China Food

After the IPO of Zuming food, Nestle became Tiantu investment LP, and companies such as wonderlab, yutianchuan and fift8 got financing | foodplus weekly

This is the 131 weekly weekly by foodplus


Statement: This article is the original article of foodplus and cannot be reproduced without authorization


Weekly weekly news focuses on the analysis and revision of information to the richness of information. We will collect and review the most noteworthy information of the food consumer goods industry in the past week.

*Starting from this issue of weekly, a new column section will be added: “trends of investment institutions”, and the 2020 catering prepackaged food ecological conference sponsored by foodplus has been successfully held in Shanghai on August 15. There is a photo review at the end of the article.

Editor of weekly weekly: orva, Haifeng

Topic selection of weekly: land, sea and air

Big event & wind vane

The IPO application of the first “Zuming shares” of soybean products has been approved, which will continue to add to the fresh soybean products market

By San

Information sources: Zuming food official website, Zuming prospectus, interface news

“Zuming shares” brand slogan, photo source: Zuming official website

 

On August 13, the official website of China Securities Regulatory Commission (CSRC) showed that Zuming bean products Co., Ltd. (hereinafter referred to as Zuming Co., Ltd.) passed the IPO meeting of a shares, and after seven years of listing efforts, it was finally satisfied.

 

In fact, as early as 2013, Zuming shares began to try IPO. After the failure of the impact, Zuming listed on the new third board in 2016. In March 2019, Zuming shares terminated its listing and started IPO again in July 2019. However, it still failed to pass the examination due to 46 issues related to standardization, information disclosure and financial and accounting materials. Zuming shares A-share listing Road, can be described as twists and turns.

Zuming Co., Ltd. is a bean product production enterprise integrating R & D, production and sales. The funds raised in this listing will be used for the technical transformation project of the production line with an annual output of 80000 tons of fresh soybean products and the upgrading project of the research and testing center of soybean products. The former plans to invest 362 million yuan, and the latter 65 million yuan. Among them, the designed annual capacity of the technical transformation project of the production line of fresh bean products with an annual output of 80000 tons includes: 11000 tons of plate tofu, 8600 tons of dried tofu, 1500 tons of bean curd skin / bean curd, 38000 tons of boxed tofu, 12000 tons of 1000 pieces of tofu, 5000 tons of vegetarian chicken, 300 tons of vegetarian food and 3600 tons of oil products. The estimated annual revenue and net profit are 465 million yuan and 64 million yuan respectively.

Use of funds raised by Zuming IPO, photo source: Zuming share prospectus

According to the information in the prospectus, Zuming shares’ earliest history can be traced back to 1994, formerly known as Xiaoshan Huayuan bean products factory. Since its establishment, Zuming has always focused on the R & D, production and sales of bean products, and its main products are fresh bean products (tofu (boxed tofu, plate tofu), tofu skin / beancurd, dried tofu, vegetarian products, thousand pieces, vegetarian chicken, oil products There are more than 400 kinds of products in three major series, including stinky tofu, vegetable protein drinks (self-made bag of soybean milk, Tetra Pak bean milk, etc.), leisure bean products (leisure dried bean curd, leisure bean roll, leisure vegetarian meat, etc.).

Zuming stock product line diagram, photo source: Zuming share prospectus

From the financial data, in 2017-2019, Zuming’s revenue was 863 million yuan, 939 million yuan and 1 048 million yuan respectively, and the net profit was 41.4887 million yuan, 63.9418 million yuan and 90.1651 million yuan respectively.

Zuming stock product line revenue amount and proportion, photo source: Zuming share prospectus

Among them, fresh bean products and vegetable protein drinks are the main income sources of Zuming. In 2017, 2018 and 2019, the proportion of sales revenue in the main business income was 84.55%, 82.80% and 80.07% respectively. From the growth trend, fresh bean products have maintained a good upward trend in the past three years, but the sales of vegetable protein drinks have declined year by year. However, the total sales of pre packaged leisure bean products, Sufu and other products account for less than 20%, but it can be observed that the total sales amount (leisure bean products and other categories) is growing rapidly.

