Recently, Zhejiang Dexin Food Technology Co., Ltd. (hereinafter referred to as "Dexin Food") signed a listing counseling agreement with Essence Securities to officially launch the A-share listing.
The establishment history of Dexin Food can be traced back to 2008, formerly known as Zhejiang Dexin Beverage Co., Ltd. In April this year, after restructuring and reorganization, the whole was changed to a joint-stock company and renamed Dexin Food.
According to the information on the official website, the company is one of the most important beverage ingredient suppliers in China's catering industry, and its main business is the research and development, production and sales of catering beverage ingredients. At present, the company's products include fruit and vegetable juice beverage thick syrup, flavored syrup, refined tea and tea soup, plant-based drinks and other beverage ingredient products.
Source: The company's official website
From the perspective of equity structure, Tianyan check shows that Li Zhiyong is the actual controller of the company, directly holding 7% of the shares, and indirectly holding 76% of the shares through the control of Shanghai Dexin Industry, with a total of 83% of the shares. It is also worth noting that more than ten years after its establishment, Dexin Food first introduced an external investor, CITIC Capital, which held 9.6% of the shares before the IPO.
<h3>1</h3>
<h3>From "single ingredient" to "integrated solution"</h3>
The catering industry has "meals" must have "drinks", and since the reform of the catering industry in the 1980s to make it prosperous, the drinks on the table have also undergone tremendous changes. From the initial free bowl of tea, to carbonated drinks such as soda and cola, to a variety of milk drinks, fruit juice drinks, until freshly squeezed juice drinks, grains and grains, etc., it has become the current beverage consumption trend in the catering industry.
Image source: Network
After years of development, the company's brands include Dexin Zhenxuan, ZhenguoXian, Pu'er Food Carving, Bei Duofen, Xinzhi Flavor, and Taste Picker. Among them, Dexin Zhenxuan is the first BIB packaged concentrated juice suitable for the current beverage machine in China; Zhenguo Fresh focuses on the combination of high-end juice and tea; Pu'er Food Carving is a standardized tea soup product created by the original leaf fresh extraction process; Bei Duofen's positioning is to provide raw materials and flavored syrup for the coffee system; Taste Picker focuses on the combination of traditional Chinese food culture and advanced plant extract technology; Xinzhi flavor is a new brand that tries food technology and innovation, and now has thick coconut coconut milk and other products.
Some of the company's brands
It is worth noting that in addition to product innovation, the company is also upgrading its business model. On the one hand, it provides product concept design and formulation development services for well-known brands. For example, it provides Seasoned Syrup, Juice Concentrate, and Flavored Milk Drinks for Starbucks; provides Osmanthus-Sour Plum Soup for Haidilao.
Some customer-customized product displays
On the other hand, the company provides a variety of models of beverage machines for hotels, catering chains, etc., including hot and cold drink pre-mixing machine, juice dispenser, hot drink dispenser, etc., to solve the needs of large passenger flow of ready-made drinks.
Hot and cold drink pre-mixer
With the company's strategic mode adjustment from "single ingredient" to "comprehensive solution", in terms of production capacity, the company has three factories in Jiaxing, covering the first aseptic filling line of concentrated fruit juice products in China, solid powder production line, BIB production line, PET production line, sterile PET cold irrigation line, tea production line, etc.
<h3>2</h3>
<h3>The industry faces transformational challenges</h3>
In recent years, with the improvement of residents' consumption level and the upgrading of consumption structure, China's soft drink industry has shown an overall good growth trend, and the data shows that it is expected that by 2025, the industry will grow to 777.1 billion yuan at a compound annual growth rate of 6.3%.
However, from the perspective of the specific competition pattern, due to the attraction of the dividend track, a large number of enterprises have grabbed the beach to lay out the industrial ecology, and the competition in their industries has become more and more intense.
Only from the market share of Chinese juice beverage enterprises, the sum of Coca-Cola, Wei whole food and Huiyuan juice accounts for half; at the same time, in terms of brand dimension, in the top 20 brands in China's milk beverage industry in 2020, Coca-Cola occupies four, PepsiCo and Unification occupy two, and the rest of the enterprises occupy only one. It can be seen that the company is facing the pressure of competing with the industry's dominant leaders for market share to a certain extent.
On the other hand, due to the strengthening of consumers' concept of health, the upgrading of demand for taste, and the acceleration of product iteration, the soft drink market has appeared more obvious differentiation. Among them, energy drinks represented by Dongpeng Beverage, sugar-free drinks represented by Yuanqi Forest, and new tea drinks represented by Naixue's tea and Xi tea are favored by the market. The growth rate of basic categories such as protein drinks and solid beverages has shown signs of slowing down, which shows that the company is also facing the challenge of product upgrading brought about by industry transformation to a certain extent.
<h3>3</h3>
<h3>brief summary</h3>
In fact, China's beverage industry has a market size of 100 billion, the slope is long and snowy, but driven by product upgrades and category changes, beverage companies want to expand market share, enhance the number of industry seats, or need to continuously strengthen the construction of the moat, that is, continuous product innovation and strong distribution channels, after all, the flow of water is not competing, the competition is endless, sustainable core competitiveness is the driving force for the sustainable development of enterprises.