Kuaijishan (601579.SH) has been rising for two consecutive days on June 19th and 20th.
Recently, Kuaijishan launched a new product, bubbly huangjiu called "Yi Ri Yi Xun". According to its official WeChat account, during the 618 period, the official live broadcast room of Douyin sold over 10 million yuan in 72 hours, which is 100 times the total sales of Douyin's 2nd to 10th ranked huangjiu products. Douyin's sales surpass the total sales of the top three hot-selling beers, and more than 80% of them are young people under 35 years old.
Kuaijishan staff told the media that the stock's limit-up was mainly due to the hot sale of Kuaijishan's bubbly huangjiu called "Yi Ri Yi Xun" and not because of any undisclosed information that the company had.
Regarding Kuaijishan's continuous rise in stock price, Shen Meng, director of Xiangsong Capital, told Blue Whale News reporters that the company's market cap grew by 20% in two days. If the news of a single product's performance growth is the only factor causing the stimulation of the market, it is not sustainable, and there may also be artificial fund's short-term operations.
Blue Whale News reporters saw on Kuaijishan's official flagship store on Taobao that the price of the bubbly huangjiu is 139 yuan for 12 bottles, which is about 12 yuan/290ml (8 degrees). The price is not cheap when converted. Kuaijishan Tang Song Jia Fanjiu's five-pound barrel is only 40 yuan.
Compared with beer, the price of Kuaijishan's new "Yi Ri Yi Xun" bubbly huangjiu doesn't have a significant advantage. For example, Heineken beer's whole box of 24 cans is 174.32 yuan, about 7.3 yuan per can, and each can is 500ml.
With the arrival of summer and the excitement of the European Cup, the low-alcohol drink market has indeed become the focus of wine and food companies. Among them, bubbly wine, as a new category, has attracted much attention. Not only Kuaijishan, but also well-known companies such as Wuliangye, Kweichow Moutai, and Luzhou Laojiao have entered this field one after another, launching bubbly wine products with distinctive features to meet consumers' demand for diversified and healthy drinks.
Recently, Wuliangye's brand-new bubbly wine Wuliang Highball was released in South Korea. Prior to this, Kweichow Moutai had already released a low-alcohol fruit-flavored bubbly wine new product called "UMEET Blueberry Bubbly Wine"; at the end of last year, Luzhou Laojiao and Xiaozui jointly launched the first white wine-flavored bubbly wine. The food industry also launched an 8-degree bubbly wine called "Uni-Wonder" last year.
In fact, China's low-alcohol drink market is rapidly expanding. According to the 2022 Low Alcohol Drink Trend Report released by TMIC and Kantar, the scale of China's low-alcohol drink market has reached 33.8 billion yuan in 2022, which is about 60% of the estimated market size of beer. It is expected that the market size will exceed 70 billion yuan by 2025.
Therefore, companies are actively seeking diversified development, penetrating deeply into young consumer groups through new emerging categories such as fruit wine, bubbly wine, and cocktails, to stabilize and expand their leading position in the new wine and drink market, as well as to explore and occupy more segmented markets with growth potential.
The capital markets are also paying close attention to this trend. As early as 2021, the bubbly wine brand "Xiaozui" successfully attracted 30 million yuan in angel financing; then in 2022, another bubbly wine brand "Greater Than or Equal to Nine" completed a billion-yuan-level Series A financing, led by Dazheng Capital. These investments further prove the potential and attractiveness of the bubbly wine market.
As per the report from Qinchu Consumption Research, since 2021, there have been more than 50 financing events for low-alcohol drinks, mainly in the early stages of financing, and the total investment exceeds 2.5 billion yuan.
Cai Xuefei, a liquor industry analyst, told Blue Whale News reporters that Chinese liquor giants such as Kweichow Moutai and Wuliangye have already started to try the bubbly wine market, and some new wine and drink brands are also actively cultivating the bubbly wine market. At present, this category is still in its infancy in China, but has enormous market potential. With the joining of more companies and the expansion of the market, bubbly wine is expected to become a new hot spot in the wine and drink market.