Industry Focus
618 Shopping Festival
Platform | Sales Value(billion RMB) | Performance in live-streaming sector |
Tmall | 698.2 (Ranked No.1) | 15 livestreaming shows created over 100m RMB sales value. |
JingDong/JD.com/JD | 269.2 (Ranked No.2) | 18 livestreaming shows brought over 100m RMB sales value; 83 livestreaming shows brought over 10m RMB sales value. |
Related articles:
618 Vol.1: The 2020 618 Shopping Festival
618 Vol.2: China Mid-year 618 Shopping Festival: News Flash (Data Updated)
618 Vol 3: 618 Mid-Year Shopping Festival Food Sale List
JingDong to Raise Funds with Second Listing on HK Exchange
Foreign Diplomats Promote Sale of Imported Agrifoods during 618 Using Livestreaming
NFC
Brand Name | What happened? |
innocent | It is a British juice brand that first entered China with three flavors on Jun 5, products are available in offline high-end stores, and sells at 19.9RMB per 250ml. |
Heytea | The sub-brand called "Xixiaocha" (喜小茶) developed a new NFC product and launched it on offline stores. It is designed as portable bottled juice and sells at 19RMB. |
Related article:
NFC and Low-Temperature Juices Showing Great Potential in China
Company Dynamics
Financial Issues
Company Name | Date | Dynamics |
PepsiCo | Jun 1 | Chinese government regulators have approved the $705 million acquisition of Be&Cherry. |
Jun 5 | The transfer of Be&Cherry assets has been finalized After the completion of the transaction, Be&Cherry will become an independent business unit in the Asia-Pacific region of PepsiCo. It will maintain its brand and stand-alone operation. The original senior management team and operation mode of Be&Cherry will remain unchanged. | |
Mengniu | Jun 9 | Mengniu has announced that it expects positive growth in existing business revenues (excluding Junlebao and Bellamy) in the first half of 2020 compared with the same period in 2019. Stakeholders' share of profits in the first half of 2020 should fall by 45% to 60% compared with it of 2019. |
Tetra Pak | Jun 9 | Tetra Pak announced a 700m RMB (about 98.8 million U.S. dollars) investment in Chinese "capital of milk" Hohhot to build its largest capping plant in the world. |
Starbucks | Jun 11 | Starbucks China is on track to report a 20% to 25% decline in the third quarter, and by the end of the fourth quarter, the performance is likely to reach a level of flat year-on-year. |
Wantwant (旺旺) | Jun 16 | Wantwant issued the 2019 fiscal year report. It shows the net profit in 2019 was 3.65bn RMB, up 5% year on year. Gross margin rose 2.6 percentage points to 48%, while the core operating margin increased 2.1 percentage points to 21.8%. |
Market Layout
Yum China announced that its Beyond Meat plant-based burgers would be available at KFC, Pizza Hut, and Taco Bell locations in China for a limited time starting Jun 3.
Chocolate giant Hershey has launched two new versions of Cute Bear Biscuits, which are positioned as healthy snacks for the children. One product is fortified with calcium, iron, and zinc, priced at around 40RMB per 500g, and the other focuses on packaging aesthetics (animal shape and English letter shape) and sells at 49.9RMB/box.
Related articles on China's children snack food sector:
Snack Foods for Children in China: Market Scale and Investment Potential.
China Releases First Association Standard for Children Snack Food
On Jun 11, Quaker (owned by PepsiCo), launched a bottled version of its meal replacement milkshake called Smart Calories (Chinese name: 抵卡控). Lyophilized fruit (freeze-dried) and grain particles are added to the product. There are about 200Kcal per bottle, equivalent to the minimum calories per meal recommended by the Meal Replacement Standard of the Chinese Nutrition Society (CNS). It is the first time PepsiCo launched meal replacements in the Chinese market.
Related articles:
Bottled Meal Replacement Milkshake Growing into a Prominent Sector in China
Acqua Panna, a premium water brand owned by Nestle, announced its official entry into China and has hired actor Mr. Deng Lun as its first brand ambassador. Puna is a natural spring water brand from Italy and was acquired by Nestle in 1999.
On Jun 19, Three Squirrels opened a Tmall flagship store for its sub-brand "Deer Blue" (小鹿蓝蓝), which now has three lines of baby/children food, including a probiotic product and a nori and cheese series, priced between 19.9 yuan and 49.9 yuan.
Beingmate will cooperate with an Hangzhou technology company to launch a blockchain-based milk powder traceability platform. In the future, consumers will be able to scan the blockchain QR code on the product with their mobile phone to trace the product's movement through the supply chain and verify authenticity, purchase, complaints, and service interaction.
