Core Viewpoint - RIO is expanding its product line by launching a new 12-degree cocktail, aiming to capture a broader market segment amidst declining sales and increasing competition in the ready-to-drink (RTD) beverage sector [2][3][4]. Product Launch and Market Position - The new 12-degree cocktail, available in three flavors, marks a significant increase in alcohol content compared to RIO's previous offerings, which ranged from 3 to 8 degrees [2][3]. - The product was launched online on August 5, but initial sales figures were disappointing, with minimal units sold on platforms like Tmall [11][12]. - RIO's core business is primarily driven by its cocktail series, which includes various sub-brands targeting different consumer preferences [3][6]. Consumer Trends and Target Audience - The shift towards higher alcohol content is a response to changing consumer preferences, particularly among younger male consumers and heavy drinkers, while still targeting female consumers with marketing strategies [7][8]. - The introduction of the 12-degree cocktail aims to fill the market gap between low and high alcohol beverages, differentiating itself from lower-alcohol products criticized for being too sweet [7][8]. Competitive Landscape - RIO faces increasing competition from both established brands and new entrants in the RTD market, including traditional liquor companies that have begun to offer their own pre-mixed cocktails [14][15]. - The company's market share has been challenged by the emergence of alternative beverages, leading to a decline in sales and a reduction in the number of distributors [16][17]. Financial Performance - RIO's parent company, BaiRun Co., reported a revenue decline of 6.61% in 2024, with a continued downward trend into 2025 [16][17]. - The pre-mixed cocktail segment, which constitutes nearly 90% of RIO's revenue, has been the primary driver of this decline, with a reported 7.17% decrease in revenue from this category [16][17]. Marketing and Brand Strategy - RIO's historical marketing strategies, including high-profile sponsorships and celebrity endorsements, have contributed to its initial success, but the brand is now struggling to maintain its relevance in a saturated market [13][15]. - The company has increased its marketing expenditures in recent years, but the effectiveness of these efforts is being questioned as consumer interest wanes [15][17].