Five-year profit soars by 200%, liqueur rises to prominence: 18-yuan products take the center stage at the Sugar and Wine Fair, and listed pharmaceutical companies are also entering the alcohol market.

This article is sourced from: Times Weekly Author: Xing Wenwen

On March 28, the Chengdu Spring Sugar and Alcohol Fair officially concluded.

Unlike previous years when famous liquors were clustered together and development wines filled the golden exhibition booths, this year, against the backdrop of an industry adjustment cycle, fruit wines and health wines have risen from marginal categories to become one of the main highlights of the exhibition.

It is noteworthy that this year’s Sugar and Alcohol Fair established a “Special Zone for Huangjiu and Health Wines” for the first time. In addition to liquor companies like Gujing Gongjiu (000596.SZ) and Guyue Longshan (600059.SH), pharmaceutical companies such as Beijing Tongrentang, Dong’e Ejiao, and Kuaishui Pharmaceutical have crossed over into the popular fruit wine track, with special cocktail and ice drink bars becoming standard features for participating brands.

Data shows that the fruit wine track has achieved nearly 200% profit growth over the past five years, defying industry trends. Behind this is a shift in consumer demand toward health and lower alcohol content.

Developed wines exit the stage, fruit wines rise

The Spring Sugar Fair has always been regarded as the most direct barometer of industry trends. This year’s fair saw the first-ever establishment of a “Special Zone for Huangjiu and Health Wines,” with the popularity of health wines significantly increasing.

In the exhibition halls, companies like Jinpai and Hainan Yedao experienced a continuous flow of inquiries. Jinpai continued its previous approach by setting up tasting areas for “Jin Liquor + Juice” and “Jin Liquor + Milk.”

In addition to the established health wine brands, even Guyue Longshan, which broke into the market last year with sparkling Huangjiu, introduced four new herbal fruit wines, including Herbal No. 1 (Chenpi fruit wine) and Herbal No. 2 (Buddha’s hand fruit wine), further expanding the sector’s lineup.

At the earlier hotel exhibition, Times Weekly reporters observed that many miscellaneous brands and developed wines that previously dominated have largely exited, with new fruit wines becoming the “main force.”

In key exhibition halls such as Jinjiang Hotel and Dacheng Hotel, various fruit wine products, including herbal wines, ginseng wines, and Sanbian wines, collectively “took the stage,” with alcohol content mostly at 35 and 53 degrees, many launched from late last year to early this year.

Among them, Moutai Town Guobao Liquor spent hundreds of thousands of yuan to secure a booth on the right side of the east entrance of Jinjiang Hotel, promoting its Gui Xuan herbal sauce liquor.

                    Guobao Liquor's herbal sauce liquor. Photo by Times Weekly reporter

In 2016, Guobao Liquor established a strategic partnership with Jinpai Company. Industry insiders say that this herbal sauce liquor uses base liquor aged for 5 to 7 years from its own distillery, with R&D technology provided by Jinpai, developed over five years, and launched in September last year, with retail prices of 199 yuan and 399 yuan per bottle.

Sources also revealed that this year, smaller specifications (50ml and 100ml) of herbal light bottles may be introduced to meet the drinking needs of more young consumers.

Leveraging the industrial advantages of “Chinese Medicine Capital” Bozhou, Gujing Gongjiu has also dedicated a booth for its new herbal fruit wine “Shenli Wine,” with the slogan “Good wine from the medicine capital, Shenli Wine is good wine.” This product is 35 degrees and available in three sizes: 125ml, 260ml, and 520ml, priced at 18 yuan, 35 yuan, and 60 yuan respectively, similar to Jin Liquor’s product prices.

                    Gujing Gongjiu's "Shenli Wine." Photo by Times Weekly reporter

Under the deepening internal competition in the liquor industry, distributors are trying to use fruit wines and health wines as new growth points.

A distributor from Jining, Shandong, who inquired about “Shenli Wine,” told reporters that over the past two years, the pressure on liquor sales has increased significantly, and stores need to introduce new products. “Products with health concepts and moderate prices like this have lower trial-and-error costs.”

