Fuling mustard ushered in a new change in management. Zhou Binquan, chairman of Fuling mustard and 23-year helmsman, recently retired.
For Fuling mustard, Zhou Binquan is a legendary helmsman. Since joining in 2000, he has led the "bankrupt and insolvent state-owned mustard enterprise" to gradually grow into the "No. 1 mustard stock".
Today's Fuling mustard is facing problems such as unstable performance and price increases that do not meet expectations. Soon, a new chairman will be elected for Fuling mustard, and how will the new helmsman continue to carry the banner of Fuling mustard?
23 years at the helm retired and left office.
Fuling mustard announced on December 11 that Zhou Binquan will no longer serve as the company's director, chairman, chairman of the board of directors' strategy committee and any other positions because he has reached the statutory retirement age.
For Fuling mustard, Zhou Bin is the soul of the company's development history. According to the data, in 1988, Fuling mustard was established. Due to the gradual backwardness of handmade workshops and the small annual output, the production and operation of enterprises are becoming more and more difficult. By the end of 1999, Fuling mustard was heavily indebted and insolvent.
In 2000, Zhou Binquan was transferred to Fuling Mustard Group as Secretary of the Party Committee, Chairman and General Manager. In order to save Fuling mustard, he led the team to inspect and learn the development model and advanced technology of foreign factories, and then started the reform Xi of production technology, built the industry's first fully automated production line in 2005, and realized the industry's first digital production workshop in 2019. This also greatly improved the production efficiency of Fuling mustard, and in 2001, it turned losses into profits, and its sales revenue exceeded 100 million yuan.
In order to open up the brand awareness of mustard, Zhou Binquan also took the company to the road of brand development. In 2004, he spent a huge amount of money to win CCTV advertisements and invited Zhang Tielin to be the spokesperson, which made the brand "Wujiang mustard" quickly popular. It also continues to excavate the century-old unique art of "three cleanings and three washings, three pickles and three squeezing" of Fuling mustard, insight into and grasp consumers' needs for hygiene, safety, health and deliciousness of mustard, cancel the addition of preservatives, pioneer emulsion excipients, use nitrogen preservation and aluminum foil packaging, and launch light salt products.
Since then, Fuling mustard has gradually become a national mustard, and was listed in 2010, becoming the "first stock of mustard". In the year of listing, the operating income of Fuling mustard reached 54.5 billion yuan, and the net profit reached 55.74 million yuan. By 2022, the operating income of Fuling mustard will reach 254.8 billion yuan, net profit reached 89.9 billion yuan.
Multiple price increases. During Zhou Binquan's tenure, the overall performance of Fuling mustard has improved significantly. However, in recent years, there is no shortage of problems with Fuling mustard.
First of all, revenue and net profit are unstable. The financial report shows that from 2020 to 2022, the revenue of Fuling mustard will be 227.3 billion yuan, 251.9 billion yuan, 254.8 billion yuan, a year-on-year increase18%, the growth rate is decreasing year by year. The net profit for the same period was 77.7 billion yuan, 74.2 billion yuan, 89.9 billion yuan, year-on-year changes14%。In the first three quarters of 2023, Fuling mustard will have a decline in revenue and net profit, achieving revenue of 195.2 billion yuan, down 461%；Achieved a net profit of 65.9 billion yuan, down 5 percent year-on-year34%。
In this regard, the explanation given by Fuling mustard mainly involves the cost of raw materials, and the 2023 semi-annual report further disclosed that the acquisition of green cabbage is about 40% compared with the same period last year.
In order to cope with the cost problem and obtain better revenue, Fuling mustard chose a price increase strategy. In November 2021, Fuling Mustard disclosed that based on the continuous cost of main raw materials, packaging materials, auxiliary materials, energy, etc., as well as the rising cost caused by the optimization and upgrading of products, it was decided to adjust the factory ** of some products, with an increase of 3%-19% for each category. Since 2008, the price of Fuling mustard products has been directly or indirectly raised more than 10 times.
However, some people in the industry believe that Fuling mustard relies on price increases to stimulate the market is not a long-term means, and the mustard market may have reached the market ceiling.
In addition, in order to get rid of the risk of simplification, Fuling mustard entered the kimchi and radish industries, and invested in the construction of a kimchi production base construction project with an annual output of 50,000 tons in Liaoning Kaiwei Food in 2018. However, from 2021 to 2022, the proportion of radish revenue will only account for23%, and the revenue ratio of kimchi is .45%, the effectiveness of diversification remains to be seen.
Zhang Ji, chief consultant of Shanghai Zhihui Marketing Consulting, believes that the diversified layout of Fuling mustard is correct, but it may encounter resistance. Diversification depends on how the company enables consumers to turn mustard into an appetizer.
A successor surfaced.
Zhou Bin left office, who is his successor?
Fuling mustard's recent announcement revealed that Zhou Binquan was removed from the position of secretary and member of the party committee of Fuling mustard, and Gao Xiang held the above positions. The announcement on December 11 disclosed that the company's board of directors decided to nominate Gao Xiang as a non-independent director candidate. According to speculation in this world, Gao Xiang may become the next chairman of Fuling mustard.
According to the announcement, Gao Xiang, born in October 1981, has a master's degree, and served as Secretary of the Party Committee and Director of the Economic and Information Commission of Fuling District, Chongqing before serving as Secretary of the Party Committee of Fuling Mustard. Previously, he served as a cadre of the Agricultural Office of Zili Township, Fuling District, a staff member and deputy director of the Party and Government Office of Zili Township, a chief staff member and chief of the Propaganda Section of the Propaganda Department of the Fuling District Party Committee, the director of the Fuling District Local Chronicles Office, the deputy director of the Party History Research Office of the Fuling District Party Committee, the director of the District Local Chronicles Office, a member of the Party Working Committee and deputy director of the office of Longqiao Street, Fuling District, the deputy secretary, township head and secretary of the Party Committee of Tongle Township, Fuling District, and the secretary of the Party Committee of Tongle Town, Fuling District. Judging from his resume, Gao Xiang has no relevant experience directly engaged in the mustard industry.
On December 13, the relevant personnel of the ** department of Fuling mustard told the Beijing News reporter that the company's future chairman of the board of directors still needs to go through the election of the board of directors and other procedures, and relevant work is in preparation. Regarding Zhou Binquan's next step, the staff member said that after Zhou Binquan left office, he would no longer participate in any matters of the company, and his next destination was not clear.
Beijing News reporter Liu Huan.
Edited by Li Yan.
Proofread by Liu Baoqing.