China’s Snack Giant Expands into Alcohol with Own Wine Brand

Chinese snack giant Three Squirrels has moved into the alcoholic drinks sector, launching three beverage brands this summer in a push to tap into the country’s fast-growing low-alcohol market.

The Anhui-based company introduced “Sun Monkey King” craft beer, “Huxi” fruit wine and “Orange Cat” wine, marking its first entry into the drinks category. The products are aimed squarely at consumers shifting away from high-proof spirits such as baijiu and toward lighter beverages, including beer, fruit-based drinks and mass-market wine.

According to data from the China National Association for Liquor and Spirits Circulation, low-alcohol products are gaining ground. In the first half of 2025, drinks under 10% alcohol by volume (ABV) posted a confidence index of 59.22, while those between 10–20% ABV scored 49.89. By contrast, high-strength spirits above 50% ABV fell to just 41.26.

Wines Bottled in China

The “Orange Cat” label currently offers two wines. One is a Chilean Cabernet Sauvignon sourced in bulk from the Central Valley and bottled domestically by RB Bulk Wine. Sold under the Chinese name 橘猫 (Orange Cat), the wine retails at RMB 29.9 ($4) per bottle on the company’s Tmall flagship store.

The second is a French Bordeaux, Château de Brague, priced at RMB 68 ($9) per bottle. Its product page cites a gold medal at the International Wine Challenge in 2020, positioning it as more premium. However, the listing describes the wine as “imported liquid,” and customer service confirmed it is bottled in China. In China’s market, bulk-imported, locally bottled wines are often associated with budget offerings — a model popularized by Aldi’s “six bottles for 99 yuan” Chilean wines.

A Snack Empire Diversifies

Founded in 2012 in Wuhu, Anhui province, Three Squirrels built its business on nuts and packaged snacks. Its “Daily Nuts” brand alone generates sales of more than RMB 1 billion ($138 million). Other blockbusters include macadamias, pistachios, almonds, chestnuts, and trendy snack packs ranging from quail eggs to shredded bread.

The company listed in 2019 and has since grown rapidly. In 2024, revenues climbed 49.3% year-on-year to RMB 10.62 billion ($1.46 billion), while net profit surged 85.5% to RMB 408 million ($56 million). Today, it is the largest Chinese-owned snack company, with sales spanning major e-commerce sites JD.com and Tmall, instant retail platforms Meituan and Ele.me, and offline distributors.

Three Squirrels says the shift into alcohol is a deliberate strategy to capture demand among younger drinkers. “The low-alcohol market is expanding and increasingly accepted by consumers,” the company told National Business Daily. “As demographics shift and new consumption occasions emerge, category diversification creates opportunities. Alcohol products also have longer lifecycles than food, giving them potential to become blockbuster items.”

The strategy has begun to show results. The “Sun Monkey King” beer line recorded more than RMB 6 million ($825,000) in sales within its first month, according to a company insider. Products are distributed both through offline retail and the company’s own snack stores.

“From the brands we’ve already launched to our future expansion plans, we’re confident about growth,” the person said.

For Three Squirrels, the move into beer, fruit wine and wine reflects both diversification and a demographic play. More than 60% of its customers are women aged 20–40, the same group driving China’s wine consumption and showing growing interest in low-alcohol alternatives.

Its entry follows a broader trend of Chinese retailers building their own alcohol brands. Unlike traditional distribution models that add costs at multiple stages, private-label products offer sharper pricing and stronger margins.

One prominent example is Pangdonglai, a Henan-based supermarket chain that created its own beer and baijiu. The products became so popular that supermarkets nationwide began stocking them, often facing shortages.

In wine, major players like Sam’s Club, Freshippo (Alibaba’s Hema), Yonghui, and instant retailers like Waima Alcohol Delivery and Pupu Mall have all launched private-label wines. Sam’s Club alone sold over RMB 800 million (USD 110 million) worth of wine in 2023, with its bestseller list dominated by in-house brands.

By contrast, Orange Cat wine has struggled. Sales data from Three Squirrels’ Tmall flagship store showed just one bottle sold across both SKUs, with similar results on JD.com.

Industry observers note that, unlike beer or baijiu, wine remains a niche category in China. For brands betting on this sector, name recognition, packaging design, and perceived value are critical in determining whether a product can break out into the mass market.