Kin Wang Baijiu is classified under a type of Sauce Aroma Baijiu.

Despite accounting for a mere 4% of the total alcohol volume in 2017, the Sauce Aroma Baijiu accounts for 20% and 35% of the sales and profit volume respectively. As Sauce Aroma Baijiu commands a higher price in the market compared to other types of Baijiu, it has a higher-than-expected sales and profit proportion in the overall Baijiu market. As of September 2020, the retail price of a bottle of Sauce Aroma Baijiu, Kweichow Flying Fairy Moutai 53%, has reached CNY 3100. This is a ≈ 30% increase in the price level from 2019 which is at only CNY 2400. Due to the scarcity of raw materials to produce a bottle of this type of Baijiu, such as vintage alcohol, we expect the prices to further increase in the foreseeable future.

From 2017-2024, the Baijiu market is expected to grow at a compound annual growth rate (CAGR) of 15% to reach an estimated CNY 250 billion sales volume (Wind, GF Securities, 2020).

Rising middle-income trend has led to a “consumption upgrade” in China where people are more willing to spend to consume exotic, vintage or luxury alcohols. Furthermore, savvy millennials also spur growth for the premium alcohol market. They are more open to trying stronger and novel tastes, and are influenced more by quality, authenticity, their peers’ recommendations and online media to buy alcohol. Also, high-quality Baijiu is served at all state banquets and commonly presented as a diplomatic gift.

In the coming decade, the rise of China’s upper-middle-class is set to be the single most powerful growth tailwind for Sauce Aroma type Baijiu.

Today, only a small portion of China’s population can afford to drink the ultra-premium Baijiu regularly.

The exclusivity, coupled with limited production, we expect the Sauce Aroma Baijiu market and price to continue its upward trajectory.

In 2018, Sauce Aroma Baijiu’s revenue and profit reached CNY 110 billion and CNY 43 billion respectively. Industry leader, Kweichow Moutai, accounts for 67% and 82% of the total market revenue and profit volume respectively. We expect more and more of such brands to come up in the coming years to challenge the industry leader and take some of their market share.

53% Sauce Aroma Baijiu Products and National Quality Certifications.

Our Kin Wang Baijiu is produced in accordance with National Standards with the same quality standard (GB/T) as industry leaders, some differences in taste as a result of different Aromaing methodology.