On March 28, Huanlejia Food Group Co.Ltd(300997) ( Huanlejia Food Group Co.Ltd(300997) . SZ) disclosed the annual report of 2021. During the reporting period, Huanlejia Food Group Co.Ltd(300997) achieved a total operating revenue of 1.473 billion yuan, an increase of 18.10% year-on-year; The net profit attributable to the shareholders of the listed company was 184 million yuan, a year-on-year increase of 2.89%, and the revenue and net profit increased.
Huanlejia Food Group Co.Ltd(300997) performance can maintain stable growth, which is mainly due to the company’s continuous optimization of product structure in 2021 and actively strengthening the development of traditional channels in the national market. Meanwhile, in order to repay all investors, Huanlejia Food Group Co.Ltd(300997) also disclosed the profit distribution plan for 2021. The company plans to distribute a cash dividend of 1 yuan (including tax) to all shareholders for every 10 shares based on the total share capital of 450 million shares.
precision card “taste + health” differentiated competition, coconut juice beverage sales increased by 38.53% year-on-year
Consumers continue to pay more attention to the health of soft drinks, and the pricing of products with health attributes is significantly higher. According to Ipsos survey, in 2021, the proportion of consumers who believe that “health is important to beverages” increased from 75% in 2020 to 84%, an increase of 9 percentage points year-on-year. In terms of price, the price per 100ml of pure flavor drinks is basically less than 1 yuan, while the price per 100ml of many “taste + health” drinks is more than 1 yuan, and some even exceed 2 yuan. It can be seen that the “health” attribute has brought a significant premium to soft drinks.
Huanlejia Food Group Co.Ltd(300997) through the combination of “taste + health”, it has gained a differentiated competitive advantage. As the leader of China’s innovative launch of “pulp type” raw coconut juice, the company has always adhered to the brand concept of “health and delicious”. In the long-term market competition, the company has gradually formed its own core competitiveness in product positioning, brand construction, process technology and so on. During the reporting period, the company achieved a strong growth of 3.891 billion yuan in coconut juice products, with a year-on-year growth of 3.87%.
In terms of “taste” attribute, Huanlejia Food Group Co.Ltd(300997) on the basis of improving the traditional high-temperature and long-time sterilization process of coconut juice (pulp type) plant protein beverage, it overcomes the contradiction between safety and excessive heating affecting the taste. In terms of “health” attribute, the company and the world-class pet aseptic cold filling equipment manufacturer, France Sidel, jointly studied and designed to separate the pulp and coconut juice by using the double line method. The customized instantaneous high temperature treatment process maximizes the freshness and nutritional value of the contents on the premise of ensuring quality and safety. At the same time, the unique conveying device takes into account the integrity and uniformity of fruit grains, energy conservation and environmental protection. Combined with the world-class equipment system, it has successfully realized the process innovation of adding fruit grains to neutral plant protein drinks and increased the added value of contents.
At the same time, the company actively creates a “coconut +” product line to meet the needs of different scenes and groups, continuously launches products to meet differentiated needs, expands the breadth of consumers, and continues to win the trust of consumers through Wuxi Online Offline Communication Information Technology Co.Ltd(300959) multi-dimensional promotion. In terms of “coconut milk +” product layout, the company launched low sugar coconut milk, bird’s nest coconut milk and other products through R & D and innovation, providing more diversified choices for consumers’ demand for high-end drinks.
In terms of specifications, Huanlejia Food Group Co.Ltd(300997) launched 245ml blue colored iron cans, 250ml Tetra Pak, 1.25Kg bottles, 1kg bottles and other specifications to meet people’s consumption needs in different scenarios. A variety of product specifications form a product echelon with different pricing, which is also an important reason why Huanlejia Food Group Co.Ltd(300997) can obtain a large number of loyal consumers. During the reporting period, the company’s revenue of 1.25l coconut juice products accounted for about 49.13% of the revenue of coconut juice drinks, with a year-on-year increase of 18%; The revenue of 245ml blue color iron cans of coconut juice products accounted for 27.22% of the revenue of coconut juice drinks, with a year-on-year increase of 126%.
