Summary in Plain Language
This report serves as a clarifying guide through the current chaotic digitalization trend in the liquor industry: Many liquor companies have previously engaged in digital collectibles and metaverse marketing as mere attempts to capitalize on trends, but with the implementation of national data policies and new regulations on liquor consumption taxes, digital assets in the liquor industry have evolved from conceptual gimmicks to genuine necessities. These assets are not related to cryptocurrency trading or meaningless NFTs; instead, they fall into two categories: “full-industry-chain data assets” and “digital rights certificates 100% linked to physical liquor.” They address long-standing issues in the liquor industry, such as counterfeit goods, unauthorized distribution, and inventory buildup, while also opening up new revenue streams for companies. The report also outlines the clear regulatory boundaries that must not be crossed. It predicts that the liquor industry will experience rapid consolidation over the next three years, with small and medium-sized companies that cannot afford basic digital traceability likely being eliminated. The industry is shifting from a traditional model of profiting from price differences through distribution channels to one that generates revenue through data and tangible rights.
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Detailed Explanation in Plain Language
1. Clarifying the Difference: Liquor Digital Assets Are Not Cryptocurrency
When people hear “digital assets,” they often think of previously overpriced virtual liquor collectibles or scams related to cryptocurrency, but this is a misunderstanding. Currently, there are only two types of compliant liquor digital assets, which are fundamentally different from purely virtual assets:
- The first type is the “data assets” of liquor companies, which include real data collected throughout the entire production and sales process—such as fermentation sensor data from fermentation tanks, traceability records of raw material purchases, the circulation history of each bottle, and consumer preference profiles. These data are recognized as intangible assets by national regulations and can be owned, traded, or used as collateral for loans.
- The second type is “digital delivery cards for physical liquor.” This involves converting existing liquor (e.g., sealed or aged liquor) into unalterable digital certificates. For example, if you buy 100,000 yuan worth of sealed liquor, you don’t need to transport it home; you can simply store the digital certificate on your phone and redeem it whenever you want. You can also transfer the certificate to friends online without the need for physical delivery. Any asset that is not 100% linked to physical liquor is considered illegal.
2. Digitalization in the Liquor Industry Is Not Just a Trend
The liquor industry is no longer the growth market it was ten years ago, where products could be sold easily. It has entered a phase of competing for existing demand, and the traditional model of multiple levels of distributors holding back inventory is no longer viable. This has forced companies to transform:
- Trillions of yuan in aged liquor assets are “dead money”: Most companies have accumulated large amounts of aged liquor in warehouses, but it’s difficult to value them for loans, and the costs of transportation and verification are too high, preventing these assets from generating cash flow.
- Counterfeit and unauthorized distribution are hard to control: Even with substantial investments in anti-counterfeiting efforts, it’s still impossible to stop small workshops from producing fake aged liquor. Distributors may sell liquor to other regions to profit, disrupting price structures.
- Liquor companies have no idea who is consuming their products: In the traditional model, companies only sell to distributors and have no direct contact with end-users, making it difficult to attract younger consumers or target them effectively.
- New consumption taxes pose a challenge: The 2026 liquor consumption tax regulations strictly prohibit companies from using related-party transactions to avoid taxes. Without full-chain traceability, companies face significant tax risks.
3. Different Companies Have Different Approaches to Digitalization
The digitalization of the liquor industry has matured into a tiered approach, with varying costs depending on the company’s size:
- Top-tier companies (like茅台 and Wuliangye): They invest heavily in building their own full-chain systems. For example,茅台 spent 600 million yuan on its “iMaotai” project, which includes anti-counterfeiting chips in all products and enables full traceability from production to the consumer. Wuliangye has standardized digital certificates and is piloting them for loan collateral.
- Regional brands: They don’t need to invest heavily in technology; buying standardized SaaS solutions for traceability costs a few tens of thousands of yuan per year. They focus on local markets and offer exclusive digital certificates for wedding events to build customer loyalty.
- Small and medium-sized companies: Even with limited funds, they can install basic anti-counterfeiting systems to meet regulatory requirements. Local governments have established public platforms for liquor data, allowing them to share data services without building their own systems from scratch.
4. Digital Assets Open Up New Revenue Streams
Digitalization has opened up four new, compliant revenue streams for liquor companies:
- Cost savings: By eliminating counterfeit and unauthorized distribution, companies can save millions on anti-counterfeiting and marketing efforts.
- Asset appreciation: Digital certificates increase the resale value of liquor, generating additional revenue from sales and financing.
- Private domain operations: Companies can use digital assets to engage with customers more effectively, increasing repeat purchases and reaching new audiences (e.g., Gen Z and women).
- Data monetization: By selling de-identified consumer and channel data to official exchanges, companies can increase their creditworthiness and company value.
5. Clear Regulatory Boundaries
There are three critical regulatory boundaries that companies must not cross:
- Financial restrictions: Promising returns on digital assets is illegal and resembles illegal fundraising. All transactions must be conducted through licensed exchanges and require real-name verification.
- Data privacy: The use of personal data must be transparent, and user information must be securely anonymized.
- Accuracy requirements: The age of liquor listed on the chain must match the actual brewing time; any discrepancies can lead to legal issues.
6. Industry Consolidation and Future Trends
The next three years will see significant consolidation in the liquor industry. Small and medium-sized companies that cannot afford digitalization will either be acquired by larger players or exit the market. Consumers will have access to complete production and distribution information, and the industry will move away from profit margins based on information disparities. The trillion-dollar aged liquor inventory can become valuable assets, transforming the industry from a wild growth phase to one based on data and tangible rights.