Lao Baigan Liquor Product Structure Reversal: High-End Slows Down, Mass Market Takes Over

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Against the backdrop of the baijiu industry entering a period of deep adjustment, the operational resilience of regional liquor enterprises is undergoing a concentrated test.

In 2025, Hebei liquor representative Laobaiganjiu achieved operating revenue of 4.121 billion yuan, a year-on-year decrease of 23%; net profit attributable to the parent company was 430 million yuan, a year-on-year decline of 45.4%.

This performance not only marks the largest decline in recent years, but also significantly falls short of the revenue target of 5.47 billion yuan set at the beginning of the year, revealing a clear gap between results and expectations.

From a structural perspective, the changes are even more pointed. In 2025, products priced above 100 yuan achieved revenue of 2.036 billion yuan, a year-on-year decrease of 24.7%; products priced below 100 yuan achieved revenue of 2.062 billion yuan, a drop of 21.4% year-on-year.

Amid overall contraction, the scale of mainstream price products is now approaching and beginning to overtake high-end products.

In the first quarter of 2026, this trend was further strengthened: products priced below 100 yuan saw revenue increase 23.45% year-on-year to 619 million yuan, surpassing for the first time on a quarterly basis the 596 million yuan for products priced above 100 yuan.

By brand matrix, in 2025, Hengshui Laobaigan series revenue dropped by 17.4% year-on-year, Wulingjiu and Wenwanggongjiu both declined by nearly 30%, Bancun Shaoguojio and Kongfu Jiajio also recorded double-digit falls.

Among these, Wulingjiu, representing high-end sauce aroma, had a gross margin decrease of 2.8 percentage points, signifying intensified competition pressure at the high-end price range.

Regional markets have not formed an effective hedge.

Revenue from the core Hebei market fell 18.64% year-on-year, with greater declines seen in out-of-province markets such as Hunan, Anhui, and Shandong, and the expansion pace temporarily slowed. Under the background of national top brands moving further down-channel, regional liquor companies’ space is being further squeezed.

From the industry perspective, the changes seen in Laobaiganjiu are not isolated cases.

Since 2025, the structure of baijiu consumption has continued to trend downward, with the mainstream price range shifting from 300-500 yuan to 100-300 yuan, and mass consumption showing stronger resilience.

Accordingly, the growth logic for high-end products is shifting from “price increase driven” to “real demand driven,” and regional liquor companies—constrained by brand premium and channel capabilities—often feel the pressure earlier.

In the first quarter of 2026, Laobaiganjiu showed some signs of operational recovery: revenue of 1.22 billion yuan, up 4.5% year-on-year; net profit attributable to the parent company was 165 million yuan, up 8.6% year-on-year.

At the same time, the company has begun to explore new growth paths.

In 2026, Laobaiganjiu plans to set up an e-commerce subsidiary, integrate multi-brand online businesses, strengthen supply chain and digital marketing capabilities, and attempt to supplement new traffic entry points beyond the traditional “quality + culture + channel” system. However, the actual contribution of this layout to performance in the short term remains to be seen.

It should be noted that the recovery process also brings new variables. In the first quarter, accounts receivable surged 354.90% year-on-year, explained by the company as an increase in goods sold on credit.

This means that, in promoting shipments and sales, the company may be relaxing payment terms to achieve revenue growth, which will require ongoing monitoring of subsequent payment quality and channel health.

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