36Kr Exclusive | "Tang Sanliang Wine Shop" Completes Nearly 10 Million Yuan Angel Round Financing, a New Collision between Community and Extreme Cost-effectiveness

36Kr has learned that "Tang Sanliang's Liquor Dispensing Shop" recently announced the completion of an angel-round financing of nearly ten million yuan. The investor is Challenger Venture Capital. The funds from this round will be used for store expansion, brand promotion, etc.

On November 23, 2023, Tang Sanliang's Liquor Dispensing Shop (hereinafter referred to as "Tang Sanliang") opened its first store near Jiuyanqiao in Chengdu. It offers a wide range of liquor types, including Chinese white liquor, beer, fruit wine, rice wine, yellow rice wine, and imported spirits. The liquor jars are marked with the words "Three taels of good liquor, the essence of heaven and earth's grains."

Venturing into the "liquor dispensing shop" business, an industry that is somewhat distant from young people and is even on the verge of "disappearing," Tang Sanliang hopes to answer two questions: Firstly, how to enable consumers to drink good liquor at the lowest cost; secondly, how to open a store at the lowest cost.

Before the opening of the first store, the team expected that "maybe the daily sales could reach 1,000 yuan after three months." This figure implies good profitability. The actual result was unexpected. The sales on the first day were over 2,000 yuan, and on the second day, over 7,000 yuan.

"This is also a good business," sighed Li Menglong, the founder & general manager, to 36Kr. "It's more than just a good thing." After a year of equipment refinement, visits to distilleries, detailed site - selection criteria, and operational exploration, Tang Sanliang has now opened over 30 stores across the country, covering cities such as Chengdu, Chongqing, and Guangzhou.

During the conversation, Li Menglong showed us a back - end consumption record of Tang Sanliang. The user with the highest consumption frequency made 34 purchases in a month. "People who understand liquor are more likely to accept loose - packed liquor, and those who don't understand it well are also likely to accept it because it tastes good and is inexpensive." Among Tang Sanliang's total user base, the male - to - female ratio is approximately 53% to 47%, and users aged between 18 and 30 currently account for the highest proportion.

These data also verify a fact that even though the shelves are filled with various packaged and famous liquors, people's demand for "ultra - high cost - effectiveness" in liquor still exists and remains unmet. The growing popularity of plain - bottled liquor in the past two years is an example, but it is not sufficient to fundamentally adjust the complex value structure of "distillery - brand - sales company - various levels of distributors - terminal."

Tang Sanliang's model is simple and easy to understand. It eliminates the intermediate links and directly connects the distillery to the terminal. The challenges lie in safety, quality, and operations that are closer to real - demand scenarios.

All three founders of Tang Sanliang, including Li Menglong, have been in the liquor industry for over a decade. They are familiar with various industrial links such as distilleries, brands, and retail distribution, and have the ability and awareness to "get involved personally."

Meanwhile, the vitality of this startup brand is reflected in many details. For example, the "liquor selection party" allows guests to rate new products, with a score of 0 meaning "not even a dog would drink it." On festive days like Christmas and New Year's Day, when it's quiet in the shop, they invite guests to drink and say, "Our positioning is for daily life and for shooting vlogs." They also refer to "MBTI" to roughly judge whether a person is suitable for the liquor dispensing shop business.

In what way will an ancient business model be revitalized?

Tang Sanliang's Liquor Dispensing Shop

The following is a dialogue between 36Kr and Li Menglong, the founder & general manager of Tang Sanliang:

1. The charm of liquor itself is a "rigid demand," but it has been ignored for too long

36Kr: Before meeting you, the term "loose - packed liquor" was already far from us, more like a symbol in a period drama.

Li Menglong: It is indeed "dying out." In the 1990s, loose - packed liquor was the choice of the majority of liquor consumers because there were few brands, and even vinegar, soy sauce, etc. were sold in bulk. As time passed, the choices of bottled liquor became more and more abundant, and people shifted their focus from the product to the packaging, brand, and distribution channels. The new generation of young people no longer has the habit of buying loose - packed liquor, only the memory of it.

36Kr: What is the fundamental reason why young people don't accept the way of dispensing liquor?

