After two years of waiting, Swellfun has announced that Diageo’s application for the company’s tender offer has been approved by the China Securities Regulatory Commission. This is the first case of Chinese liquor companies being merged by foreign companies.

Prior to this, the liquor industry also suffered frequent infusion of capital from inside and outside the industry: Dukang merged, Goldman Sachs injected Song He, Zhongyao Xiaqi Xifeng, Huaze Holdings Shaanxi Taibai, acquired Guizhou Zhen wine, Weiwei Holdings Zhijiang, Pernod Ricard By means of Swedish vodka dyeing Chinese liquor... All this seems to indicate that the capital era of the liquor industry has arrived.

Why does the “marriage” of capital “birthday” and “white wine” attract liquor capital to take the initiative to “marriage”? Where are the charms of the past and present in the liquor industry?

The industry believes that in addition to the recent increase in the production, sales volume and scale of the liquor industry, especially the development of traditional premium wines, the liquor luxury strategy is gradually advancing. The future prospects of the liquor industry are very promising. Become a reason for frequent marriage of capital.

At present, from the actual situation of liquor, the big brands are disdain for the country and the regional brand princes are divided. The enterprises are mostly in the state of poverty, but when the small brands can no longer meet the consumer demand, the big brand internationalization is difficult, the company seeks new With the development, capital operation has emerged.

A senior industry source pointed out that the vicious competition in the liquor market and the invasion of counterfeit and shoddy industries have been hampering the development of backbone liquor companies. In addition to the necessary policy support, environmental cleanliness, and industry self-regulation, the integration of capital and brand will inevitably promote the development of the liquor industry into a healthy development: brand concentration, expanding market space, continuous improvement of corporate operations, and international competition The force continues to increase.

More importantly, the liquor industry is a highly explosive industry. Especially for high-value-added, high-return, and rapid-growth industries, the high-growth and high-profit space of temptations attracts capital. attention. Statistics show that in recent years, the revenue and total profit growth of the liquor industry has dominated the winemaking industry. The liquor industry contributed 50.48% of the total wine industry's total profits, which accounted for 67.70% of the liquor industry. Starting from 2004, the compound annual growth rate of 5 years, liquor revenue was 33.47%, leading industry 25.05%, and total liquor profit was 46.67. %, 36.26% of the leading industry.

The entire liquor industry is in a stage of rapid development and integration. The original industry was "difficult to do." Objective reasons "forced" industrial capital to seek a way out. For several years of continuous growth, benefits have also begun to rise steadily. Although tax policies are constantly adjusted, the profit margin is still large. The old wines have radiated new life, and the strong regional brands have also developed rapidly. The recovery of the industry has gained momentum. This allows capital to see the new growth point of the liquor industry. Entering this period will earn more returns.

It takes capital to upgrade the liquor industry and enter the international market. If the road to integration is to scale at the same level, then liquor should also be upgraded by itself to achieve physical fitness. For example, channel upgrades, technology upgrades, team upgrades, etc. At the same time, liquor, as a unique wine of China, is also the largest output of the world's four largest distilled spirits and has the largest market. However, it has not always obtained its due status and effect, while the other three distilled spirits of brandy, vodka, and whisky have far exceeded liquor in terms of popularity, internationalization, and capital gains. Chinese liquor has always been the goal of earning money by earning money from foreign consumers and going to the international market. Only through capital intervention can white spirits realize the dream of becoming bigger and stronger with the fastest speed.

The acquisition of Shuijingfang does not affect the overall pattern of the liquor industry. The combination of the liquor industry and capital has played a huge role in promoting the development and expansion of advantageous enterprises, improving the business order of the industry, and improving the management efficiency and technological progress of enterprises. Successful examples. For instance, “Luzhou Laojiao” assigned the additional stocks to distributors in order to achieve the consistency of the interests of the distributors and the company, thus transforming the two from simpler manufacturer relationships to more closely linked capital interests. In this way, the possibility of conflict between the two due to inconsistent interest objectives is reduced. Another example is the integration of “Yanghe” and “Shuanggou” to solve the two vicious competition issues in Jiangsu Province, enhance the comprehensive competitive advantage in the province, and concentrate on expanding outside the province. In addition, “New Hualian” to “Jin Liufu” and “Yunfeng Liquor” to “Little Tuxian” achieved greater success with the OEM brand business model.

