This is the 135th weekly by foodplus
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.
1. At the end of the paper, there is a notice of the latest issue of small dinners, the theme of which is functional food and beverage, which will be held in Beijing on September 19.
Editor of weekly weekly: Ethan
Plant based brand “notco” completed $85 million c-round financing, and its sales volume increased 6 times in 2020
Information sources: Food dive, notco official website, the ringer, businesswire, CrunchBase
Notco founding team and products, source: notco LinkedIn
On September 9, notco, a food technology company headquartered in Santiago, Chile, announced the completion of US $85 million round C financing. The leading investors in this round of financing are future positive capital and l catterton, with kaszek ventures, the craft, Bezos expedition, general catalyst, endeavor catalyst, indie bio, Humbolt capital, Maya Capital and other 8 institutions. The financing was obtained when the company announced to expand its business scale and expand into the U.S. market. After financing, founder and CEO Muchnick revealed that the company’s sales volume was six times that of the same period in 2019. Notchco is the second time Muchnick founded Eggless, a company that sells plant seasonings and mayonnaise.
Notco financing history, source: CrunchBase
Currently, notco’s main product is vegetable based mayonnaise, which quickly gained 10% market share and ranked the top three in the market eight months after it was launched in Chile (Chile is the third largest mayonnaise market in the world, kraft and Hellmann’s are the top two). Subsequently, in 2019, it launched vegetable milk and plant ice cream, and cooperated with Burger King in vegetable meat products. This year, it has also cooperated with Papa John’s (the fourth largest pizza chain in the United States) on meat substitutes, and plans to launch them in more than 100 restaurants of Papa John’s in Chile.
Notco initially defined itself as a food technology company, not a brand company. Two of its founders, pichara and Zamora, have developed a machine learning software called Giuseppe, which was originally planned to be used in food companies’ product development cooperation. Giuseppe is able to find connections between different animal and plant protein molecules, and find special botanical formulas that replicate the flavor, texture and color of traditional food. There are seven different parts involved, including molecular data describing food and ingredients, spectral imaging of food and ingredients, and a series of data collected by taste testers, such as taste, texture, aftertaste, acidity, etc. Muchnick claims to have stored 7 000 plant glycines in seven databases.
The essence of notco’s core technology is to use machine learning technology (Artificial Intelligence) to improve the efficiency of product development. The three founders used it in the field of plant substitution for traditional meat, and its value lies in the sustainability of food. We noticed that on March 31, notco adjusted its business model, closed its mayonnaise production plant in Santiago, Chile, and outsourced all production, while focusing on product development and sales.
But from its technical characteristics, the product produced by “artificial intelligence + synthetic biology” is a bigger “black box” for consumers. Theoretically, this feature will increase consumers’ dependence on brands. Of course, if notco is focused on product development, there is nothing wrong with it. However, as a food brand, it is worth observing whether it is a better business model to involve too many product categories in the growth period and to strip off factories. From the perspective of product positioning, is this product synthesized by plant formula still “mayonnaise”, “yogurt” or “ice cream” in the minds of consumers? Theoretically speaking, this technology can synthesize all kinds of food with flavor and texture that he wants. What kind of food should these created foods belong to? What’s the name?
Even with such doubt, it can not stop the rapid development of plant-based market. Notco’s products have entered the markets of Chile, Argentina, Brazil, Mexico and the United States. Moreover, the demand for meat food continues to expand, and the environmental burden caused by animal breeding is a relatively certain problem in front of human development. Human beings are in urgent need of improving the efficiency of food production. Is “artificial intelligence + synthetic biology” the key to unlock the infinite pursuit of “better food”?
Nongfu Shanquan was successfully listed on the Hong Kong stock exchange, with a market value of about HK $400 billion. It is one of the food and beverage companies with the highest market value in China except for the liquor industry
Author: Hai Feng
Information sources: Nongfu Shanquan official website, baidu stock search, past foodplus weekly
The founder’s speech video released by Nongfu Shanquan’s wechat video number on the day of listing. Photo source: screenshot of Nongfu Shanquan’s video number
Nongfu spring was officially listed on the main board of the Hong Kong Stock Exchange on September 8, with an opening increase of 85.12%. The market value of Nongfu spring reached more than HK $440 billion. The initial offering price was HK $21.5, which was the upper limit of the price range at the time of IPO. After the opening, the share price reached HK $39.8, which directly showed that the capital market was optimistic about Nongfu mountain spring. As of September 15, it closed The market value of Nongfu spring is HK $394.9 billion.
Among the non liquor industry listed companies, this market value is second only to the market value of seasoning listed company Haitian flavor industry in the A-share market. As of September 15, the market value of Haitian flavor industry was 526.2 billion yuan. Even if the liquor industry was included, the market value of Maotai and Wuliangye was higher than that of Nongfu Shanquan.
As a listed company with annual revenue of RMB 24 billion in 2019, it is not a very outstanding company from the perspective of revenue, but it is a relatively high-quality company in terms of gross profit margin level, net profit margin level and net profit scale, with a net profit of RMB 5.4 billion.
