Core Viewpoint - The rise of younger consumers is driving the popularity of low-alcohol beverages, leading traditional liquor brands to adapt and innovate in this segment [1][14]. Group 1: Market Trends - The low-alcohol beverage market in China reached a scale of 338 billion yuan in 2022 and is expected to exceed 700 billion yuan by 2025, with a compound annual growth rate of over 30% [15]. - During the "618" shopping festival, low-alcohol beverage sales surged tenfold, with consumers aged 18-35 contributing over 60% of the sales [16]. - The 38-degree Guojiao 1573 is projected to become the first low-alcohol beverage in the industry to achieve sales of 10 billion yuan, with 50% of its sales coming from this specific product [2][14]. Group 2: Company Strategy - Luzhou Laojiao is leveraging its long-term strategic vision to embrace the new consumption era, focusing on low-alcohol products as a key growth area [5][21]. - The company has developed proprietary technology to maintain quality while reducing alcohol content, overcoming traditional barriers associated with low-alcohol beverages [12][13]. - Luzhou Laojiao's low-alcohol strategy has been in place for decades, with innovations such as the "ice drink" concept introduced in 2009, which has helped redefine the consumption of traditional liquor [21][24]. Group 3: Competitive Advantages - Luzhou Laojiao benefits from its unique production techniques and a rich heritage of over 450 years, which provide a natural advantage in the low-alcohol segment [3][8]. - The company has thousands of aging pits, with over 90% of the industry’s old pits, which contribute to the rich flavor profile of its low-alcohol products [13][11]. - The distinct flavor characteristics of Luzhou Laojiao's products allow them to maintain quality even after reducing alcohol content, addressing consumer perceptions of low-alcohol beverages being inferior [7][12]. Group 4: Consumer Behavior - The 38-degree Guojiao 1573 is becoming a popular choice in social settings, with 70% of business banquets in North China opting for this product, reflecting changing consumer preferences [19][18]. - The product's appeal lies in its ability to provide a pleasant drinking experience without the heavy alcohol burden, making it suitable for younger consumers and casual drinking occasions [14][19]. Group 5: Future Outlook - Luzhou Laojiao plans to launch a 28-degree version of Guojiao 1573, indicating a continued commitment to expanding its low-alcohol product line [20]. - The company is expected to further innovate in the low-alcohol space, combining traditional techniques with modern consumption trends to capture a larger market share [24].
泸州老窖领跑低度市场,38度国窖1573成行业超级单品