China Food

How low key! Master Kang’s latest “drink” a mineral water company

In the South China drinking water market where the brands such as Nongfu Shanquan, Yibao and Jingtian are in fierce competition, Master Kang, who once topped China’s bottled water industry, quietly won a mineral water company. Today, xiaoshidai learned from the industrial and commercial information that Master Kang beverage investment (China) Co., Ltd. has added a wholly-owned subsidiary: Foshan Gaoming Fushan mineral water Co., Ltd. (hereinafter referred to as “Fushan”), and the legal representative of Fushan has also been changed to Li Zhenyi. Information shows that Li Zhenyi is the legal representative of a number of wholly-owned subsidiaries of Master Kang drinks.


对于上述变更,小食代向康师傅查询,对方仅低调回应称“目前没有可以透露的信息”,并表示会“致力于为消费者提供多元的包装饮用水产品”。

小食代从该公司了解到,康师傅现有的唯一矿泉水品牌为“涵养泉”,三处取水地分别位于长白山、黄山和乐山。这或意味着,在拿下这个矿泉水公司后,康师傅矿泉水业务有望在华南地区开拓首个水源地,也不排除借此加速涵养泉对市场的渗透和扩张。该品牌为康师傅饮用水布局中的高端产品。

What do you like?

It is worth mentioning that Fushan’s original “boss” and Master Kang are still very close. According to industrial and commercial information, Fushan was wholly owned by Zhangzhou yilaifu Food Co., Ltd. (hereinafter referred to as: Zhangzhou yilaifu) before it was transferred to Master Kang.


事实上,漳州伊莱福为康师傅“铁哥们式”的供应商。另外,记性好的看官可能还记得,小食代在2017年就曾经率先介绍过,有意走“轻资产”路线的康师傅曾出售旗下五家生产销售企业的股权,买家正是漳州伊莱福。

So, what is the origin of Fushan, which enables Master Kang to “transform” and buy from his partner? According to the industrial and commercial data, Fushan was established in 2004, and its business scope includes food production (mineral water, mountain spring water, food packaging, containers, tools and other products) with valid approval certificate, warehousing service (except for dangerous chemicals and precursor chemicals), rental service of movable property equipment and service of loading and unloading labor. In the early stages of development, Fukuyama tried to break into the market segments to make a name for itself. According to two news reports in 2005 of the new express, Fushan first proposed the concept of “earth rock water” in the industry, and launched the mineral water with the main concept in Foshan. At that time, Fushan also proposed to become a “well-known brand in Guangdong Province”. However, there was little news about Fukuyama in the market. Ten years after its establishment, Fukuyama, which did not receive much attention, changed its ownership. Xiaoshidai checked the industrial and commercial data and found that the shareholders of Fushan changed in November 2014. The company’s 2015 annual report shows that its only shareholder is Zhangzhou yilaifu. In 2015, Fushan plans to transfer its natural mineral water mining right to Zhangzhou yilaifu with 500000 yuan, and signed a transfer contract. According to the official website of the Ministry of natural resources, the current mining right holder of the mine is still yilaifu in Zhangzhou, and the validity period is from October 23, 2019 to October 23, 2021.


