Capacity Growth and Product Premiumization Drive Long-Term Growth for Zhenjiu Lidu

Zhenjiu Lidu has differentiated itself from other China baijiu distillers by operating three distilleries under four brands, with aromas ranging across jiang, rich, and mixed flavors. It acquired the distilleries of Xiang Jiao, Li Du, and Zhen Jiu during 2003-08. Through heavy investment, ZJLD successfully built Zhen Jiu, Li Du, Xiang Jiao, and Kai Kou Xiao into leading national and regional brands, providing the group with pricing power. Expanding distribution penetration and continuing investment in marketing and branding have also bolstered its competitiveness.