China's largest wine producer, Changyu Pioneer Wine, based in Yantai, recorded severe revenue losses for 2024. The publicly listed company announced this at its Annual General Meeting, according to information from the Hong Kong-based industry platform Vino Joy News. Changyu's revenue fell from RMB 4.385bn (approx. €535m) in 2023 to just RMB 3.277bn /approx. €400m), a decrease of 25%. Net profit dropped to RMB 305m (approx. €37.24m), a slump of 43%. Vino Joy News described it as one of the company's worst financial results in almost two decades, noting that the net profit, for instance, was the lowest since 2005.
At the same time, in response to uncertain market prospects, Changyu significantly lowered its revenue target for 2025. The company now targets revenue of at least RMB 3.4bn (approx. €415m), which is 28% below the 2024 target forecast of RMB 4.7bn (approx. €573m). Changyu's General Director, Sun Jian, stated, “This revised target reflects our operational reality given current industry conditions. It’s not conservative – it’s realistic.” The already available figures for the first quarter of 2025 (Q1 2025), which are nearly identical to those of the previous year's quarter, confirm this assessment.
When presenting the annual results, Changyu's board, as Vino Joy News further explains, did not spare self-criticism and, with its unvarnished market assessment, provided unusually candid insights into the Chinese wine sector. For example, wine consumption in the Middle Kingdom in 2024 was only at just over a quarter (26%) of its 2019 level. Two traditionally important occasions for wine purchases in China, business banquets and gifts (such as for the New Year festival), have significantly lost their importance for the industry.
Furthermore, distribution is under pressure from many sides. Most Baijiu (grain spirit) brands, which are very popular in the country and traditionally compete with wine in China, are reportedly currently being offered below cost price. Brick-and-mortar retail also suffers from the brutal price wars and discount campaigns of e-commerce platforms, which often source their products from parallel imports or the overstocks of offline retailers. And on 18 May 2025, the government banned alcohol, high-end dishes, and cigarettes from all official working meals, as reported by Vino Joy.
At the same time, Sun Jian also analyzed his own company's shortcomings: “We’re growing more and more distant from our consumers,” he said. “We haven’t created products that genuinely meet their needs, or consumption scenarios they enjoy, or delivered emotional value that resonates with them.” SP
