Shede Spirits: Product innovation expands the incremental market; e-commerce, mass-market liquor, and youth-oriented branding became the biggest operational highlights in the first three quarters.

On October 29, the company Shede Liquor Industry released its 2025 third-quarter earnings report. In the first three quarters of this year, it achieved operating revenue of 3.7B yuan and net profit attributable to shareholders of listed companies of 472 million yuan.

Against the backdrop of deep adjustments in the baijiu industry, Shede Liquor Industry has proactively worked on destocking. Through strategies such as its old-liquor strategy, a multi-brand matrix strategy, a younger-focused strategy, and an internationalization strategy, it has delivered many highlights at the operational level.

Product innovation opens up incremental markets; mass-market liquor achieves double-digit growth

According to the operating data disclosed by Shede Liquor Industry, in the first three quarters, revenue from ordinary liquor reached 625 million yuan, up 16.46% year over year. The strategic core single product, T68 Special Grade in its Tuopai series, continues to maintain rapid growth.

T68 is the core mass-market single product launched by Shede Liquor Industry in 2019. As the mid-to-upper segment entered a period of adjustment, it became a new growth engine. Based on publicly available information, in the first half of the year, T68 ranked consistently in the top three among high-line bottled-bottle (non-ethanol) liquor categories in base markets such as Sichuan, Hebei, and Henan.

In addition to T68, Shede Liquor Industry is also rolling out new product innovation. On September 20, Shede Liquor Industry released a new product—“Cheers for Little Liquor Soon.” This product is specified as 52% ABV, 100ml, priced at 98 yuan. It combines the Year of the Horse (ma year) ip and innovates with a small-liquor blind box play pattern, aligning with the needs of younger consumers.

Earlier, on August 30, Shede Liquor Industry launched the industry’s first low-alcohol, easy-drinking old liquor product, “Shede Zizai,” and announced that it had reached a strategic cooperation with JD Group. This product has an alcohol strength of 29% and is priced at 329 yuan. Relying on three key technologies—“base liquor flavor targeted selection technology,” “de-alcoholization low-proof solid fragrance flavor recombination technology,” and “high-end aged liquor flavor backfilling technology”—it maintains the flavor of aged liquor while lowering the alcohol level. It is reported that in the presale stage, it reached results of 20k people adding to cart within 24 hours, and platform orders surpassing 12k within 36 hours.

As the baijiu industry enters a period of adjustment, there are the biggest variables hidden among younger liquor-drinking audiences. In its report “Young People’s Liquor—Research Report on Innovation in China’s Alcohol Categories,” L.E.K. Consulting predicted that the potential number of young liquor-drinking consumers in China is as high as 490 million, and the size of the young liquor-drinking market reaches 400 billion yuan.

For Shede Liquor Industry, product innovation can help the company open the young liquor-drinking market on one hand, and on the other hand, it also helps to consolidate its advantages in “aged liquor” and expand more consumption scenarios.

Shede Liquor Industry has abundant storage of aged liquor. Driven by its old-liquor strategy, its gross margin ratio has continued to rise in recent years. In the first three quarters of this year, high-end products in the 1,000-yuan price segment grew against the trend. Among them, the 10-year aged collection product “Cangpin Shede” achieved rapid growth in channels, sell-through, and shipment volume, while its core markets expanded from North China and East China to South China and Southwest China.

The low-alcohol aged liquor launched this year, while maintaining the quality of aged liquor, also covers the mass-market price band of 200–300 yuan, filling out the company’s product line and is expected to bring new room for incremental growth.

Alongside product innovation, Shede Liquor Industry is also promoting channel innovation. Starting in 2024, the company accelerated its layout of e-commerce channels. This year, it first reached a deep strategic cooperation with JD, and in September again teamed up with Meituan Flash Purchase. On the basis of solidifying traditional e-commerce, it has developed emerging e-commerce formats such as livestreaming and instant retail. In the first three quarters, sales revenue from its e-commerce channels reached 450 million yuan, up 39.62% year over year.

E-commerce channels, mass-market liquor, and younger-focused initiatives have become the biggest highlights in terms of operational performance in the first three quarters.

“Aged liquor + culture” boosts brand power

Brand power is Shede Liquor Industry’s inherent advantage!

As one of Sichuan liquor’s “Six Golden Flowers,” Shede Liquor Industry’s two brands, “Shede” and “Tuopai,” have been selected in the “China’s 500 Most Valuable Brands” list for 22 consecutive years. In 2025, the combined total value of the two brands reached 20k yuan. Shede uses its “aged liquor strategy” to strongly build an elevated brand image, while Tuopai focuses deeply on the mass market to nurture a consumer foundation.

For Shede Liquor Industry, high-quality aged liquor reserves are the company’s biggest advantage. Since 1976, the company has reserved a certain proportion of the best base liquor from each batch for strategic storage, thereby forming a massive aged-liquor inventory. In 2019, it relied on aged-liquor resources to launch the aged-liquor strategy, quickly establishing brand awareness within the industry.

In recent years, Shede Liquor Industry has continuously enhanced its brand image through marketing activities. This year, Shede Liquor Industry, invited as a representative company in the liquor industry that practices ESG, participated in the 2025 Global Sustainability Leaders Conference. At the conference, it was awarded the “Public Welfare and Charity Innovation-Leadership Enterprise” title for the 2025 “Responsibility China” ESG Annual Awards Gala.

In the first half of the year, “Shede Wisdom Figures” Season 7 aired hotly. In the first half of the year, Shede Liquor Industry teamed up with program guests Evan Kay and Luo Zhenyu to deliver major brand marketing events. In September, it co-created with the program host Lang Yongchun to release a joint high-end new product. At the end of September, Shede Liquor Industry exclusively sponsored and titled the first edition of “The Power of the Times, Models of Splendid Chapters—Tribute Gala to People of the Times.” Through ten role models from fields such as technology, aviation, and cultural relic protection, it enriched the “Shede spirit.” In October, Shede launched its new brand film, “Because It’s Worth It.” Through “real stories + emotional connection,” it broke through communication barriers and achieved an in-depth resonance between the brand spirit and consumers’ emotions.

On the sales side, Tuopai expanded the marketing path of “one-integration of product, effectiveness, and sales” by teaming up with Chuan Chao. In some event sessions, fans could pick up Tuopai Special Grade T68 small-liquor for free at partner stores with the event tickets on the day. When purchasing liquor, customers could also receive specially gifted high-end liquor as a bonus upon meeting the spending threshold.

In addition, Tuopai comprehensively upgraded its brand IP “Jiu Zai Ge Shen” (Song God of the Liquor Table). By leveraging core scenarios of “music + fine liquor + gathering,” it integrated consumers’ real-life experiences and emotions, driving sales at the terminals.

Through multi-dimensional communication strategies, Shede Liquor Industry has achieved a double uplift in brand attention and market performance. At present, the company has already built a brand communication system of “aged liquor + culture.” Relying on solid product strength and brand strength, even during the industry’s adjustment period, it continues to deliver commendable results in certain local markets. In the future, as the sales side warms up, Shede’s layout of products and brands is expected to enter a harvest period.

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