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Drinking Zero sugar and zero fat drinks, eating healthy and environmentally friendly plant meat, using domestic hyaluronic acid for skin care, buying some cheese sticks for children, and occasionally making a weekend family meal with prefabricated dishes. Behind these daily actions in the new consumption era, there is the industrial power of a province.
When it comes to Shandong, the hometown of Confucius and Mencius, a big vegetable Province, pancake rolls, green onions, keen to test the public, etc., Shandong in these labels seems to have nothing to do with new consumption. But in fact, at least half of the new consumption concepts of erythritol, plant meat, hyaluronic acid, cheese sticks and prefabricated dishes are supported by Shandong.
Secret sugar substitute king
The new consumer beverage brand led by Yuanqi forest has put the concept of Zero sugar and zero fat into the heart of generation Z and popularized the rare chemical ingredient “erythritol” to consumers. It can be blurted out. However, an unknown fact is that 95% of erythritol in the world mainly depends on five factories, three of which are from Shandong.
On January 20, Shandong Sanyuan biology landed on the gem of Shenzhen Stock Exchange. By the end of June 2021, ternary biology has an erythritol production capacity of 85000 tons / year, accounting for 54.9% of the total domestic output and 32.94% of the total global output. The largest customer is Yuanqi forest. The IPO price of Sanyuan biology was 109.3 yuan / share, with an intraday increase of 32.7% and a market value of 18 billion yuan.
As a natural ingredient, erythritol has existed in human dietary composition for tens of thousands of years. However, erythritol was added as a food additive in China in 2003, and the application scope of erythritol was approved to be expanded in 2007. In addition to the newly listed ternary biology, there are two well-known enterprises in Shandong’s sugar substitute industry, Dezhou bowling treasure and Zhucheng Dongxiao.
Dezhou bowling treasure is older and has a history of 25 years in the field of functional sugar, but it did not expand its products to erythritol until 2017. At present, erythritol and other sugar alcohol products account for only a quarter, and Yuanqi forest is also one of its customers.
Although it was a little late, it caught up with the tuyere. Bowling treasure previously disclosed the performance forecast for 2021. It is expected that the annual net profit will be 190 million yuan to 210 million yuan, with a year-on-year increase of 281% – 321%. The main reason for the performance growth is the booming supply and demand of erythritol products, and the product price has increased significantly compared with the same period in 2020. At the same time, it has driven the demand for other functional sugar products.
In 2021, bowling Bao’s 13000 ton erythritol expansion project was completed and reached production capacity. By the end of 2021, bowling Bao’s erythritol production capacity was 30000 tons. With the market volume and price rising at the same time, it decided to build another erythritol crystal project with an annual output of 30000 tons and alodonose (dry basis) project with an annual output of 30000 tons in 2022.
Taking advantage of the tuyere, it is the common choice of many sugar substitutes in Shandong. Zhucheng Dongxiao has not been listed yet. According to the official website, in June 2020, a new erythritol production line with an annual output of 20000 tons was put into operation, with a total capacity of 30000 tons. However, the erythritol product page shows that its output has reached 100000 tons / year.
Zhucheng Dongxiao has a high degree of overlap with Sanyuan biology and bowling treasure. There are well-known FMCG brands at home and abroad, such as Yuanqi forest, Mengniu, Nestle and so on. From another perspective, it is the continuous innovation of Yuanqi forests in products and the cultivation of new consumer markets that give greater opportunities for upstream raw materials.
After all, as a functional product, erythritol was produced in China, but its early market was mainly foreign. When Sanyuan biology was listed on the new third board in 2015, its prospectus showed that Saraya, a Japanese healthy snack enterprise, and hfmh, an American company mainly engaged in ice cream and table sugar, were its main customers.
Fuyang bio, another enterprise in Shandong that is in the process of listing and application, also involves the production of erythritol. At present, the annual output is 20000 tons, while in 2018, the relevant production capacity of Fuyang bio was only 5000 tons, which has at least doubled every year.
In addition to the above four enterprises, in fact, many small and medium-sized enterprises in Shandong are also producing erythritol. Why do so many sugar substitute manufacturers gather in Shandong? This is closely related to the traditional agricultural foundation of Shandong. From the perspective of industrial supporting facilities, Shandong is not only a gathering place for corn deep-processing enterprises, but also a combination of production and marketing.
