【Bureau of People's Livelihood Investigation】
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Chinanews client, Beijing, November 8th (Reporter Xie Yiguan) "The weather is too cold, let’s have a hot pot to warm it up." This winter, you have to make hot pot dips, bottoms, shabus, and drinks all increase in price. Preparation.
The picture shows the condiment area in the supermarket.
Photo by Xie Yiguan, a reporter from China News Service
The oil, salt, sauce and vinegar are all up
In November, where did the strongest "follow the trend" come from?
Condiment industry.
After the condiment giant Haitian Flavour announced that it would adjust the ex-factory prices of some products such as soy sauce, oyster sauce and sauces on October 25, other condiment companies could not sit still.
Entering November, first, a "Lee Kum Kee Product Ex-factory Price Adjustment Notice for 2021" was circulated on the Internet. The notice stated that it was decided to adjust the ex-factory prices of some products. The survey range was 6%-10%. The new ex-factory prices will It will be implemented on December 16.
However, as of press time, Lee Kum Kee did not respond to this.
Subsequently, Hengshun Vinegar Industry issued the "Announcement on the Price Adjustment of Certain Products" on the evening of the 2nd, and the price adjustment of some products will be carried out starting from November 20, with the adjustment range ranging from 5% to 15%.
The picture shows the Hengshun vinegar sold in the supermarket.
Photo by Xie Yiguan, a reporter from China News Service
On November 4, Jiajia Food also issued an announcement stating that the ex-factory prices of Jiajia soy sauce, oyster sauce, cooking wine, chicken essence and vinegar products will be adjusted by 3%-7%. The new prices will be in November. Officially implemented on the 16th.
The price increase of many brands of sauce, vinegar, and oyster sauce is still a "forecast", while the price increase of oil and salt is already being implemented.
Recently, Xuetian Salt Industry, Yunnan Energy Investment and Su Yanjingshen have all stated on the investor interaction platform that they have recently raised their product prices.
Among them, the ex-factory price of Xuetian small package salt is increased within 10%; Yunnan Energy Investment has increased the prices of some salt products and industrial salt products by an average of 30%-35%.
Arowana also revealed in the survey minutes disclosed on the 3rd that taking the retail side as an example, the company adjusted the prices of different oil types at the end of 2020 and March-April 2021, and the overall price increase was about 10%-15%.
"The current price increase has not yet fully covered the increase of raw materials," Arowana said. The company will first strengthen internal management to absorb cost fluctuations and increases. If the market maintains high prices for a long time, it will also consider price adjustments.
The edible oil products displayed on the official website of Arowana.
The price of hot pot base and shabu has also risen
In addition to the oil, salt, sauce, and vinegar, how can you eat hot pot without hot pot base and shabu, but they have also increased in price.
The survey minutes disclosed by Tianwei Food, the “first share of hot pot bottom material” on the 3rd, showed that in mid-October, the company had increased the prices of two products, and other products were being comprehensively sorted out.
Hot pot meatballs are a must-try for many people when they eat hot pot. The two leading quick-frozen companies, Anjing and Haixin, have collectively announced price adjustments.
On November 2nd, Anjing Foods and Haixin Foods both issued announcements on product price adjustments, and even the content was the same. "The promotion policy of some quick-frozen surimi products, quick-frozen dishes and quick-frozen rice and noodle products will be reduced or the distribution price will be increased. The price adjustment range is 3%-10%."
Some products displayed on Yasui's official website.
The food company Delis recently also stated on the investor interaction platform that the company had adjusted the price of beef products related to pre-prepared dishes a month ago, and recently increased prices for some beef products again.
On the product page of Delis's official website, Beef Roll is among them.
The milk tea you love may have to go up too
As food ingredient companies raise their prices, some snacks, beverages and even milk tea may also increase in price.
Jinhe Industry recently stated that the company has recently increased the selling prices of food additives such as sweeteners and spices in different ranges according to market conditions.
Jiahe Foods, a leading food ingredient company, said in a survey conducted by the organization, “In the later stage, it will follow the trend of raw materials and choose a date to increase prices. The range will be calculated according to the market, including the situation of competitors. At present, the new list will be calculated. The new cost will be increased."
The public information of Jiahe Foods shows that it owns non-dairy creamer, milk base, vegetable protein, solid beverage, etc. under its umbrella.
Cooperative businesses include Michelle Ice City, Tea Baidao, Gu Ming, etc.
The products displayed on Jiahe Foods official website.
When Jiahe Foods expressed its willingness to raise prices, it also mentioned giants such as Nestlé.
The reporter combed and found that Coca-Cola, Pepsi, Nestle and other international food and beverage giants have previously announced price adjustments.
Why do companies announce price increases one after another?
When talking about the reasons for the price adjustment, many companies mentioned the rising costs of raw materials, energy, labor, and transportation.
This year, the prices of international bulk commodities such as crude oil, coal, agricultural and sideline products have risen, and downstream products have also risen.
For example, when Arowana and Tianwei Food responded to the price increase, they both mentioned the increase in oil prices. "The current international prices of agricultural products, especially the prices of fats and oils, are the highest peaks in recent years." Arowana said.
According to data from Zhuo Chuang Information, since June 18, the oil price index has fluctuated upwards. It reached its highest peak in the year on October 21, and then fell slightly.
"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.
The picture shows the soy sauce products sold in the supermarket.
Photo by Xie Yiguan, a reporter from China News Service
In addition to raw materials, due to rising gasoline and diesel prices, transportation costs have increased significantly.
According to data from the National Bureau of Statistics, in the first three quarters, the prices of gasoline, diesel and liquefied petroleum gas rose by 13.4%, 14.6% and 7.4%, respectively, and the increase was larger than that in the first half of the year.
Against the backdrop of rising energy prices, “the prices of means of production rose by 8.9% in the first three quarters, an increase of 2.1 percentage points over the first half of the year.”
In addition,
condiment listed companies reported poor profits in the third quarter, and price increases have become a means for the industry to boost performance and stock prices.
According to data from the China Condiment Association, in the first three quarters of 2021, the total operating income of 16 listed condiment companies was 60.506 billion yuan, and the total net profit was 8.837 billion yuan.
From the data point of view, the operating profit of the listed condiment companies is not satisfactory. The net profit attributable to shareholders of the listed company of Jiajia Food, Tianwei Food, and Zhongju High-tech has decreased by 98.67%, 74.96%, and 45.09% year-on-year.
Comprehensive market analysis shows that rising raw material prices have reduced corporate profits; catering has recovered slowly after the epidemic, while at-home dining scenes have decreased; the impact of community group buying on the channel system has been the main factor that pressured the profits of condiment companies in the first three quarters.
"Currently, we are in a transitional period in which the pulling force for price increases is getting stronger and the resistance is weakening. Successful price increases are expected. The combination of leading volume and price increases and the scale effect is expected to open up the space for high flexibility in performance." said Fan Jinsong, an analyst at Zhongtai Securities.
(over)