Zuming stock profit index chart, photo source: Snowball

From the profit related indicators, Zuming shares in 2017-2019, operating income and net profit both maintained a sustained growth, and the year-on-year growth rate of net profit was significantly higher than the revenue growth rate, which was mainly due to the rapid growth of the company’s overall gross profit rate during this period. According to the prospectus, the gross profit margin of Zuming’s main business from 2017 to 2019 is 33.98%, 37.32% and 39.53%, showing an increasing trend year by year. Among them, the gross profit rate of fresh bean products business with the largest proportion of revenue was 35.43%, 40.10% and 43.44% respectively.

The reasons for promoting the growth of gross profit rate mainly come from two aspects. On the one hand, Zuming shares has optimized the distribution structure and increased the proportion of direct selling mode and super marketing mode with higher gross profit rate.

Income and gross profit chart of Zuming shares in different sales channels, photo source: Zuming share prospectus

On the other hand, it depends on the rise in product prices and the decline in the prices of some raw materials. According to the data, the prices of the company’s core products such as tofu, Qianzhang and plain chicken, dried tofu, and self-supporting bag soymilk products showed an upward trend from 2017 to 2019. Over the same period, the price of soybean, the main raw material, fell year by year.

According to the above analysis, Zuming shares have shown a good growth trend in the past three years, but there is still a problem to be faced and solved in front of Zuming shares, that is, how to break through regionalization and move towards the whole country.

Zuming shares sales area map, photo source: Zuming shares prospectus

It can be seen from the data in the figure above that Zuming shares are mainly sold in Jiangsu, Zhejiang and Shanghai. During the reporting period, the sales revenue from Jiangsu, Zhejiang and Shanghai accounted for more than 95% of the company’s total revenue. The characteristics of regional concentration are determined by the product properties of soybean products. In particular, fresh bean products, because of their short shelf life, and transportation and storage need refrigeration conditions, so the producers of fresh bean products basically take their own production base as the center, radiate round to the surrounding, and the radiation radius is related to the preservation time and transportation capacity of bean products, usually 150-300 km. The limitation of radiation radius weakens the competition among fresh bean products producers in different regions, resulting in the regional distribution of the market. In addition, the differences in production technology and taste of soybean products in different regions also further aggravate this trend. This trend not only leads to the vast majority of enterprises in the industry, but also leads to the low concentration in the industry.

Zuming shares market share chart, photo source: Zuming share prospectus

In order to effectively break through the regional limitations, Zuming shares can first consider to invest in its own non core areas to break through the product short-term guarantee and capacity obstacles. However, in the actual operation process, we should not only consider the problem of capital, but also evaluate the brand potential of Zuming in the new market and the local competitive environment, and build differentiated products by identifying the real needs of local consumers, rather than copying the existing product line.

Through the brand innovation of pre packaged products, such as plain meat and leisure bean products, the daily fresh bean products are upgraded to leisure snacks, meal substitutes and other products with longer shelf life, which not only breaks through the limitation of short-term protection of bean products, but also caters to the current industry trend of plant-based and catering pre packaging.

After 26 years of development, Zuming shares not only ushered in the first annual revenue of more than 1 billion yuan, but also will successfully land in the capital market, but all of these may not be the end but the starting point for Zuming shares. Driven by new people, new media and other factors, domestic brands have ushered in a golden period of development. This opportunity is not only applicable to emerging brands, but also has the opportunity to create the second growth curve of the company by taking this opportunity. However, all this depends on the courage and determination of Zuming team to change.

Big company news

可口可乐推出Topo Chico Hard Seltzer首次在拉丁美洲涉足酒精业务

By: orva

Information source: Official Website of fooddive and Coca Cola

Coca Cola launches TOPO Chico soda. Photo: fooddive

According to fooddive, Coca Cola launched TOPO Chico hard seltzer in Latin America, which is the first time Coca Cola has entered the alcoholic hard seltzer category, and it is also another company entering hard As a beverage giant in seltzer market, we have also analyzed and interpreted the development of hard soda in the Chinese market. Many beer giants have entered this market.

Topo Chico was a bubble water company acquired by Coca Cola in 2017 for us $220 million. At that time, the parent company of Topo Chico, Arca Continental, was Coca Cola’s cooperative canning company in Latin America. At present, there are no more details about this product, but we can see from the package that the product will have lemon flavor.

