China Resources Yibao, the second largest packaging and drinking water giant in China, recently handed over an annual report card of “steady progress”.
Today, this enterprise with an annual revenue of more than 10 billion released the 2021 sustainable development report. Xiaoshidai noted that the report disclosed for the first time that in 2021, China Resources Yibao achieved both revenue and profit growth, becoming one of the core enterprises with incremental contributions to the beverage industry. This is attributed to the company’s “two wheel drive” strategy for packaging water and beverages, deep cultivation of traditional channels and digital transformation.
Next, xiaoshidai will bring you to pay attention.
Double digit growth
According to the above report, in 2021, China Resources Yibao achieved a year-on-year increase of 17.7% in operating revenue, a year-on-year increase of 16.2% in total profits, and a good start to the 14th five year plan. In addition, China Resources Yibao focuses on high-quality development and strives to create long-term and stable returns for shareholders. The total return on investment in 2021 reached 16.91%.
This means that since 2019 before the outbreak, Cr Yibao has achieved total profit growth for three consecutive years.
Xiaoshidai once introduced that in 2019, the operating revenue of Yibao was 10.396 billion yuan, and the total profit was 863 million yuan. In 2020, China Resources Yibao said that the turnover of the beverage industry fell by 7% as a whole, and the company’s “annual revenue was better than the overall industry performance”, while its profitability was improved, and the total profit increased to 1.037 billion yuan. The report released today revealed that the total profit of the company increased to 1.205 billion yuan in 2021.
It can be seen that under the “storm” of the epidemic in the past two years, the giant ship of China Resources Yibao is still driving steadily. According to the statistical data of China Beverage Association, the main business income of China Resources Yibao ranked sixth in 2021, the share of packaged water products ranked second in the industry, and the beverage output ranked third in the industry.
Shanghai epidemic group purchase of Yibao products
“(2021) through a number of reform measures, China Resources Yibao has unswervingly optimized and strengthened its main business, vigorously expanded its product R & D and innovation capabilities, comprehensively promoted the transformation of green development, and maintained a good momentum of steady progress, quality improvement and efficiency increase in its overall business.” The report points out.
Xiaoshidai noticed that in terms of organizational change, in 2021, after the marketing center, China Resources Yibao successively established operation centers and production centers to integrate and optimize the relevant functions of the headquarters, so as to further improve the efficiency of organizational operations. The report shows that by the end of 2021, China Resources Yibao headquarters had 11 departments, 3 business centers, 16 sales regions, 5 incubation markets, Hong Kong and Macao business, modern channel business, bottled water business, 40 factories, and more than 11000 employees.
“Two wheel drive”
According to the strategic plan of the 14th five year plan, China Resources Yibao proposed to become a “first-class comprehensive beverage enterprise”.
“(2021) we will deeply and carefully explore the market growth potential, continue to promote the dual engine development pattern of packaged drinking water and beverages, and constantly improve our innovation and design capabilities.” In the speech of the report, Zhang Weitong, chairman and CEO, said. Xiaoshidai introduced that in recent years, the “non water” business has become the driving force of Cr Yibao. The company has obviously changed from a single packaging water enterprise in the past to a beverage company with increasingly diversified products, and gradually got rid of the label of “water enterprise”.
According to statistics, China Resources Yibao launched a total of 9 new products last year. As of 2021, the company has many brands such as “Yibao”, “Yibao honey water”, “magic”, “afternoon milk tea”, “hot coffee” and “Yibao holiday”, covering eight categories of packaged water, near water drinks, sports drinks, milk tea, coffee, fruit juice, tea drinks and lactic acid bacteria drinks.
“We are committed to the research and development of personalized and diversified products, continue to invest in the development of innovative products, and achieve a more diversified category and product layout through the introduction of advanced production lines and talents.” China Resources Yibao said in the report, “we start with innovative concepts, explore the pain points of categories, and focus on the research and development of new products with a sense of health, such as Zero sugar and low sugar products.”
It can be seen that the product portfolio of Cr Yibao is becoming richer and richer. On the one hand, it provides consumers with more choices and meets more diverse needs. On the other hand, it also provides a new driving force for the growth of this packaging water and beverage giant.
For example, in the beverage business, China Resources Yibao launched new products such as honey water orange, new fruit juice peach holiday, and Zhiben Qingrun chrysanthemum tea last year. Xiaoshidai learned that the sales of chrysanthemum tea this year is expected to exceed 200million yuan, and the “honey water” and “holiday” series have also reached the scale of annual sales of more than 100 million yuan.
