Why do liquor companies frequently cross borders

2023-09-08

Recently, Kweichow Moutai and Ruixing jointly launched Soy Sauce Latte Coffee, which attracted wide attention. Ruixing announced that the first day of sales of sauce flavored latte coffee was 5.42 million cups, with sales exceeding 100 million yuan. In fact, not only Maotai, but also Luzhou Laojiao has launched four specialty drinks across Naixue's tea industry. This summer, the water drink market was very popular with the participation of Baijiu. This is not the first time Maotai has crossed the border. In 2022, Maotai and Mengniu jointly produced three Maotai ice creams, and even introduced coffee before. Previously, a Maotai ice cream experience store located in Liwan District of Guangzhou sold Maotai coffee. The coffee products launched by the store, such as "Sweet Juice Yuye", "Osmanthus Sea" and "Egret", were all marked "with 53% VOL Kweichow Moutai wine" in the introduction. First, holding hands with ice cream, and then holding hands with coffee, why is Maotai cross-border so frequent? Gong Zhengqi, a professor at the School of Economics of Guizhou University of Finance and Economics, believes that Maotai frequently crosses borders, highlighting the anxiety and anxiety of the Baijiu industry. "Baijiu is a broad but independent industry, and its user group is mainly adult men. Although the user base is large, it is aging and growing slowly. Cross border entry into new fields can increase brand exposure in new consumer groups, which is conducive to attracting potential consumers." Gong Zhengqi said. Young people are no longer the main force of Baijiu consumption. A survey shows that today, only 38.6% of young people choose Baijiu. The loss of young consumers has plunged the Baijiu industry into a "mid life crisis". According to the data of the National Bureau of Statistics, China's Baijiu production entered the decline channel after reaching its peak in 2016. In 2022, the total production of Baijiu making enterprises above the national scale decreased by 5.58% to only 6.71 million kiloliters, less than half of that in 2016. How to expand consumer groups, especially attract young consumers, has become a must answer question for Baijiu industry to achieve sustainable development. Maotai's seemingly unorthodox crossover highlights its focus on young consumer groups. Both the Maotai ice cream launched last year and the sauce flavored latte just launched are aimed at enabling Maotai liquor to reach young consumers on a larger scale and expanding its influence among young consumers. At the Maotai Ice Cream Anniversary Celebration held on May 29th this year, Chairman Ding Xiongjun of Maotai Group stated that Maotai will also increase efforts to develop products such as hearty chocolate, alcoholic beverages, stick sticks, and soft ice, and establish a product matrix with different types, prices, and distinctive features. With the popularity of sauce flavored latte coffee, can all coffee shops sell Maotai coffee? In response, Lawyer Li Jian, Director of the Intellectual Property and Intangible Cultural Heritage Protection Professional Committee of the Guizhou Lawyers Association and Partner of Beijing Dacheng (Guiyang) Law Firm, stated that selling homemade Maotai coffee may be suspected of infringement. Previously, some merchants made Maotai coffee for sale without obtaining trademark authorization and were punished by market regulatory authorities. According to the provisions related to property rights in the Civil Code, there is no problem whether purchasing Maotai liquor for personal consumption or adding it as a raw material to the product for sale. This is because consumers have already obtained the property rights of the product when purchasing it, and how to use it

Edit:Hou Wenzhe    Responsible editor:WeiZe

Source:economic daily

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