According to a report by Nielsen, there were only 10 hard soda brands in the market at the beginning of 2018. By the beginning of 2019, the number had risen to 26 brands. There are also many liquor giants, including Bon & VIV of Budweiser InBev, truly of Boston Beer, Henry’s of tap, corona hard seltzer of constellation group.

New craft brewer joining hard seltzer in the first half of 2019, source: UBS

According to incomplete statistics of UBS in the first half of 2019, at least 27 brewers have set up this category. Among the consumer goods brands, white claw and monster are well-known. Magic claw entered the hard soda track in the first half of this year. We analyzed and interpreted this. It is worth mentioning that magic claw is also invested by Coca Cola.

Haoliyou’s natural mineral water brand “lava spring” officially entered the Chinese market

By Ethan

Information source: Sohu, Beijing Business News

Haoliyou lava spring products, photo source: haoliyou

 

Recently, the leisure food brand haoliyou has launched the packaged drinking water haoliyou lava spring in the domestic market and officially set foot in the domestic bottled water market. It is reported that the source of haoliyou lava spring is the deep water source of volcanic lava in Jeju Island, containing calcium, potassium, magnesium and other beneficial minerals for human body. Relying on the sales network of haoliyou, the new product is planned to be launched online on Jingdong, HEMA and other e-commerce platforms, and the offline key cities will also be launched simultaneously (at present, the product has not been launched on the above platforms).

It is reported that in November 2016, haoliyou purchased 60% of the shares of “Jeju lava water” in Jeju Island, South Korea, for 2.124 billion won (about 12.33 million yuan). In August 2019, haoliyou applied for the trademark with the image of Jeju Island as the pattern, and prepared to launch the Jeju lava water. In October 2019, haoliyou officially launched the high-end mineral water brand “Jeju lava water” in South Korea, with two specifications of 530ml and 2L.  

Jizhou lava water is the first new product of haoliyou in the Chinese market in recent years, which is expected to attract new consumers. In order to attract new consumers, channel partners once included lucky coffee. However, novel coronavirus pneumonia affected Jeju lava water, which delayed the time to market and changed partners. At present, in addition to pie and puffed products, there are also candy, biscuits and other products sold in China. According to the Beijing business daily, in 2019, haoliyou sold 974.4 billion won, about 5.658 billion yuan, and its operating profit was 158.6 billion won, about 920 million yuan. In China, revenue growth in 2019 is less than 1%, far lower than 18% in 2018. The operating profit also decreased from 12.5 times in 2018 to 6.0% in 2018.

Jiangsu variety show Holding Co., Ltd. acquired the controlling equity of “Zhijiang liquor” with 460 million yuan, continuously increasing the asset portfolio of its liquor industry

By Ethan

Information source: cloud wine headlines, Weiwei stock announcement

Jiangsu variety show holdings acquired the controlling interest of “Zhijiang liquor industry”. Photo source: Internet

On August 4, Weiwei announced that Jiangsu variety show group and Zhijiang Liquor Co., Ltd. held an equity signing ceremony on the same day. Jiangsu variety show will purchase 71% controlling shares of Weiwei shares in Zhijiang liquor industry in cash, with a transaction consideration of 461.5 million yuan (the total valuation is about 650 million yuan). After the completion of the transaction, Weiwei no longer holds shares in Zhijiang liquor. This is Jiangsu variety show’s acquisition of guizhouchun’s majority equity from Weiwei group, the controlling shareholder of Weiwei shares, in 2019, and then launched another M & A in liquor industry.

Revenue and profit of Zhijiang liquor and guizhouchun under Weiwei Co., Ltd. photo source: foodplus research and analysis team

 

In 2009, Weiwei acquired 51% shares of Zhijiang liquor industry with 348 million yuan, and then purchased 20% shares from other shareholders of Zhijiang liquor industry in 2013, which aroused the industry’s new attention to Zhijiang liquor industry. However, Zhijiang liquor industry has not made good development under Weiwei’s system. In 2011, after the highest record of sales value of 1.999 billion yuan and profit of 142 million yuan, with the arrival of the industry adjustment period, the output and sales scale of Zhijiang liquor industry declined significantly. In 2017, Zhijiang liquor industry, which experienced five consecutive years of sales decline, suffered a profit loss for the first time, with revenue and profit of 519 million and – 193 million respectively. In the following three years, the sales revenue continued to decline rapidly, falling into a loss situation; in 2019, the net profit loss of Zhijiang liquor industry after withdrawing goodwill impairment exceeded 86 million yuan; in the first half of 2020, due to the serious impact of Xinguan epidemic, Zhijiang liquor industry encountered greater difficulties in production and sales. The continuous sales decline and loss may be one of the factors for Weiwei to divest Zhijiang liquor industry.

