China Food

Salary increase in the food industry has become a general trend! The latest average annual salary of these companies is more than 150000. Is it a drag?

Recently, xiaoshidai and everyone reviewed the bright annual salaries of global CEOs of top 500 food companies. Today, we are more concerned about the large number of “migrant workers” in the food industry. With the annual reports of packaging food enterprises listed in Hong Kong coming out one after another, xiaoshidai selected companies that separately disclosed the salary and number of employees in 2021, including Jianhe, Aoyou, Mengniu, Yashili, Feihe, nongnongshanquan, China food, Zhou Heiya, Dali food and Wugu mill, and sorted out the list of changes in per capita annual salary, salary and number of employees. From the overall situation of the 10 enterprises included in the incomplete statistics, their per capita annual salary will exceed 150000 in 2021. In addition, the per capita annual salary of most enterprises in the list increased compared with 2020, and even four companies increased to “five digits”.

It should be noted that in this statistics, due to the differences in the disclosure caliber of different companies, the list only counts the relevant sub columns of “wages and salaries”. Generally speaking, this is the highest proportion of the overall employee welfare expenditure, and it can better reflect the money that most people get with “real money”. The “pension plan contributions”, “employee benefits and other expenses” and other columns are not included in the calculation this time. In addition, some enterprises are not within the statistical scope due to differences in data caliber. For example, China Resources beer, Riqing food, Master Kang, unified central control and Tibet water resources (5100 parent company) that do not disclose “wages and salaries” separately, and China Wangwang and Vitasoy that do not take natural years as fiscal years and have not released annual performance.

“Big winner”

From the overall point of view of this list, the “players” involved in the dairy industry performed relatively well, winning four seats in the top five.


Data source: company performance materials, prepared by snack generation. Note: 1) rank from high to low according to “annual salary per capita in 2021”; 2) The “salary and salary” of Jianhe, Aoyou, Mengniu, nongnongshanquan, China food, Zhou Heiya and Dali food in 2021 includes the remuneration of directors or key executives, but not Yashili, Feihe and Wugu mill; 3) Aoyou, nongnongshanquan, Dali and Feihe have not disclosed the number of employees in 2021, so the mid-term report data of 2021 is adopted; 4) Feihe fully acquired the original ecological animal husbandry in 2020, and its employees also include the latter

The company’s employees earned 320000 yuan last year, of which the average annual salary of Swisse was 32000 yuan. Followed by Aoyou (197000), Yashili (180800), Mengniu (148700) and Feihe (130600), of which Mengniu has nearly 45000 employees and Feihe has nearly 8000 (as of the middle of last year). Among a number of dairy enterprises, the grain mill, which focuses on healthy food and PepsiCo as its second largest shareholder, ranks third with an annual salary of 188700 per capita. Interestingly, in the past three years, the per capita annual salary of grain mill has also been at the “upstream level”, with the data of 203000 and 20700 in 2020 and 2019 respectively. Among them, in 2020, the per capita annual salary of Wugu mill ranked second only to Jianhe. In the same period, Wugu mill is also the enterprise with the lowest number of employees on the list. There are only more than 700 employees in 2020 and 2021, which is far less than other companies with thousands or even tens of thousands of employees.

After the dairy enterprises, there are two water drinking Giants: nongnongshan spring and China food, as the major shareholder of COFCO Coca Cola, which rank seventh and eighth with an annual per capita salary of 120100 and 114100 respectively. Zhou Heiya came in ninth, with an annual per capita salary of 89100 last year. Finally, Dali food, which has many brands such as kebic, doubendou, Heqizheng herbal tea and Lehu, had a per capita annual salary of 54700 yuan last year. This level may be related to factors such as its deep roots in the sinking market and the large number of employees. “The remuneration of the group’s employees is determined by reference to their position, performance, experience and salary trends in the current market.” Dali mentioned in the 2021 mid-term report. In addition, as of June 30, 2021, the group employed 40607 employees, second only to Mengniu, and about twice as many as nongnongshan spring and Chinese food.

Salary increase and staff increase

There was a time when layoffs and salary cuts often appeared in industries experiencing “cold winter” such as the Internet, education and training and real estate. In contrast, packaged food and beverage is another scene.

