How many beverage manufacturing companies are there in China and how are they developing?

Analysis of the development status of the beverage industry in recent years

1. Industry scale and growth rate

my country's beverage and alcohol manufacturing industry has still shown rapid growth in recent years. Among them, the national liquor production reached 7.0693 million tons in 2009, a year-on-year increase of 23.82%, which was 8 percentage points higher than the 15.8% annual growth rate in 2008; the national beer production was 42.3638 million tons, a year-on-year increase of 7.09%, basically maintaining a low and stable growth rate. Trend: National wine production was 960,000 tons, a year-on-year increase of 27.63%, and the total industrial output value exceeded 20 billion yuan, a year-on-year increase of 20.4%; rice wine production was 1.0629 million tons, a year-on-year increase of 13.99%, and the growth rate has increased.

2. Market concentration and brand development

1. Liquor

There are many enterprises in China’s liquor industry, including formal enterprises with production licenses, a large number of workshop-style enterprises, and even unlicensed workshops. According to incomplete statistics, the conservative number of liquor companies in China is more than 18,000. Since most liquor companies adopt a multi-brand management strategy, the actual number of brands operating in the industry far exceeds this number. It can be predicted that the total number of product brands in the liquor industry will exceed 40,000.

From 1996 to 2001, China's liquor production basically showed a continuous decline. Since 2003, China's liquor production has basically entered a stable period, with a slight increase. In 2010, the production momentum of the liquor industry is good, and the output is expected to reach more than 5 million tons, or even approach the 7 million tons mark. Compared with the liquor production in 2009, the growth rate of liquor production in 2010 is expected to exceed 20%.

China's liquor market is moving from disorder to order, from market decentralization to market concentration, although the industry's maturity process is slower than other food industries. Currently, market concentration is taking place in the liquor industry, including brand concentration and geographical concentration. In the market structure where multiple brands exist in the liquor industry, the market share will tend to concentrate on the strong brands of large famous liquor companies. The concentration of my country's liquor market is concentrated towards large enterprises and "big brands": the sales revenue of the top 20 key enterprises basically accounts for 40% of the entire industry, the profits and taxes account for about 60% of the entire industry, and the output accounts for about 40% of the entire industry. 30%. In addition, the geographical concentration of the liquor market is also obvious, and the geographical advantages of liquor production and sales are obvious: 1/3 of China's liquor sales are realized in Sichuan, and another 1/3 is realized in Henan, Anhui, Shandong, Guizhou, Guangdong and other provinces. Another 1/3 was realized in other provinces. Today, the glory of Sichuan wine is still there.

2． Beer

After the survival of the fittest in market competition and mergers and acquisitions between companies, there are currently about 250 beer companies in China, with 550 factories and 1,500 beer brands. Generally speaking, the Chinese beer market is oversupplied and production exceeds sales.

In 2002, China's beer production reached 23.86 million liters, surpassing the United States for the first time and becoming the world's largest beer producer. By 2009, China's beer production exceeded 42 million tons, ranking first in the world for eight consecutive years.

The beer industry is an industry that pursues "freshness". The higher the conversion efficiency of beer production and sales, the better the market situation will be. The increase in market capacity and market demand are one of the important reasons for the expansion of beer production capacity.

China’s beer market is becoming more and more concentrated, with the market concentration of the top ten beer companies reaching 70%. Among them, China Resources Snow, Qingdao and Yanjing have all become national beer brands, each occupying more than 10% of the market share, and together occupy more than 40% of the industry's market share. As the second echelon of the market, the market share of Jinxing Beer, Chongqing Beer, Zhujiang Beer and Jinwei Beer is generally less than 5%. According to other data, in the domestic beer market, mid-to-high-end beer only accounts for less than 20% of the market share. In the high-end beer market, foreign brands such as Budweiser, Heineken, and Carlsberg account for about 70% of the market share. Among the thousands of domestic brewery manufacturers, only Qingdao, Yanjing, Zhujiang and other brands have been committed to mid-to-high-end beer. In the mid-to-high-end market, foreign brands already account for most of the market.

