The first position of the vinegar track is unstable, and the Hengshun vinegar industry of "not doing the right thing" has slimmed down and changed blood

China Business Daily (reporter Ma Jia) to the Shanxi old vinegar market "open fire", the company's senior management "blood change" after the Hengshun vinegar industry recently announced the liquidation of real estate business, focusing on the main business of condiments. In less than half a month, there have been three "big moves", in the eyes of industry insiders, the purpose of this series of actions of Hengshun vinegar industry may be to sit on the throne of the first place in the vinegar industry.

Hengshun Vinegar Industry, which "does not do the right thing", is determined to return to the main business

In the eyes of industry insiders, to the Shanxi old vinegar market "fire", the company's senior management "blood change", out of the real estate business, Hengshun vinegar industry every step of the move shows the determination to return to the main business. Food industry analyst Zhu Danpeng told the China Business Daily reporter that hengshun vinegar industry's top priority is to grab more market share in its main industry vinegar field. There are too many side businesses and too long fronts, which will drag down the overall performance of Hengshun Vinegar Industry.

At the end of November this year, Hengshun Vinegar first withdrew the remaining 35% stake of its subsidiary, Shanxi Hengshun Lao Chen Vinegar Co., Ltd., from its partners, and then resigned as its current general manager, and took up the post of new marketing director who served as senior sales manager in Lee Kum Kee, general manager at HaoJi Foods and national sales director. On December 14, Hengshun Vinegar industry issued another announcement, saying that it had divested its real estate business and returned to its main condiment business.

"Not doing the right thing" or let Hengshun vinegar industry taste some bitterness. According to the financial report of Hengshun Vinegar Industry in the first three quarters of this year, in the first three quarters of this year, Hengshun Vinegar Industry's operating income and net profit both fell year-on-year, of which the net profit in the third quarter fell by more than 90% year-on-year. Zhu Danpeng believes that Hengshun vinegar industry not only failed to do a good job in the national market layout, but also lost its own advantageous position. When the development of the main business is not prominent enough, the layout of the wine industry and soy sauce will disperse the overall resources of the enterprise. The demand for performance, profit and market value management are all the reasons for the frequent changes in Hengshun Vinegar Industry's plans and return to its main business.

How hard it is to break through the vinegar jianghu

It is worth noting that hengshun vinegar industry's "non-doing business" may have its own internal reasons. As of now, there is no such thing as the haitian flavor industry in the soy sauce track, and the listed company has only one Hengshun vinegar industry, but its "first" position is very unstable, and the players of other tracks are looking at the tiger, Andi flavor industry, Zhongju High-tech, Lee Kum Kee and other enterprises have successively entered the vinegar track, with its distribution channels to quickly occupy the market, Zilin vinegar industry, water tower vinegar industry are also planning the road to listing.

Zhang Liming, director of the Hua sugar yunshang condiment industry research center, told the China Business Daily reporter that compared with the soy sauce industry, the concentration of the vinegar industry is not high. In the vinegar track, the scale of Hengshun vinegar industry is already the largest, and other vinegar companies are far inferior in scale to Hengshun vinegar industry. Such as Zilin, Water Tower, East Lake and many other well-known domestic vinegar enterprises, the scale is very limited. This is because the track is very regional. Eating sour vinegar in the north and balsamic vinegar in the south, it is difficult for a company to meet the demand for vinegar for the people of the whole country at the same time. The characteristics of many brands, small and scattered in this track also make it difficult for enterprises to break through.

Enterprise investigation data show that there are more than 6,000 vinegar production enterprises in the country, but 70% are workshop-style small enterprises, and the concentration of the vinegar industry is less than 15%. In the second half of this year, the tide of price increases in the condiment industry struck, and the right to speak of vinegar companies was very weak. A grain and oil market distributor in Beijing told the China Business Daily reporter that among the many condiment products, the profit of vinegar is relatively low, and there are many problems in sales. Many restaurants do not even need to use the brand's small package of vinegar, more to buy large packages of vinegar. The amount of vinegar required for supermarket retail is very small, and consumers will not care too much about the brand.

The "Vinegar King" throne is spent on whose house

Or because it wants to seek a breakthrough, Hengshun Vinegar industry will expand its business from vinegar to cooking wine, soy sauce and compound condiments. At present, Hengshun Vinegar Industry still has a large number of non-main business assets. According to tianyancha data, Hengshun vinegar industry has invested in nearly 30 enterprises, in addition to the divested Hengshun mall, it also has Hengshun shopping mall with operating income and net profit declining. Will it further "slim down"? The China Business Daily reporter called to inquire about Hengshun Vinegar Industry, and the other party said that everything was subject to the announcement issued by the company.

It is worth noting that, or due to the low concentration of the vinegar track, the players of other tracks are increasing the vinegar business. According to the statistics of China Condiment Association, the vinegar production under Haitian Flavor Industry has grown rapidly, and has now surpassed the water tower vinegar industry to become the third in the industry; and the Zilin vinegar industry, which produces "Shanxi old vinegar", has long ranked second in the industry in terms of output, and the company is still building new production lines to further expand its production capacity under the condition of maintaining a high capacity utilization rate.

Can Hengshun Vinegar Industry retain the throne of the first place in the vinegar industry? In the tide of condiment price increases, Hengshun Vinegar Industry also released a large-scale fundraising and expansion plan after taking advantage of the trend to raise prices. Hengshun Vinegar Industry said that after the completion of the expansion plan, the annual output of vinegar may approach 400,000 tons. An analyst in the condiment sector of a financial institution admitted that it will take some time for the production capacity of Hengshun vinegar industry to be cashed, but the production capacity of comprehensive condiment enterprises such as Haitian Flavor Industry and Zhongju High-tech has been cashed. Enterprises such as Haitian Flavor Industry have perfect dealer channels, which may lead to the threat to the "first throne" of Hengshun Vinegar Industry in the vinegar track. At the same time, Hengshun vinegar industry's "toss" or has not yet ended, if it still fails to focus on the development of the main business, continue to "buy, buy and buy" and "sell sell" model, follow-up performance will still be difficult to grow.