Equity Analysis /
China

CN : Food & Beverages - Expanding premium and above baijiu markets

    Lei Yang
    Lei Yang

    Research Analyst

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    CGS-CIMB
    7 April 2021
    Published byCGS-CIMB

    We attended the China Spring Food and Drinks Fair in Chengdu. We now expect baijiu companies to have strong sales growth of 10–20% yoy in 1Q21F, as CNY drove up baijiu consumption. China baijiu consumption during CNY in 2021 recovered to the normal level in the same period of 2019, according to ACNeilson. The premium and super premium baijiu markets have exhibited a strong consumption upgrade trend, and their market size is continually expanding.