In May 1949, Experimental Factory of North China Liquor Distillery (predecessor of Red Star) was established. It incorporated twelve old distilleries including Yuan Shenghao later, fully inheriting the traditional brewing techniques of Beijing Erguotou. As the first state-owned brewery in Beijing, they brewed the first batch of Red Star brand Er Guo Tou liquor as a tribute to the birth of New China. Due to outstanding completion of tasks, Red Star became the only liquor company to participate in the founding ceremony of the People's Republic of China. At the same time, Red Star also became the first enterprise in Beijing to use the name of Erguotou craftsmanship as its product name, pioneering the Beijing Erguotou category.

Red Star Liquor Distillery has chosen to cooperate with Tonle Machinery to meet the needs of different customer groups.