Investment Rating - The report maintains a strong buy rating for key companies in the liquor sector, including Guizhou Moutai, Wuliangye, Shanxi Fenjiu, and Luzhou Laojiao, as well as for dairy companies like Yili [10][24][23] Core Insights - The liquor industry is experiencing a clear bottoming out, with a notable decline in participation at the recent autumn sugar and liquor fair, reflecting a cautious sentiment among distributors and a shift in focus towards direct consumer engagement [8][22][23] - The food and beverage sector is witnessing a divergence in performance, with the beverage segment showing strong inventory reduction effects during the holiday period, particularly for leading brands like Nongfu Spring and Dongpeng [9][22][23] - The report highlights that high-end liquor and mass consumer products are performing relatively well, with Moutai's price stabilizing around 1800 RMB, leading to increased consumption during the holiday season [3][15][22] Summary by Sections Sugar and Liquor Fair Research Summary - The autumn sugar and liquor fair saw a decrease in participating companies and investor engagement, indicating a lower overall enthusiasm in the industry [8][13] - Major liquor brands are showing resilience despite a general decline in sales during the holiday season, with top brands experiencing a smaller drop compared to the industry average [8][13] Recent Channel Feedback - Feedback from distributors indicates a significant drop in sales for various brands, with Moutai and Wuliangye seeing declines of approximately 10% and 15% respectively [16][17] - The report notes that the overall sentiment in the liquor market is cautious, with distributors preferring to manage inventory levels carefully [8][16] Investment Recommendations - The report suggests focusing on leading brands such as Guizhou Moutai, Shanxi Fenjiu, and Luzhou Laojiao, as well as emerging brands like Zhenjiu Lidu and Yingjia Gongjiu, which are expected to contribute positively to the market [22][23] - In the food sector, it recommends continuing to invest in snack and beverage segments, while keeping an eye on structural opportunities in the dairy sector [22][23]