In spite of this, we can see that in the liquor industry, there have been failures in the integration of foreign capital into the liquor industry in recent years. In 2005, Wanji Group and Hunan Success Group, which had vowed to become the “leader” of the Chinese liquor industry, without exception, withdrew from the liquor industry. Although from time to time, warnings were given on the case of the failure to end the capital’s trip to the tide, the eyes of the capital have never left the liquor industry.

Of course, the entry of foreign capital will inevitably bring challenges to the liquor industry. On the one hand, it promotes the development of the liquor industry, promotes traditional liquor enterprises to strengthen brand building, enhances corporate image, and expands the scope of distribution. On the other hand, it also intensifies the liquor market. Competition will arouse the fighting spirit of traditional liquor companies and help improve the overall competitiveness of the liquor industry. In particular, foreign capital such as Diageo has rich experience in the operation of the wine market and flexible marketing strategies, which will intensify competition in the liquor industry.

According to industry insiders, Diageo’s acquisition of Shuijingfang will not have a significant impact on the competitive landscape of the Chinese liquor industry. Because Shuijingfang is known for its high level, its overall scale in the entire liquor industry is not very large. At present, its sales scale is about 30 in the industry. In the short term, it is impossible to go beyond the market share that has already been divided by first-tier brands such as Maotai Wuliangye through the integration of such capital.

Or will give birth to a new competitive order The essence of liquor competition is to shape the brand; and the essence of capital is to achieve profitability. Liquor companies through the purchase of integration, the formation of core competitiveness, so that in accordance with the law of the development of their own development and growth. Capital's ultimate goal is to make money regardless of its involvement in any industry. If liquor companies cannot make capital to make money, capital cannot be involved in liquor. However, if liquor can't use its capital advantage to achieve its own goals, the marriage of liquor and capital will lose its value. No matter whether it is a liquor enterprise or capital, if it wants to develop rapidly in competition, it must stand at a strategic height to plan for the future and participate in social competition. Although the development strategies of the two are very different, the high growth of liquor and huge operating space for profits provide an excellent platform for capital development. Liquor companies can rapidly increase their market competitiveness through the intervention of capital.

The “hand in hand” of white liquor and capital markets, one after another, or success or failure, will certainly have a profound impact on the liquor industry. Capital intervention will also effectively enhance the modernization of liquor companies, bring about changes in the corporate system, and change the operating mechanism. In the new capital era of the liquor industry, new ideas and new modes of competition will continue to impact the liquor market. It can be predicted that some traditional brands will enter a new period of development, release their competitiveness and intensify market competition.

Facing the advent of foreign capital, traditional liquor companies are also cultivating their channels, consolidating their dominant markets, and preventing other capital from invading. Relative to other capitals, traditional liquor companies are also making full use of their advantages in resources, production processes, and channels to avoid weaknesses. At the same time, it is constantly improving the product structure system and increasing investment in the mid-to-high-end market.

Liquor “hand in hand” capital has spawned a new competitive order and also re-shuffled the competition. It can promptly and efficiently solve the bottleneck problem in the production and operation of the dominant liquor enterprises, and promote the enterprises to become bigger and stronger quickly and efficiently. Strengthen the blood transfusion and hematopoiesis function of the whole industry, provide opportunities for the integration and development of industrial concentration; capital brings the impact of corporate philosophy through the introduction of multi-shareholders, diversified capital structure, improve management methods, promote modern enterprise system construction and system organization. Optimization, improve the corporate governance structure, change the growth mode, so as to enhance the overall competitiveness of the enterprise; will jump out of the original mode of relying on word of mouth, historical lineage, cultural endorsements, etc. to slowly build the brand model, with all regions, fashion, and modernization Even international brand building methods quickly increase brand influence.