An industry veteran with nearly 30 years of experience also observed similar trends. He believes that as the popularity of sauce liquor declines, consumer demand is changing, and health wines and fruit wines are gradually becoming new focus areas. “Young consumers now prefer products that feel less burdensome; these wines are more easily accepted.”

Several distributors stated that as the popularity of sauce liquor wanes, consumers’ health awareness continues to rise, and the acceptance of health wines and fruit wines at the retail level is increasing, creating a promising opportunity window for the industry over the next 3 to 5 years. This has made fruit wine the hottest track for recruitment at this year’s Spring Sugar Fair.

According to the China Alcoholic Drinks Association, fruit wine is a beverage made from Huangjiu or Baijiu as the base, infused with medicinal and food ingredients, processed through extraction and redistillation, without additives. Compared to traditional high-proof spirits, it offers more flavor and drinking scene versatility, and is more easily accepted in cocktails and iced drinks.

Reporters noticed that many booths had simple mixing stations, pairing products with juice and sparkling water to create a lighter drinking experience, attracting exhibitors to stop and exchange ideas.

Jin Liquor remains firmly at the top, and pharmaceutical companies are also entering the market.

Besides well-known liquor brands, pharmaceutical companies are also crossing over.

Reporters observed that listed pharmaceutical companies such as Tongrentang (600085.SH), Dong’e Ejiao (000423.SZ), and Kuaishui Pharmaceutical (002737.SZ), leveraging their advantages in “food-medicinal integration,” have launched fruit wines.

Beijing Tongrentang brought its full range of fruit wine products for the first time to the first-floor exhibition hall of Jinjiang Hotel, mainly promoting its “Vitality Wine” launched in June last year. This product uses a clear aroma Baijiu as the base, with ingredients like dried tangerine peel, ginseng, and Polygonatum.

Data shows that “Vitality Wine” is produced by Tongrentang’s subsidiary Beijing Tongrentang (Hubei) Biotechnology Co., Ltd. The company has three fruit wine production lines and plans to invest 120 million yuan to build two medicinal wine production lines and supporting facilities such as a medicinal wine extraction workshop. Once completed, it can produce 6,000 tons of medicinal wine and 1,000 tons of fruit wine annually.

Visitors inquiring about Vitality Wine at Tongrentang expressed hopes that the company would increase promotional efforts and expand distribution channels to convenience stores, supermarkets, and restaurants.

Meanwhile, Shanxi Zhendong Wuheng Yiyang Tang Co., Ltd. (“Wuheng Yiyang Tang”) showcased multiple health wine products at their booth, setting up a trendy drink zone at the entrance, attracting many customers with popular health drinks like “Hawthorn Lover” and “Drunken Dream Galaxy.”

                    Wuheng health wine trendy drink zone. Photo by Times Weekly reporter

A sales representative from Wuheng Yiyang Tang told reporters that the company has been established for 30 years, with many health foods, medicinal teas, and best-selling products like Five Red Soup, but overall sales have been lukewarm. In recent years, the health wine track has gained popularity, with many liquor companies crossing over to produce health wines. Last year’s breakout of Jin Liquor increased the exposure of their health wines, which sold well in regions like Shanxi and Henan.

Many participants agree that Jin Liquor’s strong market performance has driven the current wave of fruit wine enthusiasm.

Data indicates that by 2025, Jinpai Company is expected to see an overall performance increase of 10.8%, with the core brand Jin Liquor growing at about 25%. Over the past two years, it has gained approximately 9 million new young users, confirming the growth potential of the fruit wine track.

Meanwhile, data from the China Alcoholic Drinks Association confirms the sector’s growth. From 2020 to 2024, profit in the fruit wine industry has increased nearly 200%, and sales are expected to continue rising despite industry adjustments. In the overall industry downturn, fruit wine remains one of the few growth sectors.

“Currently, Jin Liquor has secured the top spot, but the second place is still undecided,” industry insiders predict. The sector is still in a stage where the landscape is unsettled, and the entry of cross-industry players is accelerating industry reshuffling.