We started to report the listing of Nongfu mountain spring in March this year, and then submitted the prospectus to the Hong Kong stock exchange. We have interpreted and analyzed the prospectus, and then to the recent official listing. Combined with the previous report analysis and continuous observation, we have the following judgment and Thinking:
① Nongfu mountain spring is a very high-quality and excellent company, which is embodied in the establishment of a very good consumer awareness of its brand and products, a solid supply chain capability, and a nationwide distribution network. The core of this is around the products and marketing capabilities of Nongfu spring. Through product innovation and marketing, the brand has been sorted out, and the scale has been gradually expanded The scale advantage has been established in the supply chain and sales network.
② From the perspective of drinking water business, Nongfu spring has maintained a relatively rapid growth in the past few years, especially the growth in 2019 compared with that in 2018. However, there will always be a ceiling in the drinking water business, especially in the low-end and middle-end drinking water markets. After the market growth shrinks, it is necessary to seek new ones In addition, the growth rate and market position of other business lines are not as strong as drinking water.
③ From the current strategy of Nongfu mountain spring, although it covers a number of beverage categories and product lines, its products are still endorsing the mother brand of Nongfu mountain spring, purchasing some brands that are comparable to Nongfu mountain spring in terms of brand potential and grafting farmers Shanquan’s supply chain and channel capacity may give Nongfu spring new development possibilities.
④ As an early and growing investment institution, is it possible to invest in a beverage company like Nongfu Shanquan at this time point? Looking back on Nongfu Shanquan’s past, from the perspective of initial ability, it includes the ability of market insight, and transforms this kind of market insight into products. Then, through the ability of marketing and packaging, the products can go to the market. In addition, the brands accumulated in this process give the brand a premium. If you want to invest in a beverage company like Nongfu Shanquan and have a good development and exit return in the future, you may need to pay attention to the assessment of the above abilities, which is of high standard.
We also reported in July that Wahaha planned to go public. Wahaha and Nongfu Shanquan did not go public for many times. At present, Nongfu mountain spring is listed, and Wahaha is not far from listing. We can see that there is a saying in the market that Nongfu mountain spring is listed. There is also a saying that the founder of Nongfu mountain spring has reached the age when he needs to consider how to select successors for enterprise inheritance. The listing is to find a solution for Nongfu spring through modern corporate governance.
The recent development of coffee industry is foodplus Weekly’s first column for industry segments will be updated from time to time. It mainly tracks, reports and analyzes the events in the global coffee field, especially the global coffee venture capital and the development of representative brands in China’s coffee market. In addition to coffee, we will also launch recent news columns for other industries.
Oatly milk brand oatly launched ready to drink coffee in the Chinese market, focusing on pocket cafes. The product is oatmeal cold extract latte
Author: Hai Feng
Information source: oatly wechat service number
Oatly’s new product in China: oatmeal latte ready to drink coffee, photo source: oatly wechat service number
According to the article posted by oatly’s wechat service number on September 11, it has launched a ready to drink coffee product in the Chinese market, which is oatmeal cold extract latte, with a capacity of 235ml. At present, it has been launched in oatly tmall flagship store. The price of four bottles is 87.2 yuan, with an average of 21.8 yuan per bottle. As of September 15, the monthly sales volume was 247.
Oatly officially entered the Chinese market since the beginning of 2018. In a market with a small number of medium and high-end plant-based drinks, oatly has been focusing on brand building, market development, consumer education and product channel construction around the coffee circle, especially the boutique coffee circle. After more than two years of development, oatly has stabilized its market position.
At present, oatly is a coffee Master Series Oatmeal Milk with coffee matching in the Chinese market. The main channel is offline coffee shops. With the establishment of a certain degree of brand awareness, other Oatmeal Milk beverage series have also begun to be accepted by consumers. According to the information of oatly tmall flagship store, in addition to the coffee masters, at present, the relatively top sales are 250 ml square box and 1 l original Oatmeal Milk and chocolate flavor Oatmeal Milk, and the other is round paper cans of oat milk products, and the taste is mainly original and chocolate.
In addition, oatly has introduced oatmeal based ice cream products before. By the time of the launch of ready to drink coffee products, this is all oatly’s product line launched in the Chinese market. We once had an interview with Herbert, brand director of oatly in China. We also introduced what kind of brand oatly is. The core of the interview focused on oatly’s coffee channel strategy and how to develop China’s market. In July, oatly obtained a new round of financing with a financing amount of US $200 million, which we also mentioned in weekly.
Oatly’s product line, photo source: oatly tmall store
In oatly’s global market, it is divided into six product lines, namely normal temperature oatmeal beverage (including coffee Master Series), refrigerated oatmeal beverage, portable package, oatmeal porridge, cooking products and ice cream. Oat cold extract latte is in the portable product line, and its small and medium square boxes and round paper cans are also under this product line.
Introduction of oatmeal cold extract latte on oatly global website, photo source: oatly official website
Although it is the global product line introduced into the Chinese market, oatly in the Chinese market is also entering a new field: ready to drink coffee market. Judging from the current situation, the positioning of this product is relatively high-end, which is far higher than most of the ready to drink coffee products in the Chinese market. Even if it is the ready to drink coffee products which mainly focus on short-term and cold storage, whether it can succeed or not is still in the middle China’s market will promote this product, there are still relatively large uncertainties.
