Data Browse
1. 357 new brands ranked the No.1 in their respective segmented sectors by turnover on November 1, the first day of the first round of 2020 Tmall Double 11 Shopping Festival. For example, Bao Bao Chan Le (宝宝馋了) got the first place in the baby snack category, and Saturnbird (三顿半) became the TOP1 in the instant coffee category. These new brands have been on Tmall for less than three years.
2. More than 200 famous wine brands from top 9 wine-producing countries in the world participated in the 2020 Tmall Double 11 Shopping Festival through Tmall Global. During the first promotion round (11.1-11.3), Tmall Global sold one million bottles of wines, among which, the 1982 Lafite sold out at an average price of RMB 55,000.
Foreign wine brands participated in the 2020 Tmall Double 11 Shopping Festival.
3. H&H Group released a performance report for the first three quarters of this year, showing that its revenue increased by 3.1% year-on-year, reaching RMB 7.768 billion. In Q3, the sales of Biostime milk powder in China showed prominent growth of 12.6%. Swisse's revenue rose 23.9% year-on-year in the first three quarters.
4. According to Kantar, as of Q3, the top five source countries/regions for Chinese consumers to purchase imported fast-moving consumer goods were Japan & South Korea, the United States, Australia & New Zealand, France, and the Netherlands. Products from the above five source countries/regions accounted for about 80% of imported FMCG sales in China.
5. From November 1-11, the total turnover of 2020 Tmall Double 11 Shopping Festival was RMB 498.2 billion. More than 450 brands realized a turnover of over RMB 100 million. JD's cumulative order amount exceeds RMB 271.5 billion. Suning online orders increased by 75%.
(To know more information about Double 11, please refer to our 2020 China Double 11 E-commerce Shopping Spree Insights.)
6. From January to September, China imported a total of 2.4 billion tons of dairy products, up 7.9% year-on-year. The import of infant formula milk powder reached 252,000 tons, down 2.5% year-on-year.
7. Ausnutria's revenue in the first three quarters was RMB 5.758 billion, a year-on-year increase of 22.8%. Hyproca (including Hyproca 1897, Neolac and other brands) recorded sales of 1.827 billion yuan in the first three quarters, a year-on-year increase of 67.1%, continuing to win the title of Ausnutria's fastest-growing business unit. Goat milk powder business delivered slow growth, with revenue reaching RMB 694.7 million, up 2.7% year-on-year.
8. In the first ten months, Russia's milk exports to China increased by 32% to the US $53 million (about RMB 348 million).
9. Friso Prestige was awarded the "Super Product of the Year" at the "NetEase·New Energy" Dairy Industry Summit. The brand's sales have exceeded RMB 2 billion this year.
Company Dynamics
1. H&H Group announced plans to acquire pet nutrition company Solid Gold for US $163 million (about RMB 1.07 billion). The company aims to add pet nutrition as the third largest business segment besides the infant nutrition and care business and adult nutrition and care business.
2. Swedish home furnishing brand IKEA debuted its first plant-based meatballs in China during the third CIIE. The new products will be available at all IKEA stores nationwide.
3. Wyeth held the inauguration ceremony of the Greater China headquarters in Shanghai during the third CIIE. Wyeth Greater China Headquarters has built five centers for nutrition science, talent training, global cross-border e-commerce headquarters, customer service, and logistics.
4. Mengniu said its new joint venture "Ke Niu Le"(可牛了) with Coca-Cola would produce ultra-filtered milk Fairlife. Also, Mengniu will launch “China's first high-end A2 fresh milk” in December.
5. Fonterra Consumer Brands Division has reached strategic partnerships with Xiaomi Marketing and Gourmet Recipe Community Douguo. Fonterra will launch cooking courses through Xiaomi electric appliances to drive sales. Fonterra's Anchor brand will cooperate with Douguo to tap into more family dairy consumption opportunities.
6. New Zealand dairy company a2 plans to expand product portfolios and launch A2 dairy products that "cover all categories and all generations" in the Chinese market. The company currently focuses on fresh milk and infant formula milk powder as its core business.
7. Yili launched its professional dairy brand to enter the dairy raw material market. The new brand targets business-end customers such as baking, beverages and catering. The brand has launched two series of products, namely, Yili Professional Dairy Oriental Inspiration and Yili Professional Dairy Global Selection, representing the milk source from both domestic and overseas.
8. Japanese food giant Meiji announced to invest 650 billion yuan in setting up a new factory in Shanghai for ice cream production. This factory will begin operation in 2023 and will grant Meiji 2.3 times the higher production capacity of ice cream within China.
