LZLJ(SZ:000568) Di Yi Cai Jing Zi Xun·2025-08-02 00:25Core Viewpoint - The Chinese liquor market is undergoing a transformation towards lower alcohol content and healthier consumption, with the low-alcohol liquor segment experiencing significant growth since 2019 [1][3][4]. Industry Trends - The trend towards lower alcohol content is seen as irreversible, indicating a shift in consumer preferences and presenting new opportunities for established brands like Luzhou Laojiao [3][4]. - The rise of younger consumers is reshaping the consumption structure of the liquor industry, with a focus on health and drinkability [6][9]. Company Performance - Luzhou Laojiao's 38-degree Guojiao 1573 has achieved over 10 billion in sales, with its revenue share increasing from 15% to 50%, making it the first low-alcohol liquor product to surpass this milestone [4][6]. - The company has invested in research and development to overcome technical challenges associated with producing low-alcohol liquor while maintaining flavor integrity [7][11]. Consumer Preferences - The younger demographic, particularly those born in the 1990s and 2000s, prefers low-alcohol options, prompting Luzhou Laojiao to plan the introduction of even lower alcohol products [9][12]. - The success of low-alcohol Guojiao 1573 reflects a deep understanding of the health-conscious consumer trend, aligning with modern drinking preferences for lighter and more enjoyable experiences [11][12]. Market Dynamics - The low-alcohol trend is expected to reshape the consumption landscape of Chinese liquor, moving away from traditional high-alcohol products [10][12]. - Luzhou Laojiao's focus on quality and innovation in the low-alcohol segment is seen as a strategic advantage, allowing it to cater to diverse drinking scenarios [10][12].