As a non coffee brand, oatly launched the corresponding ready to drink coffee product line, and the coffee brand launched coffee cream product line. This is a kind of scene that has appeared many times in foreign countries, and there are also relatively successful cases, including California As a fruit juice brand, farms first launched a series of plant-based drinks, including coffee cream product line. Relying on the foundation and advantages of coffee cream, it has launched several ready to drink coffee product lines. For in-depth analysis of California farms, you can click here to read our previous insight article.
Blue bottle works with minor figures, photo source: walking coffee map
There are also instant coffee and oat milk brand minor figures, which has entered the Chinese market. Its product line covers ready to drink coffee and oat milk and other product lines at the same time. At present, it competes with oatly in many cities around the world, and has cooperated with blue bottle in Japan. In the Chinese market, because oatly has been fully deployed, with the gradual penetration of minor figures in the market, the competition with oatly will become more and more direct. At present, minor figures in China’s coffee channel, according to our observation, should have achieved the second position in the market.
The combination of coffee and coffee creamer, as well as extending each other on the basis of their respective advantages, actually gives some directions for domestic coffee brands, that is, to develop into the coffee cream market. However, there are relatively high requirements for the precipitation of the brand itself, as well as certain requirements for channel capacity and supply chain. However, there is at least the possibility of such development for excellent coffee products Cards are a good choice.
Yongpu coffee has launched a new high-quality instant coffee product, which is still the fusion of tea and coffee
Author: Hai Feng
Source: Yong Pu WeChat service, Tmall store, Tmall editorial office, WeChat official account.
Yongpu coffee launched two new Oolong flavor products: Rose oolong and osmanthus oolong. Photo source: yongpu wechat service number
According to the articles pushed by the editorial room of the big names and the wechat service number of yongpu, it is learned that yongpu coffee has launched two new products, namely rose Oolong coffee and osmanthus Oolong coffee. Before that, yongpu coffee has launched a fine instant coffee product with Peach Oolong flavor. In addition, the rose Oolong flavor and osmanthus Oolong flavor constitute the fine instant coffee of Oolong flavor series Series.
At present, these two new products have been launched in yongpu tmall store. According to the data of tmall store, the monthly sales of this product with 12 SKUs are 5000 +. In addition, the accumulated sales volume of Peach Oolong is more than 26000, and the selling price is 99 yuan RMB. The monthly sales and cumulative sales volume of 24 SKUs with specifications are both 500 +.
This year is a big year for yongpu coffee. As a start-up company, from the perspective of development, it has completed the first round of institutional financing. We also reported in the weekly in June, which can accelerate the development of yongpu.
In addition, from the perspective of product line, there are gradually two core product lines, namely, coffee liquid and fine instant coffee powder. This year, we upgraded the cold extract product line, and also launched the flash coffee liquid, which is a normal temperature coffee liquid product. At present, it is the core component of yongpu’s revenue. Secondly, in the fine instant coffee powder, the product is also upgraded and promoted Out of the fusion of tea and coffee, more can be understood as the tea flavor of the boutique instant coffee products.
From the perspective of prepackaged specialty coffee category, yongpu coffee is also gradually exploring its own differentiation development route. Unlike the more affordable products, yongpu’s products are still kept at a certain level. On this basis, we seek product differentiation. From the perspective of refined instant coffee, we are looking for innovation and difference in flavor, from the production of coffee liquid From the perspective of products, efforts should be made to push forward room temperature flash coffee extract to break through the limit of low temperature of cold extract.
In addition, yongpu’s previous accumulation of coffee lovers and consumers, as well as the shaping of its brand and its own IP stone in the past year or more, give yongpu the opportunity to form its own differentiated competitiveness. From the current product portfolio, there is an opportunity to maintain the average monthly revenue of about 5 million RMB in the second half of the year. There are two major promotion festivals in the second half of the year, double 11 and double 12, which is also a good opportunity for yongpu to make further breakthroughs. As for what kind of income level yongpu can achieve in 2020, we will continue to track and analyze.
Trade coffee, a coffee subscription company funded by jab, received $9 million in financing
Author: Hai Feng
Information source: Official Websites of Foodbev and trade coffee
Trade coffee official website promotion, photo source: Trade coffee official website
Trade coffee is a company founded in 2018. It mainly launches coffee subscription service in the U.S. market. It can directly order roasted coffee bean products from more than 50 independent coffee roasters in the United States through trade coffee website. At the beginning of its establishment, it has been supported by jab and Boston incubator launch.
Jab has become one of the three largest coffee giants in the world through merger and acquisition. After the merger of JDE and Peet’s coffee, jab has been listed in Europe. We have also analyzed the business situation of JDE Peet’s before, and you can click the link to further understand.
At present, trade coffee has 448 coffee bean products from 55 coffee roasters. The product specifications are 12 ounces per bag, about 340g. The price ranges from $17.35 to more than $20, and the lowest price is about RMB 110. Different brands of coffee beans will have obvious differences in specific prices. Compared with the price of many specialty coffee beans in China, it is not very high, but it is not a fair price.
