Shock 180 billion yuan industry! The General Administration of Customs urgently prompted “immediate suspension of consumption” of these listed companies. Is there an opportunity?

The safety of milk powder has aroused widespread concern again.

On February 21, according to Xinhua news agency, the General Administration of Customs recently issued an announcement to remind consumers to “temporarily not buy through any channels” and “immediately suspend consumption” of Abbott’s related infant products.

Source: website of the General Administration of Customs

As soon as the news came out, # immediately suspended the consumption of Abbott related infant products # and directly rushed to the hot search headlines of microblog.

Source: microblog

Abbott China’s official website shows that the products involved this time are Abbott Xikang baby, a special medical infant nutritional supplement, and a formula for premature and low birth weight infants.

Infant milk powder, also known as infant formula milk powder. It is a milk powder product for infants and young children with reference to the nutritional indicators of breast milk and taking cow’s milk or sheep’s milk and its products as the main base material. According to the data of prospective industry research institute, in recent years, the market scale of China’s infant milk powder has increased year by year, and the market scale has reached 176.4 billion yuan in 2020.

General Administration of Customs: immediate suspension of consumption

According to the announcement of the General Administration of customs, on February 18, the U.S. Food and Drug Administration (FDA) announced that it was investigating complaints of four infants infected with cronobacteria and Salmonella. According to the FDA, all four infants were reported to have consumed milk powder produced by Abbott at its Sturgis factory in Michigan, including Similac, Alimentum and EleCare.

According to the preliminary investigation results, it is suggested that consumers should not buy and eat the following infant formula milk powder of the enterprises involved: the first two digits of the product code are 22 to 37; The code on the container contains K8, SH or Z2; The shelf life is April 1, 2022 and later.

After verification by the General Administration of customs, the above products have not been exported to China through general trade; Similac hmfortifi, a special medical product produced by the enterprise involved, has a record of export to China, and Abbott China has launched an independent recall.

It is worth noting that not exporting to China through general trade does not mean that Chinese consumers cannot buy these products. The General Administration of Customs reminded consumers not to buy the above infant formula milk powder through any channels. If the enterprise purchases relevant batches of infant formula milk powder through non general trade channels such as Haitao, it shall be suspended immediately. If you buy the above special medical products, you should immediately stop eating them.

The General Administration of Customs announced that it would closely follow up the progress of FDA’s investigation and inform consumers in time.

According to the information on Abbott’s global official website, on February 17, Abbott announced the active recall of Similac, Alimentum and EleCare infant formula produced at its factory in Michigan. Abbott China’s official website shows that the products involved this time are Abbott Xikang baby, a special medical infant nutritional supplement, and a formula for premature and low birth weight infants.

Abbott China said that among the products voluntarily recalled this time, other nutritional products sold by Abbott China in the mainland will not be affected except Xikang Baotian, an infant nutritional supplement.

Source: Abbott China official website

was fined many times before

According to the financial report released by Abbott on January 27, Abbott’s global sales reached US $11.5 billion in the fourth quarter of 2021, a year-on-year increase of 7.7%. In 2021, Abbott’s global sales increased by 22.9% year-on-year to US $43.1 billion. In terms of business segment, in the fourth quarter of 2021, the global sales volume of Abbott nutrition business was about US $2.04 billion, with a year-on-year increase of 5.9%. Among them, the global sales of infant nutrition products increased by 3.1% year-on-year.

In May 2021, Abbott was fined 9.09 million yuan for illegal addition of “vanillin” in milk powder and went on hot search. Subsequently, Abbott launched a recall of the batch of products.

