In the battle for dominance in China’s rice wine industry, Kuaijishan (601579.SH) has surpassed its long-time rival Guyuelongshan (600059.SH) in revenue for the first time. The two companies, both based in Shaoxing—the heartland of Chinese rice wine—have long maintained a duopoly in the market.
For the first three quarters of 2025, Kuaijishan reported revenue of 1.212 billion yuan, edging out Guyuelongshan’s 1.186 billion yuan. This shift marks a turning point in an industry historically constrained by regional limitations and an aging consumer base.
Rice wine, one of the world’s oldest fermented beverages with a 2,500-year history, has struggled to attract younger drinkers amid fierce competition from baijiu (Chinese white liquor) and trendy low-alcohol beverages. However, 2025 has seen a resurgence in the sector’s market performance.
Kuaijishan’s stock surged in May, with its market capitalization peaking at 12.7 billion yuan, overtaking Guyuelongshan’s 8.368 billion yuan as of November 27. The rally was fueled by the company’s successful pivot toward younger consumers through innovative products like its “One Day One Sip” sparkling rice wine, which recorded 50 million yuan in sales during this year’s “618” shopping festival—a 400% year-on-year increase.
Guyuelongshan has also embraced modernization, launching rice wine-infused coffee, lime-flavored variants, and even ice cream. In November, it partnered with China Resources Beer (00291.HK) to release “Yue Xiao Beer,” a hybrid beverage combining rice wine and lager.
Despite these efforts, the industry faces challenges. Data shows that 73% of rice wine consumers are over 40, with sales heavily concentrated in Jiangsu, Zhejiang, and Shanghai. National expansion remains sluggish, with non-core markets contributing just 25.27% of total revenue for major brands.
Analysts suggest that rice wine’s revival hinges on bridging tradition with contemporary culture. “Young consumers reject their parents’ drinks but crave new alcohol experiences that reflect their identity,” said Pan Ke, founder of Shunzhi Brand Consulting. “If brands can resonate with Gen Z’s aesthetics, rice wine could re-enter the mainstream.”
Both companies are investing heavily in marketing and regional expansion. Kuaijishan’s sales expenses surged 60.25% in 2024 to 332 million yuan, while Guyuelongshan is targeting central and northern China through experiential stores and partnerships.
The rivalry mirrors the competitive dynamics seen in China’s baijiu sector. As Kuaijishan cements its lead, the question remains: Can rice wine break free from its regional roots and become a national contender?
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