China Food

Durian, the first strand of fruit

“ 
In the
trillion fruit market, the business is not as good as expected, but the characteristics of high-frequency consumption do not affect the giants’ rush to enter the market.
 ”
Here comes the first fruit.
On September 5, Hongjiu fruit officially landed in Hong Kong stock market ahead of Baiguoyuan, with an issue price of HK $40 / share. As of today’s closing, each share was HK $40, with a total market value of HK $18.683 billion.
Hongjiu fruit has operated fruits for nearly 20 years and has an “end-to-end” supply chain. According to the data of ZhuoZhi consulting, in terms of sales revenue in 2021, Hongjiu fruit is the largest durian distributor in China and one of the top five distributors of pitaya, mangosteen and longan.
Unlike many fruit merchants who earn money at the C-end, Hongjiu fruit mainly earns money from terminal wholesalers. Fruit king, durian King… Under many labels, Hongjiu fruit tells different stories in the fierce competition for trillions of fruits in the Jianghu.
Revenue exceeded 10 billion yuan in three years
Consumers’ fruit freedom may not be fully realized, but Hongjiu fruit provides fruit freedom to fresh fruit distributors.
Data show that Hongjiu fruit focuses on the whole industrial chain operation of fruits mainly originating in China, Thailand, Vietnam and other places. At present, Hongjiu fruit has formed a fruit product portfolio of 49 categories with durian, mangosteen, longan, pitaya, chelizi and grape as the core. It is the largest private brand fresh fruit distributor in China and the largest imported fresh fruit distributor in Southeast Asia.
The revenue of Hongjiu fruit increased year by year. From 2019 to 2021, the revenue of Hongjiu fruit was 2.078 billion yuan, 5.771 billion yuan and 10.280 billion yuan respectively, and the net profit was 163 million yuan, 2.754 million yuan and 292 million yuan respectively; The adjusted profits were 228 million yuan, 662 million yuan and 1.09 billion yuan respectively, with a compound annual growth rate of 118.5%.
In the first five months of 2022, the revenue of Hongjiu fruit increased from 4.576 billion yuan in the same period of 2021 to 5.725 billion yuan; The adjusted profit increased by 39.6% from 533 million yuan in the same period of 2021 to 745 million yuan.
However, the gross profit of Hongjiu fruit is not high, and it has been declining in recent years until May this year. From 2019 to 2021 and the first five months of 2022, the gross profit of Hongjiu fruit was 393 million yuan, 957 million yuan, 1.613 billion yuan and 1.123 billion yuan respectively.
The turning point in the past two years is due to the “end-to-end” supply chain mode of Hongjiu fruit, which ensures that the strict standards set by Hongjiu are implemented in all links of the supply chain.
It is reported that the company’s “end-to-end” supply chain is composed of the following elements: in depth procurement and processing layout of fruit producing areas; A distribution network driven by digitalization with efficient removal of intermediate levels; National grid sales system.
Despite the impact of the epidemic, Yishe
Looking at the red orange vendors on the wharf, Deng Hongjiu had an idea and found scattered sales opportunities. Using the same pole, Deng Hongjiu joined the ranks of hawkers and sold fruits from street to street.
Deng Hongjiu once recalled: “in the first month, I made 80 yuan. I was so happy!” You should know that in those days, the average monthly salary of office workers was about 100 yuan.
Deng Hongjiu, who sold fruits and tasted the sweetness, used his brains. The bold one put all his wealth – 2000 yuan – into it, and brought more than 2 tons of red oranges from Changshou to Chongqing for sale. The purchase price was 0.3 yuan and the selling price was 0.6 yuan. They sold out in two days and earned more than 100 yuan.
Therefore, Deng Hongjiu resolutely gave up retail business and started wholesale business. In 2002, Deng Hongjiu and his wife Jiang Zongying jointly established Chongqing Hongjiu Fruit Co., Ltd., with Deng Hongjiu holding 90% and Jiang Zongying holding 10%.
