The collective price rise of instant noodles has been reported recently, including Master Kang and Tongyi.
It is said that Master Kang’s barreled noodles increased by 0.5 yuan, unified bagged noodles increased by 0.3 yuan, and Riqing’s 180 models all increased. Soon, brands denied it.
it is reported that the factory price has increased by 10%
due to rising costs?
It is said that the price of instant noodles has increased sharply for the first time in recent 10 years .
“On February 13, the company raised the price of some Master Kang products. Among them, barreled instant noodles was adjusted from 4 yuan to 4.5 yuan.” According to the Shanghai Securities News, the salesperson of a small supermarket in Shanghai said.
Bank of America Securities reported that the ex factory price of Master Kang’s main instant noodles products rose by more than 10% during the Spring Festival, and the price of unified main instant noodles increased by about 12% after replacing new packaging.
The reporter saw on Taobao app, an e-commerce platform, that the unit price of Master Kang’s barreled classic braised beef noodles ranges from 4 yuan to 4.99 yuan. The unit price of 100g bagged instant noodles ranges from 2.49 yuan to 3.8 yuan. The prices of different stores vary greatly, but the overall market price has not increased significantly.
In this regard, some young netizens said that they bought 5 or 6 yuan a barrel in the canteen. If they didn’t hear the news, they wouldn’t know the original price. It can be seen that the price increase of 50 cents does not have a significant impact on the consumption choices in this group.
According to the report on February 16, unified enterprise China responded to China first finance and economics, saying that the price increase news was only “circulated in the market”, and the company is still observing the market dynamics; Master Kang insiders also said that they have not seen the information of product price adjustment.
Since the brands deny it, where does the price rise come from?
previously, there was an analysis directly pointing to the possibility of price increase of instant noodles. including the cost of relevant raw materials of instant noodles, there is an upward trend. Since the end of last year, rice noodle companies represented by Chen Ke Ming Food Manufacturing Co.Ltd(002661) announced price increases. The price of Chen Ke Ming Food Manufacturing Co.Ltd(002661) Wugu Daochang has been adjusted, but the range is less than 1%.
At the same time, the price of palm oil and other vegetable oil as raw materials for instant noodles increased by 65.8% year-on-year in 2021 due to a significant reduction in production. The price of sugar and pulp will rise by 10% from the end of 2020. Accordingly, the overall cost of instant noodles is rising.
Liu Bowen, a fat researcher at Galaxy futures, once pointed out: “although relevant departments have implemented price limiting measures for some foods such as instant noodles, the general rise in the price of raw materials required for the production of instant noodles has made enterprises have a strong desire to increase the price of products.”
serious decline in profits
take the high-end route?
Due to the impact of the epidemic, the instant noodle market is gradually heating up. However, since 2021, China’s instant noodle market has been cooling down.
According to Nielsen data, in the first half of 2021, the overall sales volume of the instant noodle industry decreased by 7.7% and 7.3% year-on-year.
As the industry leader, Master Kang and its instant noodle business declined seriously in the first half of 2021. According to its financial report, the revenue of Master Kang’s instant noodle business was 12.722 billion yuan, a year-on-year decrease of 14.67%.
The unified 2021 semi annual report shows that the revenue of instant noodle business is 4.398 billion yuan, a year-on-year decrease of about 15%.
Both companies mentioned in their financial reports in 2021 that with the stabilization of the epidemic prevention and control situation, the return of consumer demand to normal and the rising cost caused by the rising price of raw materials, the instant noodle business is facing certain operating pressure.
Some analysts pointed out that instant noodles will move towards high-end in the future, and the R & D investment will be greater.
According to media reports, some convenient fast food brands began to target young consumers, focusing on high-end health routes, forming differentiated development with traditional brands, which has also been favored by capital. According to the statistics of China Central Television finance and economics, the proportion of instant noodle sales with high unit price (more than 10 yuan) in supermarkets has increased from 25% in 2018 to around 33%, and the proportion of sales has increased from 52% to 62%.
According to the report of times finance and economics, Xu Xiongjun, founder of Jiude positioning consulting company, believes that the high-end strategy can only alleviate the downward trend.
“With the improvement of people’s awareness of health and safety, the reduction of consumption scenes, and the popularity of instant hot pot, instant rice and net red snail powder, the competition of instant noodles in the future will still focus on safety, health, taste and cost performance.” Xu Xiongjun said.
Up to now, the share prices of Master Kang and uni president have been rising slowly for a long time and have not been significantly affected
