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Monthly Digest: What Happened in China Food Industry | Sept 2019

  •   30 Sep 2019
  •    Shine Hu
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    Products launched

    1. Eight Health Foods filed by Jamieson including vitamin C, vitamin C+D and vitamin E had been approved by the end of August. Jamieson is the top nutritional supplement brand in Canada.

    2. The Coca-Cola Company introduced a new liquor & lemon flavor Sprite on its Tmall flag store recently, by co-branding with JIANGXIAOBAI, an innovative Chinese Baijiu & Sorghum Spirit company. The price is 69 yuan($9.69) for one pack of 4 glass bottles.

    3. Guanshengyuan Group, producer of White Rabbit candy, launched a pop-up store together with Belgian chocolate brand Godiva in Shanghai. The store offers two flavors of ice creams at 55 yuan ($7.68) each.

    4. Wantwant Group rolled out its new product series Fix Body, which are all "low carb" foods, low in sugar and calories, tasty and fortified with key nutrients.

    5. NANFANG BLACK SESAME GROUP CO., LTD launched a kind of grain meal replacement powder, targeting China’s promising meal replacement market.

    6. The Coca-Cola Company started pre-sale of a new sports drink BodyArmor in Tmall, less than half a year after the launch of its sports drink POWERADE. China's increasingly booming sports market has attracted many enterprises to invest heavily in the sports drink sector.

    7. The first Chinese breast milk derived live probiotics M8 was officially released by Mengniu. It was developed with independent intellectual property rights and will fill the gap in China’s breast milk derived bifidobacteria market.

    Industry focus

    1. Pioneering Californian plant-based meat substitute brand Impossible Foods is planning to enter the Chinese market this year or next.

    2. China Petrochemical Corporation (Sinopec) launched its new coffee brand Easy Joy Coffee. The coffee drinks are named after three types of gasoline label 92#, 95# and 98#.

    3. Australia based A2 milk powder company has expanded heavily into Beijing's maternal and child stores. Prior to this, products were primarily available through e-commerce or “daigou” channels.

    4. The 4th Taobao Maker Festival, which was held from September 12 to 25 in Hangzhou showcased innovation and highlighted new trends in China’s food sector including plant-based meat substitute OmniPork.

    5. The transaction volume of Alibaba's Juhuasuan 99, the third shopping festival (from September 1st -10th) after 11.11 (Double Eleven) and Tmall 618, has surged 40% year on year, which is 2% higher than the 38% growth rate of Tmall 618.

    6. According to Alibaba annual investor day, Tmall Global hosts over 22,000 global brands, 4,300 categories from 78 countries, making it China’s top platform for imports.

    7. Alibaba will maintain a dual-brand strategy and operate Tmall Global and Kaola (recently acquired) separately.

    Company dynamics

    1. Yakult, a Japanese daily probiotics drink brand, has completed construction on its third factory in China.

    2. China Mengniu Dairy plans to buy Bellamy's for A$ 1.46 billion (around USD 1 billion). If everything goes well, the deal is expected to be wrapped up before the end of 2019.

    3. Synutra acquired Harbin-based dairy company Aibeite. Aibeite has 3 registered infant formulae.

    4. Lu minfang, Chief Executive Officer of China Mengniu Dairy Company Limited, was elected to the board of directors of the International Dairy Federation (IDF). Lu is the first Chinese member of the organization since its inception more than 100 years ago.

    5. Fonterra unveiled its new strategy to focus on providing dairy ingredients for children's nutrition and core dairy offerings as well as innovative ingredients to meet nutritional needs at all stages of life. Besides, Fonterra will further promote catering bussiness in Chinese market.

    Regulatory compliance

    1. 10 batches of food were flagged as non-compliant by Guangdong Provincial Administration for Market Regulation. KongWeng’s matcha-flavored steamed cake was confirmed to contain exceeding propylene glycol.

    2. GAC has officially announced label filing for prepackaged imported food will no longer be required starting on Oct.1, 2019, in a move to expedite customs release.

    3. GAC seized 89 batches of substandard foods imported from 28 countries/regions in July. Labels and packaging, hygiene and credentials problems were major issues.

    4. China has extended a 6-months grace period to allow industry to prepare for compliance with new pet feed labeling regulations. The competent authority will carry out supervision based on the new pet feed labeling regulation from Mar. 1st, 2020.

    5. State Administration for Market Regulation(SAMR) approved 3 foods for special medical purposes (FSMP), bringing the total number of registered FSMPs to 35.

    6. China NHC, MOARA and SAMR jointly released 3 national food safety standards including GB 2763-2019 Maximum Residue Limits for Pesticides in Food, etc. These 3 standards will come into effect on Feb. 28, 2020. 

    Disclaimer: all images used are from the internet.

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    Research analyst at ChemLinked, focusing on market and regulatory updates of imported products in China, mainly covering food and cosmetics.

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