The food and beverage industry consists of three sub-industries: food processing, food manufacturing and beverage manufacturing. The whole food and beverage industry developed slowly in H1 2009, but all the sub-industries had achieved considerable growth after November: the food processing industry experienced the fastest growth, the beverage manufacturing industry resisted decline and grew steadily, and the food manufacturing industry experienced relatively slower growth in operating income at a rate below the industry average.
In 2010, the food and beverage industry still maintains growth momentum. In Q1 2010, the operating income grew by 25.4% year on year, which is much higher than that in Q1 2009, and the net profit soared from RMB5.599 billion in Q1 2009 to RMB6.988 billion, up 24.8% year on year.
1. Beverage Manufacturing Industry
The industry is in growth phase, with huge development potentials. Promoted by medium and high-end wines, China's wine output reached 960,000 tons in 2009, up 27.6% year on year; soft drink and liquor grew at 24.3% and 23.8% respectively; rice wine and beer grew relatively slower, at 12.1% and 7.1% respectively.
In the wine sector, Changyu, Dynasty and COFCO Great Wall ranked top three. In 2009, the sales income of Changyu reached RMB4.2 billion, RMB3.39 billion of which came from wine, and accounted for 87.1% of the total operating income.
In the liquor sector, Kweichow Moutai and Wuliangye held 70% market shares. Comparatively, Kweichow Moutai had a better performance in 2009, since it: (1) had advantages in production capacity expansion under support of local policies; (2) explored the market for newly-added production capacity by increasing the number of franchised stores; (3) had larger room for price increase due to a wide gap between ex-factory prices and retail prices.
In the soft drink sector, the competition in concentration has emerged. In recent years, low-concentration fruit juice has maintained a market coverage of 80% , but as people pay more attention to healthy diet and young people change their dietary habits, nutrient-rich high-concentration fruit juice will become increasingly popular, and its market share will rise rapidly.
2. Food Processing Industry
The report analyzes the meat processing sector of the food processing industry. In 2009, the meat processing sector maintained fast and stable growth, and chilled meat, in particular, was produced and consumed on an increasingly large scale and was gradually replacing fresh meat. From the perspective of enterprise development, Shuanghui, with the industry’s most comprehensive product line and remarkable economies of scale, is the absolute leader in the high-temperature meat market, while Yurun dominates the low-temperature meat market with 60% market share.
3. Food Manufacturing Industry
The report analyzes the frozen food, dairy products and instant noodle sectors in the food manufacturing industry. In recent years, China frozen food industry has formed a market led by Sanquan, Synear, Longfong and Wanchai Ferry with different business strategies. Sanquan and Synear set up outlets all over China, while Wanchai Ferry and Longfong focus on first-tier cities. In 2009, Synear cooperated with fast food chains such as KFC and ZKungfu to further expand it marketing channels and enhance its brand competitiveness.
Since H2 2009, the output of dairy products has been growing rapidly because of the fact that the industrial base data were low due to the “melamine incident” in 2008, and the market rebounded and demand increased. Mengniu and Yili, two leading dairy enterprises of China, exhibited great disparity in their 2009 performance: Yili increased its milk powder market share from less than 10% to 13%, while Mengniu saw a decrease in market share, though still maintained the first position.
As the economy recovers and consumer confidence rebounds, the food and beverage industry will develop at an accelerating rate. Finally, the report analyzes and forecasts the development prospect of sub-sectors of the food and beverage industry in 2010.
