Yanghe Wine in China

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Founded in year 1949 in Suqian(宿迁), Jiangsu Province, Jiangsu Yanghe Distillery is specializing in producing Yanghe Daqu(洋河大曲), a famous type of wine with over 400 years of history. According to statistics, its net sales reached 7.619 billion yuan, and its net profit was 3.076 billion yuan in year 2010, with a total number of 7,090 employees.

Yanghe Daqu is a big brand  in China liquor market . With its long tradition, good quality, and special flavor of sweetness, softness, mellowness and purity, it won many prizes. Its products are welcomed both domestically and abroad. Now its major products are Yanghe Daqu series, the Yanghe Blue Classic series and the Yanghe Dunhuang series.

Yanghe’s major market is where it originates: Jiangsu (江苏).70% of Yanghe’s profit comes from here. But with the brand’s expansion policies, the share of profit that Jiangsu generates will be falling.

Yanghe Daqu: production and expansion

Yanghe Daqu, unlike Maotai(茅台) and Wuliangye(五粮液), is an affordable brand for the common people. It puts much attention in the mid-price market, where 85% of its revenues come from. The Blue Classic Series is the major product, which includes Sky Blue, Ocean Blue and Dream Blue. These products are welcomed by consumers all over China.

In year 2011, Yanghe made the decision to invest 4 million yuan to increase its productivity. It plans to improve its production line and build up one new packaging center and one new logistics center. While it is now still a regional brand whose market lies mostly in east China, it is making efforts to expand its market in other provinces. An example of its effort is the building up of an extensive sales network. With this network, its products can enter the market in any part of China with little difficulty. Among Yanghe’s 30 provincial markets, the sales in 13 of them exceeded 100 million in year 2010. The rapid growth partly reflected Yanghe’s success in market expansion.

Despite the investment in hardwares, Yanghe also focuses on marketing. Its investment in advertisements reached 435 million. There are cartoon ads of Yanghe’s products on CCTV and several other local TV channels.

Despite the fact that most of its revenues come from the lower and mid-end market, Yanghe is also developing its own high-end products. Sky Blue and Dream Blue are both designed for high-end consumers, for example statesmen or businessmen.

With the market increasingly diversified and subdivided, Yanghe is also continually innovating its products to cater to the various needs of consumers.

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