French strips, fresh shrimp slices, cheese strips, tacos, onion rings, Japanese fish and fruit… If you need to list a list of “children’s tastes” after 80s and 90s, put on the best puffed foods. Must have a name.
In those years when there was no concept of “health” and “low card”, these salty and sweet puffed foods gave us great happiness and satisfaction. Unpack the expanded package and hold the shrimp to watch TV. Who doesn’t say “喔伊西”?
On November 8, Shanghao (Global) Co., Ltd., a snack food manufacturer, submitted a prospectus to the Hong Kong Stock Exchange for listing on the Main Board of Hong Kong. At present, Shanghaojia has not disclosed the amount and pricing of the IPO.
Abandoning the performance of the past three years, the prospectus disclosed a cold knowledge about good things: Unlike many loyal fans, the good is not the “light of domestic products”, but A Philippine brand.
The prospectus shows that as early as 1966, the Philippine overseas Chinese couple Shi Getou and Li Meifen set up Liwayway Marketing in the local area, and earlier engaged in the distribution of starch, coffee, candy and daily necessities. In 1975, the company began manufacturing and distributing snack foods under the “Oishi” brand.
In 1993, under the leadership of the founder’s son, Shi Gongqi, Liwayway cooperated with Shanghai Shrimp Film Factory to start producing Oishi brand fresh shrimp strips and fresh shrimp slices, which opened the door of mainland China. Then, Liwayway entered the Vietnamese market in 1996. Until today, the main markets of Shanghao are still China and Vietnam.
Progress decreases year after year
At present, Shanghaojia Group has eight leisure food production plants in China, located in Shanghai, Heilongjiang, Yunnan, Jiangsu, Jiangxi, Hubei, Xinjiang and Shandong, and also has two packaging materials production in Shanghai and Jiangxi. plant.
As you can see from the distribution of the production plant, it is good.Jia hopes to cover every segment of the Chinese market as much as possible, and the funds raised will also be used to continue to expand production capacity. According to the prospectus, 51.3% of the funds raised will be used to expand the company’s productivity in China and Vietnam; 12.9% will be used to further develop automated production lines and upgrade production technologies.
In addition to the basic situation of the company, the most concerned part of the prospectus is of course the financial data that the company has not disclosed before.
The prospectus shows that from 2016 to 2018, Shanghao Group’s revenue showed a continuous growth trend, but the growth rate was not high, from 475 million US dollars to 490 million US dollars. However, operating profit fell from $46.6 million to $39.9 million, a decrease of 14.4%. In the prospectus, Shanghaojia said that the reason for the decline in profits was due to higher distribution costs and administrative expenses.
In general, Shanghaojia is not in the stage of “high-speed growth” in recent years. In the Chinese market, the situation may be more serious.
The prospectus shows that 68.8% of Shanghao’s revenue comes from China, and Vietnam’s revenue accounts for about 31.2%, but the current proportion of the Chinese market is declining year by year. Shanghaojia said in the prospectus that this is mainly due to Chinese consumers turning to online purchases and shifting their preference to healthier, more nutritious and higher-value products, while Vietnam’s per capita disposable income has increased, leading to Vietnamese snack foods. The market is growing rapidly.
Besides puffed food is not as “favored” as before, the key step in the goodness of China is called e-commerce.
In the sale of casual snacks, Shanghaojia has a lot of casual zero-food brands that are on the line, in addition to traditional rivals such as music and customers. Three squirrels, good shop and other brands have been working online for many years. These brands of all kinds of snacks have won half of the snacks and e-commerce companies with thousands of SKUs.
According to the “Battle Report” issued by each zero food brand, in the past double 11, the online sales of the three squirrels exceeded 923 million yuan, and the omni-channel sales exceeded 1.049 billion yuan; the omni-channel sales of the good stores The amount exceeded 560 million yuan, a year-on-year increase of over 40%.
The good Tmall flagship store opened in January 2018. In the excellent prospectus, the category of “e-commerce sales” was not available until 2018. According to the prospectus, sales of the (such as Tmall, Jingdong) on the e-commerce platform are on the rise, in the first half of 2019. E-commerce income was $7.58 million — The figure for the same period last year was only $145,000.
Is there a way out for puffed food?
At present, Shanghaojia’s products include crispy snack foods, confectionery and beverages. As of June 30 this year, the company sells 72 kinds of crispy snack foods, 43 kinds of confectionery products and 22 kinds of beverage products in China. . According to Frost & Sullivan’s report, according to the retail value of three consecutive years from 2016 to 2018, Shanghaojia is China’s largest crispy snack food manufacturer (excluding potato chips and crispy rice cakes) and Vietnam’s largest producer of crispy snack foods.
But this “maximum” has a lot of qualifiers: crispy food, not including potato chips… Of course, there are a number of fixed fans: they have been eating well since childhood, and they have also recognized good products. The taste, for them, a bag of French fries is like a time shuttle, you can go back to childhood when you open it. The question is, can today’s puffed foods be as “a fresh trick, eat all over the sky” as before?
CBNData released 2018 cross-border spending new The Normal Youth Group Insight Report pointed out that “green, low-fat, no-addition has become a new direction for young people’s snack consumption, and the proportion of healthy snacks in snack consumption is increasing and continues to grow at a high rate. Under the popular concept of “healthy, low-calorie, low-sugar” diet, today’s consumers have to take a pack of puffed food repeatedly and look at the list of 500 kcal/100 g nutrients. .
In this case, the old food companies are beginning to wonder how they can cater to the newConsumer trends. In September, Want Want launched its health zero-food brand Fix Body, which has 21 healthy snacks under the brand, including a three-day breakfast pack and other meal replacements, and a low-sugar and low-calorie “pouting series”. The specific sales situation is still unknown, but it is enough to see how soft the body of the zero-food brand is in order to meet the consumer’s updated and more varied requirements.
When consumers around the world are thinking about how to “eat no fat” and when new sales methods lead to new consumer brands, you may want to think about how to do it after the fundraising is completed. Keep up with the pace of eating goods?