China Food

COFCO Coca Cola’s half year revenue is nearly 11.9 billion, and the management has drawn a key strategy for the second half of the year

Today, COFCO Coca Cola, one of the two largest bottlers of Coca Cola in China, recently handed over its first half report card.

According to the semi annual report disclosed by COFCO Coca Cola’s major shareholder, China Food Co., Ltd. (00506. HK), from January to June 2022, China Food realized a revenue of 11.894 billion yuan (RMB, the same below), a year-on-year increase of 6%, and a profit of 880 million yuan, a year-on-year increase of 17.94%. Adjusted EBIT and EBITDA were RMB 1.126 billion and RMB 1.46 billion respectively, with year-on-year growth of 20.6% and 24.7% respectively.  

“Based on the product advantages and channel advantages that the company has to meet the different needs of consumers, and the strategic resilience behind it, we are full of confidence in the long-term growth in the future.” Qing Lijun, managing director of China food, said today that in 2022, it will continue to focus on the long-term strategy of the development of the whole category and actively respond to the changes in the macro environment.


It is worth noting that, like Swire Coca Cola, its financial report is also an important “window” to see Coca Cola’s business in China.

At present, COFCO Coca Cola is authorized to operate Coca Cola series products in 19 provincial-level administrative regions, covering about 50% of the population in mainland China. It also provides consumers with 11 categories and 24 brands of products such as soft drinks, fruit juices, water, milk drinks, energy drinks, tea, coffee, functional nutritional drinks, sports drinks, plant protein drinks and alcoholic beverages.

According to the snack representative, in the first half of 2022, Swire Coca Cola earned HK $14.021 billion (about RMB 11.747 billion) in the Chinese mainland market. This means that, based on the gross income of the two major bottlers, Coca Cola products sold about 23.641 billion yuan in the mainland market in the first half of this year.

Interestingly, although the sales volume declined, the revenue and profit of China Food achieved growth in the first half of the year.

The financial report shows that in the first half of 2022, affected by the domestic epidemic, China’s food sales fell year-on-year, but thanks to the optimization of product and packaging structure, the revenue still increased by 6% year-on-year. In addition, due to a certain increase in international commodity prices, the company’s gross profit margin was slightly lower than that of the same period last year. However, thanks to the continuous improvement of efficiency, the sales and management expense rate was effectively reduced, and the operating profit rate was improved.

COFCO and Coca Cola continue to invest in efficient supply chain. As introduced by the snack generation, in July this year, COFCO Coca Cola Guizhou plant was officially put into operation, which is its 20th plant and the 46th plant of Coca Cola China system. The formal operation of the plant means that COFCO Coca Cola’s production and marketing coordination ability has reached a new level. After COFCO Coca Cola Guizhou plant is put into operation, it can directly and accurately meet the consumption demand of this region, realize more efficient production on demand, and form the linkage effect of Sichuan, Chongqing, Guizhou and Hunan.

COFCO Coca Cola Guizhou plant

Looking forward to the second half of 2022, China food is expected that the price of main raw materials will remain high, the company’s gross profit will continue to be under pressure, and the management will continue to actively promote the upgrading of product structure, business portfolio optimization and supply chain

Xiaoshidai learned that in the first half of this year, the sales revenue of COFCO Coca Cola fruit juice category increased by 21.05% year-on-year; The newly launched meilingyuan bubble juice series focuses on 0 sugar and 0 fat. There are three flavors of peach, grape and apple. “The revenue has exceeded 10 million in the last few months.”.

Affected by the domestic epidemic, the income of water products has declined. “Under the normal situation of the epidemic, in the second half of the year, we will continue to cultivate home consumption scenarios, seize the opportunities of home consumption, meet the business opportunities of consumers in domestic water through e-commerce and community partners, and promote the growth of large packaging income.” The company said that it would continue to focus on promoting the mainstream water brand “Chunyue” products in the future and actively develop the strategy of high-end aquatic products in the hope of enhancing the profitability of aquatic products and driving the overall profit.

According to the financial report, in the first half of this year, COFCO Coca Cola maintained a market share of more than 50% in the soft drinks category in its business area, and continued to leave its main competitors. The sales share of fruit juice category in the business area is basically the same, and continues to be the first in the industry. As aquatic products are still in the throes of category upgrading, the market share of aquatic products in the period decreased slightly year-on-year.

In addition to the above three categories, “other categories” mainly include instant coffee and instant tea.

According to the financial report, through such marketing activities as free drinks in key channels, store promotion and o2o activity linkage, China’s food ready to drink coffee category achieved double-digit growth year-on-year, higher than the average level of the industry, and its market share continued to rise. Costa Costa Costa Costa brand remained the second brand of ready to drink coffee in key markets.  

At the same time, for the ready to drink tea category, the company launched Costa Costa Costa light milk tea beverage for the first time in the period. The product is low sugar and low fat. It is reported that three flavors of White Peach Oolong, grape jasmine and litchi black tea have been listed. It is reported that “brilliant results have been achieved in just a few months”. In addition, the “sunshine” sugar free lemon tea listed in the previous year also has a satisfactory growth, and the income of tea products has increased more than times in the period.  

Snack generation

COFCO Coca Cola’s half year revenue is nearly 11.9 billion, and the management has drawn a key strategy for the second half of the year







与此同时,对于即饮茶品类, 该公司期内首次推出COSTA咖世家轻乳茶饮料,产品低糖低脂肪,共上市白桃乌龙、葡萄茉莉以及荔枝红茶三款口味,据悉“发布短短数月已取得亮丽成绩”,加上去年上市的“阳光”无糖柠檬茶也有满意增长,茶品类收入期内录得逾倍升幅。 


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