Preface
When you think of luncheon meat, you might think of Hormel in the United States, Tulip in Denmark, or San Miguel in the Philippines. But did you know that there is also a luncheon meat brand in China with a history of more than 90 years, and it is Shanghai Merlin? Shanghai Merlin used to be the largest canned food manufacturer in China and even Asia, and its Golden Shield luncheon meat is a best-selling product in Hong Kong, Macau, Southeast Asia and other places, and is known as "China's luncheon meat is the best canned food product in the world".
However, with the intensification of market competition, changes in consumer tastes, and the demand for industry upgrading, Shanghai Meilin's luncheon meat market share has declined year by year, and the former glory no longer exists. So, how did Shanghai Merlin's luncheon meat enter the international stage? How did it lose its market advantage? This article will reveal the story of Shanghai Merlin's luncheon meat from the brand's development history, market status, competitors, consumer demand, etc.
The history of the brand
From tomato sauce to canned goods
The predecessor of Shanghai Meilin was the Meilin Canned Food Factory, which was established in 1930 and was co-founded by several chefs working in western restaurants in Shanghai. They found that the tomato sauce, which was in short supply on the market at that time, was the "Tellmont" brand produced in the United States, which was expensive, but it was often out of stock. So, they decided to try out their own tomato sauce to revitalize the national economy. They rented a Shikumen house, bought a few simple tools, and with their superb cooking skills and keen sense of taste, they succeeded in concocting their own tomato sauce. After being sent to the restaurant for trial, it was recognized by old diners, and the domestic tomato sauce began to occupy a place in the market.
In 1933, Meilin Canned Food Factory moved to No. 808 Hongqiao Road, Shanghai, and applied for the registration of the "Golden Shield" trademark, which means "a golden shield, strong and unbreakable". Subsequently, they began to develop a variety of canned foods, such as braised button pork, braised beef, braised chicken, braised bamboo shoots, etc., to meet different consumer needs. At the 1934 Chicago World's Fair, the canned food "Merlin" received a certificate of "General Assembly Gratitude" and "Successful Cooperation". Since then, Merlin canned food has gone abroad and is exported to Hong Kong, Macao, Malaysia, Indonesia, Japan and other countries, promoting China's food culture and comforting the nostalgia of overseas Chinese.
From canned goods to luncheon meat
Shanghai Merlin's luncheon meat was produced in the 1940s to meet the military needs of the Nationalist government's army. Due to the limited level of technology at that time, Merlin's luncheon meat was not really luncheon meat, but a meat product similar to ham sausage, mainly made of pork, starch, salt, sugar, spices and other raw materials, cylindrical in shape, packed in metal cans, after high temperature sterilization, can be stored for a long time. Although this luncheon meat is not as fine as the current luncheon meat, it is tender and juicy, nutritious, and easy to carry, and is deeply loved by soldiers and people.
After 1949, Shanghai Meilin's luncheon meat began to expand to domestic and foreign markets, especially in Asia, and enjoyed a high reputation. In Hong Kong, Macau, Singapore, Malaysia, and more, Merlin's luncheon meat is the first choice for restaurants and families, combining with local cuisine to create many classic dishes such as curry rice, fried rice, omelette, sandwiches, etc. In Japan, Umelin's luncheon meat is also popular and is used to make oden, yakisoba, sushi, etc. In Europe, America, Africa, the Middle East and other places, Merlin's luncheon meat also has a certain market and has become the representative of China's canned food.
From luncheon meat to diversification
Shanghai Merlin's luncheon meat reached its peak in the 50s and 70s of the 20th century, and its market share once accounted for more than half of the world's market. However, with the changes in the market environment, Shanghai Merlin's luncheon meat has also faced many challenges. On the one hand, domestic and foreign competitors continue to emerge, such as Shuanghui, Purple Mountain, Eagle Money, Hormel, Tulip, etc., they not only compete fiercely with Merlin in terms of product quality, price, brand, etc., but also actively exert efforts in product innovation, channel expansion, marketing, etc., and continue to erode Merlin's market share. On the other hand, consumers' tastes and needs are also changing, and higher requirements are put forward for the health, nutrition, safety, and diversity of luncheon meat, and the attraction of traditional luncheon meat from Merlin is gradually weakening.
