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AI Q&A · Is the Yingjiagong Liquor trademark adjustment driven by legal pressure?

Blue Whale News, April 8 (Reporter Zhu Xinyue) Recently, regarding the change from “Dongcang” to “Gongjiu,” Yingjiagong Liquor (603198.SH), when responding to an investor’s question on an interactive platform, said, “Yingjiagong Dongcang” is a trademark owned by the company, and no lawsuit has been filed.

A reporter from Blue Whale News, calling the company as an investor, was further told by company staff that all matters related to the company’s trademarks were normal and showed no abnormality. As for product naming, the original “Dong 6” and “Dong 9” have been adjusted to “Gong 6” and “Gong 9,” while “Dong 16” and “Dong 20” keep their original names unchanged. This adjustment further clarifies the differences in positioning among the company’s products in different price tiers, making it easier for consumers to distinguish and choose.

Why have the trademark and product-naming adjustments for Yingjiagong Liquor’s Dongcang series drawn such high attention from the market?

Yingjiagong Dongcang is a key driver of performance growth

The predecessor of Yingjiagong Liquor can be traced back to the Foziling Distillery founded in 1955. After going through public-private joint operations and restructuring, it was converted into a joint-stock company in 2011, and successfully listed on the capital market in 2015.

At the beginning of its listing, the company’s main products were series such as Yingjiagong Guobin, ecological vintages, and Yingjiagong Zhixing. At that time, the layout of mid-to-high-end products was still blank. This gap became the opportunity for the birth of the Dongcang series.

By 2016, the Dongcang series began to serve as one of the company’s main products. The annual report described it as follows: In terms of marketing, it completed the comprehensive layout of the Yingjiagong ecological Dongcang series in core markets. With a distinct style of “drunk slowly, wake up quickly, cellar aroma is rich, and a touch sweet,” the products won strong recognition from the market, and the company achieved a 270.15% revenue increase for the full year.”

In 2017, Yingjiagong Liquor reorganized its sales system by product tiers, targeting high-end products, mid-to-high-end products, and e-commerce products. Yingjiagong Liquor established three sales-related companies—Anhui Yingjiagong Dongcang Liquor Sales Co., Ltd. (hereinafter: Yingjiagong Dongcang), Anhui Yingjiagong Liquor Sales Co., Ltd. (hereinafter: Yingjiagong Sales), and Anhui Yingjiagong Electronic Commerce Co., Ltd.

In 2020, Yingjiagong Liquor focused on the core strategy of “ecological Dongcang.” By simplifying management processes, Yingjiagong Dongcang was absorbed and merged into Yingjiagong Sales. At that time, Yingjiagong Dongcang’s performance was already far higher than Yingjiagong Sales. In 2020, Yingjiagong Dongcang’s revenue was RMB 8B and net profit was RMB 330 million, while Yingjiagong Sales’ revenue for the same period was RMB 1.54B and net profit was RMB 277 million. The Dongcang series became the company’s core growth engine.

After that, the official side did not disclose the Dongcang series revenue separately. Only in an investor research report dated November 5, 2022, it noted that over 3 to 5 years, the share of ecological Dongcang series liquor had been increased to more than 50%.

In the investor relations activity record table dated September 22, 2022, it was revealed that in the first half of the year, the Dongcang series grew by about 40%, while the Jinxing and Yinxing series grew by double digits. The Dongcang series accounted for around 45% of liquor revenue. In the first half of 2022, Yingjiagong Liquor’s operating revenue was RMB 2.53 billion. With no other major revenue sources, the company’s first-half 2022 revenue for the Dongcang series was provisionally estimated at about RMB 1.1 billion from liquor business revenue.

From 2021 to 2024, Yingjiagong Liquor’s mid-to-high-end liquor revenue increased from RMB 1.45B to RMB 2.53B. Yingjiagong Liquor’s 2023 annual report clearly stated that the increase in revenue for the period was mainly due to growth in its core business, with the Dongcang series as the main representative.

A liquor industry analyst, Cai Xuefei, told a reporter from Blue Whale News that in 2025, the Dongcang series revenue of Yingjiagong Liquor as a proportion of the company’s liquor business revenue may reach 60% or even higher.

Yingjiagong Liquor adjusts packaging of its core products

As the Dongcang series is the pillar of Yingjiagong Liquor’s core business, related developments have attracted significant market attention. Even a slight change can easily trigger industry speculation and heightened market focus.

Recently, Yingjiagong Liquor’s newly shipped “ecological Dongcang” series has changed its packaging: the previous “Dong 6” and “Dong 9” have become “Gong 6” and “Gong 9,” shifting from emphasizing “Dongcang” to emphasizing the concept of “Gongjiu.”

A reporter from Blue Whale News, after checking information from the Trademark Office of the National Intellectual Property Administration, noted that the application for the Yingjiagong Liquor ecological Dongcang trademark was rejected and not accepted. The trademark has become invalid.

Image source: Trademark Office of the National Intellectual Property Administration

The National Intellectual Property Administration indicates that “Dongcang” is a process description and lacks the “distinctive source-identifying” function required for a trademark.

A reporter from Blue Whale News called Yingjiagong Liquor as an investor. Company staff said that there were no abnormal circumstances regarding the company’s trademarks. Regarding product naming, the original “Dong 6” and “Dong 9” have been adjusted to “Gong 6” and “Gong 9,” while “Dong 16” and “Dong 20” have not changed and keep their original names. This adjustment further clarifies the differences in positioning among the company’s products in different price tiers, helping consumers distinguish and choose.

In addition, according to a report by 21st Century Business Herald, starting in 2024, a local liquor company in Lu’an raised an objection to Yingjiagong Liquor’s use of the “ecological Dongcang” trademark, arguing that it had used the “Dongcang” concept earlier. Subsequently, Yingjiagong Liquor lost in an administrative lawsuit, further limiting its use of the “ecological Dongcang” concept.

Regarding claims circulating in the industry that the company has a trademark dispute with a certain liquor company, Yingjiagong Liquor denied it, saying that after review, there is no such dispute.

A liquor industry analyst, Jiuye Xiaozhuqing, told a reporter from Blue Whale News that the packaging-related adjustments are essentially the result of Yingjiagong Liquor being forced to respond to the “ecological Dongcang” trademark being ruled invalid. With various packaging appearing in the market, the resulting confusion during a transition period is inevitable. In the future, what may happen is that Yingjiagong Liquor will return to the “Gongjiu” parent brand, strengthen the main “Yingjiagong” label, and have “Dongcang” revert from a trademark to a process description. If channels and consumers accept it, a smooth switch can be achieved. If the new packaging of “Gongjiu” fails to connect well with consumers, Yingjiagong Liquor’s consumers’ brand mindshare in its core price tier could be diluted, leaving opportunities for Gujing Gong Liquor, Koutzi Jiu, and even other famous liquor brands.