Recently, Hangzhou Dingjin Food *** issued a notice announcing that from November 1, the recommended selling price of the medium-packaged tea and juice series of the Master Kong brand will be gradually adjusted to no less than 3 per bottle5 RMB. This news has aroused the attention and discussion of the majority of netizens, and many people lamented that the high-quality and inexpensive drinks have lost their relatively high cost performance. However, Master Kong officially said that he had not received official documents and could not confirm the authenticity of the matter.
According to the national enterprise credit information publicity system, Hangzhou Dingjin Food *** is one of the wholly-owned subsidiaries of Master Kong Beverage Investment (China)**, responsible for the production and sales of beverage products in four provinces and one city in East China. The reporter interviewed Master Kong Beverage Official and **Master Kong Drink***, but the former did not give an answer, and the latter said that according to the company's overall strategy, they are continuing to adjust the ** related commodities during the Double 11 promotion event on the **platform**.
Fortunately, in the current **Master Kong drink***, Master Kong's 500ml tea and juice series products are still at 3Prices are under 5 RMB. In fact, in some offline supermarkets, Master Kong's tea and juice series products have not increased in price with the ** adjustment. For example, in a supermarket in Beijing's Haidian District, the price tag for Master Kong's 500ml tea and juice series remains at $2 per bottleIt is around 8 yuan, while the list price of the 1-liter product is stable at 45 RMB.
The reason for the ** adjustment is that Master Kong is facing increasing cost pressure. According to the data provided by Haitong** Research, the proportion of raw material production and labor, white sugar, fruit juice and other raw materials in the cost composition of the soft drink industry is about % and 15% respectively. It is worth noting that among Master Kong's two main products, iced black tea and green tea, white sugar ranks second among the ingredients. In recent years, the sugar market has continued, which has brought huge cost pressure to Master Kong.
Zhu Danpeng, an expert in the food industry, said: "Although some raw materials in the beverage production process have been reduced, the expenses of enterprise operation and management expenses, labor costs and sales channels have increased year by year. "It should be emphasized that Master Kong has attracted public attention many times because of his pricing strategy. Previously, it was reported that from the third quarter of 2021 to the first quarter of 2022, Master Kong had implemented different price increase strategies for some of its instant noodle products. It is widely believed in the industry that this adjustment may be due to the pressure caused by the continuous cost of raw materials.
At the same time, ** has also brought considerable profit growth to Master Kong's instant noodle business. According to Master Kong's 2023 interim report, in the first half of the financial quarter, the Group's instant noodle business revenue reached RMB139.5 billion, an increase of 297%, accounting for 34% of the group's total revenue10%。In addition, due to the impact of product selling prices and raw material advantages, the gross profit margin of the instant noodle business jumped by 5 year-on-year2 percentage points to 2583%。
Among Master Kong's various businesses, the importance of the beverage business is self-evident. According to the 2023 interim report, the total revenue of Master Kong's beverage business in the first half of the year reached 2660600 million yuan, an increase of 9% over the same period last year5%, accounting for 65% of the group's total revenue04%。
From the perspective of the industry, if Master Kong adjusts its beverage system, it is believed that it will have a positive effect on sales. In recent years, due to the continuous production costs** and other related factors, the beverage market has continuously seen news of rising prices of various commodities. According to ** reports, in May this year, a number of sales terminals Coca-Cola products were also adjusted.