On the evening of August 25, Yanjing Beer released its semi-annual financial report for 2022. During the reporting period, the company achieved beer sales of 2.1518 million kiloliters. Among them, the revenue of medium and high-end products was 4.058 billion yuan, a year-on-year increase of 9.38%; the revenue of ordinary products was 2.39 billion yuan, a year-on-year increase of 3.76%. In the first half of the year, the company realized operating income of 6.908 billion yuan, an increase of 9.35% year-on-year, and a net profit attributable to shareholders of listed companies of about 351 million yuan, an increase of 21.58% year-on-year. Compared with other major brands, Yanjing and Heavy Beer lead the leading companies in terms of sales growth, revenue growth, and profit growth.

Yanjing Beer's net profit in the first half of the year was a report card that went against the market, which greatly boosted the confidence of the industry. The deeper question is, after the new chairman Geng Chao took office, what changes have happened to Yanjing Beer in the past few months? What kind of future development path will the new management lead Yanjing Beer to build—how far has Yanjing Beer traveled on this road?

All the answers may be found in the market.

Management changes, Yanjing Beer ushers in new opportunities

Since May this year, the leadership team of Yanjing Beer has been reorganized. The first to take office is the deputy director of the Policy and Regulations Division of the Beijing Municipal State-owned Assets Supervision and Administration Commission, the director of the Office for Comprehensively Deepening the Reform of Municipal State-owned Assets and State-owned Enterprises, and the Secretary of the Party Committee of the State-owned Assets Supervision and Administration Commission of Shunyi District, Beijing. Geng Chao, a 47-year-old master of law with the background of the director.

With the fall of the general manager candidate on July 4, the new leadership team of Yanjing Beer has also been assembled. On the same day, Yanjing Beer appointed 4 deputy general managers while reviewing and approving the resignation applications of 5 deputy general managers.

In the past 100 days, Yanjing Beer has issued nearly 10 announcements on personnel changes, including the adjustment and appointment of key positions such as the chairman and general manager.

For a time, within three months, Yanjing Beer completed the transition from chairman to general manager.

According to insiders of Yanjing Beer, since the end of September 2020, Geng Chao has served as Secretary of the Party Committee and Chairman of Beijing Yanjing Beer Group Co., Ltd. The series of reforms have played a positive role in strengthening incentives, stimulating motivation, enhancing vitality, and improving efficiency. Currently, various reforms are being advanced in an orderly manner.

After a comprehensive change of management, Yanjing Beer entered the "fast lane" of development and embarked on a new journey of development. The new chairman personally broadcasted the goods, joined hands with the movie channel to sing the Hundred Flowers Awards, and vigorously promoted a series of reforms in product matrix, marketing layout, brand culture, etc. through the empowerment of "You Culture", to accelerate the expansion of brand rejuvenation.

On July 26, at the 19th "World Brand Conference and China's 500 Most Valuable Brand Conference", Yanjing Beer was selected again with a brand value of 163.785 billion yuan, ranking 43rd on the list, and its brand strength was even higher Floors.

Coincidentally, at the 2022 China International Beer Challenge, the largest professional beer competition in Asia, 11 products of Yanjing Beer stood out among 2616 entries, becoming the beer brand with the most awards in this competition.

On July 30, at the 36th Hundred Flowers Awards Ceremony for Popular Films, Yanjing Beer made a surprise appearance as the chief sponsor. At the same time, Yanjing Beer's theme song "With You, There Is the World", as one of the hot songs at the Hundred Flowers Awards Gala, also appeared on the stage, highlighting Yanjing Beer's pursuit of unremitting struggle and dedication as a national enterprise Target.

The company pointed out in the semi-annual report that during the 14th Five-Year Plan period, the company closely followed the theme of "high-quality development", with the keynote of "second entrepreneurship and revival of Yanjing", adhering to the mission of brewing a better life, pursuing a greener, more sustainable, More efficient and more harmonious growth.