According to the analysis report on China’s vegetable protein beverage market in 2021, taste and health have become the main decision-making factors when consumers buy beverages. Under this trend, the market scale of plant protein drinks in China has been growing continuously, reaching 132 billion yuan in 2020 Huanlejia Food Group Co.Ltd(300997) said that in the future, the company will comply with the trend of industry reform and consumer demand upgrading, enrich product categories from the perspectives of flavor innovation, process improvement and ingredient improvement, create a “coconut +” plant-based product matrix, and further open the growth space of the company.
channels to enhance production capacity, Huanlejia Food Group Co.Ltd(300997) accelerate national expansion
In terms of channel construction, Huanlejia Food Group Co.Ltd(300997) focuses on channel expansion and sinking, tapping the marginal potential of the market and accelerating the national strategic layout. According to the industry survey results of China canning industry association, the sales volume and sales volume of Huanlejia Food Group Co.Ltd(300997) brand canned fruit in the Chinese market for three consecutive years from 2018 to 2020 ranked among the top three in the whole industry; According to the statistics of China Beverage Industry Association, the market share, production and sales volume of the company’s plant protein beverage coconut juice products ranked among the top five similar products in China from 2018 to 2020.
In 2021, the company continued to improve its sales system and cultivate advantageous areas, and has established a sales network with many outlets and wide coverage. By the end of the reporting period, the company had cooperated with 1780 dealers, distributed in seven regions of the country, of which the number of dealers in Central China, East China and southwest accounted for about 62%.
The sales growth of FMCG, especially soft drinks, must be inseparable from the growth of its terminal outlets. In terms of strategic layout, the company further strengthened the product display layout, continued to expand terminal outlets, create consumption scenes and enhance consumption willingness Huanlejia Food Group Co.Ltd(300997) said that in the future, the company will give full play to the service advantages and market resources of dealers close to the terminal market by increasing outlets and expanding channels, and continue to develop terminal outlets. According to the plan, in 2022, the company will focus on the development of circulation and catering channels, monitor the layout and development of outlets through information means, and further strengthen the release of product display and freezer display. On the basis of the original consumption scenes such as gifts and banquets, the company will increase the channel expansion of ready to drink products, broaden the consumption scenes of products, improve the exposure of products in front of consumers and promote product sales.
At the same time, Huanlejia Food Group Co.Ltd(300997) also accelerated the development of online channels and e-commerce channels, and continuously optimized the structure and channel layout. The tiktok company has opened its official flagship store on Jingdong, Tmall, tiktok and Jo, and has been selling products online, and has been selling products in the way of live broadcasting through the platform, so as to expand the brand influence and help business growth.
While vigorously promoting channel construction, Huanlejia Food Group Co.Ltd(300997) the timely follow-up of products and production capacity provides a guarantee for future sales expansion. In recent years, Huanlejia Food Group Co.Ltd(300997) accelerated the layout of production capacity and multi-point layout of production bases. The company has three production bases in Zhijiang, Hubei, Hanchuan and Linyi, Shandong. The design capacity of Zhanjiang production base in Guangdong under construction is 136500 tons of beverages and cans per year, which can meet the expanding market demand in time.
The multi location production base layout helps to shorten the transportation cycle, reduce the logistics cost of products, improve the supply efficiency and improve customer satisfaction. It can meet Huanlejia Food Group Co.Ltd(300997) the expansion and extension of products in all regions of the country. It is an important step in the continuous promotion of the company’s scale expansion strategy.
Against the background of steady growth in the scale of plant protein beverage industry, Huanlejia Food Group Co.Ltd(300997) is vigorously promoting national expansion and making preparations in multiple dimensions such as products, channels, marketing and production capacity. On the one hand, the company’s products have the differentiated competitive advantage of “taste + health”, and Huanlejia Food Group Co.Ltd(300997) coconut juice beverage will provide steady support and perfect product matrix for performance growth. On the other hand, the company actively arranges its network channels. With the intensive cultivation and sinking of the market and the development of the national market, it is expected to bring more development space to Huanlejia Food Group Co.Ltd(300997) .
