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21st Century Business Herald reporter He Hongyuan and intern Han Chang report

The fast-moving consumer goods market may be entering a period of internal adjustment.

Recently, there were rumors that two senior executives of Mondelēz China were suddenly taken away for "suspected embezzlement of a large amount of money". The executives involved were Grace Zhu, Vice President of Marketing and Development of Mondelēz Greater China, and Simon Xiu, Director of E-commerce of Mondelēz China.

In response to this, on July 29, 2024, Mondelez China responded to a reporter from 21st Century Business Herald that the two employees mentioned above are cooperating with the relevant investigation and are off duty. "We will release information in due course based on the official investigation results," the company mentioned.

Mondelēz China owns several brands including Oreo, Chip & Chip, Unicorn, Xianqu, Prince, Taiping, Lezhi, Yikolian, Hershey, Triumph, Milka and Guozhen.

At present, Mondelez China is facing growth pressure.

According to the financial report, in the first quarter of this year, the Asia, Middle East and Africa region to which Mondelez China belongs had a net income of US$1.95 billion, a year-on-year increase of only 0.6%, with an organic growth rate of 5.9%. In contrast, sales in the Latin American market increased by 8.9% year-on-year to US$1.319 billion, with an organic growth rate of 7.1%; the European market grew by 1.8% on the basis of sales of US$3.368 billion, with an organic growth rate of 4.4%.

It is worth noting that the Chinese market is indeed becoming more and more important to Mondelez. During the earnings call, the company's executives mentioned that the Chinese market has achieved low double-digit growth.

At this moment, China's consumer market is also facing growth pressure. According to data released by the National Bureau of Statistics, in June, the total retail sales of consumer goods in China increased by 2.0% year-on-year to 4.07 trillion yuan, down 0.12% from the previous month.

As a result, Mondelez seems to be giving greater freedom to its Chinese executives. A Mondelez distributor said that the manufacturer's price for a box of 97g Oreo classic biscuits is 5.1-5.2 yuan per box, but the subsidy for major customers is as low as 4.4 yuan, which is about 10% of the cost ratio.

There is a lot of room for maneuver if different treatments are given.

Objectively, corruption is common in the fast-moving consumer goods market. In January 2023, Ye Licheng, the former head of Yuanqi Forest Marketing Center, was detained by the police in accordance with the law on suspicion of major corruption and other economic crimes.

It is understood that the Ye Licheng incident gave Yuanqi Forest’s founder Tang Binsen a great shock, and he even took this opportunity to reshape the company culture.

It remains to be seen how Mondelez China will balance compliance and growth amid market volatility.

On July 29, the Shanghai Composite Consumer 80 Index closed at 4108.33 points, down 1.59%.

Consumer Personnel

Tong Youjian, Chairman of Shaxian Snacks Cultural Tourism Group, Suspected of Serious Violation of Occupational Laws

On July 26, according to the Discipline Inspection and Supervision Commission of Shaxian District, Sanming City, Fujian Province, Tong Youjian, chairman of Shaxian District Snack Culture and Tourism Development Group Co., Ltd., is suspected of serious violations of duty and is currently under supervision and investigation by the Shaxian District Supervision Commission.

Yonghui Superstores: Director Xu Ran resigns and JD Group Vice President Zhou Ye is elected as the new director

On July 26, Yonghui Superstores Co., Ltd. issued an announcement announcing that Ms. Xu Ran, a director of the company, resigned due to work arrangements and elected Mr. Zhou Ye as the new director. The announcement disclosed that Ms. Xu Ran resigned from the company's director position due to work arrangements and no longer held any position in the company after her resignation. At the same time, in order to supplement the non-independent directors, the company's board of directors nominated Mr. Zhou Ye as a by-election director, and his term of office will be from the date of approval by the shareholders' meeting to the expiration date of the term of office of the fifth board of directors. Mr. Zhou Ye, born in May 1981, is of Chinese nationality and is currently the vice president of JD.com Group. He joined JD.com Group in January 2022 and has served as the vice president of JD.com Group and head of the strategic investment department since December 2022.

Burberry may be looking for a new chairman

On July 26, according to media reports, Burberry may be working with headhunters to find a new chairman and two new non-executive directors who can replace Gerry Murphy. It is not clear when the new CEO will be replaced, but industry insiders revealed that Burberry has made it very clear that the position is waiting for the right candidate.

Marcolin appoints new Group Operations Director

On July 26, according to the official website of Italian eyewear manufacturer Marcolin, Marcolin has appointed Andrea Vincenzo Virgilio as its new group operations director. He will join Marcolin on July 15 and will be responsible for all manufacturing facilities, R&D, product compliance and supply chain departments of the group. It is reported that Marcolin formally rejected Safilo's acquisition offer last month because Safilo's acquisition offer did not match Marcolin's valuation of 1.35 billion euros.

agriculture

Average pork prices rise in agricultural product wholesale markets nationwide

On July 29, according to the monitoring of the Ministry of Agriculture and Rural Affairs, as of 14:00 on the same day, the average price of pork in the national agricultural product wholesale market was 25.35 yuan/kg, up 0.5% from last Friday.