3. Wine

According to data released by the National Bureau of Statistics in January 2010, the annual wine production in 2009 was 960,000 tons, with a growth rate of 27.63%, an increase of 3.8 percentage points from 2008. From a single month perspective, wine production in December was 132,400 tons, a year-on-year increase of 72.78%, and a 15 percentage point increase from November's growth rate. Beginning in May 2009, wine production began to turn positive. Entering the fourth quarter, the growth rate of wine production once exceeded that of liquor, becoming the leader in the winemaking industry. In 2009, the total volume of imported wine nationwide (excluding Hong Kong, Macao and Taiwan) reached 170 million liters, an increase of 4.93% over 2008.

3. Current situation of sales channels

Today, the liquor market segmentation standards have shown a diversified trend: by flavor, by culture, by gender, by age, by location, by By function, by situation, by channel, etc. No matter how liquor companies segment the market, they must ensure market scale, and the segmented market must have its own strong exclusive culture, unique cultural characteristics and unique lifestyle.

In general, there are seven main categories of liquor sales channels: First, circulation channels, such as wholesale markets, supermarkets, specialty stores, famous hotels, etc. The second is catering channels, such as mid- to high-end hotels, KTVs, bars, coffee shops, etc. The third is celebration channels, such as family gatherings, class reunions, business gatherings, etc. The fourth is service-oriented channels, such as companies setting up brand clubs, or joining external clubs where target consumers gather, and organizing members to carry out outdoor travel and adventure activities. The fifth is the gift collection channel, which can not only be gifts, but also collectibles, and can also be used as financial products. The sixth is group purchasing channels, welfare purchases by enterprises and institutions, or group purchases by consumers united. The seventh is innovative channels, such as postal sales channels, tobacco channels, passenger transport channels (trains, airplanes, etc.)...

For the beer market, there are four main market segmentation standards:

First, according to the raw materials, it can be divided into yellow beer and dark beer. They use different malts as raw materials to produce beer with different colors. Dark beer has certain market potential and good growth potential in the market.

Second, according to the sterilization method, it can be divided into draft beer and cooked beer. Pure draft beer is purer, fresher, more nutritious and has more market potential than cooked beer, and will become the focus of competition among enterprises. Japan's pure draft beer production and sales account for 95% of the total beer production and sales, Germany's pure draft beer production and sales account for 50% of the total production and sales, and the United States' pure draft beer market share can account for more than 30%, but in China, The production and sales volume of pure draft beer is less than 5%, which shows the huge space.

Thirdly, according to the consumption level of consumer groups, including identity, status, economic strength, purchasing power and other factors, it can be subdivided into high-end beer, mid-range beer and low-end beer. The profit of high-end beer is several times higher than that of mid-to-low-end beer, and the mid-to-high-end beer market has become a target for beer companies to compete.

Fourth, segmentation by sales channel. Some beers are targeted at small and medium-sized retail terminals, while some beers are targeted at mid- to high-end restaurants, hotels or nightclubs, or serve exclusive distribution channels.

Fifth, according to gender segmentation, some beer companies have launched more targeted men’s and women’s beers based on gender. For example, Cordon Bleu has launched a women's beer - "Cordon Bleu L" and a men's beer - "Cordon Bleu B2".

China’s wine marketing channels are copied from liquor channels, and copying has its feasibility. Therefore, the Chinese wine market still operates based on terminal stores, catering, and special channels.

4. Competition faced by the beverage industry

1. Competition characteristics of the liquor industry

First, competition in the high-end market is noisy. Although the high-end wine market is not as large as the mid- to low-end market, it has the characteristics of huge profit margins and is conducive to improving brand image. In fact, the production, sales and operating profits of the liquor market are in the shape of "pyramid" and "inverted pyramid" respectively. Although the proportion of high-end liquor is small, the profit accounts for about 50%; while the proportion and profit of mid-range liquor are both 35%; low-end liquor Serving liquor has the largest proportion, but the smallest profit.

The second is that it is difficult for a "strong dragon" to suppress a "local snake". In most provinces, strong regional brands occupy the leading position in the market, and regional brands have established a stable "market base."

However, in the process of market sinking, national big brands will inevitably vigorously expand regional markets. In this way, "strong dragons" and "local snakes" will inevitably come into contact with each other. However, even for big national brands, it is difficult for strong regional brands to shake their dominance in the regional market. Especially for mid-to-low-end liquor brands, regional brands take advantage of time, location and people.

