In the first three quarters of 2023, the profitability of snack companies is generally low, and with the merger of many companies one after another, the war is expected to ease.
Fang Liwen. On November 10, the two major domestic snack brands "Snacks are Busy" and "Zhao Yiming Snacks" announced a strategic merger.
The two parties reached a definitive agreement, after the merger, the two companies will remain unchanged in terms of personnel structure, and retain their respective brands and businesses to operate independently, Yan Zhou will continue to serve as the CEO of "Snacks is busy", Zhao Ding will continue to serve as the CEO of "Zhao Yiming Snacks", and Yan Zhou will also serve as the chairman of the group company.
The industry pattern is gradually clear
At the end of September 2023, Wanchen Group announced that its subsidiary plans to purchase 100% of the equity of Ningbo Boquan Commerce*** (hereinafter referred to as "Ningbo Boquan"), which is the operator of the snack chain retail brand "Wife" in Zhejiang, for 8.68 million yuan.
In April 2021, Wanchen Biotech was successfully listed, and its main business is the research and development, factory cultivation and sales of edible fungi. In August 2022, Wanchen Group set up a subsidiary, established the "Lu Xiaoyu" brand, and entered the snack mass sales trackIn October, Wanchen Group integrated its four major brands, Lu Xiaoyu, Nadi Didi, Hao Xiang Lai, and Lai Youpin, and merged them into "Hao Xiang Lai".
According to the official website of Haoxianglai, there are currently more than 4,000 stores in operation across the country, and it is expected that the number of stores nationwide will exceed 10,000 by the end of 2024, becoming the first 10,000-store brand in the industry.
Multiple mergers and acquisitions have also changed the main business of Wanchen Group. In 2022, Wanchen Group's revenue from edible fungi and mass-sold snacks will account for .12%。In the first half of 2023, the revenue of edible mushrooms and mass-sold snacks will be 26.8 billion yuan, 194.9 billion yuan, accounting for ., respectively91%, mass selling snacks has become the company's largest main business.
On November 10, the two major brands of domestic mass snack "Snack is Busy" and "Zhao Yiming Snacks" announced a strategic merger, and the existing market pattern of the snack industry has undergone major changes. According to the "Top 30 Mass Merchandising Snack Chain Brands in 2023" released by Lianshang.com a few days ago, the number of stores in Snack is Busy, Wanchen Group, Zhao Yiming, and Snack Youming are +;In addition, the number of love snacks, sugar nests, and snacks has exceeded 1,000.
According to public information, Snacks is very busy headquartered in Changsha, Hunan, and as of now, the number of stores nationwide has exceeded 4,000. Zhao Yiming Snacks is headquartered in Yichun, Jiangxi, and currently has more than 2,500 stores nationwide.
According to the analysis of Founder** research report, since 2023, various mass-selling snack brands have accelerated the opening of stores, and the snack is very busy, with more than 3,000 stores in June and 4,000 in October, and 1,000 new stores in only 4 monthsThe number of Zhao Yiming's snack stores exceeded 1,000 in February, 2,000 in August, and 2,500 in October.
Through staking and continuous mergers and acquisitions, the snack industry has shown a two-strong market pattern. According to the data, there are currently nearly 20,000 snack stores in the country, including 6,500 snack brand stores and more than 4,000 Wanchen brand stores.
It is expected that the future industry pattern will be presented as a small number of national brands + some regional leaders + differentiated business enterprises, and enterprises that take the lead in seizing the dominant point + have the advantage of ** chain and management ability + have the ability to differentiate will successfully break through.
In July 2023, it was reported that "Snacks is busy" is considering listing on the A** market in mainland China or Hong Kong, China, and may raise $100 million to $200 million. In this regard, in August 2023, Snack is very busy and said that the company has no clear plan for listing and financing. If the company is successfully listed, Snacks is busy and is expected to further consolidate its leading position.
**The battle may slow down
According to iiMedia Research, from 2010 to 2022, the market size of China's snack food industry continued to grow, from 410 billion yuan to 1,165.4 billion yuan, and it is expected that the market size of China's snack food industry will reach 1,237.8 billion yuan in 2027.
According to the statistics of the China Business Industry Research Institute, in 2022, China's generalized leisure snack market space will exceed 15 trillion yuan, with a compound growth rate of more than 10% in the past five years.
According to Euromonitor International data, the market size of packaged leisure snacks in the narrow sense (excluding non-packaging, baking, etc.) reached 482.3 billion yuan, with a compound annual growth rate of 4 in the past five years6%。
In terms of consumption, the per capita consumption of snacks in China is only 215 kilograms, about 1 3 of Japan, 1 6 of the United States, has broad development potential.
The broad prospects of the snack industry have also attracted a lot of capital. Tianyancha information shows that in February 2023, the snack brand "Zhao Yiming Snacks" will complete the investment led by Black Ant Capital and followed by BESTORE500 million yuan in Series A financing, this is the first time that Zhao Yiming snacks have opened for financing. In May, the snack wholesale chain brand "Snack Youming" announced the completion of the B+ round of financing.
