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

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.