Shede Liquor: Product Innovation Expands Incremental Market E-commerce, Mass-Market Liquor, and Youth Orientation Become Top Three Operating Highlights in First Three Quarters

On October 29, Shede Spirits released its Q3 2025 performance report. In the first three quarters of this year, the company achieved operating revenue of 3.702 billion yuan and a net profit of 472 million yuan attributable to shareholders of the listed company.

Against the backdrop of deep adjustments in the Baijiu industry, Shede Spirits actively reduced inventory through strategies such as aged wine, multi-brand matrix, youth-oriented branding, and international expansion, achieving many operational highlights.

Product Innovation Opens Up New Markets, Mass Liquor Achieves Double-Digit Growth

According to Shede Spirits’ disclosed operational data, in the first three quarters, regular liquor revenue reached 625 million yuan, a year-on-year increase of 16.46%. The strategic flagship product, Tuo Pai T-68, continued to maintain rapid growth.

T68 is a core mass-market product launched by Shede Spirits in 2019, positioned in the mainstream price range. As the mid-to-high-end segment undergoes adjustments, it has become a new growth engine. Public information shows that in the first half of the year, T68 ranked among the top three in high-end clear bottle liquor in markets such as Sichuan, Hebei, Shandong, and Henan.

In addition to T68, Shede Spirits is also innovating with new products. On September 20, Shede Spirits launched a new product—“Ma Shang You Xiao Jiu” (“Instant Little Liquor”), with specifications of 52 degrees and 100ml, priced at 98 yuan. It incorporates the Year of the Horse IP and introduces a new “blind box” consumption method, catering to young consumers.

Earlier, on August 30, Shede Spirits launched the industry’s first low-alcohol aged liquor, “Shede Zizai” (“Shede Free and Easy”), and announced a strategic partnership with JD.com. This product, with 29% alcohol content and priced at 329 yuan, leverages three key technologies: targeted base liquor flavor selection, alcohol reduction with flavor retention restructuring, and high-end aged liquor flavor backfilling. It maintains the flavor of aged liquor while reducing alcohol content. During pre-sale, it achieved 20,000 purchases in 24 hours and over 12,000 orders on the platform within 36 hours.

As the industry faces adjustments, the largest variable among young drinkers is significant. According to Rees Consulting’s “Young People’s Liquor—Innovation in Chinese Liquor Categories,” the potential young drinking population in China is up to 490 million, with a market size of 400 billion yuan.

For Shede Spirits, product innovation helps open the young liquor market and also consolidates its “aged liquor” advantage, expanding consumption scenarios.

The company has a rich stock of aged liquor. Driven by its aged liquor strategy, gross profit margins have continued to rise in recent years. In the first three quarters, high-end products in the 1,000-yuan price range grew against the trend, with collectible Shede 10 Years seeing rapid growth in channels, sales, and shipments. The core markets expanded from North and East China to South and Southwest China.

The newly launched low-alcohol aged liquor maintains quality while covering the 200-300 yuan mass market segment, filling gaps in the product line and potentially creating new growth opportunities.

Alongside product innovation, Shede Spirits is also advancing channel innovation. Starting in 2024, the company has accelerated its e-commerce layout. This year, it deepened strategic cooperation with JD.com and partnered again with Meituan Flash Sale in September. Building on traditional e-commerce, it is developing live streaming and instant retail channels. In the first three quarters, e-commerce sales reached 450 million yuan, a year-on-year increase of 39.62%.

E-commerce, mass liquor, and youth branding have become the biggest operational highlights in the first three quarters.

“Aged Liquor + Culture” Enhances Brand Power

Brand strength is a unique advantage for Shede Spirits!

As one of Sichuan’s “Six Flowers of Liquor,” the “Shede” and “Tuo Pai” brands have been listed among China’s “Top 500 Most Valuable Brands” for 22 consecutive years. By 2025, the combined brand value is expected to reach 1906.98 billion yuan. Shede elevates its brand image through its “aged liquor strategy,” while Tuo Pai focuses on mass markets to cultivate a consumer base.

For Shede Spirits, a large reserve of high-quality aged liquor is its greatest asset. Since 1976, the company has reserved a certain proportion of the best base liquor for strategic storage, resulting in a substantial aged liquor inventory. In 2019, leveraging aged liquor resources, the company launched an aged liquor strategy, quickly establishing brand recognition within the industry.

In recent years, Shede Spirits has continuously enhanced its brand image through marketing activities. This year, Shede Spirits was invited to participate in the 2025 Global Leaders in Sustainability Conference as a representative of ESG practices in the liquor industry, and was awarded the “Innovative Leadership in Public Welfare and Charity” at the 2025 Responsibility China ESG Annual Ceremony.

In the first half of the year, “Shede Wisdom Figures” Season 7 was broadcast, and Shede Spirits partnered with guests Evan Kair and Luo Zhenyu for major brand marketing events. In September, it launched a co-branded high-end new product with host Lang Yongchun. At the end of September, Shede Spirits exclusively sponsored the first “Era Power, Role Models of the Age—Tribute to Contemporary Figures” gala, showcasing ten role models from fields such as technology, aviation, and cultural relic preservation, enriching the “Shede Spirit.” In October, the new brand film “Because It’s Worth It” was released, using “real stories + emotional connection” to break through communication barriers and achieve deep resonance between brand spirit and consumer emotions.

On the sales front, Tuo Pai has expanded its “integrated marketing approach” by partnering with Sichuan Super League, offering fans free Tuo Pai T-68 small bottles at nearby stores with match tickets, and giving premium liquor as gifts for large purchases.

Additionally, Tuo Pai has fully upgraded its brand IP “The Drinking Table Song God,” integrating “music + fine liquor + gathering” into core scenarios, connecting with consumers’ real lives and emotions to boost sales at retail outlets.

Through multi-dimensional communication strategies, Shede Spirits has achieved both increased brand visibility and market performance. The company has established a “Aged Liquor + Culture” brand communication system, relying on solid product and brand strength to achieve notable results in certain markets despite industry adjustments. As sales recover, Shede’s product and brand strategies are expected to enter a period of harvest.