Withstood the pressure of the epidemic, Yanjing Beer achieved contrarian growth

In May of this year, dine-in meals were suspended in Beijing's catering industry, which affected far more industries than restaurants, and the beer market was also hit. By contrast, brands that persevere and thrive in tough environments tend to be more resilient.

The Beijing market is the base camp of Yanjing Beer. In order to win this "war of defense", Yanjing Beer decided to give priority to the Beijing market in terms of market resource investment and product research and development.

"The sales company in Beijing starts from the retail channel, and uses various methods to bring more Yanjing product portfolios to canteens and convenience stores. In particular, it has increased the product portfolio with U8, special listeners, and V10 products as the main products in the terminal to satisfy consumers. During the epidemic, there is a demand for nearby consumption and diversified consumption." Geng Chao, chairman of Yanjing Beer, said.

It is understood that Yanjing Beer has also reached cooperation with a number of people's livelihood guarantee units (mostly chain stores and retail KA customers), using its product supply channels and online purchase platforms (such as multi-point, Hema and other APPs) to the community The delivery service realizes the supply of goods to the home-controlled community, so that residents can purchase Yanjing products without leaving home.

Today, Yanjing Beer has achieved growth against the trend, and Geng Chao also shared a lot of experience. "In order to regain the production delayed due to the epidemic and ensure the supply of peak season products, the filling production line of the Beijing factory is running at full capacity, with four shifts and three operations. The average daily production capacity of a 50,000 bottle/hour production line can reach about 500 kiloliters. The output in May A year-on-year increase of 10%, and output in June increased by 12.1% year-on-year." North China, East China, Central China, and Northwest China, including the Beijing market, all achieved positive growth.

The chairman of the board of directors live broadcasted the goods, Yanjing continued to make efforts in the high-end battlefield

On June 17th, a special "anchor" was welcomed in the live broadcast room of Yanjing Beer on the Jingdong platform. He talked about the layout, products, technology, and feelings, including the sale of a variety of products at discounts. Among them, the craft beer products were as low as 2 20% off for items. The popularity of the live broadcast suddenly increased, with more than 1.45 million viewers, and the peak GMV of the 1-hour live broadcast increased by 175 times year-on-year.

The eloquent and eloquent protagonist is Geng Chao, the newly appointed chairman of Yanjing Beer. This move also made Geng Chao the first executive in the history of Yanjing Beer to live broadcast.

　"Yanjing U8 is not a laboratory product, but the result of listening to consumers' feedback and exploring the market. Consumer opinions have important reference value for the company's decision to build a product matrix." In the live broadcast room, Geng Chao and Netizens interact frequently: "Beer is an international competition within the country. We just want to spread youth and listen to the opinions of younger brothers and sisters."

It is reported that Yanjing Beer’s self-operated flagship store on JD.com ranked first in the e-commerce sales of the beer industry on that day.

"The chairman of Yanjing Beer will live broadcast in person. It can be seen that the new management attaches great importance to the rejuvenation strategy, and continues to promote key channels for young consumers and audiences for targeted promotion." In this regard, He Yong, secretary general of the China Alcoholic Drinks Association think so.

On July 21, Yanjing Beer and JD.com reached a strategic cooperation. The two parties will continue to develop e-commerce, O2O, and new retail through cooperation in brand building, channel building, product building, and technical foundation building. Emerging sales channels will further promote the digital and intelligent innovation and development of the beer industry.

In the next step, Yanjing will use the concept of "innovative space consumption scenarios" to deploy experiential Lion King Brew Yanjing No. 9 flagship stores in major business districts, with immersive high-quality catering and entertainment, so that consumers can experience authentic The charm of Beijing-flavored craft brewing culture.

As Geng Chao said, Yanjing Beer insists on brand rejuvenation and high-end building, meets the consumption needs of young people, and successively launches trendy and innovative products to adapt to and lead the new trend and new trend of beer consumption. At the same time, it will continue to develop a series of Marketing communication, IP cooperation, and three-dimensional full-link marketing will create a new benchmark in the industry.