Open Governance
A Basic World-class Chinese Baijiu Industrial Cluster Expected to
Be Built in Sichuan by 2025

In 2021, 294 Chinese Baijiu enterprises above designated size in Sichuan produced a total of 3.641 million kiloliters of Chinese Baijiu, showing a year-on-year increase of 3.7%; the operating revenue totaled 324.76 billion yuan, up 13.8% year-on-year; the total profits reached 65.5 billion yuan, up 23.7% year-on-year, according to the 2022 Conference on Promoting High-quality Chinese Baijiu Industry of Sichuan Province on Wednesday morning. 

To be specific, Yibin production area contributed 163.5 billion yuan, Luzhou 108.56 billion yuan, Deyang 21.32 billion yuan, Suining 5.72 billion yuan, and Chengdu 5.44 billion yuan. These major production areas represented 93.8% of the total operating revenue, which was 324.76 billion yuan, showing continuous improvement in industrial concentration. 

For the achievement made by Sichuan's Chinese Baijiu industry, the chief of the Office of the Chinese Baijiu Industry Mechanism with the Leadership, Contact and Instruction of Sichuan Province said, "major indicators have rebounded markedly, total benefits are growing, and the development of the industry is at its highest level over the past decade!" "The production has seen single-digit increase, the operating revenue has recorded double-digit growth, the profits have registered the largest increase, and Sichuan's Chinese Baijiu industry is undergoing quality-oriented transformation!" Luo Huibo, Vice President of Sichuan University of Science & Engineering, said. 

Throughout the growth of Sichuan's Chinese Baijiu industry over the past few years, it is indicated that competitive production areas have been developing in a coordinated manner, together with increased concentration and reinforced guiding role of leading enterprises. In this regard, some insiders pointed out that in terms of absolute quantity, besides Sichuan's top six Chinese Baijiu brands, including Wuliangye, Luzhou Laojiao, Jiannanchun, Lang, Tuopai and Quanxing Daqu, other 10 major brands (Fenggu, Wenjun, Sanxi, etc.), as well as the newly released top 20 Sichuan raw Chinese Baijiu enterprises, almost 250 enterprises above designated size and small- and medium-sized enterprises are also under severe pressure, "but the continuous improvement in the industrial concentration of Sichuan's Chinese Baijiu industry has become an inevitable trend." 

How to maintain this momentum? Major projects are the key, and leading enterprises are the forerunners. 

The conference also reviewed the Implementation Plan for the Innovation and Upgrading of Competitive Chinese Baijiu Production Areas of Sichuan Province. More than 30 major projects are included in the Plan, and the total planned investment surpasses a hundred billion yuan. Most of the projects will be completed by the end of 2025. According to an official, "These projects mainly focus on the competitive Chinese Baijiu production areas, covering digital and intelligent technology transformation projects, production and storage capacity building projects, environmental protection projects for green and low-carbon development in the context of the dual carbon goals, etc." 

According to the current development plan, a basic world-class Chinese Baijiu industrial cluster will be built in Sichuan by 2025, and the scale of Sichuan's Chinese Baijiu industry is expected to exceed 400 billion yuan.

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