Fen Liquor holds one-third of the world—how will its ambition for revival be realized?

Listing | Zhongfang Network

Review | Li Xiaoyan

“May I ask where the wine shop is? The herdsman points distantly to Xinghua Village.” The Xinghua Village in Du Mu’s poem has been passed down for a thousand years, becoming a cultural totem of Chinese wine culture. Located in the southwest of the Taiyuan Basin, by the Fen River in Shanxi Fenyang, Xinghua Village, with its unique natural landscape and brewing heritage, gave birth to China’s pioneer of light aroma white liquor—Shanxi Fenjiu. From the once dominant “Fen Lao Da” to its resurgence after a period of dormancy, and now firmly positioned among the industry leaders, embarking on a new journey of revival, Shanxi Fenjiu is rooted in culture, driven by quality, and empowered by strategy. In the wave of profound transformation in the white liquor industry, it has carved out a path of revival that combines historical depth with contemporary vitality.

The brilliance of Fenjiu has long been engraved in the history of Chinese liquor development. As one of the pioneers and standard setters of light aroma white liquor, Fenjiu has carried the industry’s benchmark mission since its inception. In the first National Liquor Tasting Conference in 1952, Fenjiu was selected as one of the “China’s Four Famous Liquors.” It has been recognized in all four subsequent conferences, establishing its status as “the most famous among famous liquors.” The late 1980s to early 1990s marked Fenjiu’s golden era, when it boasted the largest white liquor production base in the country, setting records for export volume, fame, cost performance, and awards. From 1988 to 1993, it ranked first in sales and profits for six consecutive years, with a market share once covering half of China. The title “Fen Lao Da” was well deserved. In 1994, Shanxi Fenjiu was listed on the Shanghai Stock Exchange, becoming China’s first publicly traded liquor company and Shanxi’s “first stock,” pioneering the capitalization of the white liquor industry and demonstrating its industry leadership. In 2006, the brewing techniques of Xinghua Village Fenjiu were inscribed on the first batch of national intangible cultural heritage lists, ensuring the enduring transmission of traditional brewing wisdom.

As the tide of the times surges forward, the landscape of the liquor industry has been reshaped. The rise of strong aroma liquors has created new competition, and Fenjiu experienced a period of decline. However, this downturn never diminished Fenjiu’s original aspiration for revival. The company has maintained its commitment to quality, deepened its craft inheritance, reflected on strategic adjustments, and accumulated strength during dormancy. Always committed to being an affordable famous liquor for the common people, it has remained true to its light aroma roots, patiently waiting for a breakthrough.

The turning point came with strategic innovation and capital empowerment. In 2017, Fenjiu clarified its goals for mixed ownership reform and overall listing. In 2018, it introduced China Resources as a strategic investor, leveraging CR’s experience in consumer goods to strengthen product promotion, channel layout, and brand operation. A series of industry integrations and asset acquisitions set Fenjiu on a fast track of development. In 2022, it successfully entered the “200 billion yuan club” and officially established the “Fenjiu Revival General Program,” outlining a clear roadmap for comprehensive revival.

The “123 Revival Program” is the core guide for the company to navigate cycles and lead development. “1” goal anchors high-quality, all-round development, rooted in China’s top liquor industry echelon; “2” phases promote step-by-step progress—2022-2024 as the period of transformation and management upgrade, and 2025-2030 as the period of consolidating results and adjusting factors, aiming for a “third of the market” within nine years; “3” focuses on management, market, and talent, building a comprehensive support system for revival. With this clear strategic guidance, Fenjiu smoothly achieved its first-phase goals in 2024. The financial reports for the first three quarters of 2025 show the company maintaining its third-place industry ranking, with steady growth in revenue and net profit. Amid increasing industry segmentation and the Matthew effect, Fenjiu demonstrates strong resilience.

The product matrix is the solid foundation of Fenjiu’s revival. Fenjiu has built a product system covering all price ranges and consumption scenarios, precisely matching diverse consumer needs: in the low-end market, the Glass Fen series, with high cost performance, has become a benchmark for bottled liquor, solidifying its consumer base; in the mid-to-low-end market, the Lao Bai Fen series, with its traditional light aroma style, is a cost-effective choice; in the mid-to-high-end market, the Panama series leads the mid-tier products; in the high-end market, the Qinghua series has become a flagship of light aroma white liquor, establishing Fenjiu’s “golden brand.” Meanwhile, Fenjiu leverages its three major brands—Fenjiu, Zhuyeqing, and Xinghua Village—for independent and differentiated operation, cultivating a second growth curve, promoting the overall revival of the light aroma category, and supporting the high-quality development of Shanxi’s liquor industry cluster.

By 2026, Fenjiu’s revival enters its second stage and a critical period of business model transformation. Facing new trends of rational, youthful, and diversified consumption, Fenjiu abandons the traditional development model centered on capacity and channels, shifting toward a value creation system driven by user needs. The core theme is “emotional resonance, mutual achievement, co-creating the future with consumers,” integrated into branding, products, marketing, and culture.

While maintaining traditional marketing channels, Fenjiu is actively exploring new growth paths that appeal to young, personalized, and international markets. For the youth strategy, the new Mu Tong Crystal Fen series has been launched, featuring fashionable design and youthful expression to connect with young consumers. For internationalization, a dealer symposium was held on March 10, officially launching the Internationalization 1.0 strategy. From strategic positioning and planning to execution, a complete layout has been formed to promote Fenjiu’s transition from “exporting products” to “building brands abroad.” In the face of the “three rationalities” era, Fenjiu respects the market and consumers, continuously re-evaluating its understanding of consumers, markets, and itself, seeking a distinctive path of innovation.

Of course, the highly competitive nature of the liquor industry means Fenjiu’s revival journey is not without challenges. Industry concentration continues to rise, aroma-type liquors face fierce competition, and consumption scenarios keep evolving—all demanding higher standards for strategic implementation, channel management, and product innovation. However, compared to these challenges, Fenjiu’s advantages are more prominent: a millennium of cultural heritage forming a strong brand moat; the light aroma profile aligning with health-conscious and international trends; a full-range product matrix to withstand cyclical fluctuations; and the ongoing release of redemptive benefits from mixed ownership reforms—these form the core confidence for Fenjiu’s steady progress.

From the thousand-year aroma of Xinghua Village to today’s grand revival blueprint; from the once “Fen Lao Da” to the current industry leader, Shanxi Fenjiu’s revival is not only a return and surpassing of an enterprise but also a reaffirmation of the value of China’s light aroma liquor category and a contemporary inheritance of Chinese fine liquor culture. Guided by the revival program, Fenjiu, with culture as its soul, quality as its foundation, and innovation as its wings, is steadily advancing on the path of national, youthful, and international expansion. It remains committed to its original goal of “making famous liquor affordable for ordinary people” while confidently moving toward becoming a top player in China’s liquor industry.

A millennium of Fenjiu, now in full revival. Standing at a new historical starting point, Shanxi Fenjiu is writing a new chapter of innovative development for China’s old liquor brands with steady determination and vigorous progress. Its thousand-year-old aroma will spread to broader markets, younger generations, and distant international stages, forging a glorious new era for Fenjiu in the landscape of the white liquor industry.