How far is the big business from the small Fuling mustard industry with tens of billions of sales?

Original Title: Small Industry, Big Business, How Far Is Fuling Mustard From Tens of Billions of Sales

To achieve the goal of 10 billion sales,Mustard fulingStaking out and diversified distribution is accelerated. 26 of FebruaryMustard fulingPublishedPerformanceThe express report shows that in 2020,Fuling mustardIncome andNet profitThey all stood up. In the eyes of the industry, withproductWith continued price increases, the performance of Fuling mustard has improved, one step closer to its target of ten billion sales. However, the mustard industry does not have a large body, other than mustard in the market.MarkThere is an endless emergency, and it is not easy for the Fuling mustard tuber to reach the goal of tens of billions.

　　Product price increases drive performance growth

On February 26, the performance bulletin released by Fuling mustard tuber showed that in 2020, the total operating income of Fuling mustard tuber was 2.273 billion yuan.Year with year14.23% increase to achieve businessprofit, Total profit, attributable to the pricethe companyshareholderofNet profitThey were 915 million yuan, 914 million yuan and 777 million yuan, respectively, an increase of 27.28%, 28.32% and 28.42% over the same period last year. At the end of the reporting period, Fuling mustard’s total assets,Net assetsThey were 3,969 million yuan and 3,411 million yuan, an increase of 18.07% and 18.82%, respectively, compared to the beginning of the year.

With respect to changes in operating performance, Fuling mustard pickles inadAccording to China, under the influence of the epidemic, Fuling mustard has adopted a variety of measures to comprehensively coordinate the main business work, such as sales, production, supply, project development and management, and maintain stable growth in performance .

It is understood that the Fuling mustard tuber was established in 1988. Its predecessor was the Sichuan Fuling mustard tuber group. Since its establishment, it has been mainly engaged in the development, production and sale of mustard products, soy mustard sauce and other snacks. The product is Wujiang Series Mustard brand. On November 23, 2010, Fuling Mustard became the first listed company in the mustard tuber industry.

According to Bao Yuezhong, a new retail expert in fast-moving consumer goods, due to the impact of the epidemic, some consumption scenarios and consumption patterns have changed, and the domestic consumer market is hot. The fuling mustard tuber has been affected by this. and its performance has increased.

However, some people in the industry said that Fuling mustard’s increased performance is not unrelated to its price increase. Since 2008, Fuling mustard is reported to have made at least 12 increases in the price of the product. In 2012, Fuling mustardproduct structureOptimize, eliminate some low-end products, and reduce volume and increase prices. In June 2020, Fuling mustard pickled mustard once again in disguised price increases, whichMain forceProduct specification is lowered from 80g per bag to 70g.

　　expandproduct line

For the last ten years since its launch, the Fuling mustard tuber has continued to squeeze. At the beginning of its listing, Fuling Mustard used the funds raised to expand production capacity and upgrade technology. In 2013, Fuling’s mustard tubers first tested channel subsidence, using the municipal dealer model to irradiate markets at the county level to increase the participation of cities at the county level. However, due to the small size of the Fuling mustard tuber at the time, the cost investment was unsustainable and the canal was stopped.

In 2015, Fuling Zhacai began entering the kimchi market after acquiring Huitong Food. According to Fuling Mustard’s 2016 annual report, Huitong Food made a profit of 5.91 million yuan in 2016. Among them, kimchi sales increased significantly from 21.14 million yuan in 2015 to 55.81 million yuan. in 2016, an increase of 164%. In 2019, Fuling mustard pickle business earned a revenue of 127 million yuan. Also, due to the limited popularity of Huitong kimchi, Fuling Zhacai uses Huitong Food’s kimchi technology to launch Wujiang brand kimchi and Xiafancai.

The ambition of the Fuling mustard tuber is not limited to the mustard tuber and kimchi market. In 2018, Fuling Zhacai plans to issue shares to raise funds to acquire Sichuan Hengxing and Sichuan Weizhinong, and enter the field of bean paste. However, due to the issuebusinessSolvingIndustry competitionAn agreement cannot be reached with all shareholders of its affiliates, resulting inMOTHERSubsequently, the problem of horizontal competition could not be resolved and the acquisition was finally terminated.