Food Industry in China
Table of Contents
1. Food and Beverage Classification and Research Scope
2. Development of China Food and Beverage Industry
2.1 Economic Development and Consumer Confidence as Influence Factors
2.2 Overall Operation
2.3 Listed Companies
3. Development of Food and Beverage Sub-industries
3.1 Beverage Industry
3.1.1 Liquor
3.1.2 Wine
3.1.3 Beer
3.1.4 Rice Wine
3.1.5 Fruit Juice
3.2 Food Manufacturing Industry
3.2.1 Liquid Milk and Dairy Products
3.2.2 Frozen Food
3.3 Food Processing Industry
3.3.1 Slaughtering and Meat Processing
4. Key Listed Beverage Companies
4.1 Liquor
4.1.1 Kweichow Moutai (600519)
4.1.2 Wuliangye Yibin (000858)
4.1.3 Luzhou Lao Jiao (000568)
4.1.4 Shanxi Xinghuacun Fen Wine (600809)
4.1.5 Laobaigan Liquor (600559)
4.1.6 Swellfun (600779)
4.2 Wine
4.2.1Changyu Pioneer Wine-A (000869)
4.3 Beer
4.3.1 Yanjing Brewery (000729)
4.3.2 Tsingtao Brewery (600600)
4.4 Rice Wine
4.4.1 Guyuelongshan Shaoxing Wine (600059)
4.4.2 JinFeng Wine (600616)
4.5 Soft Drink
4.5.1 SDIC Zhonglu Fruit Juice (600962)
5. Key Listed Food Processing and Manufacturing Companies
5.1 Frozen Food
5.1.1 Sanquan Foods (002216)
5.1.2 Synear Food Holdings Limited (SYFH)
5.2 Slaughtering and Meat Processing
5.2.1 Shuanghui Investment & Development (000895)
5.2.2 Yurun Food (1068)
5.3 Instant Noodle
5.3.1 Master Kong (0322)
5.3.2 Uni-president (0220)
5.4 Liquid Milk and Dairy Products
5.4.1 Bright Dairy and Food (600597)
5.4.2 Sanyuan Foods (600429)
5.4.3 *ST Yili (600887)
6. Development Trends and Prospect of the Food and Beverage Industry
Selected Charts
China's GDP to Food Consumption
Monthly Consumer Confidence Index, 2009-Apr. 2010
Compound Growth Rate of Operating Income and Profit of Food and Beverage Sub-industries, 2005-2009
Operating Income Growth Rate of Food and Beverage Sub-industries, 2009-Feb. 2010
Output Growth of Food and Beverage Sub-industries, 2009-Apr. 2010
Business Performance of 53 Listed Food Companies, 2008-2009
Operating Income of Food and Beverage (by Industry) in China, 2009
Net Profit of Food and Beverage (by Industry) in China, 2009
Accumulated Operating Income and Profit of the Beverage Manufacturing Industry, Feb. 2009-Feb. 2010
Monthly Liquor Output, 2009-Apr. 2010
Accumulated Operating Income and Profit of China Liquor Industry, 2009-Feb. 2010
Processes of Major Liquor Flavors
Prices of Kweichow Moutai, Wuliangye and Guojiao 1573, 2000-2011E
Survey on Brand Awareness of Domestic Wines
Output and Import Volume of Wine, 2009-Feb. 2010
Accumulated Operating Income and Profit of Wine Manufacturing Industry, 2009-Feb. 2010
Beer Output in China, Jan 2009–Apr. 2010
Export Volume of Beer in China, Jan. 2009-Apr. 2010
Per Capita Beer Consumption in Major Countries
Per Capita Beer Consumption in China by Region
Shares of Major Enterprises in Chinese Beer Market, 2009
Sales Volume and Growth Rate of Tsingtao Brewery, Yanjing Beer and Snow Beer, 2003-2011E
Accumulated Operating Income and Profit of China Beer Industry, 2009-Feb. 2010
Gross Profit Margin of China Beer Industry, 2008-Aug. 2009
Categories of Rice Wine
Output of Rice Wine in China, 2009-Apr. 2010
Accumulated Operating Income and Profit of Rice Wine Industry, 2009-Feb. 2010
Output Structure of Rice Wine (by Region), 2009
Sales Volume Structure of Rice Wine (by Region), 2009
Monthly and Cumulative Output, YoY and MoM Growth Rates of Fruit Juice and Fruit Juice Drinks, Sep. 2008-Jun. 2009
Accumulated Operating Income and Profit of the Food Manufacturing Industry, 2009-Feb. 2010
Operating Income and Profit of Liquid Milk and Dairy Products Sector, 2009-Feb. 2010
Monthly Import of Dairy Products in China, Jan. 2008 –Jul. 2009
Marketing Strategies of Major Frozen Food Companies in China
Revenue of Frozen Food Sector, 2002-2009
Accumulated Operating Income and Profit of China Frozen Food Sector, 2009-Feb. 2010
Accumulated Operating Income and Profit of China Food Processing Sector, 2009-Feb. 2010
Accumulated Operating Income and Profit of China Slaughtering and Meat Processing Sector, 2009-Feb. 2010
Revenue of Shuanghui, Yurun, Jinluo by Business
Base Liquor Output and Sales Volume of Kweichow Moutai Supporting Sales Expansion
Market Retail Prices of Main Products of Kweichow Moutai, 2010
Price Increase of Kweichow Moutai, 2001-2010
Financial Data of Kweichow Moutai, 2007- Q1 2010
Financial Data of Kweichow Moutai by Business and Product, 2009
Operating Income of Kweichow Moutai by Region, 2009