考虑到优质、稳定的矿泉水水源地有限,且获取采矿权是从事天然矿泉水开采的必要条件之一,这个华南地区的水源或是康师傅“看上”福山的一个关键。

Interestingly, Master Kang’s brewing process now seems to be very careful. As early as 2016, the government of Genghe town in Gaoming District, where Fushan is located, wrote: “promote Master Kang’s mineral water The construction of newly introduced projects will be started in time. In fact, Master Kang has also had a “high light moment” in China’s drinking water market. In 2007, the strategy of promoting 1 yuan water promoted Master Kang to become the first drinking water producer in the market at that time relying on “mineral water”. However, due to the impact of consumption upgrading and the “standard dispute” in the drinking water industry, Nongfu Shanquan and other enterprises began to “overtake on the curve”. Master Kang now wants to restructure the river and mountain, and has started the layout of multiple price bands for drinking water. Among them, including the launch of 2 yuan of middle end “drink boiled water” and more than 3 yuan of high-end brand “conservation spring”. The company’s sales revenue of bottled water in the first half of the year was 1.542 billion yuan. In the semi annual report of 2020, it proposed that the sales volume of packaged water in the first half of this year accounted for 5.2%, and the category strategy was “focus on affordable water, expand medium price water, and cultivate high-end natural mineral water”. Interestingly, only at the beginning of this year, Master Kang adjusted some bottled water back to the price band of 1 yuan, hoping to promote the growth of mainstream products. Back to the high-end natural mineral water, Master Kang upgraded the packaging of the conservation spring and re launched it in the first half of the year, strengthening the product positioning of “natural, rare and nourishing” to meet the demand of the middle class for natural mineral water. Snack generation noticed that, driven by household consumption during the epidemic period, the sales of 4.5-liter self-contained spring products achieved ultra-high growth.

Fighting “30 billion market”

In recent years, with the competition pattern of other kinds of water becoming more and more clear, mineral water, which is the mainstream product in foreign countries, has become the “last highland” for domestic bottled water competition, that is, the increase of old players and the influx of new players, making China’s mineral water track more lively and crowded. This means that it is not easy to simply cut into the mineral water category and eat the “high-end water” cake.


首先是农夫山泉和景田等传统包装水巨头,它们的“圈地”打法包括扩充产品组合等。例如,农夫山泉上市的“含锂水”瞄准了中老年饮用水细分市场;景田则通过推出“本来旺”切入更为高端的市场,尽管目前这一品牌的布局似乎正在经历调整。

而以雀巢及达能等为代表的外资阵营也正在华发力高端矿泉水。比如说,雀巢今年将旗下高端矿泉水“普娜”导入了中国市场,而达能也宣布增加依云品牌在法国水源地的产能。

另外,还有财力雄厚的选手也“跨界”而来,包括乳业界的伊利,在去年推出旗下首个矿泉水品牌“inikin伊刻活泉”;以及来自房地产业的恒大,曾在早年曾经放话计划投资“上百亿”发展矿泉水。


在此背后,是天然矿泉水可观的增速及市场规模。

According to the frost Sullivan report, the retail sales of natural mineral water in 2019 is 15.5 billion yuan, and the compound annual growth rate from 2014 to 2019 is 19.0%, ranking the second among the four categories of packaged drinking water.

 

Frost Sullivan also predicts that the retail sales of natural mineral water will grow to 30 billion yuan by 2024, with a compound annual growth rate of 14.1% from 2019 to 2024.

 

More importantly, from the time period covered by frost Sullivan data, natural mineral water is the engine driving the growth of packaged drinking water both in the past and in the future.


小食代还留意到,中金研究曾在去年8月的报告中表示看好中国矿泉水市场,因为该市场容量大、成长性佳、利润率水平高,符合消费健康化和升级的趋势。

在疫情催生出更大的健康消费需求后,矿泉水或有望迎来新一轮的机遇期。不过,理想固然丰满,但要怎样才能“诸神混战”中跑出来呢?对此,中金研究上述报告认为,矿泉水企业从竞争突围应具备好水、好故事和好网络,也就是优质水源资源、强大的品牌营销能力和全面的渠道网络建设。


此外,中金研究还表示,新老玩家在竞争中也应该采取不同玩法。

对目前主营矿泉水的企业而言,中金研究认为,这类企业具备先发优势,保持良好竞争态势的关键在于准确的产品定位和多元化策略、高效的营销投放,使自身保持收入和利润的同步稳健增长。

而对于从非矿泉水转战矿泉水的企业来说,中金研究则表示,由于矿泉水和原有水业运作模式存在差异,尤其是本土水源地资源竞争激烈。因此,顺应行业升级化趋势且自身定位准确的企业更能够在竞争中突围,水源、品牌力、渠道力缺一不可。

A kind of

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