Interesting &Noteworthy new products
1. According to the National Bureau of Statistics of China's (NBS), China's total import and export value was 3.71 trillion RMB (550.45 billion US dollars), an increase of 8.6%. The import value was 1.59 trillion RMB (235.53 billion US dollars), up 4.6%.
In the first seven months of 2022, China imported 2.03 million tons of dairy products, with a YoY decrease of 19%. Dry dairy products and liquid milk import reached 1.42 million tons and 0.62 million tons, respectively.
2. FORTUNE releases "2022 Fortune Global Top 500 list". Well-known companies in the food and beverage industry such as Nestle, ADM, Pepsi, Anheuser-Busch InBev, Tyson, Coca-Cola, Starbucks, Mondelez, DANONE, etc., are all on the list. Among them, Nestle, ADM and Pepsi are the top three in the food and beverage industry, ranking 103, 124 and 143, respectively.
3. Brand Finance released the "Most Valuable Food and Beverage Company for 2022". Nestlé gained the crown again with a brand value of $20.8 billion. Second-ranked Yili focuses on high-end dairy products, which drove Yili's astonishing performance in the past year.
Top10 Global Most Valuable Food and Beverage Company
Products From Yili
1. Colgate-Palmolive announced a 700 million USD (4.7 billion RMB) acquisition plan of three dry pet foods manufacturing facilities to support its brand Hill's Pet Nutrition, which entered China's pet food market in 2019.
2. The "Pure" Milk Brand "Maiquer" was fined 73 million yuan. On 30 June 2022, an announcement published by the Qinyuan County Market Regulation Department indicated that propylene glycol was detected in Maiquer's pure milk. A preliminary investigation showed that propylene glycol existed due to the excessive usage scope of food flavoring.
3. China's domestic brand SexyTea announced the upcoming coffee-milk tea made with raw coconut. That's the first coffee-milk mixed product of SexyTea.
4. On 12 August, By-Health disclosed a probiotic with proprietary intellectual property rights LPB27, which is also a "native strain" of China. The research result has been published in many well-known journals like "Bioscience, Biotechnology and Biochemistry" and "Journal of Functional Foods"， and has obtained two national patents. LPB27 attracted extensive attention due to its excellent properties, such as resistance to gastric acid and bile salts, diminishing inflammation, relieving IgE mediated allergic symptoms, and other health-promoting functions.
5. Recently, Oatly voluntarily recalled its 12 batches of oat drink deluxe 330ml as a preventive measure due to its potential pathogen contamination.
Interesting &Noteworthy new products
1. COSTA has recently launched two new plant-based portfolios in the ready-to-drink sector, Oat Latte and Oat Mochaccino. Promoted by popular oat milk brands and cafés, oatmeal-based beverage has become a new market trend due to its low health burden and compatibility with coffee. The Meituan’s insight into coffee consumption in China indicated that oatmeal latte was ranked top ten by its rapid sales growth. Besides, Nielsen mentioned that COSTA's market share exceeded 10% in 2022.
COSTA botanical-based oatmeal coffee
2. KCoffee launched an edible oatmeal cup latte in China, which has been available online and offline from 15 August 2022. KFC claims that the new product is made of edible oatmeal shortcake. The latte part is made from roasted coffee beans and OLATY oat milk.
KCoffee Oatmeal Cup Latte
3. Chi Forest launched coke-flavor carbonated water on 10 August 2022. Compared with the most common Coke-cola, Chi Forest declared some innovations in its ingredient by changing the usage of food additives, like replacing sodium citrate with natural sodium citrate and using erythritol as sweetener.
Chi Forest Coke Flavor Carbonated Water
4. After the admirable success of its "Yi Zheng Gen Ginseng water", Hardcore Yan Research Institute Food Technology announced another new product, "Yi Zheng Gen No.2". The "No.2" is added with the "black truffle and oyster peptide" to its formula, with a new daisy flavor.
Yi Zheng Gen Ginseng Water
5. LELECHA and Perrier released two co-branding beverages. As a rising enterprise, LELECHA sells milk tea beverages and snacks and is very popular in tier one cities in China. The new co-branding beverages use natural mineral water as raw material.