The Ministry of Commerce issued a questionnaire on the anti-dumping case of pork and pork by-products

On July 29, the Ministry of Commerce issued Announcement No. 23 of 2024, deciding to conduct an anti-dumping investigation on imports of relevant pork and pork by-products originating from the European Union. Due to the large number of relevant exporters and domestic producers, a comprehensive investigation will impose an excessive burden on the investigation authority and hinder the timely completion of the investigation. In accordance with the relevant provisions of the Anti-dumping Regulations of the People's Republic of China and the Interim Rules on Sampling for Anti-dumping Investigations, the investigation authority decided to conduct the investigation using a sampling method. According to the "Notice on the Sampling Plan and Preliminary Sampling Results of the Anti-dumping Case of Relevant Pork and Pork By-products" issued on July 18, 2024, the investigation authority finally decided to select Danish Crown A/S, VION Boxtel BV and LITERA MEAT SLU as sampled exporters and 24 domestic producers as sampled domestic enterprises.

food and drink

China exported nearly 150,000 tons of green tea in the first half of the year, accounting for more than 80% of total tea exports

On July 26, Chinese customs data showed that from January to June 2024, China's green tea exports were 148,500 tons, accounting for 86.34% of total tea exports, an increase of 2,245 tons year-on-year, an increase of 1.53%; black tea exports were 11,200 tons, accounting for 6.52% of total exports, a decrease of 2,192 tons year-on-year, a decrease of 16.36%. In addition, the export volume of oolong tea was 7,714 tons, accounting for 4.48% of the total export volume, a decrease of 3,308 tons year-on-year, a decrease of 30.01%; the export volume of jasmine tea was 3,324 tons, accounting for 1.93% of the total export volume, an increase of 577 tons year-on-year, an increase of 20.99%; the export volume of Pu'er tea was 740 tons, accounting for 0.43% of the total export volume, a decrease of 132 tons year-on-year, a decrease of 15.12%; the export volume of other flower teas was 74 tons, the export volume of black tea was 239 tons, and the export volume of white tea was 195 tons.

A tea shop in Anxi, Fujian, sold fake Jin Jun Mei black tea and found banned lemon yellow

On July 26, the Fujian Provincial Market Supervision Administration issued the 25th Food Safety Supervision Sampling Information Notice of 2024, including 15 batches of unqualified foods, involving 1 batch of counterfeit Jin Jun Mei black tea. The notice shows that the Jin Jun Mei black tea (250g/can, 2023/3/10) sold by Zonghe Tea House in Anxi County, which is labeled as produced by Fujian Minxinhong Ecological Tea Co., Ltd., was detected with the banned additive lemon yellow, with a detection value of 0.206g/kg. Fujian Minxinhong Ecological Tea Co., Ltd. raised an objection to the authenticity of the product. After verification by the local market supervision department, the batch of products was counterfeit. According to public information, lemon yellow is an acidic synthetic colorant, mainly used in beverages, jams, candied fruits and other foods. The "National Food Safety Standard for the Use of Food Additives" (GB 2760-2014) stipulates that lemon yellow shall not be used in tea. The reason for the failure of lemon yellow may be that the company used it beyond the scope in order to improve the color of the product during the production and processing process.

Dongpeng Beverage: Junzheng Investment is no longer a shareholder holding more than 5% of the company's shares

On July 26, Dongpeng Beverage announced that Tianjin Junzheng Venture Capital Partnership (Limited Partnership) sold 100 shares of the company through centralized bidding on July 25, 2024, and its total holding of the company's shares accounted for 4.999975% of the current total share capital, and it is no longer a shareholder of the company holding more than 5% of the shares.

Shuijingfang's net profit in the first half of the year increased by nearly 20% year-on-year

On July 26, Shuijingfang disclosed its 2024 semi-annual report. The financial report shows that Shuijingfang achieved operating income of 1.719 billion yuan in the first half of the year, a year-on-year increase of 12.57%; net profit attributable to the parent company was 242 million yuan, a year-on-year increase of 19.55%.

Mars enters ready-to-eat food segment

On July 26, Mars Food & Nutrition, a business unit of Mars, Inc., announced its entry into the ready-to-eat food sector, launching Ben's Original Street Food in the United States and Canada, and Ben's Original Favourites and Lunch Bowls in the United Kingdom. Shaid Shah, Global President of Mars Food & Nutrition, said: "We know that Gen Z and millennial shoppers prioritize three things when dining out: convenience, nutrition and deliciousness, and global flavors. That's why our mission is to make healthier and more delicious eating a part of consumers' daily lives."

FOOD

Cha Yan Yue Se enters Suzhou

On July 29, Cha Yan Yue Se announced that it would open stores in Suzhou and revealed that the first batch of stores are expected to open at the end of September.