At present, the products of Zhijiang liquor industry are mainly medium and low-end Luzhou flavor liquor, including century Zhijiang series, star series, zhijiangwang series, etc. From the perspective of assets of the company, the distillery covers an area of more than 2000 mu; it has 135 domestic trademarks such as “Zhijiang” and “Eshen”; it has more than 5000 fermentation tanks and 40 filling production lines, with an annual production capacity of about 120000 tons; the number of employees is more than 5000 people, including 313 professional and technical personnel, 8 National Liquor judges and 4 national dew liquor judges, enjoying the subsidy of the State Council There are 3 experts, 2 Chinese wine making masters, 1 expert enjoying special government allowance and 25 provincial liquor judges.

Zhu Wei, chairman of the board of guizhouchun, investigates Zhijiang liquor industry. Photo source: Yunjiu headlines

According to the latest audit report, at the end of March, the total assets of Zhijiang liquor industry was 976 million, including 106 million monetary funds, 351 million inventory (211 million semi-finished products) and 346 million fixed assets. At the end of March, the company had a total debt of 753 million, with an asset liability ratio of 77.15%, including 170 million short-term loans and 552 million various accounts payable (97 million notes and accounts payable).

The acquisition of Zhijiang liquor by Jiangsu variety show has fulfilled the plan of “purchasing at least one provincial leading enterprise every year” mentioned by Zhu Wei, chairman of guizhouchun alcohol group in 2019. Before joining guizhouchun, Zhu Wei worked in Yanghe distillery Co., Ltd. (hereinafter referred to as Yanghe) for 20 years, and successively served as the director of human resources department, director of marketing department, director of strategic research, and vice president of the company. We can also regard this as an important part of Jiangsu variety show’s vigorous layout of liquor industry.

 

In 2002, the actual controller of Jiangsu variety show, min Shengda’s variety investment and Jiangsu high investment group, have become one of the sponsor shareholders of Yanghe. Variety show investment has invested 15 million yuan, holding 9.83415 million shares, accounting for 14.46% of the total share capital; Jiangsu high investment group has invested 3 million yuan to hold 196683 shares, accounting for 2.89% of the total shares. With the successful listing of Yanghe, the investment gradually withdrew, and gained huge investment income.

Ownership structure of guizhouchun Liquor Co., Ltd. photo source: enterprise check

According to the headlines of Yunjiu, guizhouchun, after the change of ownership, ended its eight-year history of loss of 300 million yuan in May this year and realized a profit of more than 10 million yuan. As of the end of July, guizhouchun alcohol has achieved a sales profit of about 40 million yuan. From this point of view, it seems that we can see the hope of Zhijiang liquor industry to turn a loss. However, the ultimate goal of Zhu Wei and min Shengda is to create a comprehensive wine group like Diageo, and this business model has become the common pursuit of many domestic wine enterprises, such as Yanghe, global fine wine, etc. Wine companies and capital owners have “made efforts” to seize the strategic opportunity. However, the background and resources of each liquor company are different, and the entry point and the starting point are also different. For example, Guichang Laojiu focuses on the high-end liquor market. In the future, the leaders of various wine enterprises will focus on how to lead the enterprises to seize the opportunities, overcome the problems in the development, and build an excellent corporate culture.

Investment and financing news

Wonderlab, a catering start-up company, completed a new round of financing, with new investors including Kaihui fund and IDG capital

By Sean

Information sources: tianyancha, gymsquare refining, unicorn data, tmall

Wonderlab completes a new round of financing, photo source: wonderlab official website

 

According to Tianyan data, Shenzhen Meili Nutrition Technology Co., Ltd., the main body of wonderlab, a catering start-up brand, completed a new industrial and commercial change on July 29. New investors include Suzhou Suzhou Kaihui growth investment fund partnership (limited partnership) and Guangdong Youhe Gaozhi equity investment partnership (limited partnership) And He Hao, in which the former is one of Kaihui’s foreign investment entities, while according to the relevant information such as Xianniu data and tianyancha, Gaozhi equity investment partnership (limited partnership) is the foreign investment subject of IDG capital.

