Wild prospect of Haitian food industry after “Maotai soy sauce”

“Soy sauce brother” Haitian industry wants to tell the story of new seasoning. On December 23, a reporter from Beijing Business Daily found that seven “shortcut” series of Chinese compound seasonings launched by Haitian were launched online. From soy sauce and vinegar to sesame oil and hotpot seasoning Haitian industry continues to expand its product line. In the view of industry insiders, on the one hand, expanding the product line of Haitian industry is to practice the multi category strategy repeatedly mentioned by itself; on the other hand, under the background of limited market capacity, Haitian industry, which has proposed no price increase commitment in 2021, needs to create new product groups, increase revenue sources and maintain performance growth. < p > < p > on December 23, a reporter from Beijing business daily searched and found that the official flagship store of Haitian flavor industry launched Chinese compound seasoning products, including spicy stir fried sauce, fragrant stewed pot sauce, refreshing salad juice, broth and brine sauce, etc., with the main theme of “no sample in a week”. At present, the monthly sales volume of the product is 100 +. < p > < p > Xu Xiongjun, a strategic positioning expert and founder of Jiude positioning consulting company, said that the Chinese compound seasoning market is expanding, and Haitian has already laid out the hot pot seasoning market before. As a seasoning giant, Haitian needs to occupy a certain market share in various fields to maintain its own development advantages. < / P > < p > the data show that in 2019, the market scale of Chinese compound seasoning in China will reach 21.1 billion yuan, with a year-on-year growth of 14.7%. It is estimated that the market scale will reach 50.9 billion yuan in 2025. < / P > < p > as a “big brother of soy sauce” in A-share market, Haitian has been expanding its product line. In 2017, Haitian entered the Sufu category by acquiring the main assets of Kaiping guangzhonghuang company. In 2017, Foshan Haitian (Jiangsu) seasoning Food Co., Ltd., a wholly-owned subsidiary of Haitian, acquired Danhe vinegar 70 held by Jiangsu Jiemei bioenergy CO., Ltd %At the beginning of 2020, Haitian Group invested 160 million yuan to acquire 67% equity of Hefei Yanzhuang to improve the control of Haitian Group on upstream raw materials; in August this year, Haitian Group laid out the hot pot Seasoning Market; in October 2020, Haitian Group plans to invest with Ningbo Haibohui investment partnership and Ningbo haiperruixiang investment partnership to set up a subsidiary Haitian haipert in the form of monetary investment Headquarters Food Co., Ltd. < / P > < p > according to economist song Qinghui, with the continuous expansion of the scale and the rising market value, the development of Haitian industry is gradually moving to the ceiling, and it needs to continue to expand categories, improve profits and stabilize its performance. < / P > < p > while constantly improving its own category development, the news that Haitian is about to enter a new round of price adjustment is spreading. It is understood that a number of securities institutions have also released research forecasts, Haitian industry will enter a new round of price adjustment cycle. Subsequently, Haitian food industry responded that as a leading seasoning enterprise, Haitian food industry has no price increase plan in 2021, and will use better management technology to improve operational efficiency, so as to absorb some of the disadvantages brought by rising costs. < / P > < p > in the view of industry insiders, for seasoning companies like Haitian, the adjustment of product price is the most direct and effective means to improve their performance to a certain extent. < / P > < p > reviewing the development of Haitian industry in recent years, its product price has been adjusting. According to the data, in 2008, 2010, 2012, 2014 and 2016, the price increase of Haitian industry ranged from 4% to 10%, mainly due to the rising cost of raw materials such as soybeans. By adjusting the product price, the pressure brought by the cost of raw materials can be reduced to a certain extent. < / P > < p > once the announcement of no price increase was issued, it had a certain impact on its market value. On December 18, Haitian’s stock price jumped to a low opening. It fell by more than 5% in the morning, and then recovered. Finally, it closed at 189.04 yuan per share, with a market value of about 610 billion yuan, while Haitian’s market value reached 650 billion yuan at its peak. < / P > < p > in Xu Xiongjun’s view, Haitian’s promise not to raise its price will have a certain impact on its stock price in the short term, but in the long run, it can win the trust of consumers. According to the data, in the first three quarters of 2020, Haitian industry achieved a revenue of 17.086 billion yuan, a year-on-year increase of 15.26%; and realized a net profit of 4.571 billion yuan, a year-on-year increase of 19.2%. < / P > < p > with high marketing and product price increase, Haitian industry has spent five years to “recreate a Haitian” since 2013. Now, on the basis of promising not to raise the price in 2021, whether Haitian can successfully build a new product group and tell a new story has become the focus of public attention. < / P > < p > in fact, before that, it was not easy for Haitian industry to rebuild a “Haitian industry” in five years. Data show that in 2009, the revenue of Haitian industry reached 4.483 billion yuan. In 2012, Haitian food industry sought to be listed, and the funds raised will be used for the 1.5 million tons soy sauce seasoning expansion project of Haitian Gaoming. In 2013, the sales revenue of Haitian exceeded 10 billion yuan. In the same year, Haitian put forward the development plan of “building another Haitian” in the next five years, that is, to achieve the sales target of 20 billion yuan by 2018. < p > < p > in 2014, Haitian food industry landed in a shares, and expanded other condiment fields by means of capital acquisition and merger. In 2015, Haitian’s revenue exceeded 10 billion yuan. In 2017, the sales revenue of Haitian industry exceeded 16 billion yuan. In 2018, the revenue exceeded 17 billion yuan, achieving the goal of “building another Haitian in five years, doubling the operating revenue”. < / P > < p > however, some people in the industry speculate that Haitian industry has increased the product premium by relying on high advertising investment. Data show that from 2014 to 2018, the sales expenses of Haitian industry increased from 1.05 billion yuan to 2.236 billion yuan, and decreased slightly in 2019, but still exceeded 2 billion yuan, reaching 2.163 billion yuan. < / P > < p > in 2019, although the revenue of Haitian industry is close to 20 billion yuan, and the period from 2019 to 2023 is the five years of the “three five” plan of Haitian industry, it is generally believed that Haitian industry still needs to work hard if it wants to make sustained efforts in categories and channels. < p > < p > according to economist song Qinghui, the increment of condiment market is limited, and Haitian flavor industry is about to touch the ceiling of performance. It is not easy to maintain high-speed growth in the future. In addition, Taitaile, Baijia food, Tianwei food, Yihai international and other enterprises also continue to make efforts, the seasoning market competition is becoming increasingly fierce, and the future development of haitianwei industry still needs time to test. < / P > < p > Disclaimer: the purpose of this article reprinted by CNFC is to convey more information, and it does not represent the opinions and positions of CNFC. The content of this article is for reference only, and does not constitute an investment proposal. Investors operate on this basis at their own risk. < p > < p > Chinanet is a state key news website under the leadership of the Information Office of the State Council and the management of China foreign language publishing and Distribution Bureau. Through 11 versions in 10 languages, the website publishes information 24 hours a day. It is an important window for China to carry out international communication and information exchange.