MingZhu Logistics Holdings Ltd. (NASDAQ:YGMZ) (MingZhu or the Company), a leading trucking service provider, today announced that it intends to expand into the commercial liquor distribution market given the synergies
MingZhu Logistics Holdings Ltd. (NASDAQ:YGMZ) (MingZhu or the Company), a leading trucking service provider, today announced that it intends to expand into the commercial liquor distribution market given the synergies and adjacency to its existing business. The Company intends to cooperate with a China-based distributor of Baijiu and other spirits to enhance its commercial liquor distribution business across China, subject to final agreement.
As part of its preliminary strategic plan, the company may distribute its own series of Premium Chinese Baijiu, along with a broader portfolio consisting of spirits from other third party producers, which it currently plans to brand as the Alliance of Baijiu.
Baijiu, which typically has an alcohol content between 35% to 60%, can range in cost from a few U.S. dollars per bottle for a commodity brand to a few thousand dollars for the highest grade. Baijiiu is considered to be China's national drink and is the dominant spirits sold in the domestic China market, with the "white liquor" a normal staple at occasions from family gatherings to business banquets. Baijiu rose to international fame when Chairman Mao Zedong served it to President Nixon at their historic 1972 banquet in Beijing.
It is estimated that 11 billion liters of Baijiu were sold in 2019, more than the total of whisky, vodka, gin, rum and tequila combined, equating to a liter and a quarter each for every man, woman and child living at that time. (source: The Drinks Business). Baijiu is also believed to have distinct health benefits. With over a thousand active bacteria involved in the creation of baijiu, taking a shot is akin to purchasing expensive supplements from a health food shop. (source: Baijiublog.com)
Mr. Jinlong Yang, CEO of MingZhu, said, "We have a positive view of the Chinese spirits market given its large, established size, growth profile and sustainability. The industry has never appeared heathier, with incomes increasing and expenditures on Baijiu and other spirits continuing to grow. By combing MingZhu's extensive knowledge of the domestic distribution market, our logistics network and financial resources, with our alliance's keen understanding of the Chinese spirits market and its long-term relationships, we think we can capture significant revenue opportunities and market share. We continue to evaluate other opportunities that can serve as natural extensions of our business and be totally additive from both a revenue and profitability standpoint, as we focus on building value for shareholders."