Third, it is difficult for the "regular army" to defeat the "guerrillas". In China, where most of the population is rural, the rural liquor market has extraordinary potential. As far as the consumer base of liquor is concerned, the urban population, which accounts for 20% of the total population, accounts for 55% of the liquor consumption, while the rural population, which accounts for 80% of the total population, accounts for 45%. However, in rural markets, many national brands have done little. As a result, the "regular army" could not defeat the "Tuba Road", and the rural market was occupied or even monopolized by some "no-name brands", "small brands" and "rural brands". Many large and medium-sized wine companies have done nothing in the rural market, and have even been defeated by "small brands" and "no-name brands". The reasons are complex: first, value deviation, second, price deviation, and third, communication failure. In rural markets, consumers' brand concepts are relatively weakened, so first-tier brands will lose to second-tier and third-tier brands.

Fourth, the market competition position has obviously shifted. It is mainly reflected in three aspects: First, from offline marketing to online marketing. For example, Dongjiu established Beijing Dongjiu E-Commerce Co., Ltd. to sell the company's series of products online. Second, the potential of supermarket channels is limited, and liquor companies will focus on catering channels. Third, the battle for new channels will take place. Since new channels are not traditional channels after all, it is difficult to operate or cooperate with multiple brands. This determines the scarcity and value of channel resources, such as Henan Zhanggong Wine Industry and Baofeng Wine. Brands such as Credit Store Laojiu have used postal channels to buy wine, while Wuliangye Jinye Shen has developed a tobacco system, and so on. Fifth, competition from substitutes is highly involved. Any liquor brand has to face direct competitors and indirect competitors, and indirect competitors often choose between substitutes and others. Substitutes are mainly red wine, rice wine, foreign wine or beer, which has had a huge impact on the liquor market. The shrinkage of the liquor market is partly related to the growth of these substitute markets.

2． Competitive characteristics of the beer industry

First, brand competition. Today, as beer products become increasingly homogeneous, quality is no longer the most important part of a company's core competitiveness, and competitiveness is reflected in brand. Nowadays, the beer market competition has entered the era of brand competition, and brands will become the focus of competition for beer companies in the future.

The second is layout competition. Beer companies do not need to compete in the market with products, but use capital to expand the market. Through effective strategic layout, they conduct market mergers and acquisitions and harvest regional brands. In terms of sales and services in the beer industry, there is an effective radius problem, which can radiate 150-200 kilometers, so strategic layout is an important measure to expand the national market.

The third is product competition. Beer has a high degree of homogeneity, and beer companies all want to realize their dream of winning through differentiation through product innovation, often through market segmentation or new market opportunities. However, this kind of innovation often carries great risks. The beer industry has a single product line, making it difficult to rationalize the product structure and optimize the product mix.

The fourth is scale competition. Beer companies once raced to expand their business scale, production scale, sales scale and brand scale. Only by having scale can economies of scale be produced, which is beneficial to market share, cost reduction, and profitability.

The fifth is price competition. When the contradiction between China's beer supply and demand cannot be improved, but intensifies, and the brand effect cannot be fully exerted, the long-term "price war" in the beer industry cannot be reversed by scale expansion, but will be caused by the intensification of local market competition. Intensifying, the "price war" has hurt the entire industry.

3. Competition in the wine industry is reflected

First, the continuation of imported “foreign culture”. Wine is not China’s mainstream wine culture. It is undeniable that we need to learn the foundation of brand culture and objective quality characteristics of developed countries that have experienced free competition in the market economy. However, for a long time, the view that "imported is good" has also been formed. This is especially true for Chinese wine, which started late and is a new world wine.

Second, the quality problems of domestic wine have caused an increase in the market demand for imported wine. The quality of wine is grown, not made. This is what "seven percent planting, three percent craftsmanship" means.

Grapes are the core competitiveness of Chinese wine. Although, in terms of development, domestic wine has realized the transformation of blended wine to international standards; realized the transformation of industrial products to agricultural products; realized the transfer of raw materials from unsuitable areas to suitable areas, that is, the west; in horizontal comparison with European wine countries , we have mastered the most advanced production technology, better facilities and equipment, and have larger-scale, more beautiful wine cellars; from the consumer market, the country is growing rapidly, they are declining year by year, and are much more active than them... …However, our shortcomings in grape growing concepts and technology have left us lagging behind at the starting line.

The third is the driving influence of the high-end consumer market. International government affairs and business exchanges, returnees, import and export trade and other methods have allowed some high-end people in society to experience the culture of imported wine in advance and bring it back to the country, thus becoming the disseminators and market promoters of imported wine culture, effectively leading and pulling meet market demand.