China Food

PepsiCo and Guangzhou Pharmaceutical Group joined hands today!

I didn’t expect that PepsiCo and Guangzhou Pharmaceutical Group would be able to jointly sell oats one day.

This morning, Guangzhou Pharmaceutical Group Co., Ltd. (hereinafter referred to as “Guangzhou Pharmaceutical Group”) and PepsiCo food (China) Co., Ltd. (hereinafter referred to as “PepsiCo”) of multinational food and beverage giant PepsiCo signed a cooperation agreement in Guangzhou this morning, and announced that “pan Gaoshou” of Guangzhou Pharmaceutical group and “Guige” of PepsiCo company would jointly launch oat new products Products.

This is the first cross-border cooperation between the two companies. On the spot of the press conference, the snack agent learned that two new products, Hericium erinaceus oatmeal and donkey hide gelatin oatmeal, will be launched in the first stage of joint brand development of Quaker and pan Gaoshou, which will be officially launched in September this year.

After the meeting, the senior executives of the two companies and xiaoshidai further exchanged views on the cooperation mode and future plans of the two sides. Let’s get to know.

Nourishing oats

In fact, the two sides have been planning for a long time. “We have been discussing cooperation since 2018,” Li Chuyuan, party secretary and chairman of the board of directors of Guangzhou Pharmaceutical Group, said at the press conference. At that time, he and ram Krishnan, then the CEO of PepsiCo Asia Pacific region, met for the first time at the Boao Forum. After many discussions, he “finally settled this matter.”

Behind this is the two giants’ insight into the latest trend of “national trend” and “health care trend” of young people in recent years.

Mushroom oatmeal thinned by Pepsi and Guangzhou Pharmaceutical Co., Ltd

Tang yinglei, senior director of nutrition in Greater China of PepsiCo, said at the press conference that the most important health care needs of young consumers observed by PepsiCo include three aspects: the first is to pay attention to diet health care; the second is to believe in modern nutrition, “they hope to see a better combination of traditional tonic health care and modern science”; third, they prefer to see a better combination of traditional nourishing and health preserving and modern science because of the fast pace of life “Seek good in quick”.

Therefore, in the view of the food giant, the innovation of flavoring products combined with traditional Chinese nourishing ingredients will be an opportunity.

According to the report on consumption trend of young people’s health care released by cbndata, more than 90% of young people already have the awareness of health preservation. As an important way of the three health preserving methods, young people begin to buy instant tonic products. Different from the traditional concept of health care, young people pay more attention to the scientific, convenient and nourishing properties of health products.

According to the data from cbndata and online e-commerce quoted by PepsiCo, in the Chinese market, the sales of “traditional food ingredients and new eating methods” have been increasing year by year, with an increase of more than 60% since this year. At the same time, the natural powder category market is also growing continuously, with an accelerated growth rate of nearly 70% compared with last year.

“Drug and food homology or tonic food are increasingly in demand in the young consumer market.” Therefore, after two years of research and development, Guige and pan Gaoshou have launched two products, Hericium erinaceus and donkey hide gelatin, respectively.

According to reports, on the basis of imported oats, the former ingredients include Hericium erinaceus, Poria cocos, yam, coix seed, Amomum villosum, orange peel, etc., while the latter includes donkey hide gelatin, wolfberry, Poria cocos, longan, sour jujube kernel, red dates, etc.

In the view of Guangyao, the trend of “Guochao health preservation” will be more and more popular in the post epidemic period. Li Chuyuan said that after the outbreak of the Xinguan epidemic, on the one hand, the role of traditional Chinese medicine in the prevention and control of the epidemic situation has made traditional Chinese medicine products and culture more and more understood and recognized at home and abroad. On the other hand, people’s health awareness and demand are increasing, which will promote the trend of “national tide health preservation”.

“We will also have to develop a series of products such as oats and pears in the future.” Li Chuyuan, Secretary of the Party committee and chairman of the board, said.