Products Launched
Company | New Product | Remark |
Pizza Hut + Beyond Meat | Plant-based beef hamburger | A burger combo sells at 59 RMB (approx. $8.8), a plant-based steak hamburger + an Australian Sirloin steak hamburger. |
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Yuanqisenlin (元气森林) | Mini Sparkling Water | 200ml/tin, 35 RMB for 6 tins, 5 flavors; Available in Tmall and JingDong; 0 sugar, 0 fat, 0 calories. |
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Panpan (盼盼) | Somix (brand name) Mixed flavor drink | 0 fat, low sugar, low calories; Launched on Tmall flagship store; Special packaging with glows at night. |
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Netease (网易严选) | Beef and Chickpeas (product name) | Leisure food, 25Kcal per bag; Low fat, high protein. |
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Yili (伊利) | QQ Star (brand name) Formula liquid milk | Aimed at children aged 3-6; Contains protein, vitamin A, vitamin D, calcium and dietary fiber, DHA, ARA, GOS, walnut oil, fortified zinc, and iron; Low calorie, high nutrition, improve immunity. |
Pocket cheese snacks | Portable leisure food; It is aimed at the adult cheese market. Click here for detailed info. | |
Uni-President | His&Hers (brand name) Nuts leisure food | Aimed at the middle- and high-end market; It launched on the Tmall flagship store. |
Zhenrou (珍肉) | Plant-based lobster; Plant-based fried meat | Launched on Jun 18; Close to Chinese food. |
BiosTime, H&H Group | Three new baby nutrition products: a probiotics platinum edition, calcium and vitamin D granules, and DHA algae oil + ARA gel candies | Aimed at the maternal and infant nutrition market. Click here for detailed info. |
Regulatory Updates
On Jun 1, China GAC released the list of non-compliant food products in April 2020. A total of 163 batches of food from 28 different countries and regions were rejected.
Related article: 163 Batches of Imported Food Rejected in April 2020
On Jun 1, 2020, the Central Committee of the Communist Party of China and the State Council issued the Master Plan for Hainan Free Trade Port to support the establishment of a Free Trade Port System in steps and stages.
Related article: Master Plan for Hainan Free Trade Port Unveiled: Trade and Investment Liberalization
As revealed by the notice released on Jun 2, 2020, 53 new ingredients were approved by China's NHC, including four new food raw materials, 21 new food additives, and 28 new FCM additives.
Related article: China NHC Approves 4 New Food Raw Materials, 21 New Food Additives, and 28 New FCM Additives
On Jun 7, 2020, China State Administration for Market Regulation announced the results of the 2019 national food safety sampling inspection on 244 thousand batches of food products covering 33 main categories.
Related article: An Overview of 2019 National Food Safety Sampling Inspection Results
As revealed by the GAC notice released on Jun 12, 2020, China is soliciting public feedback on "Measures for the Safety Administration of Imported and Exported Foods."
Related article: China Consults on Measures for the Safety Administration of Imported and Exported Foods
The first batch of Kazakhstani camel milk powder arrived in Lanzhou New Area comprehensive bonded area on Jun 12, 2020. All of the 7,000 cans of camel milk powder are to be sold on a local CBEC platform called "Lanzhou New Area Import Commodity Wholesale Center."
Related article: The First Batch of Kazakh Camel Milk Powder Enters China.
On Jun 16, China GAC released the list of non-compliant food products in May 2020. A total of 173 batches of food from 24 different countries and regions were rejected.
Related article: 173 Batches of Imported Food Rejected in May 2020
According to a GAC notification issued on Jun 18, 2020, from Jun 11 to 17 Customs bureaus across China conducted inspection and quarantine procedures on eight kinds of food and agricultural products, including imported meat, aquatic products, dairy products, grain oilseeds, fruits, live animal, flower seedlings, and cosmetic products.
Related article: China GAC Implements Mandatory Coronavirus Testing on Imported Fresh Food.
On Jun 24, 2020, SAMR disclosed six trial guidelines for public feedback, which detailed the sampling items for the certification of six organic product categories. They are vegetables, fruits, teas, medicinal plants, dairy products, as well as livestock and poultry products.
Related article: China Consults on the Guideline for Organic Foods Certification Sampling
On Jun 18, the Dairy Association of China released a new association standard (non-mandatory reference standard) Modern Dairy Industry Evaluation-Dairy Farm Grading and Evaluation.
Related article: Dairy Association of China Releases the Association Standard for China Dairy Industry Evaluation-Dairy Farm Grading and Evaluation
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