Zhitong Finance and Economics learned that China Securities Construction Investment issued a research report saying that the rapid development of the snack industry has had a huge impact on the supply of the snack industry. Highly discounted snacks, rapidly iterating new products, and emerging new categories have greatly promoted consumers' demand for in-store purchases, and supply-side snack manufacturers have established a rapid product development system, optimized and upgraded raw material procurement and factory construction, and channel providers have continuously improved turnover efficiency and reduced capital occupation. At present, the snack industry is undergoing the transformation of the whole industry chain from upstream to downstream, both manufacturers and channel providers are improving efficiency, and many investment opportunities have emerged.
The main views of CSC are as follows:
BESTORE announced the price reduction of 300 products and the announcement of senior management changes
BESTORE said that it will implement the largest price reduction in 17 years for the business side, with an average price reduction of 22% and a maximum price reduction of 45% for 300 products, mainly focusing on snacks with cost optimization but not affecting quality and high repurchase rate. The board of directors of BESTORE elected Yang Yinfen, one of the founders, as the chairman and general manager, and Yang Hongchun, the former chairman and general manager, resigned to maintain the status of the company's major shareholder and actual controller.
BEPIN reversed the way of playing and embraced the era of cost-effective snacks
The company announced a price cut for more than 300 top-notch and popular products with an average price reduction of 22% and a maximum reduction of 45%, focusing on snacks with cost optimization but not affecting quality and high repurchase rate. The price reduction space is mainly in: 1) raw material procurement is more optimized;2) The product series is retained in the complexity, the long-tail SKU is reduced, and the large single product series is concentrated3) Improve operational efficiency and save management and other costs. With many years of first-class chain resources, the company is expected to find a suitable balance between quality and quality, and continue to provide consumers with high-quality snacks. The price reduction is conducive to improving the number of stores and increasing the sales volume of the store, and the follow-up can continue to increase the revenue of a single store by virtue of the reputation of the Hubei region for many years and the upgrading of store services, and the company's membership system can also push suitable products according to the consumer's purchase Xi.
The dual-brand operation of BEP Company is more flexible and covers a wider range of people
In the future, BESTORE and Snack Stubborn will continue to operate independently, and there are differences in the positioning groups of the two, BESTORE is positioned as a medium and high consumer, and Snack Stubborn is positioned in the sinking market and concurrently sells bulk products. The original R&D system of BEPIN will continue to be retained, especially some products that are innovative and functional and thus enjoy premium will continue to be incubated and developed under the BEPIN brand. Since the beginning of the year, the company has tried to build a model of snack stores, and the current model has been run through and opened a certain number of stores, and will expand in Wuhan and Hubei in the future. Dual-brand operation, the company has a more flexible model to cope with the current industry competition, and the multi-level product system is conducive to the company's coverage of a wider range of people.
Production-oriented snack companies are changing rapidly, and they are optimistic about companies with strong chain capabilities and product development capabilities
Among the production-oriented companies, Yanjin Shop, Ganyuan Food, and Jinzai Food have achieved the fastest growth rate because they were the first to embrace the mass sales discount channel, while Weilong and Qiaqia, which are also production-oriented companies, have lagged behind in the transformation because of their large volume and the consideration of the stability of the price of traditional distribution channels. However, on the whole, production-oriented companies have the advantage of large-scale production, strong control of raw materials and higher-quality products, and once the price and specification are adjusted, they can enter new channels to obtain new increments. In the future, with the increase in the number of mass-sold snack stores and the increase in the number of SKUs in stores, production companies will continue to enjoy incremental opportunities. Compared with traditional circulation channels or modern KA channels, the speed of competition, debranding and product iteration of the mass snack system is more upgraded, and companies with strong chain capabilities and product development capabilities can achieve long-term development. Companies in the industry have already laid out the construction of the first chain early, such as Yanjin Shop to build a mango factory in Southeast Asia, Jinzai Food to purchase small fish in Southeast Asia, and negotiate cooperation with farmers.
Channel-based snack companies are gradually adjusting and are optimistic about companies with high operating efficiency
Channel-based food companies do not directly control the factory and production, do not have an absolute cost advantage, and essentially earn the difference between procurement and sales, which has a great overlap with the function of the mass snack system, so the channel company can not enter the internal sales of the mass snack system, and can only establish a similar system by itself. With the intensification of competition in the industry and the downgrading of consumption, cost performance has become a trend in the snack industry, BESTORE proposes to reduce prices without reducing quality, create a snack stubborn home, and position the sinking market. The procurement side of the channel-based company needs to have sufficient cost advantages, the first chain needs to be continuously optimized, the sales end store operation management, product upgrade iteration, product control also need to be accurately grasped, the cost advantage and the high turnover of the store need to be met, the management ability of the enterprise is put forward high requirements, optimistic about the company with high operating efficiency.
The era of cost-effective snacks is coming, and those with high quality and good price and high efficiency win. On the cost side, oil, packaging materials, poultry meat, etc. continue to fall, Ganyuan has begun to enjoy the decline in oil and fat since the beginning of the year, and the cost decline dividend of duck by-category of Juewei Food has begun to be reflected in the report, and the downward trend of sunflower seed raw materials of Qiaqia Food has been determined, the cost of companies in the sector is controllable, and the revenue growth rate is the main determinant of stock price. In the early stage, the leisure snack sector has undergone a round of adjustment, and the valuation of many companies is currently in place, and high-growth targets continue to enjoy allocation value.
Risk Warning:The promotion of new products is not as expected, and the newly launched products may not meet the tastes of consumers;The expansion of new channels is not smooth, the snack franchise channel may reach a peak, and then the growth rate slows down, and the fierce competition in the industry makes the efficiency of a single store declineCompetition in the snack industry has intensified, and various brands have greatly discounted in order to seize market share, which has reduced the profit level of the industryFood safety risks, consumers are sick due to the adulteration of undesirable substances in the production process and storage process, which affects the reputation of the company and the industryResidents' income for food has decreased, household snacks have been purchased, and white-label products have regained popularity due to low prices.