2025-10-09 02:00Summary of China Spirits Tracker Conference Call Industry Overview - The report focuses on the China Spirits Industry, particularly during the Golden Week holiday season which includes the National holiday and Mid-Autumn festival - Sales momentum for liquor consumption remained weak year-over-year (YoY) in key regions such as Hunan, Anhui, and Henan [1][1][1] Key Insights - Banquet Demand: Banquets are identified as the only growth pillar for spirits brands, outperforming other consumption scenarios during the holiday season, especially in Jiangsu and Henan provinces [1][1][1] - Gifting Demand Decline: There was a notable decline in gifting demand, with high-premium moon cakes (priced over Rmb500) market share dropping to approximately 1.8% in 2025 YTD from 7.2% in 2023. Pre-festival sales of moon cakes decreased by over 45% YoY [1][1][1] - Retail Sales Performance: Overall retail sales of key enterprises in retail and catering increased by 3.3% in the first four days of Golden Week, compared to a 6.3% increase during the Labor Day holiday in 2025 [1][1][1] Regional Sales Performance - Anhui: Retail-end sales likely declined by 20%-30% during the double holiday, with banquet sales still in a YoY downward trend [1][1][1] - Jiangsu: Retail-end sales likely decreased by over 20% YoY, although banquet sales outperformed other consumption scenarios [1][1][1] - Henan: Holiday retail-end sales likely saw a 10%-15% YoY decline, with banquet sales possibly remaining flat [1][1][1] - Sichuan: Retail-end sales may decrease by 20% YoY, with gift-sending/business-related sales down by 20%-40% YoY [1][1][1] - Hunan: Pre-festival shipment volumes for major brands like Feitian Moutai and Wuliangye saw declines ranging from 12% to 31% YoY [1][1][1] Brand Performance - Moutai: - Feitian sell-through remained flat YoY, while non-standard SKUs saw a decline of over 20% YoY [1][1][1] - Wholesale prices for original case Feitian Moutai decreased from Rmb1,810 to Rmb1,780 [1][1][1] - Wuliangye: - 1618 and Wuliangchun performed positively YoY, while common Wuliangye sell-through declined by 10%-15% YoY [1][1][1] - Laojiao: Guojiao sell-through declined by over 25% YTD YoY in some regions [1][1][1] Pricing Trends - Post-festival, wholesale prices for key upper-premium SKUs like Feitian Moutai and Common Wuliangye trended weaker compared to pre-festival prices, marking the weakest performance in the past five years [1][1][1] - Channel inventory levels remained stable, with Wuliangye and Laojiao at less than 2 months and 3 months respectively, while Gujing faced high inventory pressure [1][1][1] Additional Developments - New Retail Initiatives: - Waima opened its first offline store in Chongqing, offering upper-premium spirits brands [1][1][1] - I-Moutai launched insta-delivery services, supporting intra-city delivery in as fast as 30 minutes [1][1][1] - Sales Performance in Zhejiang: Wuliangye management reported stable performance in weddings and celebratory banquets in the Zhejiang market [1][1][1] Conclusion - The China Spirits industry is currently facing challenges with weak demand trends, particularly in gifting and general consumption, while banquet demand remains a critical growth area. Brands are adjusting their strategies in response to changing consumer behaviors and market conditions.