Yanghe aims to sell more baijiu to customers along Belt and Road
A senior official from a Chinese distiller said the company will expand exports to countries and regions along the “One Belt, One Road” initiative, making the products more popular in overseas countries.
Zhong Yu, president of Jiangsu Yanghe Distillery Co, made the comment in a media briefing Friday in Suqian, East China’s Jiangsu Province.
The group owns two subsidiary brands, Yanghe and Shuanggou, which have centuries of history. The group also has three production bases, making it one of the largest liquor producers in China. The company already sells its products in 37 countries and regions, Zhong said, without giving details.
In 2016, the company signed deals with distributors in South Korea and Japan. More countries such as Thailand, Cambodia and the United Arab Emirates are seen the liquor as well.
In the first three quarters of last year, sales reached 14.68 billion yuan ($ 2.14 billion), up 7.36 percent year- on- year, and net profit was 4.84 billion yuan, up 8.47 percent.
However, China’s spirits industry faces certain challenges. The anti- extravagance campaign of 2012 continues to affect the spirits market in China, relatively high excise/ liquor taxes on baijiu may discourage production and signs of limited volume growth may be visible as per capita alcohol consumption has already surpassed the global level, a report released by market research firm Research and Markets said in March last year.
Distillers also face public health and safety concerns and changing public tastes, the report said.
Zhu Shaoxin, who is responsible for the marketing department of Jiangsu Yanghe Distillery Co, told the Global Times that revenue showed a downward trend years ago, but growth has picked up momentum.
Kweichow Moutai, another liquor maker, forecast that it would make a profit of 8.06 billion yuan in the first quarter this year.