This also means that wonderlab has completed a new round of financing, and Kaihui fund and IDG have become its investors.

A new round of industrial and commercial change data of wonderlab, source: tianyancha

 

Wonderlab, which started with milk shakes instead of meals, is a company that is more concerned by capital in the fire of food substitute track in 2019. It also goes ahead in terms of financing. The value team has done a good job in online channel operation, and its sales volume has reached a certain level. At present, wonderlab’s products are still focused on the value of weight management, which also reflects the status quo of weight management as the mainstream target group in the domestic catering market.

Main products (part) of wonderlab at present, source: tmall

At the same time, there are obvious homogenization problems in the domestic food substitute market. How to promote the upgrade of substitute food category through real and effective product innovation, get out of the current growth mode which is more dependent on online delivery, and further open the category boundary, is also a problem that players in this field must think about.

The first round of financing of “fit8” with tens of millions of yuan has been completed

By Mika

Source: 36kr

“Fit8” won the first round of financing of 10 million yuan, photo source: 36kr

 

According to 36kr, the first round of financing of “fit8”, a new domestic catering brand, has recently completed tens of millions of yuan. This round of financing is led by Fosun Ruizheng capital, followed by individual investors Li Jing and Dai Jun.

Founded in 2019, fit8 mainly produces protein bars and bottled milk shakes. According to 36kr, in addition to the consumers who focus on weight management, there are also many ordinary white-collar workers and young people who buy ffit8 products. The eating scenes are not only limited to before and after fitness, but also include meals, overtime, breakfast and snacks.

In the research and development stage of raw materials, fit8 adopts cross flow membrane filtration technology, which has smaller molecular weight and higher absorption rate than ordinary whey protein isolation. It has no lactose and is not easy to allergy, so it is more suitable for the lactose intolerance constitution of Asian people. In addition, fit8 protein bar adopts small molecule sustained-release technology, which makes protein absorption more balanced and lasting during fat reduction, and makes nutrition supplement more sufficient. It can achieve the light weight effect of supplementing muscle consumption in time and burning calories without reducing muscle.

In March this year, fit8 and Xiaomi Youpin reached a cooperation, and launched fit8 Xiaomi customized version of light weight meal substitute protein bar on crowdfunding channel for the first time, which is also the first time Xiaomi Youpin has launched a substitute meal product. The sales volume of the product exceeded 4 million yuan in 24 hours after it was launched on March 12. During the 14 day crowdfunding period, the transaction volume exceeded 10 million yuan, and more than 51000 people supported it. The total sales volume was 189000 boxes, and the completion rate of crowdfunding target exceeded 10341%. During this year’s 618 period, the total channel sales of ffit8 exceeded 10 million, and the first sales volume of ffit8 on Luo Yonghao studio reached 45000 boxes.

Whether it is the energy protein bar brand kind entering China or the sales performance of fit8, it has verified the new consumption trend of substituting meals for snacks, convenience and popularization. After the contemporary food products are separated from the “fat reduction demand”, there is still a demand for use in the rich scenes of daily life. Food substitute has always been a track that foodplus has been focusing on for a long time, and we will continue to focus on the future development of fit8, a new and sharp food substitute brand.

Yutianchuan, a brand of guaer coffee, has been invested exclusively by Xingwang investment

By San

Information sources: yutianchuan official website, investment circles, tmall, enterprise check

Yutianchuan, a brand of guaer coffee, was invested. Photo source: investment community

According to the information from the investment community on August 12, yutianchuan, a brand of guaer coffee, has obtained the exclusive investment from Shenzhen Qianhai Xingwang Investment Co., Ltd., and the investment amount has not been disclosed yet. Yutianchuan coffee was founded in Japan, focusing on ear coffee, capsule espresso, bag coffee and other products. In 2019, it was rated as the benchmark brand of tmall’s hanging ear coffee, and it was the top brand in annual sales of tmall coffee category.