Data source: company performance materials, prepared by snack generation. Note: 1) rank from high to low according to “annual salary per capita in 2021”; 2) The “salary and salary” of Jianhe, Aoyou, Mengniu, nongnongshanquan, China food, Zhou Heiya and Dali food in 2021 includes the remuneration of directors or key executives, but not Yashili, Feihe and Wugu mill; 3) Aoyou, nongnongshanquan, Dali and Feihe have not disclosed the number of employees in 2021, so the mid-term report data of 2021 is adopted; 4) Feihe fully acquired the original ecological animal husbandry in 2020, and its employees also include the latter

According to the salary data of 10 enterprises combed by xiaoshidai, the per capita annual salary of the other nine companies increased in 2021, except for the grain mill. Among them, Yashili led with an increase of 35300. At the same time, Yashili was also the enterprise with the largest decline in the number of employees last year, 157 fewer than that in 2020. Yan Zhiyuan, CEO of Yashili, said at the performance meeting held in March 2020 that Yashili would streamline from the past eight business departments to three business departments to enhance the coordination of internal business departments. Looking through the company’s annual reports over the years, the snack generation found that before the above changes, the number of employees of Yashili has remained stable in the past few years, with more than 2900 from 2018 to 2020. In addition to Yashili, there were nongnong Shanquan, Feihe and Aoyou enterprises whose per capita annual salary increased by more than 10000 last year, with an increase of 25400, 23900 and 10400 respectively. In 2021, each of the three enterprises handed over bright financial reports. According to xiaoshidai, the total revenue of nongnongshanquan increased by 29.8% to 29.696 billion yuan last year, and the profit attributable to the owner of the parent company increased by 35.7% to 7.162 billion yuan year-on-year. Feihe’s revenue in 2021 reached 22.776 billion yuan, a year-on-year increase of 22.5%, and its profit during the year was 6.915 billion yuan, a year-on-year decrease of 7.0%. Excluding the premium purchase income of the original ecological animal husbandry in 2020, the profit of Feihe during the year increased by 21.2% year-on-year. Aoyou’s revenue last year was 8.873 billion yuan, a year-on-year increase of 11.1%; The net profit attributable to the owners of the parent company was 1.040 billion yuan, a year-on-year increase of 3.6%. Under the overall weakness of the market, the growth rate of core private brands of Aoyou three infant formula milk powder still reached double digits.

Judging from the latest number of employees, most enterprises increased staff last year. Among the 10 companies on the list, the number of employees in 6 companies has increased. Mengniu, the company with the strongest increase, had more than 4000 employees last year, almost 10% more “Mengniu people”. According to xiaoshidai, Mengniu recorded the fastest growth rate in nearly five years last year, with an annual revenue of 88.141 billion yuan in 2021, a year-on-year increase of 15.9%. Lu Minfang, its president, said that last year’s revenue growth benefited from strong natural growth and some structural growth. In addition, it is also inseparable from the progress of revenue M & A, including Burra foods, an Australian dairy company previously acquired, and AI Xue, an ice cream brand in Southeast Asia.

New trends in employment

Looking forward to 2022, in the face of the complex situation of the emergence of various new opportunities and the uncertainty of the epidemic, it is more worth thinking about how employers and job seekers can “go two-way”. For the consumer goods and retail industry, the vigorous development of new consumption patterns and formats has also brought more employment possibilities. For example, Ren Shida, a global human resources service organization, pointed out in the 2022 China market outlook and salary report that with the increasing saturation of the development of first and second tier cities and the gradual reduction of online traffic dividends, sinking the market has become a must in the business battlefield. With the rapid development of e-commerce, enterprises speed up market expansion. Under this trend, the talent demand structure of the sinking market will also change and upgrade. With the integration, digitization and modernization of the supply chain rapidly radiating to the second and third tier cities, compound talents with unique insights and experience in market products and digital marketing will become the goal of many enterprises.

The above report also predicted that in consumer goods and retail, the possibility of employees starting to consider changing jobs has also increased, because “wages, promotions, bonuses, job hopping and other aspects have suffered the negative impact of the epidemic, the salary increase has decreased and the promotion opportunities have decreased in the past year”. Ren Shida pointed out that for job seekers in this industry, small and medium-sized enterprises overtaking in corners are favored. In addition to paying attention to salary and welfare, job seekers pay more attention to the development platform and career development opportunities of the enterprise. Finally, another good news is that according to the renshida Greater China survey, the salary increase of consumer goods and retail in 2022 will be further improved. Among them, the average salary increase in the consumer goods industry is expected to be 9.5%, and the average year-end bonus is expected to be 1.9 months’ monthly salary.

Pay attention to “snack generation” (wechat: foodinc) “and watch the wonderful news.

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