Winemaking News, May 2023

7 aspects of Changyu: A comprehensive look at China's leading winery - Chinese Banquet

On April 11th, the 2023 Changyu Noble Dragon Thousand People Business Conference, titled "Choose Changyu Noble Dragon for Chinese Banquet", was held in Chengdu. Thousands of online and offline distribution partners deeply experienced a classic Chinese joyful banquet.

"The banquet promotion is accompanied by Changyu Noble Dragon's annual production and sales exceeding 100 million bottles!" Concentrating on the banquet scene, Changyu Noble Dragon shoulders the mission of expanding the Chinese wine market. Sun Jian, General Manager of Yantai Changyu Pioneer Wine Company Limited, emphasized that the promotion of banquets should be active and fast. Changyu Noble Dragon will firmly focus on the main banquet scene in the future, fully leverage its competitive advantages of large brands, high quality, and high cost-effectiveness, and help China's wine consumption continue to expand.

Only by constantly reflecting on oneself can one make progress. In 2022, domestic wine experienced "ten consecutive declines", while the imported wine market experienced "five consecutive declines", making it known as the "most difficult year" for the wine industry in the past 20 years.


In the first half of 2022, the sales revenue of wine enterprises above designated size nationwide was 3.853 billion yuan, while the revenue of Changyu during the same period was 1.953 billion yuan, accounting for 50.69%.

As a leading enterprise that accounts for more than half of China's wine industry, in Sun Jian's view, it is not very promising compared to the continuous decline of most of its wine peers and the entire industry. Changyu should place itself within the entire Chinese wine industry and check its own gaps.


According to the data of China Wine Association, 36.77 million bottles of white spirit are opened every day in China, while only 1.61 million bottles of domestic wine and imported bottled wine are opened every day. Hereto, Sun Jian believed that it is necessary to study why wine has not been able to better meet the needs of China's high-end wine consumer group, and how to expand the consumer base of wine. This should be the issue that Changyu, as an industry leader, should consider and the direction of future efforts.


Confidence: High Quality Domestic Wine will Usher in A Good Period of Development

In Sun Jian's view, although the development of the wine industry is currently facing some difficulties, positive and favorable factors should also be seen. For example, the Chinese market has a large scale and is currently undergoing consumption upgrading. The key is who can be closer to consumers and who can better satisfy them.

There is no decline out for wine, and to some extent, the industry may show signs of upward adjustment starting from this year's Chengdu Sugar and Wine Fair." Sun Jian pointed out that in the current situation where domestic wine has been declining for ten consecutive years and imported wine has been declining for five consecutive years, the industry is expected to usher in a new cycle of growth.


Opportunities are ahead. Changyu has strength and more confidence.


"Ten years ago, it was great for Changyu to win one or two international gold awards annually. However, excluding overseas acquisitions, Changyu's domestic brands alone won 25 Grand Prizes and 75 Golden Prizes internationally last year, adding up to exactly 100," Sun Jian shared. In the past month only, Changyu has won a total of 125 medals in various international competitions, including 15 Grand Prizes and 69 Golden Prizes. Sun Jian stated that it also indirectly confirmed Changyu's progress over the years.

"Craftsmanship comes first." Zhou Hongjiang, Chairman of Changyu Company, emphasized in an interview with Xinhua that Changyu should adhere to long-term principles. "Our products must be able to meet the needs of consumers whether in terms of external packaging or internal quality. Domestic wine with high quality will usher in a good period of development.


In 2023, Changyu will adhere to profit assessment as the starting point, implement the focus strategy, and promote the product structure to further focus on mid to high end, especially high-end, and focus on core single products that can bring greater sales and profit contribution; Strengthen classified marketing tactics, focus on key cities and core target consumer groups in the "battle of annihilation", and do a good job in leading typical cases; Continue to promote Digital transformation, further empower business, and continue to vigorously develop online business.


In the spring full of bright hope, Changyu looks forward to working together with the entire industry to make more people fall in love with Chinese wine and brandy, and work together to expand the industry and create good years.