Douyin e-commerce's monthly active users in shelf scenarios increased by more than 60% in the first half of 2024

On July 29, according to the Daily Economic News, at a Douyin internal staff communication meeting held recently, Wei Wenwen, president of Douyin e-commerce, revealed that the improvement of user experience has boosted the continued growth of Douyin e-commerce consumers. Among them, the improvement of shelf scene consumers is particularly obvious, with the monthly active users of shelf scenes increasing by more than 60% in the first half of the year. It is understood that Douyin e-commerce's NPS (net recommendation score) has also been improved in the first half of the year, and the proportion of users willing to recommend Douyin e-commerce to people around them has increased by 10 percentage points. Douyin e-commerce said that NPS is an important indicator on the user side that Douyin e-commerce has long paid attention to, reflecting user loyalty.

Supermarket

Yu Minhong: I hope to build Oriental Select Member Stores based on New Oriental teaching points

On July 26, New Oriental founder and Oriental Selection CEO Yu Minhong said at the Oriental Selection shareholder conference call that he hopes to build Oriental Selection membership stores based on New Oriental's approximately 800 teaching locations in the future. Yu Minhong revealed that he will continue to develop more self-operated products in the future and enrich more products, including domestic and foreign ones, to contribute to international cooperation. In addition, he will develop more high-quality local products to help more people. Facing the future, he is full of confidence.

Hema: Event economy drives Hema fresh beer sales growth by over 35%

On July 26, Hema released content showing that sports events such as the European Cup and the Paris Olympics have driven the sales growth of beer products in the venue. Data shows that in July, Hema Fresh Beer achieved a 35% month-on-month growth, among which Hema Turbid IPA increased by more than 70% year-on-year, and mung bean flavored beer sales doubled compared with the same period last year. The sales of Hema's snack-related products have also increased, such as the sales of salted edamame and peanuts increased by more than 20% year-on-year. Hema vegetarian mixed vegetables composed of lotus roots, peanuts, and bean curd sticks also saw a large increase, with sales in June and July increasing by more than 60% compared with last year.

Express Logistics

FedEx Announces Further Optimization of FICP Services for Mainland China E-Commerce Sellers

On July 29, FedEx announced that it would further optimize its "FedEx International Commerce (FICP)" service for e-commerce sellers in mainland China, expanding the coverage of the service from the current Asia-Pacific market to the United States and Europe. This service expansion enables e-commerce sellers in mainland China to provide international logistics solutions to customers and ensure that most goods are delivered to the United States and Europe within 2-3 working days.

Travel

Shanghai cruise port welcomes summer passenger flow peak, with more than 143,000 people entering and leaving

On July 29, according to CCTV News, since the start of the summer travel season on July 1, the Pujiang Border Inspection Station of the Shanghai Border Inspection General Station has checked more than 143,000 inbound and outbound passengers and more than 40 inbound and outbound cruise ships at the Shanghai Cruise Port, and the cruise port is experiencing a peak in passenger flow during the summer travel season.

China Eastern Airlines will launch direct flights from Xi'an to Milan, Italy

On July 29, China Eastern Airlines announced that starting from September 26, China Eastern Airlines will launch a new direct flight from Xi'an to Milan, Italy, with flight number MU5013/4, using Airbus A330 aircraft, with three round trips per week. It is expected that by the end of September this year, China Eastern Airlines will have opened four China-Italy routes, namely Shanghai-Rome, Wenzhou-Rome, Shanghai-Venice and Xi'an-Milan.

Trendy Play

Pop Mart opens a store next to Mona Lisa

On July 27, Pop Mart’s Louvre store officially opened at CARROUSEL DU LOUVRE, just a few steps away from the museum’s secondary entrance and the inverted glass pyramid, becoming the first Chinese trendy toy brand to successfully enter the Louvre.

Luxury

The first Coach cafe in China opens in Shanghai

On July 26, the first Coach Cafe in China officially opened in Shanghai New World Daimaru Department Store. It is reported that the Coach Cafe continues the brand's unique style and provides products including coffee drinks, desserts and Shanghai-exclusive flavors. Liliana Lucioni, President of Coach China, said, "Our brand will continue to be committed to bringing more innovative products, services and experiences to consumers."

Milan Fashion Week Releases Official Schedule for Spring/Summer 2025 Womenswear Show

On July 26, the Italian National Chamber of Fashion (CNMI) officially announced the official schedule for the 2025 Spring/Summer women's wear series. It is reported that this season's fashion week will be held from September 17 to 23, 2024, and is expected to host about 58 physical shows and 3 digital shows. These include brands such as Fendi, Gucci, Versace, and Prada. It is worth noting that the brands that entered the official show schedule for the first time are: Chinese designer SUSAN FANG supported by Dolce & Gabbana, Chinese designer brands CHICCOMAO, FEDERICO CINA, and PHAN DANG HOANG.