It’s no secret that baijiu is big business in China. A successful distillery of this spirit can turn an enormous profit, and if floated on the stock exchange, the prospects are even better. This has not escaped the attention of Dr. Wang Junlin, a master investor that has reversed the fortunes of countless baijiu brands in the Sichuan province.
Dr. Junlin is the majority shareholder of the Sichuan Langjiu Group Co. Ltd, manufacturers of the Langjiu baijiu. Dr. Junlin has a hand in 76.7% of Langjiu’s shares, whether directly or otherwise. Despite parting with some 70 million shares, he remains in possession of 68% of the company.
As a result of the sale of these shares, however, Langjiu is set to be listed on the stock exchange. Other baijiu brands already hold this distinction, including Wuliangye, Shede Wine, Luzhou Laojiao and Shui Jing Fang. The presence of Dr. Junlin in this deal is interesting though, as he is believed to be the wealthiest man in the liquor industry. Dr. Junlin’s personal net worth is believed to top £1.5 billion.
Dr. Junlin enjoys a stellar reputation in the realm of Sichuan wine. Born in Renshou in 1967, Dr. Junlin studied at the Southwestern Medical University (then known as Luzhou Medical College) to earn his medical degree. In the early 1990s, Dr. Junlin also held the position of director of Chengdu Enwei Group Research Institute.
In 1992, Dr. Junlin took on a new career path. He began work at the Pharmaceutical Factory, an enterprise owned by the Luzhou state, as a Director. The factory was struggling financially at the time, with an annual income of just £220,000. Dr. Junlin oversaw privatisation that ensured this income rose to a staggering £50 million.
This set the tone for the rest of Dr. Junlin’s career. In 1999, he joined the Sichuan Changjiang Machinery Group. This business was shedding money by the tens of millions, yet Dr. Junlin aided it in becoming profitable within two year.
It was in 2002 that Dr. Junlin purchased his 73% stake in Langjiu, using his business the Baoguang Group, at a cost of £55 million. The business was in serious trouble – so economically unsound that 3,000 employees could not receive their salaries.
As is customary, Dr. Junlin made sweeping changes. The staff team was reduced, with unnecessary team members made redundant. In addition, Dr. Junlin introduced a meritocracy at the business, where all rewards were based upon performance. Dr. Junlin also expanded the sales force to cover the entirety of China, and perhaps most importantly, created the Honghualang baijiu, followed by the premium Blue and White brand.
The base market value of Langjiu is estimated to stand at some £9 billion. Dr. Junlin, it seems, is not just skilled at saving lives. He also boasts an uncanny knack for reviving the fortunes of ailing businesses, especially those in the alcohol sector. Even in a world of haves and have nots, it’s hard to begrudge the acumen of this brilliant businessman.
Kweichow Moutai – VS – V.I.P Jiu 8
A bottle of V.I.P Jiu 8 together with a bottle of Moutai Flying Fairy was sent to a UK laboratory for analysis. The laboratory was a registered member of UKAS – The United Kingdom Accreditation Service that is recognised by the UK government when comparing products to internationally agreed standards.
The laboratory concluded that the two bottles were very different, with sample A (VIP Jiu 8) being considerably more complex than sample B (Kweichow Moutai Flying Fairy). The laboratory also concluded that sample A (VIP Jiu 8) contains many more compounds with positive attributes than sample B (Kweichow Moutai Flying Fairy).
Further Reading: VIP Jiu 8 Vs Moutai