Joint play

Xiaoshidai learned that the two new products released this time were first listed in Guige tmall flagship store and have been sold in a number of e-commerce and offline channels. Today, the snack agency searched the flagship store of Quaker tmall and found that the specifications of the two new products are 450g in box (15 packets in total, 30g in each package), and the prices are both 159 yuan, and the current promotion price is 129 yuan.

Ejiao oat thinned by Pepsi and Guangzhou Pharmaceutical Co., Ltd

As a matter of fact, there are quite a lot of flavoring products which mainly focus on “traditional food nourishing and health preserving”.

For example, in the middle of the river, there are few Hougu rice. Xiaoshidai noticed that its products also claimed the same source of medicine and food, and the formula was quite similar to that of oatmeal introduced by Pepsi and Guangyao, with similar specifications and pricing. According to the list of commercial ingredients, Jiangzhong Hougu rice contains Poria cocos, white lentils, coix seed, lotus seed, yam, ginseng (artificially planted), licorice, orange peel, Platycodon grandiflorum and Amomum villosum. According to the brand’s flagship store, the price of 450g box (15 small bags, 30g each) is 155 yuan, and the current promotion price is 98 yuan.

In addition, similar products with similar positioning also include Hericium erinaceus oatmeal under Western wheat, yam with Hericium erinaceus oat meal substitute porridge owned by Wugu mill, which Pepsi invested in last year, and Ejiao black sesame paste of southern black sesame, etc.

Cut into this segment of the track, perhaps the biggest advantage of Pepsi and Guangzhou Pharmaceutical lies in the brand and channel.

Xiaoshidai learned that PepsiCo and Guangyao are both involved in the distribution of new products cooperated by both parties. “On the online channel, we plan to enter the flagship store of Guangzhou Pharmaceutical tmall, the flagship store of Pan Gaoshou, pinduoduo, vipshop, etc., while offline, we mainly develop BC supermarket, community store, convenience store and campus store.” Pang Hui, deputy general manager of marketing center of Guangzhou Wanglaoji Pharmaceutical Co., Ltd.

He mentioned that in the promotion of new products, in addition to entering more stores and doing a good display, they will also try to live broadcast and launch new packaging for the gift market. “The sales volume of China’s gift market is very high. We hope that by designing a new gift package and cooperating with other promotional activities, we can seize a relatively large sales opportunity of the Mid Autumn Festival and the Spring Festival.” He said.

“We are complementary in channels. PepsiCo’s strong channels are mainly e-commerce and Ka. We first pilot in individual channels, in this process, we constantly collect consumer feedback, and further iterate our products. ” At present, the product is under the supervision of the third party, which is jointly responsible for the product development and production.

It is worth noting that since this year, Pepsi Quaker’s “new” speed has been significantly accelerated.

“Our product innovation has really accelerated, and this year we (Quaker’s number of new products) should be nearly double that of last year.” Xie Changan told xiaoshidai. Earlier this year, the brand also launched Quaker large grain Lactobacillus Cereals, Quaker black and white high fiber oats, the first substitute milk shake and other new products.

She said Quaker has expanded from nutritious breakfast to healthy snacks and full meal substitutes in the oatmeal product line. “This time, we take oats as the carrier and integrate some food materials from the same source of medicine and food. We will have more exploration in the future.” She said.

Xie Chang’an said that this will focus on consumer demand. “We have cooperated with Alibaba big data to divide nine categories of nutrition consumer groups, and will deeply explore the subdivision needs of different groups.”

This year, Quaker plans to launch more new products, including disruptive innovation and agile innovation. According to reports, the former is “a breakthrough and innovation leading the market development”; the latter is based on the trend of consumption trends, speed first, rapid listing, rapid testing, and rapid expansion after evaluating the effect.

In terms of product innovation, PepsiCo’s path is more and more local, not only this time, Guige new products focusing on “Guochao health preservation”. For example, Leshi x week black duck, Rex x white rabbit, Leshi x wufangzhai and a series of seasonal limited flavor joint brand potato chips, as well as osmanthus flavor Pepsi Cola.

“In the future, PepsiCo China will continue to carry out localization innovation as always, and certainly not exclude the possibility of cooperation with more food and beverage companies.” Xie Changan told xiaoshidai today.

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