Yutianchuan’s investor is Xiamen Xingwang Internet No.2 investment partnership (limited partnership), a fund managed by Shenzhen Qianhai Xingwang Investment Management Co., Ltd. According to the public information, the founder of Qianhai Xingwang investment is Xiong Mingwang. He has worked in TEDA Heyin fund, Ping An Securities, Jiuding, Guangfa fund, Dinghui and other institutions as financial manager, analyst and investment director. The projects invested by Qianhai Xingwang before, as shown in the figure below, are mainly concentrated in the Internet field, and also involve education, medical and other industries. However, there was no layout in food and beverage before.

Shenzhen Qianhai Xingwang investment past investment projects, photo source: Sohu

 

Hangzhou Yuxi Trading Co., Ltd. is the main investor of Qianhai Xingxing. Although yutianchuan is a coffee brand owned by CICT, Japan CICT is a wholly-owned subsidiary of Hangzhou Yuxi Trading Co., Ltd. in Japan. CICT Co., Ltd. is a full supply chain company integrating production, procurement, international logistics, transportation and sales PB.OEM In addition to yutianchuan coffee brand, it is also the agent of many coffee brands, such as UCC, AGF, Fujita coffee, Tribeca, and Milu coffee from South Africa.

The shareholder structure of Hangzhou Yuxi Trading Co., Ltd

According to yutianchuan’s official website, yutianchuan’s coffee beans are imported from the original place of origin, and each coffee bean is Arabica bean. In Japan, yutianchuan has built its own factory, and “Brazilian certified coffee connoisseur” is responsible for the quality control of baking process and coffee production.

A picture of yasutagawa factory in Japan, photo source: Official Website of otagawa

At present, yutianchuan’s products sold in China are imported from Japan, mainly through online platforms such as tmall and Jingdong. According to the information presented on the flagship store of yutianchuan tmall, its core product categories include ear coffee, bag coffee and liquid coffee. In addition, some value-added gift boxes and coffee peripherals are also launched. Take yutianchuan’s representative product, Gua’er coffee, as an example. Its main feature is that it has no additive, bitter and mellow labels. At the same time, the price relative to the people is also one of its important characteristics. The price of yutianchuan’s single bag of ear is about 3 yuan, which has not included the activity of buying 2 pieces and giving 1 piece free. Compared with the super surging multi flavor top-quality hanging ear of domestic coffee brand, the price of each package is 4.42 yuan; the price of yongpu Weiwu bag is 4.14 yuan.

Yutian chuanguaer coffee product picture, source: tmall

With the continuous growth of domestic coffee consumption market, in recent years, the types of players who have joined the field have become increasingly diversified and the competition has become increasingly fierce. However, at the same time, the domestic capital market still shows great enthusiasm for the leading brands in the industry, especially the layout of overseas brand agents by investors. When more and more coffee companies get financing, how to gradually stand out from the market segments through product innovation and brand building is an important topic they will face and think about.

Instant noodle Guochao brand “yuanniang” won nearly 10 million yuan pre-A round investment from Qingsong fund

By turo

Information source: 36kr, yuanniangniang tmall flagship store

“Yuanniang” won nearly 10 million yuan pre-A round investment from Qingsong fund. Photo source: 36kr

According to the information released by 36kr, Guochao instant noodle brand “yuanniang” recently announced that it has received a pre-A round investment of nearly 10 million yuan from Qingsong fund.

Yuanjia was founded in 2016, and its early main product is mayonnaise. By the end of 2019, Guochao wind speed noodle brand “yuanniang” will be launched. The main product is Turkey noodle with mayonnaise, and the price of each package is between 6 and 8 yuan. At present, the sales volume of its instant noodle products has exceeded that of the classic condiment products. At present, yuanniang has also entered the offline channels of Yongwang, Tianhong, BHG, Ole, Yonghui, HEMA and Rosen.

Due to the busy or living habits of young people, the condiment products with the target user group of young people may face the problems of infrequent consumption scenarios and low frequency of re purchase by users. The use of more frequent scenarios, more prone to hoarding behavior, convenient food categories have higher ceiling, which should also be an important reason for yuanniang’s strategic transformation.

Trends of investment institutions

The dynamic of investment institutions is a new section in weekly. We focus on the investment institutions of food consumer goods, focusing on the development of star institutions, representative institutions and characteristic institutions in the field of food consumer goods.

