In the second half of the year, food and beverages are clearly less likely to outperform the broader market.

With the continuous launch of the China Daily, we believe that the food and beverage industry remains relatively strong: the mid-term performance is stable; the logic of investment is in line with the "domestic demand"; the main plate liquor consumption season is approaching, and the price increase is expected to start again. However, it is worth pointing out that the probability of food and beverage clearly outperforming the broader market is getting smaller and smaller.

Liquor industry: The upcoming peak season calls for an increase in the retail price of liquor.

The growth rate of production maintained a high level of operation. In June, the output of the liquor industry was 731,700 kiloliters, a year-on-year increase of 23.97%, and the growth rate was down 4.5% and 8.5 percentage points year-on-year respectively. Although there has been a decline, the maintenance of high growth rate shows that the liquor industry is still in a high-performance stage.

The Bureau of Statistics announced that the sales volume of liquor in the first half of the year was 4.084 million kiloliters, an increase of 32.04% year-on-year, and the growth rate was down 18.39% from the first quarter. In the second quarter, the sales volume of liquor in the single season was 2.005 million liters, a year-on-year increase of 17.18%. The year-on-year growth rate in the first quarter of last year was low, coupled with the late New Year's holiday this year, resulting in a faster sales growth in the first quarter. The growth rate in the second quarter fell normally. The annual growth rate is expected to remain between 25%-30% this year.

In July, the retail price of some high-end liquor markets accelerated. According to the statistics of alcoholic drinks and alcoholic beverages, Maotai and Shuijingfang in Chengdu market rose by 40 yuan and 10 yuan respectively in July, Wuliangye was basically the same, and Jiannanchun and Guojiao 1573 had a decrease of 20 yuan and 10 yuan respectively. Wuliangye, Maotai and Shuijingfang in Beijing market rose by 60 yuan, 53 yuan and 17 yuan respectively compared with June. Only the terminal price of Guojiao 1573 fell by 28 yuan compared with June; the mainstream high-end liquor price in Shenyang market went up in July. Channels, Wuliangye and Maotai rose by 65 yuan and 41 yuan respectively, and Shuijingfang and Guojiao 1573 remained unchanged. With the approach of the 11th consumer season, the prices of high-end liquor terminals have continued to increase, which has changed the situation in which high-end liquor prices remained basically flat during the period from July to October of last year, showing that consumer demand has recovered significantly.

Wine industry: Production growth continues to pick up.

In June, the production of wine was 101,200 kiloliters, a year-on-year increase of 33.65%, and the growth rate was noticeably accelerated. The year-on-year increase was 19.57 and 8.35 percentage points respectively; the cumulative production in the first half of the year was 495,800 kiloliters, and the year-on-year growth rate also rose to 21.43%. , year-on-year and month-on-month respectively accelerated by 16.06 percentage points and 2.96 percentage points. The wine industry is accelerating its development.

Beer industry: The growth rate of the industry has picked up.

In June 2010, the beer industry output was 4.965 million kiloliters, an increase of 4.06% year-on-year, and the growth rate was down by 4.74 percentage points year-on-year, an increase of 3.55 percentage points year-on-year; the cumulative production in the first half of the year was 21.1802 million liters, a year-on-year increase of 4.77. %, growth rate decreased by 1.26 percentage points and 2.32 percentage points year-on-year respectively. Although the data did not come out in July, due to the turning of the weather in July, the growth rate of the beer industry is expected to increase.

According to statistics released by the Statistics Bureau, in the second quarter, the beer sales in the single-season industry was 12.505 million liters, a year-on-year increase of 0.36%, and the growth rate was 6.86 percentage points lower than in the first quarter. In the first half of the year, beer sales totaled 20.86 million liters, a year-on-year increase of 3%. From January to May, the sales revenue of the beer industry increased by 8.24% year-on-year, and the increase in revenue over sales shows that the price of tons of beer in the beer industry is still rising.

Dairy industry: The output growth rate has dropped, and the cost price has continued to rise.

In June 2010, the production of liquid milk was 1.5109 million tons, an increase of 5.05% year-on-year, and the growth rate increased by 10.84 percentage points and 0.42 percentage points year-on-year respectively; the output of dairy products was 1.793 million tons, an increase of 5.67% year-on-year. The quarter-on-quarter increase was 9.45 and 1.16 percentage points respectively. The growth rate of production of liquid milk and dairy products both rebounded in June, and the shortage of raw milk in the peak season of milk production improved. Yili began to cooperate with Mongolia to open up new milk sources, in order to weaken the restrictions on the development of the company due to insufficient domestic milk sources. In terms of accumulative growth rate, sales of liquid milk and dairy products maintained growth rates of 8.81% and 8.88% respectively in the first five months, and the growth rate of the chain fell to varying degrees.

According to the June and June data released by the Sugar and Liquor Express, the price of milk in Chengdu and Beijing was basically the same as that of the previous month. Individual varieties rose slightly, and white milk prices are still climbing slightly. According to the statistical data on raw milk prices, the cost of production in the dairy industry continues to rise. The average price of raw milk in the main producing areas in June was 2.86 yuan/kg, which was 0.04 yuan more than that in May, a year-on-year increase of 23.28%. Raw milk prices The cost pressure caused by the rise in the dairy industry is still not to be underestimated.