In trade coffee, there will be different classifications of coffee beans, including decaffeinated coffee, espresso, cold extraction, etc. it will also be divided into coffee beans baking depth, flavor type, brewing method, coffee bean certification and coffee bean producing areas. As consumers, they can choose the specific coffee bean products according to their own consumption preferences.
All coffee beans sold by trade coffee are freshly baked, so after the first choice, consumers can choose the ordering cycle and delivery frequency according to their consumption frequency. At the same time, in the promotion on the official website, it is emphasized that all roasters use the same coffee bean roaster to bake coffee beans, which also guarantees the baking quality of coffee beans to a certain extent.
In the report of Foodbev, it is mentioned that the latest round of financing of trade coffee is led by madrona venture group, and the former investors jab and launch are following. The purpose of the financing will be mainly used for the support of coffee roasting equipment, and will continue to expand the scope of services, which will inevitably involve expanding publicity in the new market.
At the same time, trade coffee reported in Foodbev that the number of subscribers has tripled in the past few months, and most subscribers have continued to subscribe. In this report, we also quoted the trade coffee cooperative coffee roaster method coffee as saying that since joining the subscription platform in March this year, trade coffee orders have accounted for about 30% of the total business.
From the perspective of the development of trade coffee, when the mature coffee market in the United States reaches a certain level, consumers’ demand for specialty coffee will increase, and fine coffee bean baking is a relatively scattered market, which also gives trade coffee some opportunities.
At present, it is not clear whether there is such a one-stop order for coffee bean products of various coffee roasters in the Chinese market. Because the coffee market is still developing rapidly, it is more suitable to be a coffee brand directly than to do something similar to trade coffee in the current Chinese market. However, in the long run, if a brand can do a good job in the market education of fine coffee, especially in the market education of home consumption scene, when the market maturity is improved, such accumulation will become a good advantage.
Bruvi, a start-up of smart capsule coffee maker, received $2.2 million in seed round financing
Author: Hai Feng
Information source: 36kr, bruvi official website
Bruvi’s product promotion, photo source: bruvi official website
According to a report by 36kr quoting foreign media finsmes, bruvi, a US smart capsule coffee maker start-up, has received $2.2 million in seed round financing, prior to obtaining an earlier round of $950000 in 2019. Bruvi is a company founded in 2018, founded by sun oh and Mel Elias, the inventor, and Mel Elias, a senior figure in the tea and coffee industry.
According to 36kr, the core of bruvi is to provide a single cup capsule coffee machine system, which can make filtered coffee, espresso, American coffee, iced coffee, brewed coffee, tea and cold brewed coffee.
Bruvi can make coffee and tea drinks, photo source: bruvi official website
It is mentioned on bruvi’s official website that the machine can automatically identify the specific type of product b-pod is, so as to make one button brewing. In the overall single cup coffee machine system, bruvi hopes to create a system different from Keurig system and K-Cups. At present, there is only one machine for capsule coffee machine. There are 13 kinds of b-pod products provided by the machine. 12 of them are coffee, and the other is Matcha latte.
But in Keurig System and K-Cups have been very mature in the U.S. market. It is a great challenge to establish a single cup coffee machine system. Nestle’s Nespresso did not open other coffee brands to match Nespresso capsule coffee products for a long time. Through global promotion and Nestle resource advantages, Nestle has established a relatively closed capsule coffee machine system 。
For bruvi, the specific challenge comes from how to persuade more coffee brands to launch b-pod capsule products and sell more bruvi capsule coffee machines if an open capsule coffee machine system is developed for benchmarking Keurig system and K-Cups. However, if it is a relatively closed capsule coffee machine system for Nestle Nespresso, how to establish a coffee brand trusted by consumers and the capsule coffee and its brand are the key.
In the short and medium term, bruvi can gain some market and revenue by relying on some resources and the current Internet communication foundation. However, if we want to expand in this field, we still need to consider the key issues in either direction.
In fact, we also see that some domestic companies are trying, including Jiuyang’s one cup independent financing, and coffee Now has been trying to establish an open capsule coffee system, including Xiaomi Youpin, which has launched several capsule coffee machine products, but none of them are very successful, because to build a capsule coffee machine system, it needs various abilities, which is a kind of composite ability for specific companies and teams.
Coca Cola announced the details of nine regional operation departments after strategic restructuring, and greater China will become a separate operating Department
Author: Hai Feng
Source: snacks, past food plus weekly
In weekly at the beginning of September, we reported that Coca Cola was restructuring its business organization. In addition to setting up a platform service department and a global category center, and will lay off 4000 employees in North America, the more core strategic adjustment is to optimize the operation departments in four major regions, from the original 17 departments to 9 operating departments, and at the same time, global ventures and bottling will also be responsible for restructuring its business organization Investments remain two separate operations.
According to the latest report of snack food generation, from January 1, 2021, nine operating departments of the four regions after adjustment will officially replace the original 17 operation departments. The specific nine departments are North America, Latin America, Europe, Africa, Eurasia and the Middle East, Japan and South Korea, Greater China, ASEAN and South Pacific, India and South West Asia.
