"A 375ml bottle of beer retailing for 88 yuan is indeed quite expensive. I was even hesitant to show this pricing slide in my presentation," said Wu Xiangdong, Chairman of ZJLD Group, during his first personal livestream while introducing the company's debut high-end craft beer product "Bull Market News."

Prior to this, Yibin Wuliangye Xianlin Ecological Liquor Industry Co., Ltd. (hereinafter referred to as "Xianlin Ecological Liquor"), a subsidiary of Wuliangye Yibin Co.,Ltd., launched a craft beer called "Wind Fire Wheel" with a suggested retail price of 19.5 yuan per 390ml bottle.

This isn't the first time liquor companies have ventured into beer. Previously, Moutai Group launched Moutai Beer, and Luzhou Laojiao developed Baidiao craft beer. Behind these cross-industry attempts lies the drive from evolving consumer demographics and diversified consumption trends, with companies actively seeking new growth opportunities. Meanwhile, leveraging mature liquor sales channels to promote beer products has become a natural advantage for cross-industry expansion.

Beer typically emphasizes mass-market pricing, yet liquor companies are now launching small-format, mid-to-high-end and ultra-premium beer products. Whether these will be accepted by the market remains a key focus. Wu Xiangdong recently commented on pricing: "I have very high quality requirements. The cost of Bull Market beer is 20 times that of ordinary beer."

Industry analysts point out that liquor companies entering the beer market represents both a strategic move to expand young consumer demographics and an important measure to maintain profit margins. With brand endorsement advantages, liquor companies can not only provide premium pricing space for high-end beer products but also leverage their channel resource advantages. Many liquor companies are expanding beer operations through contract manufacturing, which helps control costs and risks while ensuring consistent quality stability.

**Cross-Industry Beer Competition Heats Up**

Wuliangye Yibin Co.,Ltd., ZJLD and others entering the beer arena has become a recent hot topic.

On August 7th, the beginning of autumn, Xianlin Ecological Liquor announced through its WeChat official account the upcoming launch of craft beer brand "Wind Fire Wheel." The product is positioned as "Chinese Five-Grain Craft Beer," available in 390ml format with a suggested retail price of 19.5 yuan per bottle. The promotional poster cleverly borrowed from "bubble tea trends," featuring the slogan "The First Craft Beer of Autumn," though no specific launch date was specified.

According to public information, Xianlin Ecological Liquor was established in 1998 and represents one of Wuliangye's three major business segments. As a comprehensive fruit liqueur company, it primarily produces and sells liqueurs, fruit wines, and grape wines. Regarding the strategic consideration behind launching beer, Wuliangye staff responded that this was a subsidiary's strategic decision.

Just as Wuliangye Yibin Co.,Ltd.'s subsidiary's cross-industry beer expansion drew market attention, on August 8th, ZJLD Chairman Wu Xiangdong announced the company's first beer product through his personal livestream debut.

During the recent launch event livestream debut, Wu Xiangdong introduced that the company's first high-end craft beer "Bull Market News" took three years to develop, featuring premium ingredients including two-row barley malt from Canada and Australia, premium yeast from Germany and Belgium, flavor hops from Washington's Yakima Valley, and Moganshan water sources. He also mentioned three core production processes, including unique techniques like French oak flavor extraction. Beyond ingredients, he emphasized storage and transportation standards of "full cold-chain logistics maintained below 20°C" and recommended consumers control both beer and glass temperature around 3°C when drinking to appreciate its unique flavor profile.

The reporter noted that while Wu Xiangdong confidently introduced the craft product's ingredients, processes, body, and logistics during the livestream, he appeared somewhat reserved when announcing the price. The launch event revealed a retail price of 88 yuan per bottle (1,056 yuan per case), with a group purchase price of 60 yuan per bottle (720 yuan per case). "88 yuan for a small bottle is indeed quite expensive. I was reluctant to show this pricing slide, but it's necessary for the launch event. Today's debut price of 720 yuan per case has commemorative significance." He also announced recruitment for offline primary dealers and group purchase merchants.

The reporter observed that the product is now available on e-commerce platforms. August 14th data showed actual order prices of 705 yuan per case (375ml × 12 bottles) on one platform, with a marked price of 720 yuan per case. On the Bull Market Beer flagship store on another platform, the product showed sales exceeding 2,000 cases. Regarding Wu Xiangdong's promise of "cold-chain transportation controlled below 20°C," when the reporter inquired as a consumer, store customer service stated they "use cold-chain transportation with ice packs during delivery" but admitted they "cannot guarantee product temperature remains below 20°C upon arrival."

**Why Target the Premium Beer Segment?**

Whether it's Wuliangye Yibin Co.,Ltd.'s nearly 20-yuan beer or ZJLD's Bull Market beer with a suggested retail price approaching 90 yuan, why are liquor companies positioning their cross-industry beer products in mid-to-high-end or even ultra-premium segments?

Some netizens noted that a 375ml aluminum-canned Bull Market beer priced at 88 yuan costs ten to twenty times more than ordinary canned beer. Following Bull Market beer's launch, industry insiders questioned whether consumers would pay for a product overly dependent on imported ingredients.