To cater to the sugar free consumption trend, China Resources Yibao has also launched more sugar free drinks. “With the improvement of consumers’ health awareness, Zero sugar products are favored by consumers. In March 2021, in order to cover a wider range of healthy people and consumption scenarios, we upgraded and improved the original flavor tea beverage of Zuo Wei tea, and promoted it nationwide with Zero sugar, zero fat and dietary fiber as the highlight.” The company said in the report.
As for the core packaged drinking water business, China Resources Yibao’s product innovation focuses more on consumption scenarios, including the introduction of more product specifications suitable for household consumption (6L and 12.8L barreled water), which also caters to the growing demand for packaged drinking water household consumption under the epidemic.
Xiaoshidai learned that since this year, although the epidemic has occurred repeatedly, China Resources Yibao has also maintained a stable pace of upgrading. Since March this year, the company has successively launched four new products, including 0 sugar and 0 fat flavored tea, sea salt lychee, afternoon milk tea Cherry Blossom suit, and high-end mineral water yibaolu.
Behind the innovation of overweight products, the R & D investment of China Resources Yibao is also rising.
The report mentioned that in 2021, China Resources Yibao will further expand the scale of the laboratory, increase research and development investment, and establish a research system in the field of sensory and microbial thermotolerant bacteria. Xiaoshidai noted that in 2021, the R & D investment of China Resources Yibao was 59 million yuan, a sharp increase of 195% year-on-year in 2020, and has continued to rise in the past four years.
However, the larger investment destination of Cr Yibao is to increase production capacity.
According to the report released today, from September to November 2021, China Resources Yibao officially signed contracts with four major drinking water production bases in succession to intensively deploy new production capacity. Xiaoshidai once introduced that the four production bases are located in Changbai Mountain in the northeast, Wuxi in the East, Wuyi Mountain and Heyuan in the south, from north to south. According to the information disclosed previously, the total planned investment of the project is as high as 6billion yuan.
The company said in the report that this is not only an important step forward for China Resources Yibao towards the “14th five year plan”, but also a specific measure to actively integrate into the new development pattern of “double cycle”, providing strong support for China Resources Yibao to achieve high-quality development.
At the same time, China Resources Yibao also continued to invest in brand building. As a partner of the Chinese national team /team China, the company provided water and materials support for the Chinese team in preparation for the Tokyo Olympic Games, the National Games and the Beijing Winter Olympics, and firmly controlled the top resources of China’s sports marketing. In addition, in terms of mass sports, in 2021, China Resources Yibao sponsored 43 offline road running events and 6 online marathons, and helped the Gobi challenge and other events to increase sports marketing.
Channel “general mobilization”
Under the challenge of external factors such as the epidemic, the reason why CR Yibao can deliver an annual answer sheet of double growth in revenue and profit is also inseparable from its intensive cultivation and digital transformation in traditional channels.
In the recently released report, China Resources Yibao described that the end market is the “main battlefield” for the direct convergence of consumers and products, and the foundation of the FMCG industry. Therefore, the company has put forward the general mobilization of “intensive cultivation and decisive victory at the terminal”. Since May last year, the company has carried out collective marketing for all staff and deeply cultivated more than 2 million traditional terminal outlets.
However, this does not mean that China Resources Yibao gives up emerging channels.
“In the face of new consumption patterns and concepts, while improving the power of offline channels, we are also actively embracing new retail channels through digital transformation.” The company said in the report that in 2021, Yibao tmall flagship store and jd.com flagship store opened successively. In addition, the company also launched a “bee shop” in the form of self-sale, as well as the introduction of live broadcasting and new media.
The company previously told xiaoshidai that in the future, it will provide slightly differentiated product choices based on the characteristics of different channels to fully meet the needs of different consumers.
According to the report jointly released by Bain and Kaidu consumer index in June this year, in 2021, the e-commerce channels of FMCG grew steadily, but the platforms were gradually decentralized, and pinduohe and interest e-commerce platforms (Tiktok, Kwai) are winning the favor of more and more consumers.
“The best performing enterprises are taking measures to deal with these changes. They re evaluate their e-commerce channel strategies on various platforms, strive to achieve product portfolio differentiation, and establish professional operation capabilities to reach different consumer groups and meet different consumer needs.” The report said.