It is worth noting that in the previous framework, Greater China and South Korea are divided into one operation Department. In the new operation Department, Greater China will be taken as a separate operation Department, and vamsi Mohan thatI, the current president of Coca Cola’s South Pacific operation Department, will be the new president of the operation Department of Greater China after adjustment.
At present, there are three major systems for Coca Cola in the Chinese market, namely, COFCO and Swire, which are responsible for the production and distribution of Coca Cola products in different regions of the Chinese market.
Another major system is the Coca Cola bottler management service company, referred to as SCMC. It is jointly established by the investment department of Coca Cola bottlers, Swire, COFCO and Coca Cola China to coordinate the production of non carbonated beverage product line in the Chinese market. At present, SCMC is responsible for the production of some new Coca Cola products entering the Chinese market, such as powerade and innocent.
The new adjustment will take effect in 2021, but the competition in China’s beverage market is becoming more and more fierce. With the healthy consumption habits becoming more and more popular, it is still worth looking forward to how the Chinese market can stabilize its own advantages and further expand its advantages for Coca Cola with carbonated drinks as its core.
At present, for Coca Cola in the Chinese market, there are both passive and active places. The active place is to actively introduce other leading brands in the global market, such as powerade explosive and innocent naive. However, the passive place is the fastest growing category in the beverage category of the Chinese market, bubble water market.
In the flavor bubble water market, Coca Cola does not have a layout in China. It is more based on the original brand line to launch new products, such as sprite +, Coca Cola +, binglu Chunyue +, Yiquan, etc. However, the flavor bubble water such as Yuanyi forest has already caused certain impact on sugary carbonated drinks. If the market penetration rate of flavored bubble water continues to expand, it is bound to impact on the market The core product line of Coca Cola.
Just relying on the original brand to push similar products is not enough to cope with this market change. It depends on how Coca Cola takes measures to introduce a new brand in the Chinese market, similar to binglu, or to introduce the new AHA brand in the U.S. market and quickly introduce it into the Chinese market.
All these are worthy of attention and expectation.
Nestle increased investment of RMB 400 million in Harbin Shuangcheng to strengthen the production capacity of high-end products in China
Information source: Snack generation
A 60215 Nestle Greater China Chairman and chief executive officer Christine Roth
On September 10, Nestle officially announced that it would invest RMB 400 million in Harbin Shuangcheng to expand Nestle’s business capacity in Shuangcheng, and further strengthen the high-end production of Nestle in local factories, of which 200 million will be invested this year. Together with this capital increase, Nestle has added 700 million yuan to Shuangcheng for three consecutive years. It is worth noting that Nestle has increased investment in China against the background of the epidemic. Including the announcement in May this year of a capital increase of 730 million yuan in Tianjin. There are three aspects in the use plan of the 400 million yuan investment
First, Nestle plans to establish its world’s first nest é grain Competence Center (GCC) in Shuangcheng. Through the replication of Nestle dairy breeding training center and Nestle coffee center mode, covering a variety of agricultural raw materials including dairy products, grains, beans, fruits, vegetables, etc;
Second, expand Nestl é dairy farming institute (DFI). DFI has been established for six years, and has trained more than 10000 trainees. The average daily yield of cattle on its own ranch exceeds 42kg. This round of capital increase will increase the supply of A2 milk source, which will help to promote Nestle’s process of using local milk source in the production of Neng en infant formula milk powder;
Third, strengthen the food production and processing capacity of high-end products, including infant complementary food and adult product lines. At present, the “baby food line” and “baby food line” will increase the production capacity of “baby food line” and “baby food line” respectively. At present, these two products have already got “blue hat”.
China’s rice noodles Nestle Nestle has been in the category of fruit paste and snacks (such as puffs), Yang Xuxiang, vice president of mainland China, who was formally appointed to the Nestle infant nutrition business in April 2020, said in an interview. The next business strategy is to strengthen the advantages of technology and food materials, enter into diversified categories and launch more diversified products. In the future, baby nutrition snacks will not be limited to cereals. Instead, I will become an agricultural capacity center, covering everything from cereals to beans, to vegetables and fruits. Nestle’s future snack program also includes the use of “plant high protein beans” to produce a series of Garbo baby snacks.
Beyond meat, a plant meat company, has expanded its investment in China and will invest in the construction of two factories in Jiaxing Economic and Technological Development Zone
Information sources: China soybean Committee, daily economic news, enterprise inspection
According to the information from the China soybean Committee, on September 8, American vegetable meat brand beyond meat announced that it had reached an agreement with Jiaxing Economic and Technological Development Zone to invest in the construction of two factories in the area to produce “beyond meat” brand of vegetable beef, vegetable pork and vegetable chicken, which is an important milestone in the development of the company in China. Ethan brown, CEO and founder of beyond meat, said that after several months of fruitful cooperation and discussion, two production facilities will be jointly developed with Jiaxing Economic and Technological Development Zone, one of which will be one of the largest and most advanced plant meat production facilities in the world.
Majiabang health food town planning photo source: Daily Economic News
Why choose to build a factory in Jiaxing? Chen Meiyu, general manager of beyond meat in China, said in an interview with the daily economic news reporter that Jiaxing Economic and Technological Development Zone has rich experience in the food industry, the geographical location adjacent to Shanghai, developed logistics and rich human resources. It will be the perfect place and perfect partner to help us realize our grand plan in the Chinese market. At the same time, we have an internal goal of reducing the price of at least one product to the same price as that of protein from similar animals by 2024. Localized production in China will help us to price our products and other initiatives.
