Chinanews client, Beijing, October 14 (Reporter Xie Yiguan) Following Angel Yeast, the condiment giant Haitian Weiye also announced a price increase.
Some products such as Haitian soy sauce and oyster sauce will adjust their prices
On the evening of the 12th, Haitian Flavour Industry announced that it would adjust the ex-factory prices of some products such as soy sauce, oyster sauce, and sauces. The adjustment range of main products ranges from 3% to 7%. The new prices will be implemented on October 25, 2021. start to implement.
Some Haitian products in supermarkets.
Photo by Xie Yiguan, a reporter from China News Service
This is also the fact that Haitian Flavour Industry has announced price adjustments again in the past five years after raising prices in December 2016.
On the afternoon of the 13th, in a supermarket in Xicheng District, Beijing, a staff member told reporters that the soy sauce products in the supermarket have not yet received price increases.
As early as September 24, Haitian flavor industry had already reported price increases.
On the same day, the media quoted people familiar with the matter and reported that Haitian Flavour had verbally communicated the price increase information. The price increase range was 5%, including soy sauce, sauce, and oyster sauce. The products involved in the price increase may account for more than 90% of the company's overall revenue. .
However, Haitian Flavor issued a clarification announcement on the evening of September 26: Since 2021, the cost of major raw materials, transportation, energy, etc. has continued to rise sharply, which has brought certain challenges to the company’s operations. Recently, the company is evaluating whether it is right. Product prices are adjusted, but the price adjustment plan has not yet been finalized.
Judging from the market reaction, rumors of price increases have significantly increased the share price of Haitian Flavor.
Since September 23, Haitian Flavour Industry has risen for 7 consecutive trading days, and even reached a daily limit on the 24th.
As of the close on October 13, Haitian Flavor's stock price has increased by 30% in 10 trading days.
It is worth mentioning that in December 2020, Haitian Flavour Industry issued a "Warm Warm Notice in Winter". The article mentioned that the production cost of soy sauce condiments has generally risen, especially for large agricultural and sideline products such as soybeans. The price has continued to rise all the way. new highs.
As a leading condiment company in China, Haitian always puts social responsibility first.
"Haitian products have no plans to raise prices in 2021!"
Why does Haitian flavour industry go back?
Regarding the reason for the price increase, Haitian Flavour Industry said in the announcement, “In view of the continuous increase in the costs of major raw materials, transportation, and energy.”
"From the perspective of the soy sauce industry, the prices of soybeans and soybean meal, which account for the largest cost of production in September 2021, increased by 35.78% and 26.18% respectively from December 2019. At the same time, the main packaging material corrugated paper also increased by 21.37%." Securities analyst Chen Mengyao pointed out.
Data map: Customs officers conduct sensory quarantine on soybeans exported to China on the "Princess Athena" ship anchored at the quarantine anchorage of Yantai Port.
Photo by Qu Yanlin
“Haitian Flavour has internally digested the cost pressure, but the price of raw materials has still risen sharply, and the capital market is not satisfied with its profits.” Food industry analyst Zhu Danpeng said that combined internal demand and external factors, price increases have become inevitable.
The financial report shows that in the first half of 2021, Haitian Flavor's revenue was 12.332 billion yuan, a year-on-year increase of 6.36%; net profit attributable to the company’s shareholders was 3.353 billion yuan, a year-on-year increase of 3.07%.
Not only did the performance growth rate decline compared to the previous one, but focusing on the second quarter, Haitian Flavor's revenue and net profit attributable to shareholders of listed companies fell by 9.39% and 14.68%, respectively, and for the first time since its listing, there has been a single-quarter negative growth in performance.
Regarding the performance in the first half of the year, Haitian Flavour Industry explained that changes in the external economic environment have led to weakening of consumer demand, and the fission of new consumption and new channels has brought new challenges and opportunities to the condiment market, making consumer demand diversified. Trend: Since the beginning of this year, the price of upstream materials has continued to rise, the production costs of enterprises are facing greater operating pressure, and the profits of the industry have been squeezed.
Condiments ushered in a wave of price increases?
Guosen Securities analyst Chen Qingqing believes that with the implementation of price increases, it is expected that the pressure on the cost side of Haitian flavor industry is expected to ease.
At the same time, according to channel feedback, dealers’ shipping prices and terminal selling prices will increase more than ex-factory prices, thereby boosting dealers’ confidence and restoring channel profits.
The picture shows the condiment area in the supermarket.
Photo by Xie Yiguan, a reporter from China News Service
Leading companies took the lead in raising prices. In Zhu Danpeng's view, this has also added fire to the price increase in the entire condiment industry.
"Considering that the pressure on the cost and channel sides of the industry this year is relatively high, after Haitian raises prices, it is expected that other competitors will follow the price increase after waiting for a period of time. The price increase cycle of the condiment industry has arrived." Chen Qingqing said.
Many food companies have raised prices this year
In fact, due to rising costs of raw materials and transportation, it is not only Haitian Flavour Industry that raises product prices.
According to media reports, on the morning of September 30, an Angel Yeast price increase notice circulated in the market. Due to the sharp increase in the prices of major upstream raw materials, the company decided to increase the ex-factory prices of some varieties from September 30, including specific price adjustments and Please refer to the notice from the local sales department for the price.
The relevant person in charge of the company responded to the media saying that the price increase is true and the dealer has been notified.
Recently, with the announcement of the third quarter financial report, beverage giant Pepsi also issued a price increase warning.
In recent weeks, due to rising raw material prices, squeezing the original profit margins of the packaged food industry, PepsiCo has increased the prices of soda and snacks.
The picture shows Pepsi sold in the supermarket.
Photo by Xie Yiguan, a reporter from China News Service
In April of this year, Pepsi’s "old rival" Coca-Cola Company announced that it would increase the price of its products.
Nestlé, also an international food and beverage giant, announced in July that it "will increase prices in the second half of this year to cope with higher input costs."
In addition, in August of this year, the multinational food company Orion also confirmed to the domestic media that the prices of some pie products will increase from September 1; the domestic food giant Dali Group issued a notice to distributors on price adjustments for some of the three major series of food products.
In the field of beer, on May 13, Jan Craps, CEO of Budweiser Asia Pacific, said at a performance briefing that the company’s Budweiser and other brands have increased prices, including Budweiser and nationwide brands. Core and affordable brands.
Food companies raise prices, do you feel it?
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