On August 14th, Wu Xiangdong responded via video on his personal account "Wu Jindong-ZJLD": "Many beer ingredients in China rely on imports. While I'd prefer domestic sources, quality requirements are very high. This 'Bull Market Beer' costs 20 times that of ordinary beer, so I'll seriously consider using more domestic ingredients as substitutes, but such an expensive beer cannot compromise quality. We must be responsible to consumers, hence extremely careful ingredient selection."

Additionally, Wu Xiangdong views premium-positioned Bull Market beer as primarily for personal enjoyment, satisfying consumption logic that pays for emotional value.

In fact, liquor companies crossing into beer isn't unprecedented. According to media reports, over 20 years ago, Moutai Group established Guizhou Moutai Brewery Group Beer Co., Ltd., attempting to enter the premium beer market, but ultimately failed to achieve market scale, possibly due to excessive pricing and production-sales limitations.

In recent years, cross-industry diversification has become a strategic direction for liquor companies. In 2023, Luzhou Laojiao New Liquor Industry launched Baidiao craft beer platinum and black gold editions, while previously, Luzhou Laojiao Group's craft beer brand had launched Opu Blue craft beer. The same year, liquor brand Guxiaojiu also launched its first beer product Oriental White Beer, selling on e-commerce platforms and attempting the beer market.

Why are liquor companies "invading" the craft beer segment, especially premium price points? According to the "2024-2029 Craft Beer Industry Status and Future Development Trend Analysis Report" by China Research and Intelligence, the craft beer market is predicted to maintain rapid growth in coming years. By 2025, China's craft beer consumption is expected to grow from 143,000 kiloliters in 2022 to 230,000 kiloliters, representing a compound growth rate of 17%.

An East China Securities research report noted that as consumer purchasing power and consumption concepts upgrade, beer products are developing toward premiumization and diversification. Beer companies are increasingly focusing on mid-to-high-end products, and rising proportions of such products continue driving sustained high profit growth. For instance, since 2013, Tsingtao Brewery has continuously launched high-value-added products, including an 18.83-yuan single bottle (14-degree/330ml) product in 2018, plus high-end and ultra-premium products "Century Journey" and "Legend of a Lifetime" in 2020 and 2022 respectively, elevating brand positioning. By sales volume, mid-to-high-end products' proportion of total sales increased from 18.16% in 2013 to 40.46% in 2023.

Shen Meng, Director of Xiangsung Capital, analyzed that liquor companies cross into beer due to sluggish liquor market growth and poor performance. However, when entering beer markets, companies aim to maintain profit margins, so they won't choose low-price, low-margin product lines.

According to Henan liquor merchant Mr. Fu, companies seek performance growth through new products, channel expansion, or new categories to increase distribution and introduce more channel partners. New categories lay groundwork for launching additional products. For example, "Bull Market first launched an 88-yuan retail beer, leveraging ZJLD's brand influence to enhance beer brand recognition, but they may subsequently launch products in other price segments, such as mass-market beer products."

**Can They Shake Up Industry Dynamics?**

As the liquor industry enters deep adjustment, companies must not only maintain traditional categories and core products while satisfying existing user needs, but also actively expand young consumer demographics. Young consumers focus not only on brand value but also prefer products with innovative packaging, unique flavors, and cultural significance. This drives companies to attract broader consumer groups through diversified products and categories, seeking new growth opportunities during industry transformation.

Mr. Fu believes liquor companies entering beer represents expansion targeting young consumer demographics. Beyond brand endorsement providing premium pricing space for high-end beer products, both sectors share overlapping channels and consumer groups. For instance, liquor companies' restaurant and hotel group-purchase channels provide convenience for beer market entry.

The reporter noted that companies currently testing beer mostly use contract manufacturing. For example, Guxiaojiu's 2023 Oriental White Beer was contract-manufactured by Hangzhou Qiandao Lake Beer Co., Ltd., while Luzhou Laojiao's Baidiao craft beer was produced by Sichuan Jun'an Tianyuan Craft Beer Co., Ltd.

On the Bull Market Beer flagship store on an e-commerce platform, customer purchase images show Bull Market beer's client as Hunan Dongniang Bull Market Beer Co., Ltd., with contractor Huzhou Tesla Beer Co., Ltd. However, when asked about Tesla Beer's involvement, store customer service didn't confirm clearly, only responding it was ZJLD.

According to Tianyancha, Hunan Dongniang Bull Market Beer Co., Ltd. is wholly owned by China Liquor Holdings Co., Ltd., which also controls Guizhou Zhenjiu Holdings Co., Ltd. Huzhou Tesla Beer Co., Ltd.'s website indicates the company offers both proprietary brands and private label contract manufacturing services.

Shen Meng believes that liquor and beer supply chains and production lines differ significantly, making contract manufacturing more cost and risk-controllable for liquor companies combining their brands and channels to expand beer operations.

Analysts suggest beer production involves complex supply chains and large-scale production requirements. Contract manufacturing can utilize manufacturers' mature supply chains and production experience, reducing trial-and-error costs for liquor companies in unfamiliar territories. However, contract manufacturing also carries risks, as production lines aren't self-owned, creating uncertainties in product quality and consistency. Additionally, craft beer's short shelf life doesn't match liquor's long inventory cycle model, requiring careful consideration.