In April this year, beyond meat, which entered the Chinese market for the first time, registered its wholly-owned subsidiary biepeng (Jiaxing) Food Co., Ltd. in Jiaxing. After that, we received good market feedback in cooperation with Starbucks, KFC, Pizza Hut and other restaurants, as well as with HEMA, Metro and other retail channels.
The equity penetration chart of beyond meat’s subsidiary in China
In addition to investing in the United States and China, beyond meat also has investments in many countries around the world. According to beyond meat’s Q2 report this year, there are also co manufacturers in several locations in Canada and the Netherlands. In the first half of this year, beyond meat registered a subsidiary in the Netherlands and acquired a manufacturing plant in the Netherlands in the second quarter.
The domestic vegetable meat market, which is still in the stage of market introduction, has attracted many companies, including domestic start-up companies, old brand enterprises, listed companies, overseas companies and multinational giants. Domestic “plant meat fever” is a good thing, many brands can go together to educate the market and popularize products. According to our observation, at present, foreign brands are still ahead of Chinese brands in R & D. in particular, the wind rating of impossible foods products has been very high. These brands entering China will force Chinese brands to strive for upgrading in product R & D. the final core barrier of vegetable meat brands must be product strength – taste, reduction degree, flavor, etc.
An important information worthy of attention is that on the development of plant meat industry standards, Ma Xiaozhong, chief engineer of golden ham, said in an interview on September 12 that “the project has just been approved by the state, and work will start immediately.”
Feihe plans to bid for the original ecological animal husbandry with an annual output of 340000 tons of its own milk resources
Information sources: xiaoshidai, Feihe announcement, Anxin securities
flying crane tender offer for original ecological animal husbandry, photo source: company announcement
According to the announcement on September 6, Feihe intends to entrust CITIC Lyon to make a voluntary conditional cash offer to the original ecological animal husbandry company at a price of HK $0.63 per share. Meanwhile, it will exchange cash for cancellation of all outstanding options, involving an amount of about HK $3.071 billion (about RMB 2.7 billion). This means that Feihe will increase its own milk source with an annual output of 340000 tons in the upstream milk source.
In recent two years, the domestic dairy cattle inventory has declined and the milk supply is tight. It is a trend in recent years for domestic dairy enterprises to compete for upstream distribution of milk sources. Yili, Mengniu, Guangming, new hope and other leading enterprises all participate in the competition. This year, Gansu has become a hot milk source for Yili, Guangming and Mengniu. The “marriage” between dairy enterprises and dairy farms is also common. The original ecological animal husbandry and flying crane business have been fettered for ten years, which is the relationship of mutual restriction and mutual achievement.
Ten years ago, Feihe’s main source of fresh milk was Kedong plant and two pastures near Gannan plant. After making a strategic decision to focus on core business in 2011, Feihe sold all equity of Kedong farm and Gannan farm to the member companies of yuaneco group, with a total cost of 850 million yuan. Among them, the cash payment was 110 million yuan, and the remaining 740 million yuan was paid by the signed “original ecological sales agreement”, “exclusive fresh milk supply contract” and “supplementary milk supply agreement” through the provision of fresh milk supply. By the end of 2015, the obligations of the agreement were fully fulfilled.
Flying crane chooses the original ecology as the main fresh milk supplier, on the one hand, because of the large scale of the original ecological pasture and the high-quality milk source; on the other hand, the original ecological dairy farm is 1-3 hours’ drive away from the flying crane production facilities, which is conducive to the management efficiency and quality control of flying crane. From 2016 to 2018, the amount of fresh milk purchased by Feihe from yuaneco group was 460 million yuan, 530 million yuan and 760 million yuan, accounting for 84%, 83.5% and 87% of the fresh milk procurement cost respectively. From the perspective of the income composition of the original ecology, the contribution of flying crane is a process of increasing year by year, and the proportion in 2018 has been close to 70%.
Feihe’s contribution to the original ecological income proportion, data sources: company announcement, Anxin securities
At present, there are seven pastures in the original ecology, and the actual number of cows is 64000. In 2015 and 2017, Feihe and yuaneco signed the three-year framework agreement and the new framework agreement respectively, which agreed on the priority of flying crane in purchasing raw milk. The above agreements have expired at the end of 2019. Now, the proportion of large-scale breeding is increasing, and the price of raw milk is gradually rising. The upstream pasture has entered a new round of business cycle. In addition, other dairy giants have frequently invested in the acquisition of dairy farms in recent years. In this context, it is easy to understand the action of flying crane to abandon signing a new agreement and purchase instead.
original ecological data of seven ranches, image source: Anxin securities
In recent years, Feihe has achieved scale growth through forward-looking layout of high-end products and penetration of offline maternal and infant retail stores and other products and channels. Euromonitor data shows that the market share of Feihe will increase to 11.8% in 2019, second only to Nestle Wyeth, becoming the only domestic milk powder brand among the top five sales. The strategic layout of its own milk source will help Feihe become a 10 billion grade domestic infant and young child Milk powder brand.
