ETtoday News Agency (Dec 12) - The brewing sector showed divergence. Kuaijishan (SSE: 601579) plunged to limit down, Guyuelongshan (SSE: 600059) dropped over 8%, Jin Xiu Liquor (SSE: 603919) and Changyu (SZSE: 000869) fell over 5%, Yingjia Gongjiu (SSE: 603198) declined over 2%; Huiquan Beer (SSE: 600573) rose over 4%, Kweichow Moutai (SSE: 600519) gained over 1%, Wuliangye (SZSE: 000858) and Luzhou Laojiao (SZSE: 000568) edged up.
On the news front, according to a recent survey by domestic media "Jiuye Jia," after continuous destocking and the traditional peak season of the dual holidays, distributors, wholesalers, and end retailers in Henan, Shandong, Guangdong, Anhui, and other regions indicated that channel inventories are still being reduced overall. The inventory of some liquor traders declined by about 10%-20% year-on-year. The turnover of major branded liquor products is relatively faster, and inventories at some end retailers have been controlled within 1-2 months. However, certain developed products, small and medium-sized brands, and legacy inventories remain difficult to digest, and inventory pressure continues to remain mostly with distributors and wholesalers.
The report also pointed out that an increasing number of liquor traders are adopting a small-order, rapid replenishment approach and allocating limited funds to products with more stable sales. The destocking process in the liquor distribution channel is transitioning from reducing inventory volume to a new phase of structural adjustment. (wn)
On the news front, according to a recent survey by domestic media "Jiuye Jia," after continuous destocking and the traditional peak season of the dual holidays, distributors, wholesalers, and end retailers in Henan, Shandong, Guangdong, Anhui, and other regions indicated that channel inventories are still being reduced overall. The inventory of some liquor traders declined by about 10%-20% year-on-year. The turnover of major branded liquor products is relatively faster, and inventories at some end retailers have been controlled within 1-2 months. However, certain developed products, small and medium-sized brands, and legacy inventories remain difficult to digest, and inventory pressure continues to remain mostly with distributors and wholesalers.
The report also pointed out that an increasing number of liquor traders are adopting a small-order, rapid replenishment approach and allocating limited funds to products with more stable sales. The destocking process in the liquor distribution channel is transitioning from reducing inventory volume to a new phase of structural adjustment. (wn)