9. McCafé, a specialty coffee brand under McDonald’s, announced that it would invest 2.5 billion yuan in the next three years to accelerate its expansion in the Chinese mainland coffee market. The brand aims to have more than 4,000 McCafés by 2023.
10. Beyond Meat released a plant-based minced pork product specifically developed for the Chinese market. Beyond Meat also cooperated with five well-known restaurants in Shanghai to launch plant-based pork dishes for a limited time from November 18 to 24.
11. Firmus announced to launch the AstroBaby (星飞帆) A2 range. The A2 range uses the A2 milk source and adds a new generation of patented OPO and GOS, which is suitable for a baby's gastrointestinal absorption. It also announced to be the official infant formula food partner of China's lunar probe Chang'e-5.
12. Nestlé announced that it has agreed to sell Yinlu peanut milk and Yinlu canned congee business in China to Food Wise Co., Ltd. Nestlé will retain its Nescafe ready-to-drink coffee business and Yinlu will continue to process and produce Nescafe ready-to-drink coffee products for Nestlé.
Products Launched
| Dairy |
Yili Ambrosial Greek Yogurt launched the sugar-free yogurt. The main feature of this new product is zero sucrose addition and 4g dietary fiber per box. The price is 205g* 12 boxes/229 yuan.
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Yili Yogurt Drink (优酸乳) will launch cold-resistant milk. According to the official description, the milk combines ginger, coke bubbles and lemon to help warm up and fight the cold.
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Bright Dairy announced the launch of the room temperature yogurt Yan Jian (研简). The new product features no sugar, coloring and flavoring, and contains 3g of protein per 100g. The price is 135g*16 boxes/79.9 yuan.
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| a2 launched two new room temperature milk products- a2 milk ® whole milk and a2 ® Smart Nutrition™ children's milk for children 4 years and above.
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Yili Ambrosial Greek Yogurt launched a new ginger-flavored yogurt with 3.1g protein per 100g. The new products have an antique IP image of Hema on the packaging and are only available in Fresh Hema. The price is 230g*10 bottles / 59.9 yuan.
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Lepur launched a new white peach and jasmine flavored probiotic yogurt. The product contains probiotic Bifidobacterium longum BB536, which is good for gut health. It is also the first probiotic yoghurt made from natural fruit. The price is 200g*14 bottles / 119 yuan.
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Chinese dairy brand "Adopt a Cow" launched a new A2 product "A2β-Casein Pure Milk," targeting the high-end UHT milk market. The price is 250ml*10 boxes/89.9 yuan.
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| Milk powder |
Mengniu Yashili's infant goat milk powder brand Doraler released two new products-Xinchen children's goat milk powder and cross-border goat milk powder. Xinchen children's goat milk powder targets school-age children aged 3-14 who are in a critical growth period. Ingredients include PS, DHA, lutein, choline, and taurine. Doraler cross-border goat milk powder adds DHA, ARA, lactobacillus fermentum CECT5716 and FOS+GOS.
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Ausnutria launched two adult camel milk powders- Oz Farm 100% pure camel milk powder and Oz Farm probiotic formula camel milk powder. The new products will be available in January next year.
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Danone Nutricia launched Fortini nutritionally complete formula for children between the ages of 1 and 10 who suffer from malnutrition.
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HiPP launched a Dutch version of COMBIOTIK organic probiotic infant formula milk powder. The product features a combination of natural probiotics with prebiotics. It also has CCIC traceable QR code on the package.
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Wyeth launched A2 milk source children's growing up milk powder. It contains fortified DHA, cephalins, fortified lutein, choline, VD, whey protein, and other nutrients.
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Danone launched its first child growing up milk powder AptaGrow. The AptaGrow range divides the products into three age stages, which are suitable for children aged 1-3, 3-6, and 6-10.
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The Dutch infant milk powder brand Primavita launched the global version of infant cow and goat milk powder products on Tmall Global.
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| Healthy |
Danone Nutricia released AptaMama live probiotics that can effectively help mothers with long-lasting and quality breast milk feeding.
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The condiment company Haitian launched a new high-end “It’s Simple” Soy Sauce. The new product features a simple formula, with only water, non-GMO soybeans, wheat, edible salt, and sugar. The packaging style of the new products is also chic, which is in line with the aesthetics of young consumers. The price is 460ml*bottle/ 39.9 yuan.
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Nestlé introduced the high-end hypoallergenic dietary supplement brand Pure Encapsulations into the Chinese market. Product portfolios include N-acetylcysteine, quercetin, panthenol, multivitamin and so on.
