Wei Xiangyun
Executive President, China Conditioning Association

Zhongwei International Chief Economist
According to the statistics of the top 100 famous companies in 2018 of the China Conditioning Association, the total production volume was 13.225 million tons, and the year-on-year growth rate was 7.5 %; Sales revenue was 93.88 billion yuan, a year-on-year growth rate of 10.8 %.
Sales revenue increased by 3.3 percentage points over product output, indicating that the condiment industry has entered a new stage of high-quality growth.
In 2018, China's catering industry revenue exceeded 4.2 trillion yuan, an increase of 9.5 % year-on-year, and the growth rate fell by 1.2 %. The sales revenue of the top 100 condiment companies still maintained double-digit growth, becoming a bright spot for the growth of the consumer goods market. This shows that it is not easy to maintain double-digit growth in the food and beverage industry.
Since the 2015 stock market disaster, the Shanghai index has been hovering around 3,000 points, while the food and beverage sector has risen by more than 70 %. Among them, Haitian taste industry has increased by more than 300 %, from about 30 yuan per share at the time to more than 100 yuan. Conditioning plate out of a wave of independent market.
The following three tables(statistical data from the China Conditioning Association) reveal for the first time the current situation of 30 brands in the condiment industry in China. The companies that have repeatedly appeared in the three tables are, Haitian taste industry 3 times, delicious 2 times, Li Jinji 2 times, Xinhe food 2 times, and Qianhe taste industry 2 times.

List of the top 10 companies 'sales revenue

The top 10 companies saw that under the premise of the main industry advancement, soy sauce, yeast, monosodium glutamate, mustard, salt, chicken essence, oyster sauce products have everything. Of these, 60 % of companies produce soy sauce, while companies that use vinegar as their main product do not enter the top 10 sales revenue.

List of the top 10 soy sauce companies

The top 10 production of soy sauce was 4.315,000 tons, accounting for 93.3 % of the top 100 production of 4.626 million tons. Concentration has increased significantly.
Among the top 10 companies, the soy sauce production of the four listed companies(Hai Tian Wei Ye, Zhong Zhi Gao Xin, Jia Jia Food, and Qian Wo Wei Ye) was 2.997 million tons, accounting for 64.8 % of the soy sauce production of the top 100 companies.

List of top 10 vinegar enterprises

The top 10 production of the vinegar industry was 1.166 million tons, accounting for 70.7 % of the top 100 production of 1.649 million tons. The brand concentration of the vinegar industry was lower than that of the soy sauce industry.
Among the top 10, the output of vinegar in three listed companies(Hengshun Group, Haitian Taste Industry, and Qianhe Taste Industry) was 501,000 tons, accounting for 30.4 % of the output of the top 100 vinegar companies, which is also lower than the brand concentration of the soy sauce industry.

Overview of Seasoning Listed Enterprises in 2018

107/5000 There are 14 listed companies among the top 100 brand companies in 2018: Haitian taste industry, Chinese torch Gao Xin, Angel yeast, plum blossom, Hengshun vinegar industry, Fuling mustard, plus food, Tianwei Food, Qianhe Taste Industry, Anji Food, Jialong Shares, Laoheng Brewing, Baiwei Jia Food, Fushun Dufeng Xuan.
The sales revenue of 14 listed companies was 41.98 billion yuan, accounting for 44.7 % of the sales revenue of the top 100 companies of 93.88 billion yuan. The status quo of listed companies is becoming a barometer for the development of the condiment industry.

Analysis of development trends

First, supply side mixed ownership reform will accelerate the combination and reorganization of condiment enterprises and brand concentration.
In the field of competition, the condiment state-owned enterprises are faced with reform choices and difficulties, and opportunities and risks are the same.
Zhong Ju Gao Xin's real controller changed from local government to Mr. Yaozhenhua, a master of capital operations. The shares of Zhongshan Runtian, controlled by Mr. Yaozhenhua, accounted for 24.92 % and became the largest shareholder. The Zhongshan Torch Group controlled by the Zhongshan Municipal Government accounted for 10.72 % and became the second shareholder. The catfish effect is gradually emerging.
Recently, Qianhe Weiye acquired 100 % equity in Zhenjiang Hengkang sauce vinegar, aiming to extend the product line. Because Zhenjiang balsamic vinegar belongs to the origin protection product. Can not be produced outside Zhenjiang.
In the first two years, Haitian Weiye also acquired vinegar production companies in Zhenjiang.
Second, consumption upgrade to become the basis for the transformation of the condiment industry.
Hai Tian Wei Industry's sales revenue in the first quarter reached 5.49 billion yuan, an increase of about 17 % year-on-year. Profits were around 1.48 billion, up 23 % year-on-year. The gross profit margin is over 45.8 %. Growth has been strong. It is expected that the annual sales revenue will exceed 20 billion, and the profit will exceed 5 billion.
Hengshun vinegar industry has a gross profit rate of more than 40 %, but the profit increase is low because of the product properties, vinegar is a microprofit product. Therefore, Hengshun vinegar industry's future development strategy should focus on seasoning wine, soy sauce or other products of the market development.
Consumer upgrading is not only reflected in product prices, but also in the adjustment of product structure. For example, the market expansion of various healthy salts and health salts in the salt industry; For example, seasoning wine is widely used in the catering industry. In the past, seasoning wine was mainly used to eliminate jealousy, eliminate jealousy, and eliminate greasy, and now new products have added the function of adding fragrance and refreshing. Composite seasonings are an emerging industry. The next step is to focus on the development of large single products that are required by the market, such as chicken flavoring and hot pots.
At the same time, many brands of high-end soy sauce are moving toward the 100-yuan threshold.
In addition to the seafood industry, the leading enterprises in the industry are becoming food and catering industries. The leading companies such as Gaoxin, Angel yeast, Hengshun vinegar, plum blossom, Fuling mustard, Qianhe taste, Anji food, Jialong shares, and Jiaga food are becoming food and catering industries. Upgrade the leading company.
Gaga food lost profits last year when it veered away from its main business. The development strategy is currently being adjusted and the market for salt reduction, smoking and catering is being transformed.
Tianwei Food, which mainly produces Sichuan-flavored pot bottom materials, also landed on the main board market in the first half of the year, and it was the first time that seasoning companies were listed in 2019.
In the future, the development and reform of condiment enterprises will focus on the Advancement of the main industry and the specialization of the technical industry.
Third, the comprehensive deepening of food safety supervision.
3.15 This year, the state's exposure and investigation of the inferior products of Henan spicy strips will promote governments at all levels to comprehensively strengthen the safety supervision of food and condiments. Recently, the State Council issued the Opinions of the CPC Central Committee on Deepening Reform and Strengthening Food Safety Work.
According to my speech at the 2019 Mid-Term Strategy Meeting of Soochow Securities
1 July 2019