Suntory’s acquisition of RTD cocktail brand “on the rocks” aims at leading RTD alcoholic beverage market based on spirits
Information sources: Food dive, Suntory official website, on the rocks official website
Recently, Suntory announced the acquisition of American ready to drink cocktail brand “on the rocks”. In the first half of 2020, “on the rocks” doubled the sales of RTD cocktails. Its main drinking scenes are air travel, hotel room service and major sports events. Currently, it is mainly sold in the U.S. market and the Canadian market. Previously, Suntory owned a minority stake in the company, which was not disclosed in the trading rules.
on the rocks ready to drink cocktail product line, photo source: on the rocks official website
“On the rocks” was founded in 2015 by restaurant owner Patrick halbert and barman Rocco Milano. The brand’s signature cocktail products include “knob Creek old formed” based on Bourbon Whiskey, “hornitos Margarita” based on London Dry Gin, “effen cosmopolitan” based on vodka, and “Cruzan Mai Tai” based on strong and light rum. In 2018, the company established a cooperation with Suntory, in which the base liquor of “knob Creek old formed” and “Cruzan Mai Tai” used knob Creek and Cruzan? Respectively.
sandley’s RTD alcoholic beverage brand, photo source: Suntory official website
Suntory has two RTD brands, mainly in Japan. The acquisition of “on the rocks” will expand into the North American market. Suntory said it saw an opportunity to expand “on the rocks” from RTD premium cocktails to “new scenes, forms, cocktail recipes and low abv areas.”. The spirits company says it wants to be the number one in the spirits based RTD alcoholic beverage market.
According to data provided by IWSR to food dive, RTD alcoholic beverage products increased by 49.7% in 2019. The growth was mainly driven by growth in the hard seltzers category, accounting for 43% of the category. Although there is competition between hard seltzers and RTD cocktails, the penetration rate of the RTD cocktail market is very low, and this segment is expected to continue to grow rapidly.
Hengrunshi, the parent company of Hankou No.2 factory, has completed financing of over 100 million yuan, with the participation of Qingliu capital and Hillhead venture capital
Information source: 36 krypton, flagship store of Hankou No.2 factory
products of Hankou No.2 factory, photo source: Internet
Recently, 36 krypton exclusively reported that Wuhan hengrunshi Operation Management Co., Ltd., the parent company of “Hankou No.2 factory”, has completed financing of over 100 million yuan. The investors of this round of financing include Qingliu capital, Hillhead venture capital, country garden venture capital and Shunwei capital, and the old shareholders’ personal investment will continue to follow. Prior to this, hengrunshi has obtained tens of millions of yuan of strategic financing invested by relatives in August 2019.
Looking back on the development of Hankou No.2 factory, its growth is not bad. In August 2017, we tried to recreate the soft drinks of Hankou No.2 factory through flash store activities. As a result, it was sold out in three days. Then, in December of the same year, the new product fair of Hankou No.2 factory was officially launched. In 2018, the first full year of hengrunshi’s product launch, it has obtained more than 80 million sales. In November 2019, hengrunshi launched a new brand line “parallel universe” at the 22nd Shanghai international food, beverage and Catering Equipment Expo. The annual sales volume in 2019 has exceeded 300 million.
At present, Hengrun Shigong operates two brands of “Hankou No.2 factory” and “parallel universe”, and there will be some differences between them in product positioning. The Hankou two plant is more focused on the upgrading of traditional carbonated drinks. Instead of essence, the fruit juice is concentrated to achieve health and quality improvement. The parallel universe belongs to the trend beverage brand, which includes “parallel universe” series of low-grade flavor blended wine and “Fenglin volcano” of fragrance bubble water series. The former is positioned as “the first bottle of wine for girls”, while the latter is to create the concept of fragrance bubble water by adding extracts from natural plant spices. (previous weekly has a more detailed introduction to this series of products, which can be reviewed by clicking the link)
In terms of channels, hengrunshi attaches great importance to the expansion of offline channels in the early stage, and mainly focuses on medium and high-end channels such as convenience stores, boutique supermarkets and HEMA fresh food. In the process of nationwide expansion, hengrunshi takes the central city of Wuhan as the core, and then extends the route from first tier city to provincial capital city to tourism city. In terms of online channels, hengrunshi still has a lot of room for improvement. Taking the data of tmall flagship stores of two sub brands as an example, the monthly sales of baby with the highest sales volume is only a few hundred or thousands of times smaller.
On the whole, hengrunshi evokes the memory of a generation by reproducing classic IP, and successfully obtains the first batch of users. Then, it gradually expands potential energy from Wuhan to the whole country by constantly introducing new products with beautiful appearance, cross-border co branding and content nutrition. It is worth mentioning that hengrunshi had disputes with other enterprises about the IP creative source and ownership of Hankou No.2 factory. However, judging from the current situation, the matter has not affected the development of hengrunshi and the recognition of it by the capital market.
Health ready to eat brand shark Fitch completed a round of financing of 15 million yuan
Source: Shark fitt’s official account
Source: fitter chicken products
Recently, according to the official announcement of health brand shark fite, shark fite has completed a round of financing of 15 million yuan, and the investor is Meihua venture capital.