Tiantu investment completed the new US dollar VC Fund. Nestle, a global food giant, is the cornerstone investor. This is Nestle’s first investment in China Fund

Author: Hai Feng

Source: WeChat official account

Nestle invests in Tiantu, the latest US dollar VC Fund. Source: Tiantu venture capital

 

Nestle China investment Nestle has completed the latest round of US dollar VC fund’s first round of fund-raising in recent days, according to the push of WeChat official account. The Nestle is the cornerstone investor of this fund. The US dollar fund will not exceed 150 million US dollars, and this is Nestle’s first investment in China Fund.

 

The official account of WeChat public China also mentioned that the US dollar fund will focus on three directions, namely, food and beverage, beauty care and consumer health care. It will focus on the growth enterprises with potential to become the leading brands and lead the young generation and the new middle class in the future.

 

It is worth noting that this US dollar fund is a VC Fund, belonging to Tiantu venture capital, which was established by Tiantu investment in 2016. At present, the projects in the field of food and beverage include three and a half, Zhong Xuegao, wonderlab, crazy dog and other brands.

 

Another issue worthy of attention is what the cooperation between Nestle and Tiantu can bring to both sides?

 

Nestle, as a world-class food and beverage giant, has paid attention to the innovation and development of food and beverage in some mature markets, such as North America and Europe, by means of investment, merger and even establishment of incubators. However, Nestle lacks a mature M & a system, especially in minority equity investment, and has not set up an incubator or accelerator in the Chinese market. Then, in terms of focusing on the innovation of food and beverage in the Chinese market, as well as in-depth understanding and insight into the demand, we need to have a more direct grasp, so as to closely and deeply understand the innovation, trend and development of the industry.

 

Become a senior GP investor in China’s food and beverage industry, especially an important investor, so that Nestle has the opportunity to deeply understand the entrepreneurial and innovative trends of China’s food and beverage industry. This is not necessarily the only way, but it is an important way.

 

From the perspective of Tiantu investment, Nestle is a good endorsement whether as PE investment or VC investment. The vision of world-class food giants can help Tiantu to invest in food and beverage. On the other hand, Nestle and Tiantu investment take this cooperation as an opportunity to conduct in-depth exchanges, which can help Tiantu to have a deeper understanding of the food and beverage industry, especially from Nestle’s discovery of the operation logic and operation mode of large-scale food and beverage brands, so as to better discover the investment opportunities of emerging brands and provide better post investment services.

 

As a world-class food and beverage giant investing in local investment funds, it is also a signal that China’s food and beverage venture capital is becoming more and more mature. If more and more world-class food and beverage begin to invest in China’s market with minority equity, it means that the development of China’s food and beverage industry will be accelerated. At the same time, when M & A transactions occur frequently It means that China’s food and beverage market is mature.

There are reports worthy of attention in the field of food consumer goods

AG funder and bitsxbites jointly released: investment and financing report of China’s agricultural food start-ups: review in 2019

By: orva

Source: agfunder

Investment and financing report of agricultural and food start-ups in 2019, photo source: Ag funder

 

In 2019, the GDP growth rate of 6.1% has become the lowest point in nearly 30 years. The trade war and African swine fever directly affect the attention to people’s livelihood, which also promotes food security and food agriculture to become the investment power in 2019. This report includes annual review and insight, sub category financing and statistical analysis of phased financing.

The first part of the report presents four key insights for 2019:

1. Block trading fell, with China second in the global investment market. A total of 224 transactions with a total of US $3.6 billion were concluded in 2019, which were 20.85% and 37.93% lower than that of 283 transactions with a total of $5.8 billion in 2018

2. In 2019, the investment amount of e-commerce was US $2.1 billion, an increase of 25% compared with that in 2018. It mainly comes from consumers’ demand for convenience, diversity and quality

3. The widely scattered fresh food purchasing points have become the latest digital target. Tencent and Warburg Pincus are the representative investment institutions in this field;

4. Digital smart agriculture has attracted the interest of early investors, including midstream technology, farm management software, sensor technology, Internet of things, new farm intelligent management system, etc. In 2019, the investment scale related to farm management technology increased by 363.4% compared with last year;

Overview of China’s agricultural food start-ups by category financing in 2019, photo source: investment and financing report of China’s agricultural food start-ups: review of 2019

There are 14 sub categories involved in investment and financing transactions in 2019. The top 3 categories of transaction volume in 2019 are online retail (US $2.1 billion), in store retail & Catering Technology (US $424 million), and consumption upgrading of prepackaged food and catering brands (US $400 million), accounting for 83% of the total investment in the whole year.