How is erythritol produced? Simply understand that starch starch sugar functional sugar functional sugar alcohol is a series of deep processing processes of corn. After processing, corn extracts glucose and then ferments erythritol. Shandong Province is the most important corn producing province in the Huang Huai Region. In 2020, the corn output of Shandong Province reached 25.95 million tons, an increase of 580000 tons over 2019, an increase of 2.29%. Only Shandong can meet the needs of corn deep processing.
Simple beauty makeup expert
Shandong people can make you drink healthier and make you more beautiful.
In this wave of national fashion beauty makeup, all cheap and easy-to-use functional skin care brands such as kwadi, runbaiyan, Yilian and Dr. yu’er come from Shandong, which subverts the cognition of many consumers. In the past, the OEM of daily chemical products often gathered in the Yangtze River Delta and the Pearl River Delta, and the inland cities are rarely directly related to cosmetics.
In January 2022, the Department of industry and information technology of Shandong Province and the food and Drug Administration jointly issued a document, the main content of which is “promoting the high-quality development of cosmetics industry”. The foundation comes from the industrial foundation of hyaluronic acid (i.e. hyaluronic acid) in Shandong, especially Jinan, which is a new opportunity under the trend of beauty functionalization.
“The hyaluronic acid industry looks at China, and China’s hyaluronic acid looks at Shandong”. In the hyaluronic acid industry, Shandong has greater power than sugar substitutes. Data show that more than 80% of the world’s hyaluronic acid is produced in Shandong. Among them, the top four hyaluronic acid enterprises in the world in 2020 are Shandong enterprises, and the total global market share of these four enterprises reaches 73%.
The most famous hyaluronic acid production enterprises in Shandong are Huaxi biology and Freida. These two enterprises have not only equity relationship in history, but also competitive relationship in the consumer market.
Huaxi biological started as a raw material of hyaluronic acid, and began to transform to make functional skin care products for C-end since 2018. It has successively launched runbaiyan, kuadi, mibel and Jihuo. On November 6, 2019, Huaxi biology was listed on the science and Innovation Board of Shanghai Stock Exchange, with a sharp rise of 78.07% on the first day, and the market value reached 40.848 billion yuan, setting a record for the highest market value of local cosmetics enterprises. From 2016 to 2020, the revenue of Huaxi biological functional skin care products increased from 64 million yuan to 1.346 billion yuan, and the proportion of revenue also increased from 8.73% to 51.12%.
Freida is also transferred from b-end raw materials to C-end. At present, it is subordinate to Lushang development, a listed company. At the end of 2021, Freida introduced strategic investments such as Tencent and China Merchants, and the investment amount of 738 million yuan also set the highest record of strategic investment of state-owned enterprises in Shandong Province in 2021. From 2019 to 2021, Freida’s valuation increased from 290 million yuan to 3.6 billion yuan. In just two years, it increased to 12.5 times. The power of hyaluronic acid can not be underestimated.
At present, furida’s brands at the C-end include Yilian, Shanyan, Dr. Yuer, yipahan, etc. From 2018 to 2020, Freida bio achieved an operating revenue of more than 200 million yuan, nearly 300 million yuan and 660 million yuan respectively. In the first half of 2021, Freida bio achieved an operating revenue of nearly 600 million yuan and a net profit of 75.2053 million yuan.
Under the long-term promotion of Shandong’s pharmaceutical industry, it comes from the accumulation of biological industry. The biomedical industry has been highlighted in many policy documents such as the development plan of industrial clusters in Shandong Province 2016-2020 and the development plan of strategic emerging industries in the 13th five year plan of Shandong Province. At the Symposium on the innovation and development of biomedical industry in Shandong Province held in January 2022, we can see Shandong’s expectations for the biomedical industry, “running for five and competing for one”.
Different from the daily chemical industry in the Pearl River Delta and Yangtze River Delta, most of the industries in the above two regions are OEM or ODM, while the beauty industry in Shandong is the development of the whole industrial chain, including technology R & D, factory production, brand marketing and channel construction.