Sales Network Distribution of Kweichow Moutai in China
Retail Prices and Ex-factory Prices of Kweichow Moutai, 2006-2009
Difference between Ex-factory Prices and Terminal Prices of High-end Liquor, 2009
Market Shares of Five High-end Liquor Brands Most Recognized by Consumers
Market Retail Prices of Main Products of Wuliangye, 2009
Financial Data of Wuliangye, 2007-Q1 2010
Market Retail Prices of Main Products of Luzhou Lao Jiao, 2009
Revenue of High-end, Medium-end and Low-end Liquor of Luzhou Lao Jiao, 2002-2009
Gross Profit Margin of Luzhou Lao Jiao by Product, 2002-2009
Financial Data of Luzhou Lao Jiao, 2007- Q1 2010
Operating Income of Luzhou Lao Jiao by Product, 2009
Revenue of Shanxi Xinghuacun Fen Wine by Product, 2008-2011E
Main Liquor Products and Ex-factory prices of Shanxi Xinghuacun Fen Wine, 2009
Financial Data of Shanxi Xinghuacun Fen Wine, 2007- Q1 2010
Operating Income of Shanxi Xinghuacun Fen Wine (by Product), 2009
Operating Income of Shanxi Xinghuacun Fen Wine (by Region), 2009
Revenue Proportion of Shanxi Xinghuacun Fen Wine in Shanxi and Other Regions, 2002-2009
Revenue Growth Rate of Shanxi Xinghuacun Fen Wine in Shanxi and Other Regions, 2002-2009
Liquor Product System Positioning and Pricing of Laobaigan Liquor
Operating Income of Laobaigan Liquor (by Product), 2009
Operating Income of Laobaigan Liquor (by Region), 2009
Financial Data of Laobaigan Liquor, 2007-2010
Financial Data of Swellfun, 2007- Q1 2010
Financial Data of Swellfun (by Industry and Product), 2009
Operating Income of Swellfun (by Region), 2009
Financial Data of Changyu (by Industry and Product) , 2009
Operating Income of Changyu (by Region), 2009
Operating Income of Changyu (by Product), 2009
Operating Income, Net Profit and Growth Rate of Changyu Pioneer Wine-A, 2006-2009
Revenue and Growth Rate of Main Wine Products of Changyu Pioneer Wine-A, 2006-2009
Gross Profit Margin of Wine and Brandy of Changyu Pioneer Wine-A, 2006-2009
Accounts Received in Advance of Changyu Pioneer Wine-A, 2006-2009
Financial Data of Changyu, 2009- Q1 2010
New Projects of Changyu Pioneer Wine-A, H1 2009
Market Shares of Beer Brands, 2005- H1 2009
Sales Volume of Yanjing Brewery by Brand, 2007-2010E
Financial Data of Yanjing Brewery, 2007- Q1 2010
Operating Income of Yanjing Brewery (by Region), 2009
Sales Growth of Yanjing Brewery in Key Regions, H1 2009
Sales Volume of Yanjing Brewery Outside Beijing, 2007-2009
Sales Income Growth Rate of Tsingtao Brewery by Region, H1 2009
Sales Income of Tsingtao Brewery by Region, H1 2009
Financial Data of Tsingtao Brewery, 2007-Q1 2010
Operating Income of Tsingtao Brewery (by Region), 2009
Financial Data of Guyuelongshan Shaoxing Wine, 2007-Q1 2010
Main Business Structure of Guyuelongshan Shaoxing Wine (by Region), 2009
Product Structure of JinFeng Wine
Financial Data of JinFeng Wine, 2007-Q1 2010
Processing Capacity of Major Concentrated Apple Juice Manufacturers
Export Volume of Concentrated Apple Juice in China, 2004-2009
Financial Data of SDIC Zhonglu Fruit Juice, 2007- Q1 2010
Market Shares of Sanquan Foods, 2003-2009
Financial Data of Sanquan Foods, 2007- Q1 2009
Financial Data of Sanquan Foods (by Industry and Product), 2009
Operating Income of Sanquan Foods (by Region and Product), 2009
Gross Profit Margin of Sanquan Foods (by Product), 2009
New Production Capacity of Sanquan Foods
Financial Data of Zhengzhou Synear, Q1 2009-Q1 2010
Operating Income of Zhengzhou Synear (by Product), 2008-2009
Revenue of Leading Meat Enterprises (by Business)
Gross Profit Margin of Shuanghui and Yurun (by Product)
Financial Data of Shuanghui Investment & Development, 2007-2009
Prices of Pork, Jul 2006-Feb 2010
Operating Income and Main Business Structure of Shuanghui Investment & Development (by Product), 2009
Operating Income and Profit of Shuanghui Investment & Development (by Region), 2009
Financial Data of Yurun Food, 2005-2009
Financial Data of Master Kong, 2007-2009
Financial Data of Uni-president, 2005-2009
Financial Data of Bright Dairy and Food, 2007-Q1 2010
Operating Income of Bright Dairy and Food (by Region), 2009
Financial Data of Sanyuan Foods, 2007- Q1 2010
Operating Income of Sanyuan Foods (by Product), 2009
Operating Income of Sanyuan Foods (by Region), 2009
Main Products of Yili
Financial Data of Yili, 2007-Q1 2010
Main Business Structure of Yili (by Product), 2009
Main Business Structure of Yili (by Region), 2009
Six Important Milk Source Bases of Yili