On May 24, 2021, the General Administration of Market Supervision issued a notice, which showed that Abbott platinum enmeric infant formula from 0 to 6 months old (originating in Ireland) sold by Yinzhou Wanda store of Ningbo Kidswant Children Products Co.Ltd(301078) children’s products Co., Ltd., general agent of Abbott Trading (Shanghai) Co., Ltd. in China and produced by Abbott Ireland, was inspected by Ningbo Customs technology center, The vanillin test value does not meet the provisions of national food safety standards. Shanghai market supervision bureau has urged the recall of the same batch of products, and imposed an administrative penalty on Abbott Trading (Shanghai) Co., Ltd. on April 30, confiscating 3.4374 million yuan of illegal income and imposing a fine of 9.0931 million yuan.

In October 2020, the Yangpu District Market Supervision Bureau of Shanghai announced that the “Abe” product was fined 1 million 948 thousand and 100 yuan for violating advertising law review, because of its popular video tiktok and its main role in video advertising.

In March 2019, a batch of Abbott Jingzhi pure infant formula was fined 200000 yuan due to the inaccurate expression and unauthorized use of medical terms in the advertising language of “two core nutrients, RRR enhances brain nerve connection by 81%, OPO promotes the absorption of key nutrients by 97% and” nucleotides can enhance baby’s immunity “published on the official website.

Chinese milk powder enterprises may benefit

Abbott is a world-famous brand of infant milk powder. It was once known as the “four giants” in China’s high-end milk powder market with Mead Johnson, Wyeth and Domex. Its main market is concentrated in China’s first tier cities with strong consumption power.

Industry insiders said that foreign milk powder “overturned” due to product quality problems, brand trust was affected, and domestic milk powder may usher in greater development opportunities.

According to the analysis on the market share and pattern of Chinese and foreign-funded formula milk powder in 2019 released by Zhiyan consulting, Abbott has the first share in the organic market after launching organic milk powder in the Chinese market in 2015. With major brands competing to enter the market, Abbott’s market share of organic milk powder in China is gradually eroded. In 2019, Yili launched jinlingguan sennamu organic milk powder. In March 2020, JUNLEBAO launched organic infant milk powder “youcui”. In May 2021, Wyeth Qifu signed a strategic cooperation agreement with Jingdong supermarket to jointly promote the operation of subdivided formula milk powder categories such as big children and organic.

According to the data, Yili achieved a total operating revenue of 85.007 billion yuan in the first three quarters of 2021, a year-on-year increase of 15.23%; The net profit was 7.967 billion yuan, a year-on-year increase of 31.82%. In the third quarter of 2021, the company’s milk powder business grew rapidly, and the revenue of infant milk powder increased by more than 30% year-on-year.

In October 2020, Yili, one of the “top five dairy companies in the world”, put forward a new strategic goal of “entering the top three in the global dairy industry in 2025 and ranking first in the world in 2030”. Huaan Securities Co.Ltd(600909) said that after the acquisition of Aoyou, Inner Mongolia Yili Industrial Group Co.Ltd(600887) high gross profit infant milk powder business will reach a new level. Cinda Securities said that its own reform and policy Dongfeng will promote Yili to break through at the milk powder track.

According to the data, the operating revenue of China Feihe in the first half of 2021 was 11.544 billion yuan, a year-on-year increase of 32.59%; The net profit attributable to the parent company was 3.74 billion yuan, a year-on-year increase of 35.85%.

tips

Cronobacteria sakazakii infection may cause meningitis, sepsis or necrotizing colitis in premature infants, low birth weight infants and infants with low immunity. The mortality caused by Enterobacter sakazakii can reach 40-50%. According to the provisions of the national food safety standard infant formula (gb17065) and the national food safety standard general rules for infant formula for special medical purposes, cronobacillus sakazakii shall not be detected in infant formula and infant formula for special medical purposes.

Salmonella is an intestinal pathogen, which can be divided into Salmonella typhi, Salmonella paratyphi and non Salmonella typhi. Different types of Salmonella can cause typhoid, paratyphoid, fever, abdominal pain and so on. According to the provisions of the national food safety standard infant formula (gb17065) and the national food safety standard general rules for infant formula for special medical purposes, Salmonella shall not be detected in infant formula and infant formula for special medical purposes.

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