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Is Haitian Flavor Industry, the “No. 1 in Soy Sauce,” also going to start selling drinking water?

"You can put a label on this water and sell it directly as drinking water!" At the end of 2023, when Sa Beining visited the Haitian Flavor Industry factory and praised the brewing water used by Haitian Flavor Industry, people inside and outside the industry began to speculate whether Haitian Flavor Industry would sell drinking water.

In fact, Haitian Flavor Industry mentioned the name of the drinking water "Haitian Pure" in a new product article released in March this year, but there were no related product pictures at that time.

Image source: Haitian Flavor Industry WeChat Official Account

Recently, in an article published on the WeChat official account of Haitian Flavor Industry, a bottle of bottled drinking water marked with the name "Haitian Pure" appeared on the cover of the article. From the picture, we can see that Haitian Pure drinking water is a kind of drinking purified water. According to some pictures on the Internet, the product specification of Haitian Pure is 350ml/bottle.

Image source: Haitian Flavor Industry WeChat Official Account

Regarding whether this means that Haitian Flavor Industry will enter the drinking water industry and whether Haitian Pure Drinking Purified Water will be launched soon, Nandu Wancaishe reporter contacted relevant people from Haitian Flavor Industry, who saidCurrently, Haitian Chun is not sold on a large scale to the outside world, and is only sold in a small area in the Haitian Flavor Industry exhibition hall.

Image source: Haitian Flavor Industry WeChat Official Account

Haitian Flavor Industry within 3 years

More than 20 new cross-border products have been launched

In fact, in addition to drinking water Haitian Pure, Haitian Flavor Industry has also been diversifying its development layout in recent years and has begun to explore products in different fields. Recently, Haitian Flavor Industry has also launched a lemon tea drink and a cereal and nut drink.

As early as 2021, Haitian Flavor Industry launched apple cider vinegar and soy sauce flavored ice cream, but it was not widely promoted at that time. Haitian Flavor Industry's 2022 ESG report stated that under the new trend of health management in society, Haitian has created a number of "light fat, light calories, and light burden" popular products to meet consumers' health needs of both health and "taste". As of the end of the 2022 reporting period, Haitian has launched a total of 17 low-fat or fat-reduced products, including Haitian Fruit Lover Apple Cider Vinegar, Haitian 0 Fat Vinaigrette, Haitian Joy Carrot Juice, Haitian Joy Little Lime Juice, etc.

Nandu Wancaishe reporter noticed that in recent years, Haitian Flavor Industry has launched more than 20 crossover beverage and ice cream products, but only one beverage is listed on the official website of Haitian Flavor Industry. And in its e-commerce flagship store, there are only three beverages and two ice creams, one of which is a new product recently launched.

Xu Xiongjun, a well-known strategic positioning expert and founder of Jiude Positioning Consulting, said that as the "first stock" of Chinese soy sauce, Haitian's market value once reached more than 400 billion yuan at its peak, and it has expanded from soy sauce to multiple condiment industries. However, after years of development, the growth has been obviously weak in recent years, and the performance growth is facing huge pressure. Therefore, Haitian is also seeking diversified development, including trying to cross-border food and beverage.

Taking Nongfu Spring as a reference, the drinking water sector actually has huge room for growth. Therefore, Haitian’s cross-border water sales are obviously not just to expand the brand’s voice, but also to increase profits. However, it is obviously difficult to really expand the market. The reason is that Nongfu Spring’s leadership position is difficult to shake. In addition, Wahaha, C’estbon, Master Kong, Uni-President, Coca-Cola, etc. are all in the water business, and the water industry itself is very competitive. "In addition, after Nongfu Spring launched purified water this year, it also reduced the original price of more than one yuan to a few cents, so purified water is currently almost unprofitable and may even lose money. Therefore, it is difficult for Haitian Pure to achieve profitability in the short term."

Diversified layout in the subdivided track

The growth rate of products in the "other" category is stable

Regarding Haitian's launch of cross-border products, Pang Kang, chairman of Haitian Flavor Industry, once said that with the great changes in the external market, channels are becoming more and more fragmented, consumer demand is becoming more diversified, and industry competition is also intensifying. Under the current consumption trend, the company will pay more attention to customer needs, continuously improve product quality, produce more personalized and diversified products, provide users with high-quality products and application service solutions, and at the same time increase investment in product research and development to develop more nutritious and healthy products.

Haitian Flavor Industry has previously stated that in the future, consumers will pay more and more attention to food safety, high quality, good brands, and cost-effectiveness, which provides more development space for companies that continue to work hard on product and brand upgrades; with the improvement of people's living standards, the trend of upgrading consumer demand and diversification of consumer channels has been reflected in the condiment industry.

Nanduwan Finance reporter noticed that since 2021, Haitian Flavor Industry has established a wholly-owned subsidiary, Joyful Food Technology Co., Ltd., and invested 50 million yuan. Subsequently, it invested 7 million yuan and 6 million yuan in 2022 and 2023 respectively. At that time, Haitian Flavor Industry said that the establishment of Joyful Food was due to business development needs.

And starting from 2021, Haitian Flavor Industry has added the "other" category to the category classification items in the financial report. In this "other" category, there are at least dozens of single products such as cooking wine, vinegar, chicken essence, rice and noodles. The year-on-year change of products in the "other" category has shown a more obvious growth. The financial report shows that in 2022, the revenue of Haitian Flavor Industry's "other" products increased by 32.61% year-on-year; the gross profit margin was 27.18%. In 2023, the revenue of Haitian Flavor Industry's "other" products increased by 19.35% year-on-year; the gross profit margin was 21.88%.

Written by: Southern Metropolis Daily reporter Qiu Kangzheng and Wang Jingjuan