Recently, the frozen baking brand “evirth” won round B financing and participated in the investment of wuyiqi fund, maixing investment, Jiayu fund and Shenxia finance under Jue Wei. According to the information of food and beverage media “foodtalks”, it is estimated that the scale of Juewei investment in Enxi village will not be less than 100 million yuan. In November 2021, the company just obtained 105 million yuan of strategic financing from food giant Yizi, with a valuation of 2.1 billion yuan.
Enxi village, founded in 2018, is a large-scale and automatic production enterprise of frozen baking. It mainly provides frozen baking products for membership stores, retail, chain catering and other channels. Its main products include thousand layer cake, swiss roll, mousse cake, puff, cookie, ice skin moon cake, etc. According to its official website, Enxi village has manufacturing plants in Shenzhen, Shanghai and Dongguanp align=”center”>
As a consumer, you may not be familiar with this brand, mainly because its products are mainly aimed at the b-end – which is also the main feature of the frozen baking market. Whether it is the hot-selling sweet potato and durian thousand layer cake in Sam’s club, or the European bread and baked snacks in Naixue’s tea shop, they all come from the frozen baking manufacturers in the upper reaches of the industrial chain. Frozen baked goods are divided into finished products and semi-finished products. The finished products can be eaten after thawing, while the semi-finished products can only be eaten after simple awakening and baking after thawing.
According to the official website of Enxi village, its cooperative customers include Sam’s club store, Naixue’s tea, Ole, HEMA, China Resources Wanjia, RT mart, Baiguoyuan and so on.
Generally, frozen baked goods are catering to the needs of stores eager to improve operational efficiency, save costs and enrich product categoriesp align=”center”>
According to a research report of Zhongtai Securities Co.Ltd(600918) , the scale of China’s frozen baking market is about 10-20 billion yuan. The frozen baking industry has at least four times the space in the baking store channel, and the growth rate will be higher than that of the downstream baking industry, maintaining in the range of 15% – 20%.
From the perspective of industry competition pattern, the frozen baking industry is still relatively scattered, and the industry is in the stage of rapid development and capacity expansion Ligao Foods Co.Ltd(300973) , Namchow Food Group(Shanghai) Co.Ltd(605339) are two listed companies in this industry, listed successively in 2021. In addition, there are manufacturers such as Xindi Jiahe and black rose.
According to the annual business Express disclosed in Ligao Foods Co.Ltd(300973) disclosure, its annual revenue in 2021 is between 2.78-2.85 billion yuan, with an expected year-on-year increase of 53.62% – 57.49%, while its frozen baked food business has become the focus of the company’s strategic development, and its sales proportion has increased from 37.95% in 2017 to 52.84% in 2020.
Compared with Enxi village, there is still a certain gap.
According to a report of Everbright Securities Company Limited(601788) , the scale of Enxi village’s frozen baking business in 2020 will be Shenzhen Jt Automation Equipment Co.Ltd(300400) million yuan. From the perspective of products, Enxi village and Ligao Foods Co.Ltd(300973) have certain differences. The former mainly focuses on frozen cakes, while the latter is mostly fermented and crisp frozen baking, such as sweet potato, egg tart (tart skin) and doughnuts. However, for the frozen baking industry, the difference barrier between such products is not high. From the perspective of channel customers, Sam (Wal Mart) is the major customer of bothPhoto: center = “align Research Institute
For Enxi village, which has obtained a new round of financing, the main aspects of improving competitiveness may lie in customizing and differentiating products according to the needs of customers in downstream baking stores and strengthening product innovation; Improve the operation efficiency of supply chain distribution and team, etc.
