Who Feels the Pain More in the Massive Beverage Distribution Shake‑up? Declining Distributor Revenues vs Rising Direct Sales

2025 financial statements of leading beverage companies show a pronounced decline in traditional distributor revenue while direct‑sales income climbs sharply. For example, Yangyuan Beverage’s distributor revenue fell 15.2% to CNY 48.6 billion, whereas its direct‑sales rose 50.1% to CNY 4.41 billion. Huanlejia reported a 26.95% drop in distributor sales to CNY 11.03 billion and a net reduction of 274 distributors, while its direct‑sales channels grew over 52%.

Macro‑level data from Sullivan confirms the structural shift: the GMV share of grocery stores fell from 49.2% in 2019 to 45.8% in 2024, while bulk‑snack stores rose from 7.6% to 14%, expanding GMV from CNY 2,184 billion to CNY 4,190 billion. This reflects consumer migration to snack‑bulk, instant‑retail, and membership stores, eroding the footfall of traditional supermarkets.

Faced with fragmented channels, many brands are bypassing the multi‑layer distributor network, adopting direct‑to‑consumer (DTC) or deep‑cooperation models. The result is a structural split: distributor‑driven revenue declines while direct‑sales surge, reshaping the profit landscape.

Case studies illustrate divergent outcomes. Kangshifu’s “two‑tier direct” strategy cut nearly 10,000 distributors, yet net profit rose 20.5% in 2025, showing efficiency gains when the brand can control pricing and inventory. Conversely, Huanlejia’s rapid shift to bulk‑snack channels boosted revenue 52% but its gross margin fell from 33.97% to 17.81%, causing a 70% plunge in net profit, highlighting the pain of insufficient product innovation. Dongpeng Beverage’s “one‑code‑one‑item” digital tool empowers remaining distributors to become localized service nodes, while Uni-President’s “steady‑fusion” approach guides distributors to jointly develop new retail formats, achieving a 4.6% revenue increase.

However, aggressive channel reforms carry risks. Over‑cutting distributors can weaken market coverage in weaker regions, as Kangshifu’s two‑tier model was criticized for “helping the strong, hurting the weak.” Price inversion—where distributors pay higher than resale prices and rely on post‑rebate subsidies—has emerged at China Resources Beverage, undermining distributor motivation and foreshadowing performance fatigue. Rapid integration also raises concerns about distributor rights, supply‑chain stability, and brand‑channel tension.

In summary, the “channel shake‑up” is less a simple replacement of distributors with direct sales than a digital‑driven efficiency battle. Brands that balance product strength with digital tools, and that transform distributors into value‑creating, locally focused partners, are positioned to thrive, while those that pursue blunt cuts without a symbiotic strategy risk collapse.