After the two companies got a lot of financing, the ** war was about to break out.
On July 4, Zhao Yiming hit 55% off, and recently snacks are very busy new poster announced a full 520% off. There is no doubt that a ** war triggered by snack collection stores has begun.
According to the data, in August 2019, Zhao Yiming's first franchise store opened;In October 2022, the total number of stores exceeded 500;In February 2023, the total number of stores will exceed 1,000;In August 2023, the total number of stores exceeded 2,000. According to the data on the official website, as of October 2023, the total number of snack stores will reach 4,000+, and according to the calculation of 7 new stores opened in one day, it is expected that the number of snack busy stores will reach 5,000 by the end of the yearIn 2022, the number of Laiyifen stores will exceed 3,500, and the number of BESTORE stores will exceed 3,000.
According to the data, by the end of 2022, the total number of snack stores in China reached 1About 30,000, Huachuang** related research reports estimate, it is expected that the total number of snack stores will reach 30,000 in 2025.
Although the total number of snack stores will increase significantly in the future, since 2023, major snack wholesale companies have started mergers and acquisitions.
In August, Love Snacks announced the wholly-owned acquisition of Sichuan mass snack chain brands Dinosaur and Teddy, and Snacks was very busy announcing a strategic investment of tens of millions of yuan in the store. In addition, snacks are very busy, and they have successively invested in brands such as Henan Wang No and Shaanxi Xixi Snacks.
In September, Ai Snacks wholly acquired Guizhou Hu Weihong Snacks.
In October, Hunan snack brand Love Snacks announced the acquisition of Shaanxi snack brand Snack Bubbles. At present, the number of stores under Ai Snack exceeds 1,400. On October 24, the snack cabin in South China strategically integrated the Guangdong snack chain Mome, and the number of stores after the merger exceeded 600.
However, with the announcement of the strategic merger of "Snacks are Busy" and "Zhao Yiming Snacks" on November 10, as well as the successive mergers of many companies in the snack industry, the fierce battle in the early stage of the industry is expected to be alleviated.
Profitability is expected to improve
In 2020, BESTORE's operating income was composed of: e-commerce business accounted for 4977%, franchise sales accounted for 2127%, direct sales accounted for 1648%, *522%, franchisee management accounted for 457%。
In the first half of 2023, BESTORE achieved a total revenue of 398.7 billion yuan, a year-on-year decrease of 1855%；The net profit attributable to the parent company after deducting non-profits was recorded at 1$2.4 billion, a decrease of 349 percentage points, the first time since 2015 that revenue and net profit declined. Among them, the sales of e-commerce business, which has long contributed more than half of the total revenue, have declined sharply year-on-year for two consecutive quarters92%。
The offline performance is also not very optimistic. As of the end of the reporting period, the total number of offline stores of the company was 3,299, a net increase of only 73 stores from the end of 2022, and 250 stores were closed. At the previous results conference, BESTORE had expected to open 1,000 new stores in 2023, which means that more than 28 new stores will be launched every week on average in the second half of the year.
In the first three quarters of 2023, BESTORE achieved revenue of about 599.9 billion yuan, a year-on-year decrease of 1433%；The net profit attributable to shareholders of the listed company was about 19.1 billion yuan, a year-on-year decrease of 3343%。
In the first three quarters of 2023, another leading snack industry, Yanjin Shop, achieved a total operating income of 300.5 billion yuan, a year-on-year increase of 5254%；Net profit attributable to shareholders of the parent company 39.6 billion yuan, a year-on-year increase of 8107%；Non-net profit was 37.6 billion yuan, a year-on-year increase of 9503%。
In the first three quarters of 2023, Laiyifen achieved revenue of 300.2 billion yuan, down 7 percent year-on-year61%；The net profit was 4.54 million yuan, down 93 percent year-on-year57%；The non-net profit loss was 31.46 million yuan, a year-on-year decrease of 16612%, profit decline. From the perspective of net profit, Laiyifen has lost money for two consecutive quarters in the second and third quarters.
Wanchen Group achieved revenue of 4.9 billion yuan in the first three quarters of 2023, a year-on-year increase of 126475%；The net profit attributable to the parent company was -56.56 million yuan, a year-on-year increase of **25067%；The non-net profit was -62.88 million yuan, a year-on-year increase of 34217%。
The data shows that in 2022, Zhao Yiming's snack revenue will be 121.5 billion yuan, with a net profit of 38.44 million yuan;In the first half of 2023, the company's operating income will reach 278.6 billion yuan, with a net profit of 76.31 million yuan.
Judging from the first three quarters of 2023, the net profit margin of Yanjin Shop is 1343%, BESTORE net profit margin of 318%, Laiyifen net profit margin of 015%, Wanchen Group's net profit margin was -279%, Zhao Yiming's net profit margin of snacks was 274%。On the whole, in the first three quarters, among the major snack companies, the profit margin of Yanjin Shop was relatively high, and the overall profitability of other companies was low.
After the merger of many snack companies, the profitability of the entire industry is expected to continue to improve as the war slows down.