In2005, a news that “15 kinds of Taiwan, China fruits will be imported with zero tariff” attracted Deng Hongjiu’s attention. Subsequently, at a trade show, Deng Hongjiu successfully reached cooperation with a Taiwanese company and introduced 4.4 tons of Taiwanese fruits to Chongqing in the first batch.
Unlike many fruit merchants, Hongjiu fruit has avoided competition in the domestic mass market. When selecting the main products, the rarity, characteristic flavor, nutritional level and origin of the fruit are comprehensively considered to ensure that it is relatively difficult to find substitutes in domestic fruits, so as to become a full industry chain supplier of high-end imported fruits and high-quality domestic fruits.
In addition, Deng Hongjiu also contracted hundreds of acres of land to drive local farmers to grow fruits and become rich, and joined hands with 23 most influential fruit wholesalers to invest in building a new fruit wholesale market in Jiangbei District.
Today, Hongjiu mainly deals in imported fruits from Southeast Asia. The company has formed a matrix of six core categories: Durian, pitaya, longan, grape, mangosteen and chelizi, accounting for more than half of the revenue. Durian is also the category with the largest revenue among the core fruits.
The gross profit rate of Hongjiu fruit’s core fruit is 17.5%, and the fruit with the highest gross profit rate is durian. In the past three years, the gross profit rate has been between 18.9% and 21%. The gross profit margin of four core fruits, namely pitaya, grape, longan and Mangosteen, is close to the comprehensive gross profit of the company.
Few people know that Hongjiu fruit is the largest durian distributor in China. In 2021, the durian procurement of Hongjiu fruit in Thailand accounted for 10.1% of the total durian imports from China to Thailand. It is no exaggeration to say that for every 10 durians the Chinese eat, one comes from Hong Jiu.
From 2019 to 2021, the sales scale of hongjiuguo durian was 473 million yuan, 2.107 billion yuan and 3.482 billion yuan, accounting for 22.8%, 36.5% and 33.9% of the company’s total revenue.
With the continuous increase of durian price and quantity, the profit contribution to Hongjiu fruit is becoming more and more important. Data show that durian contributed 99.562 million yuan and 3.9% of gross profit respectively from 2019 to 2021
In addition, emerging retail channels are also growing rapidly. Although traditional channels such as shopping malls, wife shops and vegetable markets are still the main channels of fresh fruit retail in China, emerging retail channels (community group shopping, community fresh food chain stores, instant e-commerce and integrated e-commerce) are rising rapidly, and it is expected that they will gradually become the mainstream channels for consumers to buy fruits.
But selling fruit is still a hard business. According to the prospectus, from 2019 to 2021, Baiguoyuan achieved a net profit of 248 million yuan, 45.658 million yuan and 226 million yuan respectively. In other words, the final net profit of Baiguoyuan and Hongjiu fruits, whose revenue exceeded 10 billion yuan in 2021, did not exceed 300 million yuan.
In the trillion yuan fruit market, business is not as good as expected, but the characteristics of high-frequency consumption do not affect the giant’s “scramble” to enter the market. Although the market concentration is low, the competition among the top players is fierce.
Either there is huge capital support or there is enough time to invest. With the continuous integration of upstream, middle and downstream supply chains, the fruit market is also developing towards digitalization, standardization and branding.