In order to cope with the changes in the market, Shanghai Merlin has also carried out a series of reforms and innovations. In 1997, Shanghai Merlin and Zhengguanghe Group jointly reorganized and established Shanghai Meilin Zhengguanghe Co., Ltd., which became the first stock of Chinese food. In 2000, Shanghai Meilin Zhengguanghe signed a joint venture agreement with Hormel of the United States to establish Shanghai Meilin Hormel Food Co., Ltd., introducing Hormel's advanced technology and management, and improving the quality of products and brand influence.
In 2001, Shanghai Meilin Zhengguanghe cooperated with Nissin Foods of Japan to launch the "Meilin Nissin" series of instant noodles, opening up a new market area. In 2003, Shanghai Merlin Zhengguanghe cooperated with Tyson Foods of the United States to establish Shanghai Merlin Tyson Foods Co., Ltd. to produce and sell high-end meat products. In addition, Shanghai Meilin Zhengguanghe has also continuously launched new product lines, such as "Meilin" series of biscuits, pastries, juices, sauces, etc., as well as "Zhengguanghe" series of soy sauce, vinegar, cooking wine, monosodium glutamate, etc., realizing the transformation from a single canned food to a diversified food.
The current situation and trends of the market
Despite a lot of efforts in product innovation and brand building, Shanghai Merlin Zhengguanghe's market position for luncheon meat is still declining. According to the China Food Industry Association, in 2019, Shanghai Meilin Zhengguanghe's luncheon meat sales were 32,000 tons, ranking fourth with a market share of 8.9%, while in 2015, its sales volume was 41,000 tons, ranking second with a market share of 14.6%. In contrast, Shuanghui's luncheon meat sales increased from 52,000 tons in 2015 to 168,000 tons in 2019, and its market share increased from 18.5% to 46.7%, ranking first. Other competitors, such as Purple Mountain, Eagle Money, Hormel, Tulip, etc., are also constantly grabbing market share, putting huge pressure on Shanghai Merlin Zhengguanghe's luncheon meat.
There are many reasons for the decline in the market share of Shanghai Merlin Zhengguang and luncheon meat, the most important of which is the change in consumer demand and preferences. With the development of China's economy and the improvement of people's living standards, consumers have put forward higher requirements for the health, nutrition, safety and diversity of luncheon meat, and the attraction of traditional luncheon meat has gradually weakened. On the one hand, consumers have paid more attention to the raw materials, processing technology, additives and other aspects of luncheon meat, and have more worries about luncheon meat containing pork, starch, salt, sugar, spices, etc., believing that this luncheon meat is not good for health and can easily lead to obesity, high blood pressure, hyperlipidemia and other diseases. On the other hand, consumers have more choices for the taste, shape, packaging and other aspects of luncheon meat, and are more tired of a single luncheon meat, hoping to try more fresh, interesting and personalized luncheon meat products.
In order to adapt to the changes in the market, Shanghai Merlin Zhengguanghe is also constantly launching new luncheon meat products to meet the needs of consumers. For example, Shanghai Merlin Zhengguanghe has launched the "Merlin" series of low-salt, low-fat, low-sugar, high-protein luncheon meat to cater to health-conscious consumers; launched the "Merlin" series of luncheon meat with different raw materials such as chicken, beef, fish, and vegetarian to cater to consumers with different tastes; launched the "Merlin" series of different forms of luncheon meat such as square, triangle, heart, and star to cater to consumers with different preferences; and launched the "Merlin" series of iron cans, plastic cans, glass cans, Luncheon meat in different packaging, such as vacuum bags, to cater to consumers with different needs.
In addition, Shanghai Merlin Zhenghiro has also cooperated with other brands to launch the "Merlin Hormel" series of American-style luncheon meat, and the "Merlin Nissin" series of instant noodle luncheon meat, in order to expand into new market areas.