On Sept. 11 at a Sichuan investor online reception and interim-results briefing,
Luzhou Laojiao Chairman Liu Miao said channel inventory depends on total stock
and sell-through velocity. Since H2 last year the company has tightened linkage
between channel quotas and bottle-opening sales under a “sales-driven allocation
and quota-linked sell-through” scheme, and channel inventory has steadily
fallen. With ongoing improvement in sell-through and the rolling H2 base being
digested, inventory should return to healthy levels. This year the company
proactively controlled shipments and prioritized clearing channel stock; YoY
changes in mid- and high-end product sales revenue were broadly similar. As
channel inventory normalizes, the segment is expected to gradually improve.