In online retail, 52 transactions based on community and e-commerce mode account for 25% of the total investment. The main investment transactions involve “daily excellent fresh”, “Yipin fresh”, “original life”, “Hibiscus prosperity” and “Beidian”.

In store retail & Catering Technology, investment in this sector has shrunk since its peak of US $564 million in 2017. The 22 transactions recorded this year indicate that the industry is undergoing restructuring. In addition to improving the convenience of checkout and reducing manpower, startups are also looking for solutions to improve operational efficiency. The main investment transactions involve “Youbao”, “Zaihui”, “kitchen core”, “little beast” and “catering”.

Driven by the rise of consumption in second tier cities, prepackaged food and catering brands attract capital investment with a total investment of 400 million US dollars. Lucky coffee completed the B + round financing of US $150 million in 2019 and listed on Nasdaq, with a total of 4260 stores as of November 2019. Other projects involved in investment transactions include “Jiumao”, “Hefu Laomian”, “Lele tea”, “liancoffee” and “Yuanqi forest”.

In the third part of the report, the number and amount of transactions in seed round, a round, B round, C round, D round and the later round of maturity period are statistically analyzed according to different financing stages.

In seed round, the largest transaction is “Lele tea” which has completed $30 million financing. Other major investment transactions involve “Xingluo intelligence”, “Zhongnong inclusive benefit”, “6 tea sharing tea room” and “taste house”.

In round a, the largest transaction was “Beidian” which completed US $126 million financing. Other major investment transactions involved projects such as “dairadish”, “one neighbor”, “Ten Star Group” and “catering road”.

In the later project rounds, the largest transaction was the $700 million financing of “daily Youxian”, and other major investment transactions involved projects such as “Youbao”, “99.9”, “Zhonghe rural credit”, “Meicai”, etc.

Overview of phased financing of China’s agricultural and food start-ups in 2019, photo source: investment and financing report of China’s agricultural and food start-ups: review of 2019

In addition, among the most active investors in 2019, Gaorong capital and Fengrui capital ranked first with 6 transactions, followed by Jingwei China (5), source capital (5), Huachuang capital (5), Tencent (4), Xiangfeng investment (4), Xianfeng investment (4), Tiantu investment (4), Bertelsmann Asia Investment Fund (4), and puzzling venture capital (4).

PS: if you want to read the full report, please pay attention to the official account of FoodPlus and reply the agricultural food report in the background. You can download the original report.

Some interesting new products

Delta

Recently, yongpu launched the first flash coffee liquid in China, and chose Li Jiaqi’s live studio to make its debut. It sold 400000 cups in 24 hours. Flash brew (flash brew) is a new technology of coffee liquid extraction from Japan. It is hot extracted and concentrated, and then quickly cooled to keep the best flavor of coffee and tea. In this way, the concentration of coffee liquid is higher, and it can be preserved at room temperature. It is understood that there are no factories in China that can do this technology, and only a few factories in Japan and the United States have this technology. (source: foodaily)

Delta

Recently, Nestle pure life has launched a flavoring water for children. It is made with 100% pure water and added with electrolytes. There are three flavors available: apple flavor, watermelon flavor and tropical fruit flavor. (source: China beverage industry network)

Delta

Recently, Budweiser announced the launch of bud zero, a non-alcoholic beer, which is made in cooperation with Dwyane Wade, a former NBA player. Each can contains 50 calories, and contains no sugar or alcohol. Its taste is similar to that of ordinary Budweiser beer, and the needs of athletes are taken into account in the design. Besides sports enthusiasts, Budweiser zero is also a good choice for people who want to maintain a balanced lifestyle. (source: Foodbev)

Foodplus · 2020 catering prepackaged food ecological conference has been successfully held

The first food prepackaged food ecological conference hosted by foodplus was successfully held in Shanghai on August 15. After that, we will continue to hold offline activities related to pre packaged food and export more in-depth content. Please look forward to it.


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