LELECHA x Perrier
China's Domestic Dairy companies' 2022H1 financial reports
1. H&H reported the operating profit increased by 9.8% to 5.96 billion RMB. Net profits attributable to the parent company are 475 million RMB, with a YoY decrease of 5.2%.
2. China Feihe Ltd.'s 2022H1 report showed 11.54 billion RMB (1.67 billion USD) operating revenue, with a significant drop of 39.66% to 2.27 billion RMB (330 million USD) for shareholders' income.
3. Yili reported its total operating income rose by 12.29% to 56.29 billion RMB (8.13 billion USD). Net profits attributable to shareholders were 6.13 billion RMB (890 million USD), with YoY increased by 15.23%. In addition, Yili specifically mentioned a 58% YoY growth to 12.07 billion RMB on its milk powder and dairy products.
4. Ausnutria's first eight months of operating income was reported as a decrease by 15.1% to 3.63 billion RMB (520 million USD). Stakeholders' profit was 222 million RMB (32.08 million USD) with a YoY decrease of 62.93%. According to the statements of the 2022H1 financial report, Ausnutria's own formula milk powder decreased 37.6% under the impact of COVID-19 and restricted regulation.
5. New Hope Liuhe Co., Ltd reported the first half-year total sales of 62.32 billion RMB (9.01 billion USD), while the net loss is 4.14 billion RMB (600 million USD).
A2 2022 Annual Report
1. Oceania dairy company A2 reported the annual operating income increased by 19.8% for fiscal 2022 to 1.45 billion NZD (890 million USD). The EBITDA is estimated as 196.2 million NZD (120.2 million USD).
2. In Asia-Pacific, A2's annual revenue achieved a double-digit growth of 24.5% to 726 million NZD (444.83 million USD).
3. In fiscal 2022, China is the largest market for A2, which is also the main driver of performance growth. A2 claimed that last year's inventory management actions caused impressive progress, and China’s infant milk formula (IMF) sales growth was driven by the execution of refreshed growth strategy. The inventory management actions and refreshed growth strategy were first proposed by its revised FY21 outlook, aiming to rebalance the inventory levels by implementing a new traceable system, providing temporary support to key daigou/reseller customer and working with corporate daigou to drive distribution innovation.
1. As per the notification released on 2 August 2022, the State Administration for Market Regulation (SAMR) unveiled the draft version of Detailed Rules on Implementation for Technical Evaluation of New Functions of Health Food (Trial) and announced to solicit public comments. More details on ChemLinked.
2. Starting from 3 August 2022, no import declaration of citrus fruits, chilled white hairtail, and frozen horse mackerel from China's Taiwan is accepted, according to a notice released by the General Administration of Customs of China (GACC). More details on ChemLinked.
3. On 5 August, 2022, China National Health Commission (NHC) officially unveiled the 2022 National Food Safety Standard Legislation Plan. The plan involves 41 national food safety standards. More details on ChemLinked.
4. The NHC published the "14th Five-Year Plan for Food Safety Standard, Monitoring and Evaluation" (hereinafter referred to as Plan ) on 18 August, 2022 (The Five-Year Plan is China's top-level economic policy blueprint, which covers 2021-2025). The 14th Plan is designed for bringing up the guiding ideology, basic principle, and four objectives to accelerate the development of China's food safety standards, risk monitoring & evaluation, and work related to food nutrition. Check more details on ChemLinked.
5. On 20 August, 2022, CFSA opened 13 new food additives for public comments, including 11 new food nutrition fortifiers and 2 food additives with expanded application scope. More details on ChemLinked.
6. On 23 August, 2022, the China National Center for Food Safety Risk Assess (CFSA) opened 10 new food-related products for public comments, including 2 new FCM additives, 4 additives with expanded application scope, 3 new resins, and 1 resin with expanded application scope. More details on ChemLinked.
7. The NHC amended the "List of Bacterial Cultures for Foods" and the "List of Bacterial Cultures for Baby Foods" on 25 August, 2022. The two lists systematically revised the names and classification of bacterial cultures in line with international regulations and latest research. Bacterial cultures in the two lists are detailed to subspecies for the first time.More details on ChemLinked.