Cover image source: iStock Author: Wang tonton; Source: Guanchao new consumption (ID: tidesight), reprint has been authorized. Reprint authorization and media cooperation: Jennifer (wechat: 15151447934);
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Durian, the first strand of fruit
和很多水果商不同,洪九果品避开了国内大众市场竞争。在选择主打产品时,综合考量该水果的稀有性、特色风味、营养水平以及原产地,确保该品类相对难以在国产水果中找到替代品,以成为高端进口水果和高品质国产水果的全产业链供应商。
此外,邓洪九还承包下下几百亩土地,带动当地农民种植水果致富,并联手23家最具影响力的水果批发商,共同投资在江北区建设新的水果批发市场。
如今,洪九主营东南亚进口水果,公司形成了榴莲、火龙果、龙眼、葡萄、山竹、车厘子6大核心品类矩阵,营收占比过半,榴莲又是核心水果中收入最大的品类。
洪九果品核心水果的毛利率为17.5%,毛利率最高的水果是榴莲,三年来毛利率位于18.9%—21%。火龙果、葡萄、龙眼、山竹这四类核心水果的毛利率接近公司综合毛利。
很少有人知道,洪九果品是中国最大的榴莲分销商。2021年,洪九果品在泰国的榴莲采购量,占中国向泰国进口榴莲总量的10.1%。可以不夸张地说,中国人每吃掉10个榴莲,就有1个源自洪九。
2019年至2021年,洪九果品榴莲销售规模分别为4.73亿元、21.07亿元和34.82亿元,占公司总收入的22.8%、36.5%和33.9%。
随着榴莲价量不断提升,对洪九果品的利润贡献也越来越重要。数据显示,2019年至2021年,榴莲分别贡献毛利润9956.2万元、3.99亿元和7.22亿元,占公司毛利润总额的25.51%、41.59%和44.76%。同期,榴莲毛利率分别为21.0%、18.9%和20.7%。2022年前5月,升至31.2%。
招股书显示,2022年前5个月,公司榴莲销售收入15.51亿元,为总收入的27.07%。据灼识咨询数据,按收入规模计,洪九果品在中国榴莲销售市场份额为8.3%。
截至目前,洪九果品在泰国、越南等核心水果品类原产地拥有16个水果初加工厂并组建了近400名雇员的当地团队,并与7000家水果供应商达成合作。
万亿水果江湖争锋
南百果,北鲜丰,西洪九,水果巨头们争抢第一股多年。
虽说同处水果赛道,但三者走出了不同的路子。洪九果品主打“端到端”模式,侧重上游端直采,负责选品、物流直至销售给终端批发商;百果园走的是O2O模式,早早切入水果种植端,形成从源头种植、原产地采购到门店销售的全产业链格局;鲜丰水果则是2B模式,集新零售、智慧冷链物流和供应链为一体。
定位不同,运营模式不同,三家水果巨头的消费群体也都不一样。洪九果品后,百果园、鲜丰水果也在上市途中。
中国是世界上最大的水果消费国。据灼识咨询数据显示,中国鲜果零售市场规模已由2017年的9390亿元增至2021年的1.34万亿元,复合年增长率约9.2%。
中国人均年鲜果消耗量由2017年的约46公斤增至2021年的57公斤,但仍远低于《中国居民膳食指南》建议的日均200-350g(即每年73至128公斤)的水果摄入量。因此,预计2026年中国鲜果零售市场规模将进一步增长至2.07万亿元。
且随着消费升级,优质的水果格外受消费者青睐,需求量增长快速。譬如,榴莲的零售额由2019年的210亿元增至2021年的524亿元。
据灼识咨询数据显示,未来五年,榴莲、车厘子、山竹、龙眼及或火龙果是中国2021年零售额超100亿元水果品类中增速最快的五大品类。
进口鲜果量也在不断增加。尤其是东南亚地区热带气候环境及与中国距离较近,成为中国进口鲜果的最主要原产地。2021年,榴莲的零售额在中国的进口鲜果品类中排名第一,约占进口鲜果零售总市场规模的31.7%。
此外,新兴的零售渠道也在快速增长。虽然商场、夫妻老婆店、菜市场等传统渠道仍为中国鲜果零售的主要渠道,但新兴的零售渠道(社区团购、社区生鲜连锁店、即时电商及综合电商)快速崛起,预计其将逐渐成为消费者购买水果的主流渠道。
但卖水果仍是一门苦生意。据招股书显示,2019年至2021年,百果园分别实现净利润2.48亿元、4565.8万元、2.26亿元。也就是说,2021年营收均超百亿的百果园、洪九果品,最后净利润都未超过3亿元。
万亿水果市场,生意不如想象中的好,但高频消费的特点并不影响巨头“抢着”入局。虽然市场集中度低,但头部的参与者竞争激烈。
要么有巨额资本支持,要么有足够的时间投入。随着上中下游供应链不断被整合,水果市场也在朝着数字化、标准化、品牌化发展。
封面图来源:iStock
作者:王吨吨;来源:观潮新消费(ID:TideSight),转载已获得授权。
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