Founded in 2017, founder Qiang Xiaoming was a team partner of a Taobao agent operation company. He has nine years of e-commerce operation experience, and has served many brands such as wufangzhai, daoxiangcun, Huamei, Tongrentang, yuyuyuan, etc. Focusing on the new generation of consumer groups, the company takes “chicken breast” as the breakthrough product, and has kept the first place in the category of tmall fresh chicken breast for 17 consecutive months.
With the expansion of the company’s scale, the product category has also expanded from chicken breast to meat, coarse cereals, beverage, etc., covering different scenarios such as meal substitute, meal accompaniment, zero ⻝ and so on. The sales volume in 2019 is 80 million, and the sales by 2020 have exceeded 100 million, and it is expected to complete 250 million sales in the whole year.
The first popular item of shark fit is chicken breast products. In 2019, the sales volume of chicken breast products exceeded 54 million, and the monthly sales volume of shark fit exceeded 8 million. After the successful incubation of popular products, shark fit added more scenes and categories around this group of healthy life users, including chicken meatballs, whole bread, etc. through these new product combinations, it gradually formed a popular model matrix. At present, the top 10 products account for more than 70% of sales.
Sharifeld said that at present, the short-term business focus is on channels and products, and then it will cooperate with some offline adaptive channels, such as gyms and convenience stores. In terms of products, sharifeld has 100 + SKUs, and maintains the speed of updating 5 or 6 new products every month, and constantly adjusts the iterative products.
As for the investment decision, Wu Shichun, the founding partner of Meihua venture capital, said that they found that the consumption habits of young people in Z era are undergoing great changes. It is very likely that a 10 billion scale giant health product brand will be born in the future. “Convenience” and “health” have become the core decision-making factors for new people and new consumption.
Canada’s nonalcoholic craft beer brand “partake brewing” received $4 million in round a financing
Information sources: partake breaking website, circleup growth partners website
On September 9, partake brewing, a non-alcoholic fine brewing beer brand, received a $4 million round a financing led by circleup growth partners. Other partners include Export Development Canada (EDC) and natural products Canada (NPC). The company will use the funds to recruit key employees, expand distribution and retail networks, and brand building to accelerate growth in the U.S. market.
Founded in 2017, Canada based partake brewing produces and sells five non-alcoholic craft beers (mainly composed of water, barley, hops and yeast, with 10-30 calories per can). Partake breaking is mainly sold in total wine & more and whole food supermarkets in Canada and the United States. Its official website sells for $55 per 24 bottles.
partake breaking products, photo source: partake breaking official website
It is worth noting that circleup growth partners, a leading investor, has a machine learning system called Helio, which seeks out companies in line with emerging trends through public information, data obtained by company partners, and entrepreneur data. And from the brand strength, product differentiation, distribution breadth and other dimensions to judge the competitiveness of emerging companies, to assist investment decisions.
Recently, the domestic infant market is hot. Let’s take a look at the trends of foreign brands. Recently, piccolo, a baby and toddler food brand, has added two new high fiber products to its UK snack line: melts and oatmeal sticks, which have organic, gluten free and sugar free labels. Each oatmeal stick contains 2.7g dietary fiber. There are three flavors of apple, carrot and orange. Each bag of melts contains 0.5g dietary fiber, which is made of yoghurt and has three flavors: apple, yogurt and strawberry. (source: Foodbev)
Loveraw, a British vegetarian confectionery company, has launched a vegan Hazelnut Cream Sandwich wafer bar snack named CRE & m filled wafer bars, which is 100% vegan and costs 1.69. It can be ordered through loveraw’s official website, and will be purchased from Holland & Barrett and Waitrose in the UK later this year. (source: Foodbev)
The latest issue of food plus · dinners will be held in Beijing
Topic: how can functional food and beverage stand out? 》
Time: 17:00-21:30, September 19, 2020 (special reminder, 17:00 is the time for the formal start of the small meal)
Shared by Weng Binbin, founder and CEO of lemonbox, the theme of the future development of customized functional food
Yang Peng, founder and marketing director of Hengmei food, with the theme “development of new opportunities for functional food innovation”
Yu Yue, head of Huachuang investment and consumption, shared the theme “rising functional demand, how to seize the opportunity of new brand of food consumer goods? “
Venue: jinshangli Shanghai, No. a, Jiangtai Road, Chaoyang District, Beijing
Cost: RMB 269 / person
Registration method: scan the QR code of the poster or click to read the original to enter the registration page
Special thanks to the sponsor of the venue: Jinshang is a one-stop creative work community of knowledge, food, travel and living. It takes creative life and design as its gene, integrates creative Hotel, joint office, boutique catering, leisure time and intellectual co construction as one, bringing relaxed unique life experience and inspirational social interaction for each visitor. In the era of firmly believing in the power of the Internet, the human demand of “face-to-face communication” is even more irreplaceable. From the core office space to the living community, Jinshang follows the principles of openness, flexibility and cleverness from the layout to the details, and pursues the work life balance design. Brand slogan: give space emotion and make users happy.
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