Li Menglong: Opening the cloth on a large liquor vat and directly dispensing liquor. Young people first of all don't accept this way because it doesn't seem reliable. It's not just that the action is unsafe, but also that no one can clearly explain what's actually inside.

The safety issue is the most crucial one. That's why we spent the first half of last year doing some basic work, such as on equipment and the supply chain, and figuring out how to dispense liquor from safe equipment.

36Kr: How did you initially take a fancy to this business with so many problems?

Li Menglong: I come from the liquor chain - retail industry and found that there are some problems that liquor chain retailers can't solve. In the sales volume of any liquor chain company, the proportion of well - known Chinese white liquor is extremely high. The consumers of well - known Chinese white liquor are only a small group. In the past 30 years, there have been few changes in products, services, scenarios, and channels for ordinary Chinese liquor consumers. This represents a large demand gap that has not been noticed.

36Kr: Yes, casual dinners among friends are a very "painful" scenario. It's a bit "weird" to drink well - known liquor. If there are niche, inexpensive, and good - tasting liquors, people will actually be pleasantly surprised.

Li Menglong: For ordinary consumers, it's quite difficult to select and drink a reliable liquor within 100 yuan. I can only think of no more than 5 types myself, and it's hard to tell whether many liquors are fermented from pure grains in a solid - state process.

36Kr: So, is Tang Sanliang targeting the general consumers other than high - net - worth users?

Li Menglong: The advantage of high - net - worth users is their strong consumption ability, which can drive up the unit price and gross profit. However, for them, liquor is often a business - social tool rather than a lifestyle habit. The average customer order value of traditional liquor chains is basically around 600 - 700 yuan, which is quite "terrifying." There is no other retail channel in any industry with such a high customer order value.

The charm of liquor itself is a "rigid demand." For real ordinary liquor consumers, liquor is as essential as daily necessities. We really want to serve this group of people well. From a business - logic perspective, they have a larger capacity, and their demand is stable, with actually very strong consumption ability. More importantly, there are no giants in this industry.

36Kr: But does this part of the demand necessarily have to be met by loose - packed liquor? Aren't plain - bottled liquor and boxed liquor focusing on cost - effectiveness enough?

Li Menglong: The industrial - chain structure of liquor determines the advantage of loose - packed liquor. There is no liquor in any packaging form that can be cheaper than loose - packed liquor. In the cost structure, the cost of the liquor itself does not account for a high proportion. What really costs a lot is the brand, packaging, and distribution channels. Brand companies turn base liquor into branded liquor and sell it to sales companies. Sales companies then sell it to first - level distributors, then second - level distributors, and finally to the terminal and consumers. In the entire chain, each step has to make a profit. Even for plain - bottled liquor, a high distribution - channel cost has to be set aside.

Secondly, the experience of loose - packed liquor cannot be compared with that of any packaged liquor. Most consumers of well - known Chinese white liquor may prefer the brand, but the needs of ordinary consumers are actually very simple, which is to find the liquor with the taste they like. This goes back to the most fundamental demand for liquor.

Many of our users started with Tang Sanliang and learned how to distinguish between light - flavored, strong - flavored, and sauce - flavored liquors in 3 minutes, and how to roughly judge the age of liquor in 10 minutes. They think it's amazing and fun. So, you ask if there is definitely a market for loose - packed liquor. Maybe I was a bit hesitant a year ago, worried that the users might be older. But now, the market and data are telling me that "it definitely has a market."

2. They are making movies, and we are shooting vlogs

36Kr: What's different about Tang Sanliang's "liquor dispensing"?

Li Menglong: Many bars and pubs often emphasize the phrase "the least important thing is the liquor." They mainly sell the social experience, which is another important demand but not our forte.

For Tang Sanliang, liquor is "the only important thing." We only care about whether our liquor is good enough and don't pursue good - looking photos or amazing environments. The lights in our store are very bright. I hope customers can see that the tables and floors are clean, sit there calmly and safely, and just enjoy the liquor. Our goal is to make it "suitable for everyone."

36Kr: Your scenarios are more daily - life - oriented and warm - hearted.