The acquisition was unsuccessful and Fuling Mustard is looking to expand production capacity. In 2020, Fuling mustard tuber plans to raise 3.3 billion yuan. Among them, 2.95 billion yuan will be used for Wujiang Fuling mustard green and smart production base (Phase I), 350 million yuan will be used for base of intelligent production of Wujiang Fuling mustardInformation systemOnce the project reaches production capacity, Fuling mustard tuber will add 407,000 tons of raw material pits, raw material processing workshops and automatic raw material processing equipment, and 10 new lines will be added automatic mustard production and support facilities.Environmental engineeringAnd smart logistics project, to achieve a production capacity of 200,000 tons / year, and complete the production planning of the three strategic categories of mustard, catering kimchi and Sichuan sauce.

In addition, the Fuling mustard tuber will accelerate the expansion of sauces, Sichuan-style compound seasonings, and fruit and vegetable snacks, and further expand the product line.

Bao Yuezhong said that from the industry development perspective, there is still room for development in the mustard consumption scene. “Large sales of snail noodles, convenience foods and other products can drive the development of related industries, such as mustard, to a certain extent. In addition, with the diversification of consumption scenarios, the mustard market also has more space. to grow. Mustard fuling can be developed through new areas to improve the performance of the sales drive. “

It is understood that as the consumption landscape changes, mustard has been used mainly for savory and rice to extend it to soups, stir-fries, etc. Pickled mustard is also developing a variety of new edible functions, such as a new way to supplement sports salt, replacing salt and MSG as a seasoning for dishes, as a casual snack, etc.

According to data from the Huajing Information Network, among the mustard consumption scenes, the food service scene accounted for the largest proportion, reaching 65.1%; followed by soup and sautéed, with 23.7%; casual snacks with 3.9%, and others that represent 7.3%.

　　Greater competition in the market

Perhaps it’s the strong performance that made Fuling Pickled Pickled Pickled Cabbage see hope. In the 3rd.industryAt the expo, Fuling mustard tuber announced that it will take 3-5 years to achieve the annual sales target of more than 10 billion yuan and further expand the mustard market.

Zhou Binquan, chairman of Fuling mustard tuber, said at the “Wujiang 2021 Mustard Tuber New Strategy Launch Meeting”: “In terms of brand, scale,Industrial chainWith multiple advantages such as the origin of raw materials, the mustard industry also has weak points such as cognitive aging and insufficient brand activation. The company will build a consumer operations center, a sales management center, a brand manufacturing center and three other centers, accelerate the digital transformation of manufacturing, build smart factories and provide guarantees for rapid market growth. “

　　Chinese FoodindustryAnalystZhu Danpeng told a reporter for the Beijing Business Daily that it is not easy for Fuling mustard to achieve the goal of tens of billions of sales. Today, the Fuling mustard tuber is facing a double roof. First, because the Fuling mustard tuber is still far from the tens of billions of target sales; second, because the overall size of the mustard industry market is small, although Fuling mustard tuber is a leading company, the number of participants is increasing and the challenges it faces are more complicated.

According to Euromonitor data, the sales volume of China’s mustard industry has increased from 480,000 tons in 2008 to 820,000 tons in 2019, and the market size of packaged mustard has increased from 3,779 million yuan in 2013 to 6,688. million yuan in 2019. Among them, the market scale of packaged mustard tubers in 2019 increased by 11.67% compared to 2018. It is estimated that the retail sales of packaged mustard tubers industry will be He expects them to reach 9.931 billion yuan by 2024.

The scale of the market continues to expand and the number of companies entering the market is also increasing. In the mustard tubers sales area in a supermarket in Haidian District, Beijing, you can see that there are many brands of mustard tubers. From the point of view of the store area, the Fuling mustard tuber does not dominate. The data shows that the Fuling mustard tuber has a market share of 36.41% in 2019, and its competitors Yuquan, Liubiju, Gaofuji and Weijute have 11.5%, 9.58%, 9% and the 5.75%, respectively. Compared to 2008, the mentioned brands, including Fuling mustard, have increased their market share to varying degrees.

Regarding the future development plan, a reporter from the Beijing Commercial Daily contacted and interviewed the Fuling mustard tuber, but as of press time, the other party did not respond.

(Source: Beijing Commercial Daily)

(Responsible editor: DF524)