arrival of Zhang Daohong has undoubtedly injected new vitality into Zhijiang Wine Industry, and its future performance in the Hubei market is also worth looking forward to.

The bulk wine market is huge

Compared with the liquor markets in Henan and Shandong, the performance of provincial liquor in Hubei Province is undoubtedly more outstanding.

“In addition to differences in taste preferences, in 2023, the population of Hubei Province will be 58.38 million. Compared with Henan and Shandong, its population size is the smallest, but its geographical area far exceeds those of these two provinces. This unique population and geographical conditions are one of the key factors shaping the Hubei liquor market pattern. This has resulted in a relatively low input-output ratio in the Hubei market, which is only about one-tenth of that of the Henan market. This reflects the uniqueness and challenge of the Hubei liquor market. rdquo; Xiao Laqing called it.

In addition, Hubei ‘s bulk wine market, which is regarded as a flavor of hometown, is also huge. ldquo; Especially in cities along the river such as Yichang and Jingzhou, bulk liquor chains and workshops are dotted all over the country, and sometimes more than a dozen can be seen within a kilometer. In some vegetable markets, the number of bulk liquor shops even exceeds that of tobacco and liquor shops. rdquo; A local person told reporters.

For example, reports show that Beigang Town, Tongcheng County, Xianning City, Hubei Province, has opened many brewing workshops across the country, with an annual output of about 15,000 tons of liquor and a sales amount of 1.5 billion yuan. It has become a well-known grain and wine town.

It is reported that the main consumption price of bulk liquor is concentrated at 40-50 yuan/catty, and the price of some high-end bulk liquor can even reach 100 yuan/catty. In terms of fragrance type, Fen-flavor bulk liquor dominates, supplemented by Luzhou-flavor and Maotai-flavor types, meeting consumers ‘diverse taste needs.

Together with brand wines, bulk liquor has built a diversified taste map of the Hubei liquor market.