At present, Huaxi biology and Freida have promoted the application of hyaluronic acid to the food level and began to develop edible hyaluronic acid products. However, as a major agricultural province, in the field of eating, Shandong is more worth digging for prefabricated vegetables.
The prefabricated dishes of the Spring Festival Fire in 2022 are deeply related to Shandong. According to the relevant data, by the end of January 2022, there were 71900 enterprises related to prefabricated vegetables in China. In terms of regional distribution, Shandong ranked first with 8423; In terms of urban distribution, Shandong accounts for two of the top 10 cities, with 1518 and 1383 in Weifang and Linyi respectively.
Considering the local industrial base, this is not surprising. In 2020, Weifang’s vegetable exports accounted for 1 / 8 of the country, poultry exports accounted for 1 / 6 of the country, and the total output value of agricultural machinery accounted for 1 / 4 of the country. On this basis, it is a logical development logic to carry out deep processing of agricultural products and extend it to prefabricated dishes.
Delis, one of the concept stocks of prefabricated vegetables, is located in Weifang City. It landed on the small and medium-sized board of Shenzhen Stock Exchange in 2009, but it was not until the outlet of prefabricated vegetables came that it became hot again. On February 10 this year, delis revealed its layout in the field of prefabricated dishes when being investigated by four institutions. At present, delis focuses on to B business and supplemented by to C business. However, the company will tilt some resources to build C-end business in 2022 and build C-end business with quality and brand.
According to the new consumption of moose, delis prefabricated dishes are divided into four business divisions, including pastry, beef, quick-frozen conditioning and ready to eat leisure. In 2021, the production capacity of prefabricated dishes is about 30000 tons, and the production capacity of prefabricated dishes under construction is 150000 tons, of which Shandong headquarters has a production capacity of 100000 tons and has begun some trial production; The 50000 ton prefabricated vegetable production capacity of Shaanxi base is expected to be put into operation in July 2022. By the end of 2022, the new prefabricated vegetable production capacity will reach 150000 tons.
Huifa food, which is also located in Weifang City, landed on the main board of Shanghai Stock Exchange in 2017. Compared with the b-end of delis, Huifa food has richer C-end business. There are more than 300 kinds of prefabricated dishes, which not only serve catering channels, but also incubate multiple private brands. For example, Huifa and Zezhong are product brands, while runnong supply chain and Huifa kitchen are service brands. On the eve of the Spring Festival, more than 70 production lines of Huifa food were produced at full capacity, and more than 1000 tons were delivered every day.
Huifa food not only produces products related to prefabricated dishes, but also participates in the transformation of “Shaxian snacks”. No matter which city you are in, the Shaxian snacks with Fujian characteristics you eat later may be from Shandong.
As a major grain Province, Shandong has many advantages in grain processing, which also derives various food materials around daily consumption. It seems that the tall plant meat has been a frequent guest of celebrities at home and abroad in the past two years. Would you be more surprised if I told you that it is also produced in Shandong?
The most famous product of Shuangta food, located in Yantai, Shandong Province, is a well-known Longkou fan in China, but it is also the largest pea protein manufacturer in the world, accounting for about 40% of the global pea protein. From the perspective of classified listing, pea protein has surpassed the traditional fan business in the first half of 2021, becoming the company’s largest main business and main profit contribution point. In the first half of 2021, the sales revenue of pea protein reached 411 million yuan, with a year-on-year increase of 11.68%, accounting for 40.64% of the operating revenue and 74.64% of the gross profit
The greater imagination of pea protein is that it is the basic raw material of plant-based food. At present, Shuangta food has reached in-depth cooperation in the field of pea protein with beyond meat, Unilever, Cargill, DuPont, Mars, Nestle, Japan shuangri, Japan food research and other enterprises. Shuangta food has shifted its development focus to pea protein, launched relevant plant meat products, and invested in some plant meat brands.
Author: Qi Cheng; Source: moose new consumption (ID: tuolu360), reprint has been authorized. Reprint authorization and media business cooperation: Amy (wechat: 13701559246); Foodaily Expo 2022] foodaily Expo 2022 is the theme and invites 500 + the world’s most innovative brands and 4000 + middle and high-level industry decision makers… In the conference (foodaily fbic 2022) module, we set 2022.05.31-06.02. We’ll see you in Shanghai! related reading
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