The price increase of Haoliyou for the first time in 11 years, the "chocolate pie" under the "sugar-free wind" is still good

After Dali Foods and Coca-Cola announced price increases, Haoliyou also joined the price increase team. On August 25, the relevant person in charge of Haoliyou confirmed to the Beijing Business Daily reporter that due to the rising cost of raw materials and labor, the price of some of Haoliyou's distribution products will rise from September 1, which is the first time in the past 11 years that the price of China's Haoliyou products has increased. In the view of industry insiders, in recent years, consumer health awareness has been continuously improved, the sales growth of products such as Haoliyou chocolate pie has slowed down, coupled with the cost increase problems faced by various industries, the price increase of some of Haoliyou's products seems to be a helpless move. "One of the most direct and effective ways to deal with rising costs is to raise prices, but in a competitive market, price increases may affect consumers' good feelings about businesses." Industry insiders said.

The price of some distribution products has increased

On August 25, the relevant person in charge of Haoliyou said in an interview with the Beijing Business Daily reporter that in recent years, raw materials, packaging materials and labor costs have been rising. After research, the company decided to adjust the price of some of its products in the pie category from September 1, 2021, and the prices of other products such as biscuits, puffed, candy and other series remain unchanged.

It is reported that the price of 4 types of pie products in the Chinese market will be raised by about 6-10 percentage points, including products such as "chocolate pie" and "Q ti".

At present, the pie products sold in the Tmall flagship store of Hollywood Food mainly include chocolate pie, Q ti, cocoa pie, panda pie and so on. Taking chocolate pie and Q ti as an example, the price of 30 pieces of chocolate pie is 33.9 yuan, and the price of Q Timoka flavor pie in 20 pieces is 31.9 yuan, and the price adjustment is about 2-3 yuan.

In fact, it is not the Haoliyou family that raises the price of its products. Since the beginning of this year, Dali Food, Coca-Cola, Nestlé and other enterprises have reported price increases, and the food and beverage industry has ushered in a collective price increase. Dali Foods announced that it will adjust the prices of some of its three series of food products from August 16. On April 19, Coca-Cola CEO Zhan Kunjie said in an interview that it would respond to the impact of rising costs by raising beverage prices. In July, Nestlé said it expected input costs to rise by about 4 percent in 2021, so the company needed to speed up price increases, expecting prices to rise by about 2 percent to offset the 4 percent increase in cost inflation.

In the view of Shen Meng, director of Chanson Capital, the global monetary easing policy has led to the rise of upstream raw materials to a certain extent, and this rise is not short-term, which is difficult for some intermediate manufacturers to digest themselves, and can only be transmitted to downstream consumers through product price increases, otherwise for intermediate manufacturers, it is not only the contraction of profit margins, but also the loss of enterprise bankruptcy.

According to the data, Hollywood Group was founded in 1956 and belongs to the four major food companies in Korea along with Lotte, Nongshim and CJ (Xijie). In 1995, Hollyo entered the Chinese market, and in 1997, the first production line of the Langfang factory in Hebei Province was completed and put into operation. Since entering the Chinese market, Haoliyou has successively launched Haoliyou Pie and Ah! Potatoes, potato wishes, friends fun, a lot of fish and other nearly 30 products.

Find new growth points

In the eyes of industry insiders, from the perspective of development in recent years, the growth of Haoliyou's traditional products represented by "chocolate pie" lacks momentum, which is also one of the reasons for the price increase of some of its products.

According to the data, in 2016, The revenue of Haoliyou in China reached 7.718 billion yuan. Revenue in 2017 fell to $5,155 million. In 2018, The performance of Haoliyou China resumed growth, with revenue of 5.607 billion yuan. In 2019, Hollywood sold about 5.658 billion yuan in China, but its revenue increased by less than 1%, far lower than the 18% in 2018. In 2020, Haoliyou China's sales were about 7 billion yuan, although the overall performance has increased, but compared with 7.7 billion yuan in 2016, there is still a big gap.

Hollyo seems to be aware of the above problems. In the face of the pressure of the growth rate of traditional product performance, food consumption gradually showed a healthy trend, and Haoliyou began to lay out the field of healthy zero food and look for new growth points. It is understood. The products currently launched by Hollywood in the field of health food include Jeju Lava Spring, Dart. Excellent nut sticks, boss boy seaweed, etc. Prior to this, Hollywood's products in the Chinese market were mainly pies, candy, biscuits, and puffed foods.

However, it is not so easy for Hollyoth to have a place in the field of healthy food. From the perspective of some online sales channels, there is a certain gap between the sales of Haoliyou health food products and the sales of other similar products. At the Hollywood Tmall flagship store, Jeju Lava Spring sold only 6 copies, two darts. The monthly sales of nut sticks do not exceed 1,000 copies, and the monthly sales of boss boy nori are only more than 300 copies. In contrast, other brands of similar products, taking nori as an example, in the flagship store of Poly, a number of seaweed products have sold more than 1,000.

Zhu Danpeng, an analyst in the Chinese food industry, believes that for Haoliyou, traditional products are already in decline and urgently need to seek new growth points. From the perspective of the market, The measures taken by Haoliyou in the health food category are a concrete manifestation of the continuous forcing the industrial side to innovate, upgrade and iterate on the consumer side. In the future, Haoliyou wants to continue to deepen the Chinese market, and it needs to launch more products that meet the tastes of Chinese consumers. Beijing Business Daily reporter Guo Xiujuan intern reporter Yan Hui