Li Menglong: This also has a disadvantage. During festivals like Christmas and New Year's Day when people go out to celebrate, our business may not be as good. On such days, we always invite our regular customers to drink for free because there isn't much business anyway (laughs). You know, if someone usually drinks downstairs and it's New Year's Eve, they will definitely choose a place with a band and a good atmosphere to have fun. They are making movies, and we are shooting vlogs. There is actually no conflict between us.

The "community feeling" of Tang Sanliang's Liquor Dispensing Shop

36Kr: So, I previously asked your investor whether Tang Sanliang sells liquor or the experience, and the answer was "liquor."

Li Menglong: Yes, not everyone likes to drink with others. Socializing may be a stress for many people. So, I hope to regard the liquor dispensing shop as an extension of one's living room rather than an independent scenario. Just relax, and that's the best.

Although our users don't pay for the experience, the experience is still a very important and long - term thing for us. The liquor is constantly changing, and the operation of the store is the sufficient condition for survival, while "human touch" is the highest standard for store operation.

36Kr: How do you create the "human touch"?

Li Menglong: In every aspect. We greet passers - by and let people taste the liquor for free. Also, we don't sell food in our store because there are many restaurants and small eateries nearby. Customers can bring their own take - out food. If they don't bring any, we will give them some free peanuts and melon seeds to go with the liquor. We won't let them drink on an empty stomach.

36Kr: Indeed, the prices of peanuts and edamame in many pubs are not low.

Li Menglong: But how much money can be made from these? When we look at the user value, we take a long - term view of three years, five years, or even longer. Looking at the single - consumption amount over a long period, it's not important at all. Even the amount of liquor one can drink in Tang Sanliang's store may have a limit. It's 89 yuan for all - you - can - drink. If a customer doesn't know how much they want to drink at first and orders one cup at a time, as long as the total exceeds 89 yuan, we will calculate it as all - you - can - drink. There's no need to feel pressured when drinking at Tang Sanliang.

36Kr: What does 89 yuan mean?

Li Menglong: In Chengdu, it's the price of one and a half glasses of craft beer, or three bottles of Corona or 50 ml of whiskey in a pub. But at Tang Sanliang, customers can drink to their heart's content for 89 yuan.

36Kr: In store operation, is there an indicator you care about the most?

Li Menglong: Actually, I care most about the repurchase rate, which can verify the value of Tang Sanliang in the eyes of users. We don't pay much attention to the customer order value because some people buy liquor worth 15 yuan, and some buy 240 - yuan liquor. We can't control this. Forcing a 15 - yuan customer to buy 240 - yuan liquor will make them stop being our customer. We never make recommendations either because we can guarantee that even the 15 - yuan liquor is fermented from pure grains in a solid - state process. That's why the prices at Tang Sanliang range from 15 to 480 yuan to meet the needs of everyone.

3. Create hit products at the "Three - tael Liquor Selection Party"

36Kr: Back to the "only important thing," which is liquor. What kind of liquor do you sell?

Li Menglong: It varies from place to place and from store to store. We currently have a product pool of about 120 types of liquor, including Chinese white liquor, beer, plum wine, imported spirits, yellow rice wine, rice wine, hawthorn wine, and grape wine. However, each store can only offer 40 types. In some communities with a large number of northerners, low - alcohol Chinese white liquor of 38% or 45% alcohol by volume is the main product. In some communities with a good craft - beer environment nearby, there will be some craft - beer products that are not very popular among ordinary consumers but sell well there.

The liquor - dispensing area of Tang Sanliang

36Kr: How do you draw such preference conclusions?

Li Menglong: The first step in our product - selection process is to verify the qualifications of the distillery. The second step is to check the product - inspection reports. The third step is to have experts set the price. The fourth and most important step is our liquor selection party.

Each store will hold a "Tang Sanliang Liquor Selection Party." If there are 15 new products next month, we will invite guests to taste them. Only liquors with an average score of over 4 can be put on the shelves. The liquors selected by each store are different, so the product structures vary. This is also the charm of the community - we only need to be responsible to the surrounding customers.

36Kr: What are the scoring criteria for a liquor?

Li Menglong: