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If the deep integration of catering and prepackaged food is a future, what kind of opportunities will the Chinese market have and how to seize these opportunities? | FoodPlus Insight

This is foodplus’s 23rd insight article

It is also the first special article of the ecological Conference on food and beverage prepackaged food

Through this article, we hope to talk about how the relationship between catering and prepackaged food has evolved from the past to the present, as well as the possible trends in the future, and to analyze the possible opportunities of catering and prepackaged food, including entrepreneurial opportunities, investment opportunities and innovation opportunities. Finally, we also want to further explore different types of public welfare How to seize these opportunities.

[about foodplus · 2020 catering prepackaged food ecological conference] this is the first time that foodplus has held an “ecological conference”. We hope to find some neglected but important topics and topics that can represent future trends. Around these topics, we invite important companies and senior & practical guests in the industry to conduct in-depth discussion and exchange, so as to let the relevant public Companies and practitioners have the opportunity to further or even re understand what they are doing.

 

Catering and prepackaged food is not a new topic. However, in the past, the topic discussed more in the industry is the retail of catering, which is based on the perspective of catering enterprises. In this conference, we re-examine it from the perspective of prepackaged food. If we think about the issue of prepackaged food in the consumer goods industry, we may have different thinking and judgment, and even strategies.

 

This ecological conference with the theme of food and beverage prepackaged food will be held in Shanghai on August 15. You are welcome to sign up for the conference. At present, the vice president of Shuhai supply chain, CEO of Sunday, brand director of Huiji food products have confirmed to attend.

 

 

Author: foodplus Haifeng

 

Due to the impact of the epidemic situation, Haidilao, a Hong Kong stock hot-pot/" 22375 rel="nofollow" target="_self">hot pot listed company, announced on July 6, 2020 that the company’s revenue for the six months ending June 30 had decreased by about 20% compared with the same period in 2019, and then made a supplementary announcement on July 7. The company recorded a loss in net profit for the six months ending June 30, 2020, with a loss of about 900 million rmb-1 billion RMB, while Haidilao was the same in 2019 The net profit was 911 million RMB.

 

This is just a microcosm of China’s catering industry. Affected by the epidemic situation, most restaurants in China stopped the business of dining in restaurants from the Spring Festival until the middle of March or even April. Even during the severe epidemic period, the restaurants were closed down as a whole. This is the darkest time for China’s catering industry in the past 10 years. The last time we have to go back to the SARS period in 2003, however, the market environment and economic environment of the two periods are not the same. In particular, with the development of China’s catering industry in the past decade, more and more chain catering enterprises have been born, especially more and more catering enterprises with a certain scale The pressure resistance of sub chain restaurants is not necessarily stronger than that of single restaurants.

 

In contrast, Haidilao’s affiliated company Yihai International did not suffer from the negative impact of the epidemic, but exceeded the market expectations. Yihai international is a manufacturer of compound seasonings and convenience food, which provides compound condiments to Haidilao and other catering enterprises, and also produces and sells Haidilao brand hot-pot/" 22375 rel="nofollow" target="_self">hot pot seasonings and convenience food. According to the Research Report of CICC, Yihai International’s revenue is expected to increase by 28% in the first half of 2020, and its net profit will increase by 40% to 378 million. At present, the market value of Yihai International’s shares in Hong Kong has exceeded 100 billion Hong Kong dollars, which is about 90 billion yuan converted into RMB. The price earnings ratio is about 117 times more than 100 times.

 

The annual revenue of Haidilao in 2019 is 26.55 billion RMB and the net profit is 2.346 billion RMB. The annual revenue of Yihai international in 2019 is 4.28 billion RMB and the net profit is 795 million RMB. For comparison, the current market value of Haidilao is HK $188.4 billion, about 170.2 billion RMB. In 2019, the income difference is more than six times, the net profit difference is nearly three times, and the market value difference is less than two times. Of course, different industries have different valuation methods, but this also shows some problems and a direction that catering enterprises can think about, that is, what the pre packaged food means and how much imagination space there is for the business strategy of prepackaged food.

 

We have observed that different catering enterprises adopt different strategies and attach great importance to the prepackaged food business, and this shows that whether the prepackaged food business is used as a supplement to the catering business, an extension of customer demand, or as a corporate level strategic business.

 

In the catering industry, the concept of catering retailing will be mentioned. At present, many catering enterprises regard catering retailing as the core strategy. Catering retailing refers to catering and even restaurants as the core to do extensive retailing, including the online restaurant. The most common online way is takeout, and some take the restaurant as a retail place and open it inside the restaurant Shelf space or product display, selling some food materials, raw materials and self-developed prepackaged products. At the same time, it also combines retail attributes with online to become e-commerce.

 

However, as a catering enterprise, the logic of catering retailing is different from that of catering prepackaged food. As mentioned above, catering retailing is from the perspective of catering enterprises, while catering prepackaged food is from the perspective of consumer goods. In other words, catering retailing is carried out around the restaurant scene, and catering prepackaged food is based on the supply chain, products and market demand to do what consumer goods companies need to do.

 

There are two direct examples to show this difference. One is Haidilao and Yihai international mentioned above. We can see that Yihai international has developed hot-pot/" 22375 rel="nofollow" target="_self">hot pot seasonings, sauces and convenient food products around Haidilao brand. This is the development of Yihai international relying on Haidilao seasoning supply chain step by step. These products are in addition to Haidilao’s own line In addition to sales in shopping malls, it has also entered offline retail channels and circulation channels, and these businesses are operated by Yihai international as an independent entity.

 

The other is Xibei’s selection. According to its official introduction, Xibei selection is positioned as an online shopping mall platform. The product line covers frozen main course, frozen meat, sauces, basic condiments, primary agricultural products ingredients, snacks, etc. among them, the highest sales of Xibei selection program is granddad Zhang’s hollow noodles, which is popular in China on the tip of the tongue Authorized. At present, Xibei’s products are mainly sold in e-commerce and stores, but have not entered into various types of offline retail channels. At present, the products are mainly processed on behalf of others, and the core suppliers include well-known enterprises such as new hope Liuhe and Fucheng Wufeng.

 

Obviously, Haidilao and Yihai international do this from the perspective of prepackaged food, and Xibei & Xibei selection is done from the perspective of catering. However, it is not ruled out that Xibei will further adjust the strategy of prepackaged food, so that this business can be operated as a consumer goods company, so that this business sector has more imagination.

 

Speaking of this, the above examples are more catering enterprises. As a catering enterprise, there is a possibility worthy of further exploration under the condition of catering prepackaged food. Does this mean that the trend of catering prepackaged food is more suitable for catering enterprises than for prepackaged food enterprises?

 

In fact, catering enterprises have the natural advantages and foundation of catering, but there are also disadvantages. Although the prepackaged food enterprises do not have the natural advantages and foundation of catering enterprises, they also have their own characteristics and advantages.

 

When the food industry did not appear, when it comes to what to eat and how to eat, it is more about cooking or catering. The reason why the food industry can have a good development is largely the industrialization of cooking or innovation based on this. Therefore, to some extent, prepackaged food and catering are integrated, only because of the development of modern retail and modern channels and industry The scale of production has led to a completely different structure in the whole industrial chain, thus making food and catering become two different industries.

 

However, with the development of standardization of catering industry and the industrial penetration of catering supply chain, the technology and production technology of food industry are upgrading. Now, it is possible to produce food that can meet the general cooking standard or even medium and high-level cooking standard through the factory. Although this change is slow, it is irreversible. Therefore, the overlap between catering cooking and food industry is getting higher and higher, which gives birth to a new market opportunity. With the continuous expansion of the overlapping area of the two industries, the whole market is also very active. Catering enterprises and prepackaged food enterprises with their own advantages have the opportunity to find in this market To their own advantages, and occupy a favorable market position.

 

Therefore, based on the background of this large industry and market, we would like to talk about the topic of food pre packaged food in depth, including:

How to define the food prepackaged food, and the corresponding product boundary and category boundary?

In the past, how did Catering & cooking and food industry develop together, and how to differentiate into two different industries? What are the reasons and logic behind it?

Why is it in a deep fusion node now, and how to conduct deep fusion now and in the future?

Frozen food, normal temperature staple food, convenience food, semi-finished products of prefabricated dishes, prepackaged cooked food, compound seasonings, regional flavor specialty food, etc., which are the opportunity points under this background, why are they or are not, and how to grasp the different opportunity points?

In the trend of prepackaged food, what are the advantages of catering enterprises, and how to make use of their own advantages to expand the prepackaged food business and make it one of the main businesses?

Correspondingly, what are the advantages of prepackaged food enterprises? How to exert these advantages and expand their business scale so as to become a large-scale food consumer goods company or a large-scale food consumer goods company? How to expand the market scale and consolidate its market position?

At the same time, some catering enterprises with beverage service as the core, such as Xicha, Lele tea, Naixue tea, Starbucks, Peet’s, etc., can we see from these milk tea chain and coffee chain companies which have different ways of catering prepackaged food?

Based on the fact that different types of companies have the opportunity to seize the trend of catering prepackaged food, what kind of opportunities can be brought to the enterprises in the upstream supply chain, such as new hope Liuhe, Zhengda Group, Shuanghui and other meat processing enterprises.

How is the development of food and beverage prepackaging in foreign countries? What kind of inspiration and direction can the development of room temperature food and frozen food give to Chinese market and Chinese companies?

 

This insight article will be divided into the following parts:

1. Why is the deep integration of catering and prepackaged food a future, and where are the category boundaries and product boundaries?

2. What is the relationship between the food culture of different countries and regions and the development of frozen food and staple food products, as well as the general situation of the industry, and what kind of enlightenment is there for the development of Chinese catering and prepackaged food?

3. Where are the opportunities of prepackaged food in Chinese market? What is the current and future industry pattern?

4. For catering enterprises, prepackaged food enterprises, supply chain enterprises, how to seize this opportunity?

 

We hope that both catering enterprises and prepackaged food enterprises can get some inspiration from this article, and even generate some good decision-making ideas. If you have any further communication, you are welcome to contact the foodplus team.

 

 

1. Why is the deep integration of catering and prepackaged food a future, and where are the category boundaries and product boundaries?

 

If we want to look back on the relationship between catering and prepackaged food and the evolution of the relationship between them, we should start earlier, that is, the development of food industry. Before the food industry, food was more about cooking. Behind the different cooking methods, it represents the food culture of different countries and regions in the world, such as many classic foods at home and abroad, such as pasta, pizza, hamburger and French food hot-pot/" 22375 rel="nofollow" target="_self">Hot pot, bread, biscuits, etc.

 

The development of the earliest food industry is to solve a very core problem, that is, to extend the shelf life of food, through the technical means of production technology and the use of additives, to make food more stable, so as to be able to keep longer time. It can be traced back to France in the 18th century, when exhaust, sealing and sterilization methods were proposed to preserve food. Later, this method was gradually applied to canned food, dairy products, flour and other products. It is precisely because these attempts gradually developed into a modern food industry.

 

These deep-processing foods can be divided into two types: one is the industrialization of cooking, including deep processing of meat, canned food, yogurt, bread, snacks and convenience food. The other is to extend the shelf life of a single food by means of technology and packaging, such as pure milk, pasteurized milk, drinking water, etc.

 

From the perspective of various types of food consumer products, the industrialization of cooking involves a wider range of product categories, and the extended shelf life of a single food is relatively few, but the latter is also easier to scale up, especially in the supply chain, production and channel sales.

Food and beverage cooking and prepackaged food at different stages of the same fusion, photo source: foodplus research and analysis team

 

The development of the earliest food industry can be understood as the integration of catering and prepackaged food in the earliest stage. In this stage, cooking was more industrialized, resulting in a lot of packaged food.

 

Later, packaged food began to transform catering and cooking from ingredients and seasonings. In this period, single seasoning and dry food materials were mainly used, and some compound condiments were also included. Due to the industrialized production of condiments and food materials, after extending the shelf life, channels and channels could allow condiments and ingredients with different flavors to circulate in different regions, which contributed to this Catering and cooking in different regions permeate and blend into each other. At the same time, there are also convenience food products, such as instant noodles.

 

With the development of the cold chain, there is a new market, frozen food and refrigerated food, some of which are processed by quick freezing, and some are frozen or refrigerated main course meals. At this stage, prepackaged food and catering are infiltrating and integrating with each other. Under this interaction, the frozen food and frozen food market develops rapidly.

 

From the perspective of the whole catering industry, this is a decentralized market. However, with the emergence of large-scale chain catering, the concentration of the catering industry is relatively improved, and the chain catering needs a high degree of standardization, which promotes the development of the central kitchen and the catering supply chain industry. For example, KFC and McDonald’s can be understood as a catering supply chain company at the upstream end Many Chinese catering enterprises have also set up central kitchens, their own food supply chain systems and cold chain distribution systems, and there are also third-party food supply chain solution providers such as Sysco, Lehe food, meicai.com and Shuhai.

 

In recent years, with the development and innovation of compound condiments, the standardization degree of catering industry has been further improved. Yihai international, a subsidiary of Haidilao, mentioned above is a compound condiment manufacturer, which is separated from Haidilao. Yihai international undertakes the standardization and innovation of Haidilao in hot-pot/" 22375 rel="nofollow" target="_self">hot pot seasoning.

 

The integration of catering and prepackaged food is also reflected in another dimension, that is, prepackaged food companies use catering as channels, such as different types of drinks and drinks, and even use catering channels as the main revenue source in some specific categories.

 

The development of the food industry is gradually mature, the penetration rate of frozen and refrigerated food is gradually increasing, the catering supply chain is mature and the degree of standardization is higher and higher, and the maturity and development of compound seasonings are the foundation of the deep integration of catering and prepackaged food.

 

The opportunity to further promote the deep integration of catering and prepackaged food is the change of demand, diet culture and eating habits. The epidemic situation plays a more role as an accelerator, and behind it is the consumer’s demand for convenience and delicacy, which leads to the huge demand for products such as hot-pot/" 22375 rel="nofollow" target="_self">hot pot and instant noodles. The development of frozen food and prefabricated food is accelerated under the influence of cooking convenience, and the development of compound seasoning can also make cooking convenient.

 

From the perspective of eating habits, the future cooking methods may be divided into two directions, one of which is mainly cooking technology, exploring food and flavor upward, and the other is to ensure convenience on the basis of certain taste. The latter is the core foundation for the deep integration of catering and prepackaged food, which will gradually penetrate into many food categories or food types.

 

In fact, the integration of catering and prepackaged food is not only reflected in the main course, but also reflected in the catering formats and products such as coffee and tea.

 

Coffee is a very representative industry. Once the consumption habit of coffee is formed, it is a strong demand, which also leads to the diversification of coffee consumption scenarios. From coffee shops, home production to office, outdoor, etc., different types of coffee service or coffee such as coffee shop, ready to drink coffee, instant coffee, hanging ear coffee and coffee liquid appear around these scenes Products.

Multi product and multi scene classification of coffee consumption, photo source: foodplus research and analysis team

 

From the coffee industry, we can see that many coffee chain enterprises with a certain scale diversify their business. From a global perspective, the annual revenue of Starbucks packaging retail coffee business is more than 2 billion US dollars. At present, this business has been acquired by Nestle, and the two sides have established a global coffee strategic alliance. In that year, the annual revenue of Starbucks was 20 billion US dollars The products of the former two sides have entered the major global markets, including the Chinese market.

 

JDE, another coffee giant listed this year Peet’s, a coffee giant, is a combination of JDE, a packaging and retail coffee company, and Peet’s, a chain coffee chain. Although Peet’s main business is coffee chain, its packaged retail coffee and ready to drink coffee account for about 43% of Peet’s brand’s revenue in 2019. The specific data show that Peet’s revenue in 2019 is $983 million, and that of packaged retail coffee and ready to drink coffee It was $423 million.

 

In addition, family coffee enterprises like illy have long focused on coffee planting, production and sales. They not only directly face consumers in retail channels, but also provide in store coffee solutions as suppliers of catering enterprises. In recent years, they are also trying to directly enter the coffee shop market and further integrate coffee business into different consumption scenarios.

 

In the previous weekly article, we mentioned that Xicha established a small tea bottled factory to enter the beverage field. At present, the products launched include NFC juice and bubble water. In addition, the main brand of Xicha also has many types of prepackaged food, including Greek yogurt, tea bags, ice cream, nuts, chips, biscuits and other products.

 

This leads to a very core question. For different types of companies, where is the category boundary and product boundary of prepackaged catering?

 

For the catering chain enterprises, it is more direct to make the specialty dishes into the packaged frozen food of the main course, the frozen food of the normal temperature, some special food materials into the packaged food, and the development of compound seasoning products around the characteristic flavor. But we can also further consider whether its own characteristics and brand positioning can cover other categories. For example, Starbucks caters to the Chinese food culture, which is vigorously promoted every year. Xicha specially introduces xixiaocha bottle factory brand and enters the field of NFC juice and bubble water.

 

For catering enterprises, the category boundary and product boundary can be very broad, not limited to the menu provided by the restaurant menu. The boundary can be determined according to the restaurant’s own positioning and style. For example, Haidilao launched its own brand craft beer in the restaurant, achieving 432 million RMB in sales in 2019, which is equivalent to the scale of a medium-sized beer enterprise, and Haihai has also launched its own brand craft beer Dilao also plans to attract investment for craft beer products nationwide and enter other retail channels and restaurant channels.

 

Haidilao craft beer business line has achieved good results. Behind this scene, there are hot-pot/" 22375 rel="nofollow" target="_self">hot pot with beer, and Haidilao’s strong brand potential energy as the foundation. A good brand foundation is also the basis for broadening the boundary.

 

As a prepackaged food enterprise, in the trend of food prepackaged food, due to the different foundation and advantages and catering enterprises, the categories that can be entered and the products that can be developed are not so diversified. Compared with the catering enterprises, the boundary is narrower, that is, more needs to be carried out around the food scene, convenient food, main course meal and soup Class products and other products are a good starting point. On the basis of these, we can extend to condiments, but if we extend to other aspects, it will be out of the scope of pre packaged food.

 

The supply chain enterprises of catering materials have the opportunity to seize the good opportunities under the trend of catering prepackaged food. These opportunities can be divided into two types: continue to serve as the supply chain service provider, or extend the business line to the brand end, and do the catering prepackaged food with its own brand.

 

In terms of category boundary and product boundary, the boundary of each type of enterprise is not the same, but there is a core: around the meal, and the change of diet style and demand on food is the fundamental of the deep integration of catering and prepackaged food.

 

 

2. What is the relationship between the food culture of different countries and regions and the development of frozen food and staple food products, as well as the general situation of the industry, and what kind of enlightenment is there for the development of Chinese catering and prepackaged food?

 

The modern frozen food industry originated in 1917. Clarence birdseye, an American, was engaged in trade related work in Canada. He found that local residents could quickly freeze fish and meat products under the Arctic temperature to extend the shelf life. Clarence birdseye brought this method back to the United States and founded birds eye, a frozen food company Birdseye is known as the father of modern frozen food.

 

At present, birds eye belongs to the brand of ConAgra brands, the second largest frozen food company in the United States. Before that, birds eye was acquired by Pinnacle foods, while ConAgra brands acquired birds eye in June 2018.

 

According to the performance presentation report of ConAgra brands in 2019, Nestle ranks first in the US frozen food market, ConAgra brands ranks second, followed by Tyson, Unilever and kraft Heinz.

U.S. frozen food market rankings, image source: ConAgra brands Performance Presentation

 

ConAgra brands has a total of three business sectors, of which frozen food business accounts for the highest proportion, accounting for 41% of the total retail sales, followed by staples food category, accounting for 34% of the retail sales, and the smallest business category is snacks, accounting for 25%.

Percentage of retail sales of various business lines of ConAgra brands, photo source: Performance Presentation report of ConAgra brands

 

In the frozen food business category of ConAgra brands, there are more than 14 brands. Among them, banquet is the first one in the frozen food business. It was acquired in 1980. Its products are mainly frozen pie and main course meal. At present, it is one of the core brands of ConAgra brands in frozen food business. The core brand mentioned above is birds eye, which has three product lines: birds eye, birds eye C & W and birds eye volia, which correspond to frozen food of vegetable mixture, vegetable and food. Another core brand, Marie Callender, was acquired by the acquisition of American pie, a frozen food manufacturer, in 2010. Its main products are frozen pies and main course meals.

Three representative frozen food brands and main product series of ConAgra brands, photo source: foodplus research and analysis team

 

From the perspective of these major frozen food products, they are typical American food types. They are mainly staple food, that is, they can be eaten as one meal. There are also frozen food brands like Frontera, which mainly focus on Mexican flavor. The products include ingredients, seasonings and main course meal products. Another classic brand of ConAgra brands is gardein, which is a frozen food brand with plant-based ingredients. Its products are mainly plant-based meat, including main course meals and canned soup products. The types of plant meat include chicken flavor, beef flavor, pork flavor and fish flavor.

 

Nestle, as the largest frozen food market share in the United States, does not have as many refrigerated and frozen food brands as ConAgra brands. By contrast, Nestle is relatively simple, mainly frozen pizza, and covers pasta and other types of main course meal products.

Nestle US frozen and refrigerated food brand, image source: foodplus research and analysis team

 

From the above brands and products, it can be observed that there are 4 brands in the frozen pizza category, 5 brands in the main course and 2 brands in the specialty frozen food category. No matter which type, they are all aimed at the dining scene. Most of the single products of its products can meet the dietary needs of a meal. Of course, this kind of food is mainly convenient.

 

This also has something to do with the food culture of the United States. The main types of staple food are rich and diverse. The food manufacturers represented by Nestle and ConAgra brands occupy the main share of staple food, while Tyson, Homer and Smithfield are the representatives of the main dish types of meat. However, these companies also have staple food products, but they are not the core product line.

 

Different from the U.S. market, the cooking culture and eating habits of the Asian market are more refined. Compared with the United States, the cooking culture and eating habits of the Asian market are more refined. Compared with the U.S. market, the cooking culture and eating habits of the Asian market are more refined than the main food, which is the main embodiment of the differences between the Asian market and the U.S. market.

 

There are some similarities and differences in the food culture of Japan, South Korea and China. For example, seasoning is very rich and diversified, and seasoning is a very core part of Asian cooking culture.

 

As the Japanese market has entered an aging society, many food companies will develop meals suitable for the elderly for this group. This is the biggest difference in the Japanese market. At the same time, we can see that the food products in the Japanese market have Japanese flavor characteristics, as well as Chinese, Korean and Western food dishes. This is especially reflected in the flavor Obviously.

 

From the perspective of the six representative food enterprises in Japan, we can roughly classify them. The core business of Chubi food and guijiawan is seasoning related, while Riqing food is a convenience food company, while weizhisu and fujicoco are more involved in the food material side. Otsuka food is mainly engaged in functional drinks, while the company behind it is a pharmaceutical enterprise.

Freezing and main course business of representative food enterprises in Japan, photo source: foodplus research and analysis team

 

These three food companies in South Korea have entered the Chinese market, but only some of their brands and products have entered China. Their brands and products in the local market of South Korea are relatively diversified. Among them, New Year cake, pickles and noodles have their own product lines. On this basis, each company’s main specialty products are slightly different. For example, bipinko, a subsidiary of CJ Xijie, focuses on jiaozi And soup products, including rice, also have brands for Western dishes, while Pu Meiduo focuses on tofu related dishes.

Freezing and main course business of representative food enterprises in South Korea, photo source: foodplus research and analysis team

 

If you look at the European market, there are many differences. Frozen vegetables and frozen fish are common food ingredients. For example, frozen foods under frosta AG are mainly fish and vegetables. In the main course food frozen food, it is not only different from the Asian market, but also different from the American market, such as frozen potatoes and chips.

Brand and product line of nomad foods, a leading frozen food company in Europe, source: food plus research and analysis team

Brand and product line of frosta AG, a leading frozen food company in Germany, photo source: foodplus research and analysis team

 

From the product types of the above different countries, the catering category is the core category, followed by the side dishes. For example, in the United States and Europe, the main types of meals are pizza, pasta, hamburger, vegetables and grains, while the side dishes are meat and seafood. In the Asian market, the main types of meals are pasta and rice, while the side dishes are not obvious, but soup is the core category.

 

From the above information, we can see that different countries do have different food culture, so there are great differences in frozen food and main course food products. However, there are certain differences in food culture in different provinces in China. This is also a factor that must be considered when making catering and packaging food in China.

 

 

3. Where are the opportunities of prepackaged food in Chinese market? What is the current and future industry pattern?

 

From the perspective of the basis and trend of prepackaged food in China, we can roughly divide enterprises into three types, the core of which is catering enterprises and packaged food enterprises, while the upstream supply chain enterprises have certain mining value.

Types and representative enterprises of prepackaged catering in China, photo source: foodplus research and analysis team

 

At the beginning of the article, we mentioned that this trend of food and beverage prepackaged food should be viewed from the perspective of prepackaged food, not from the perspective of catering retail. The core reason lies in two aspects: 1. From the perspective of market competition, this is not the competition between catering enterprises and catering enterprises, but catering enterprises, packaged food enterprises and upstream supply chain enterprises The core of competition is packaging food; 2. From the perspective of large-scale development of prepackaged food in catering enterprises, if we want to achieve large-scale development, we must use the brand of consumer goods and the operation mode of consumer goods companies to develop this business.

Types and representative products of prepackaged food products in China, photo source: foodplus research and analysis team

 

From the perspective of market maturity, food ingredients frozen food has the longest history of development, and it is also the most competitive market in the category of frozen food. However, there are some product categories that are still in the development stage: Prefabricated dishes. It is also in the category of freezing and refrigeration. By contrast, frozen and frozen cooked food or ready to eat products are still in the early stage. Among the cooked food, Zhou Hei duck and Juewei duck neck are one type, while Ziyan Baiwei chicken is another. At present, there are relatively few meals and main dishes in ready to eat. Catering enterprises have opportunities in this field.

 

Among the large convenience food categories, instant noodles belong to the mature market, while self heating food and instant noodle belong to the market to be developed, especially the development of self heating food in recent years and the fast cooking food represented by snail powder. Between self heating food and instant noodles, instant noodles can have diversified forms in terms of products. It is a market that can break through through the differentiation competitiveness, while the competition of self heating food will be more intense.

 

At present, in addition to hotpot seasonings and sauces are relatively mature, other types of consumption habits have not been developed, and there are more characteristic sauces in various regions, so it is not easy to break through. It is only possible to dig deep into the products, that is, the deep excavation of the types of compound seasonings and regional flavor.

 

From another dimension, if the penetration rate of cooked food or ready to eat products increases, the opportunity of compound seasoning is at the upstream supply chain end, which is the opportunity for large supply chain enterprises.

 

RTD beverage and wine is an opportunity mining direction that needs scene and imagination. RTD coffee is a scene with coffee. Xicha’s launch of xixiaocha bottler is the scene of newly established tea and the imagination space given by Xi tea in pre packaging business. At the same time, Haidilao, if craft beer can enter retail channels and other catering channels, will give catering enterprises in the prepackaged beverage industry Make sure you open up your imagination.

 

From the perspective of the catering industry, if the combination of Haidilao and Yihai international is not possible in the future, the opportunity of catering prepackaged food will be seized by packaged food enterprises. For upstream supply chain enterprises, it is a good time to establish TOC business.

 

 

4. For catering enterprises, prepackaged food enterprises, supply chain enterprises, how to seize this opportunity?

 

No matter which type of enterprise, the development of food and beverage prepackaged food business needs to give full play to its own advantages, while avoiding its own shortcomings, which also need to be challenged and overcome.

Advantages and challenges of different types of enterprises in developing prepackaged food business

 

Take Haidilao as an example. The combination of Haidilao and Yihai international is a typical example of giving full play to advantages, avoiding shortcomings or overcoming challenges. Independent companies operate, from chafing dish seasoning to self heating hotpot and sauces and other products, one category by one, and omni channel operation to expand its scale.

 

For catering enterprises, the strategic position and organizational framework of prepackaged food business are the basis, followed by the establishment of the operation system of consumer goods companies.

 

As for the upstream supply chain, because TOC and tob are different operation logic, if you want to do TOC business, you need to hand it over to the team that understands TOC business. At the same time, different types of companies are making efforts to catering for prepackaged food, which is also an opportunity to expand the scale of Tob business. If the organization ability can keep up with it, two-line parallel is a good strategy.

 

For the prepackaged enterprises, how to successfully stand firm and have the ability of continuous innovation on this basis is very important. After the scale is established, and with the ability of continuous innovation, they have the ability to successfully copy the business to multiple categories.

 

Finally, if you are thinking about the opportunity of catering and prepackaged food or have already started this matter, you are welcome to exchange views with us. At the same time, you are also welcome to participate in the “2020 · catering prepackaged food ecology conference” which will be held on August 15. This conference will involve both catering enterprises, prepackaged food and upstream supply chain enterprises. It is a rare experience to gain experience And opportunities to build resources.

Insight is an article column launched by foodplus from time to time. It is mainly our insight into food entrepreneurship, subdivision categories or star food companies. It is characterized by deep and long articles, and is worth reading carefully.

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