泸州老窖20251128

Summary of the Conference Call for Luzhou Laojiao Industry Overview - The liquor industry, particularly the baijiu sector, is undergoing a deep adjustment period, with external environment and policy impacts being the main sources of pressure. The industry has not yet reached a bottom or turning point, and pressure is expected to persist in the near future due to a weak consumption environment [2][3][7]. Company Performance and Expectations - Luzhou Laojiao's performance expectations for Q4 and the entire year are under pressure, with reported data aligning with terminal sales conditions. However, sales pressure is affecting inventory digestion. The company maintains a stable pricing strategy and does not compensate for losses from low-price sales [2][4]. - The company has not disclosed its operational plan for 2026, indicating that it will plan according to market conditions and economic laws while ensuring a healthy sales ecosystem [2][6]. Product Performance - There is a noticeable differentiation in performance between high and low alcohol products, with low alcohol products showing relative resilience. The low alcohol product 1,573 has performed steadily, and the trend towards lower alcohol content is gradual and long-term [2][9][10]. - The brand "Laozihao Tequ" is focused on brand revival, maintaining a stable price around 200 yuan, and is less affected by industry adjustments. The company plans to strengthen channel construction and consumer cultivation in the 100-300 yuan price range [2][11][12]. Sales and Distribution Strategy - Luzhou Laojiao is expanding its terminal presence, particularly in Sichuan and North China, to enhance market share. The company emphasizes online channels and instant retail while traditional tobacco and liquor stores remain the main distribution channels [4][15][18]. - The company is cautious about introducing lower alcohol products below 30 degrees, focusing on quality and stability before launching new products [10][20]. Market Trends and Consumer Behavior - The company anticipates that the consumption environment will remain weak, with the impact of policies likely to diminish over time. However, a sudden surge in consumer demand during the Spring Festival is not expected [7][25]. - The current pricing strategy is stable, with the company not compensating for losses from low-price sales, which helps maintain price stability [8][23]. Digitalization and Inventory Management - Luzhou Laojiao has a relatively mature digitalization strategy, with high opening rates for its products. The implementation of a five-in-one system effectively addresses issues of cross-regional sales [4][24]. - The company is managing inventory levels carefully, as a slowdown in sales could lead to instability in inventory levels [5]. Future Outlook - The company expects to continue facing significant pressure in the liquor industry over the next few quarters, with cautious optimism for 2026 depending on improvements in the consumption environment and reduced policy impacts [25]. This summary encapsulates the key points discussed during the conference call, highlighting the challenges and strategies of Luzhou Laojiao within the broader context of the baijiu industry.