Mount Taishan Beer has gone bankrupt and undergone restructuring, marking the eventual downfall of a regional beer giant
The regional beer giant "Taishan Beer," well-known to the people of Shandong, ultimately fell this winter.
On January 13th, a written ruling issued by the People's Court of Taishan District, Tai'an City, Shandong Province, pushed Shandong Mount Taishan Beer Co., Ltd. into the spotlight of public opinion.
(2026) Lv 0902 Poshen No. 1 Civil Ruling Paper shows that the court has officially accepted the bankruptcy reorganization application of Mount Taishan Beer. As of October 31, 2025, this beer enterprise, which has over 3,000 franchise stores nationwide, had total assets of approximately 622 million yuan and total liabilities of approximately 663 million yuan, with an asset-liability ratio as high as 106.63%, indicating that it was already in a state of insolvency.
"Seven days fresh and vibrant", yet insolvent
According to the ruling, the crisis of Mount Taishan Beer did not erupt suddenly.
According to the audit report ascertained by the court, as of October 31, 2025, Mount Taishan Beer's total assets amounted to approximately 622 million yuan, while its total liabilities were around 663 million yuan. The company's assets are insufficient to cover all its debts, and there are several large sums that are due and cannot be paid. Additionally, Mount Taishan Beer faces tax arrears issues. The announcement issued by the Tai'an Tax Bureau on October 24, 2025, stated that the company has accumulated unpaid value-added tax, consumption tax, and urban maintenance and construction tax totaling 17.3808 million yuan.
The direct cause of the financial chain fracture of Mount Taishan Beer lies in the dual pressure of internal expansion and external drag.
On the one hand, the company has occupied a large amount of working capital to promote fixed asset projects such as expansion and technological transformation, printing digital base, and new factory in Foshan; on the other hand, the poor operating conditions of the parent company, Hucai Group Co., Ltd., and its related parties have affected Mount Taishan Beer, resulting in the depletion of working capital.
The court emphasized in its ruling that despite the company's insolvency, its nationwide store network, product technology reserves, and brand value still constitute the basis for reorganization. The case was assigned to the Taishan District Court by the Tai'an Intermediate People's Court for trial, as the company's main assets, employees, and creditors are all located in this district, and the local government has established a liquidation team aimed at resolving the crisis through judicial reorganization.
From a local distillery to an industry dark horse
The predecessor of Mount Taishan Beer dates back to the Tai'an Beer Factory, which was established in 1979. In 2000, it was restructured into a joint venture with a registered capital of 398 million yuan.
Its rise benefited from the precise capture of the segmented market. In 2010, Mount Taishan Beer launched the "7-day original pulp" beer, which features a short shelf life, breaking the monopoly of traditional water beer with its differentiated taste.
At that time, the unit price of ordinary beer on the market was only 4-5 yuan, while the original Taishan beer was priced at more than ten yuan. Relying on concepts such as "active yeast" and "high-concentration malt," it quickly occupied the mid-to-high-end market.
To support its product features, Mount Taishan Beer has established a unique operation system. The shelf life of its original beer is only 7 days, which is difficult for traditional distributors to handle. Therefore, the company has built its own terminal stores and logistics network.
Through the "main line + branch line" distribution model, we achieve same-day delivery within a radius of 1,000 kilometers around the factory, and over 3,000 franchise stores provide "30-minute fresh and fast delivery" service.
At the product level, Mount Taishan Beer has been focusing on short-shelf-life draft beer for many years. Its R&D team has accumulated a vast amount of scientific research data, making it a benchmark for draft beer in China. The product has repeatedly won the "Qingzhuo Award," the highest honor in the Chinese liquor industry.
In 2025, based on consumer demand, Mount Taishan Beer successively launched new products such as the "Gold 7 Premium", "Oriental Herbal" series of craft beers, and 0-sugar raw beer, targeting different consumer groups. From January to April 2025, its sales increased by 12% against the trend. At that time, the company's general manager, Zhang Kaili, publicly stated, "Making long-term efforts is the cornerstone of Mount Taishan Beer."
Expansion trap and shareholder dilemma
However, the heavy asset model is like a double-edged sword. In 2021, Mount Taishan Beer invested 450 million yuan to build a new factory in Foshan and simultaneously promoted the printing digital base project. These investments far exceeded its revenue carrying capacity.
The debt crisis of the parent company, Hucai Group, has only worsened.
Hucai Group holds 73% of the shares of Mount Taishan Beer. However, in June last year, Hucai Printing Arts Co., Ltd., a well-known printing enterprise in Dongguan, Guangdong, entered into bankruptcy reorganization proceedings with debts amounting to RMB 1.13 billion. The company is an important related party of Shandong Mount Taishan Beer Co., Ltd.
Under the chain reaction, the equity held by Tiger Color Group in Mount Taishan Beer has been completely frozen, with the amount of frozen equity reaching 284.7 million yuan. In addition, Mount Taishan Beer had signed a valuation adjustment mechanism agreement with investors CMC and Xinjin Capital, agreeing to complete its listing by June 2024, otherwise the share repurchase clause would be triggered.
After the listing plan was shelved, Hucai Group faced significant pressure from share repurchases, further exacerbating the collapse of its capital chain.
It is worth noting that the enterprise had attempted to save itself before the crisis broke out. In November 2025, Mount Taishan Beer corrected its previous financial statements and registered new trademarks such as "Taihai Beer"; during the same period, the winter limited product "7 Days Snow Beer" was priced down by 1 yuan, in an attempt to stimulate the off-season market.
However, these measures failed to reverse the downturn. In an interview with Shandong Business Daily, a local media outlet in Shandong, some dealers revealed that due to the short shelf life of products and uncertain sales, the inventory strategy was generally cautious, reflecting the wavering confidence in the channel.
Why choose reorganization rather than liquidation?
In the ruling, the court pointed out that the channel network and brand heritage of Mount Taishan Beer are scarce. The more than 3,000 stores across the country constitute offline traffic entrances, and the technical barriers and consumer recognition of "7 Days Original Paste" still retain value. In addition, as a local entity enterprise, its existence is related to employment and social stability, and the intervention of the government-led liquidation team also reflects the consideration of maintaining stability.
If Mount Taishan Brewery can introduce strategic investment and divest non-core assets through restructuring, it may be able to focus on its core business and revive. However, the difficulties faced by Tiger Color Group, the issue of frozen equity, and the pressure from competing products still cast a shadow over its future.
Currently, the bankruptcy reorganization process has been initiated, and Mount Taishan Beer stands at the crossroads between survival and extinction. Its fate not only concerns the continuation of a single enterprise, but also epitomizes the struggle for survival of regional easy open end beer brands amidst the tumultuous waves of capital and industry.
Author: Zhou Tao Source: Jiemian Shandong
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