Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The report indicates that the liquor industry is in a bottoming phase, with signs of stabilization in fundamentals. The high-end liquor sector is expected to see a recovery in demand and valuation in the second half of the year. The report emphasizes focusing on leading regional high-end liquor companies while waiting for demand recovery and valuation repair to resonate [3][11] - The report highlights significant opportunities in the yellow wine sector, which is experiencing a revival driven by changing consumer preferences towards healthier and lighter drinking options. The report notes that yellow wine is well-positioned to cater to the "self-consumption" trend and is gradually breaking the stereotype of being a traditional drink for older consumers [4][12] Summary by Sections Weekly Insights - From May 26 to May 30, the food and beverage index declined by 1.1%, ranking 24th among 28 sub-industries, performing in line with the CSI 300 index. The soft drink (+9.3%), other alcoholic beverages (+7.1%), and beer (+3.2%) sectors showed relatively strong performance [3][11][13] Market Performance - The liquor industry continues to show weak recovery, with terminal demand remaining sluggish. The report attributes this to slow consumer recovery and a reduction in business banquet scenarios. The recent re-emphasis on the prohibition of alcohol consumption in government settings has raised market concerns, but the actual impact is considered limited due to already low levels of government consumption [3][11][12] Upstream Data - As of May 20, the auction price for whole milk powder was $4,332 per ton, a year-on-year increase of 27.1%. Meanwhile, the domestic fresh milk price was 3.1 yuan per kilogram, showing a year-on-year decrease of 8.9%. The report suggests that domestic milk prices are still on a downward trend in the short term [21][24] Liquor Industry News - The report mentions that the Guizhou Moutai (Walking Series) is set to launch soon, and during the recent promotional event, the overall sales of liquor exceeded 300 million yuan within 12 hours, marking a significant increase compared to the previous year [44][45]

Core Insights - The white liquor industry is undergoing a deep adjustment period, and the strategic transformation of the leading company, JiuGuiJiu, is accelerating under the new management of Cheng Jun [3][4] - JiuGuiJiu is focusing on resolving historical issues such as channel congestion and sluggish sales, while outlining its marketing strategy framework for 2025 during the "Fruity Conference" held in Chengdu [3][4] Company Strategy - JiuGuiJiu is enhancing its organizational structure, streamlining product layout, and promoting nationwide expansion since being fully taken over by COFCO [6] - The company is building an "integrated brand ecosystem" and has initiated joint promotions with COFCO's other brands, aiming to create a diversified brand synergy effect [5][6] Market Positioning - JiuGuiJiu is positioning itself as a value benchmark for Chinese fragrant liquor, with strong support from COFCO and a commitment to high-quality development [4][6] - The company is focusing on the "BC linkage" strategy to strengthen both B-end and C-end operations, aiming for a distribution rate and sales rate exceeding 100% in 2024 [7][8] Future Plans - For 2025, JiuGuiJiu plans to restore market confidence, reshape sales rules, and cultivate internal motivation, with a detailed marketing plan addressing various operational challenges [8] - The company has launched three strategic new products, reflecting its deep market insights and precise consumer demand understanding, although their success in a competitive market remains to be seen [9]

Core Insights - The "2025 Jiu Gui Jiu Fragrant Conference" was held in Chengdu, where the company announced new products and a pragmatic approach to market expansion [1][3] - The company aims to address past development issues and focus on high-quality growth through collaboration with other state-owned enterprises [3] Group 1: Strategic Initiatives - The chairman of COFCO Group emphasized the importance of partnerships with other central enterprises, which will enhance resource sharing and market opportunities for Jiu Gui Jiu [3] - The company has defined 2025 as a strategic year, focusing on four key battles: improving work style, deepening market penetration, cultivating consumer engagement, and reviving the brand [3] Group 2: Product Launches - Three strategic new products were launched: 52-degree 500mL Inner Reference Master Wine Fifteen Years, 52-degree 500mL Jiu Gui Jiu Miao Pin, and 52-degree 500mL Jiu Gui Jiu Hong Tan 30, aimed at capturing market insights and consumer needs [4]