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Boohee launched a new peppermint jelly candy. It contains natural menthol, DHA algae oil and ginseng powder with no caffeine, alcohol, and preservatives. The product is suitable for use in various scenes that need to stay awake, such as working overtime, driving, and studying.
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| Trending |
Coca-Cola rolled out fruit and vegetable extract sparkling water. The new product is available in two flavors of lemon and white peach and features zero sugar and zero fat.
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Wantwant launched instant river snails rice noodles and hot and sour rice noodles. The new products are non-fried rice noodles, and their packaging have environmentally friendly packaging made of kraft paper.
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Luckin launched instant cold brew freeze-dried coffee series. The new ranges have two flavors of SOE YIRGACHEFFE and GALLERY RIVER VALLEY.
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KFC launched cold brew freeze-dried coffee series. They are Selected Earl Grey Tea and Coffee, Sweet-Scented Osmanthus Flavored Sidamo, and Cold Brew Freeze-Dried Sidamo. The price is 12 boxes/69 yuan.
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Nongfu Spring rolled out self-heating coffee under its coffee brand Tangbing. The heating methodology is similar to that of self-heating hotpot. The kit is currently available at the Tmall flagship store for 49.5 yuan/box.
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Store-made tea chain brand Nayuki Tea launched meal replacement milkshake powder with rich dietary fiber and up to 4000mg collagen peptide. The new products are currently available in three flavors: banana milk, cheese & strawberry and grape.
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Meal replacement brand Smeal announced the launch of "High Dietary Fiber Zero Fat Milk Tea." The new product uses frequency-divided centrifugal degreasing technology to completely remove fat from milk and achieve "zero fat" under the premise of ensuring smooth taste. The price is 6 bottles/69 yuan.
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Meat supplier Shuanghui launched protein bars and nut bars. The bars use maltitol and add collagen peptides. Each 100g contains 22.7g protein and 8.6g dietary fiber.
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Mengniu rolled out a new plant-based beverage Oatist. The new high-fiber oat cereal drink is suitable for vegetarians, fitness people and people who are lactose intolerant.
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The health food brand "Wholly Moly!" launched a new cereal beverage "bran oatmeal drink." The new product uses oats as the primary raw material, with 0 lactose, 0 sucrose, and 0 animal fat. It is suitable for people with lactose intolerance and people with weight control demand.
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Regulatory Updates
1. Beijing SAMR required the mandatory upload of food traceability data of chilled/frozen meat and aquatic products into their traceability platform "Beijing Cold Chain" as of November 1. Foods without traceability data are forbidden to enter the market circulation process.
2. The Shenzhen Municipal Consumer Council found that potato chips from popular snack brand Yanker shop, Three Squirrels and Miss.Dong contained more than 2,000 micrograms of carcinogen acrylamide per kilogram, higher than the EU's standard of 750μg/kg. The three brands responded that the carcinogenic effect of acrylamide is not yet clear, and the national standard does not require the limitation of acrylamide.
3. On November 9, the State Council joint prevention and control mechanism against COVID-19 released a plan to strengthen the supervision of imported cold-chain food. The plan required full-chain, closed-loop, traceable management of imported cold-chain foods to minimize importation risks of COVID-19.
4. On November 15, 15 countries, namely, 10 ASEAN members, together with China, Japan, South Korea, Australia and New Zealand, officially signed a landmark Regional Comprehensive Economic Partnership (RCEP) Agreement to make it the world's largest free trade agreement. Frozen pork, pet food and its feed additives, beer and spirits are four categories ChemLinked believe will have a broader market in China with faster growth rates.
5. On November 16, China notified WTO about a new draft of Administrative Provisions on Registration of Overseas Manufacturers of Imported Foods. The content of 2020 draft includes application entity, application condition, application method, materials required, inspection method, registration number and validation, and management measures for the overseas manufacturer registration of imported food, etc.
6. On November 20, China SAMR (State Administration for Market Regulation) released a supplement test method called “BJS 202007 Determination of Disinfectant Residue in Baby Food.” This test method applies to the determination of disinfectant residue in baby food, including infant formula, cereal-based complementary baby food and fruit & vegetable puree for babies.
7. On November 24, China SAMR released a series of draft regulations related to health food functions, such as details for human consumption trials and function evaluations, for public comments.
8. On November 26, China SAMR released the official version of “Special Food Registration Onsite Inspection Requirements (Interim),” which came into force on the same day.
***Disclaimer: All images used in this article are from the internet.
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