A new 10 billion single product has been born in China's beverage industry!
Dongpeng Beverage's recently released 2023 annual report shows that last year's operating income increased by 32.42%, prompting the company's sales scale to expand to 11.263 billion yuan. The sales of Dongpeng Beverage's flagship product, Dongpeng Special Drink series, also exceeded 10 billion yuan for the first time, achieving a revenue of 10.336 billion yuan.
In the beverage industry, tens of billions of single products are rare, and it is even more difficult to maintain rapid growth. In recent years, Dongpeng Beverage has continuously optimized its product structure, innovated product research and development, and actively explored traditional channels in the national market, and its performance has continued to maintain double-digit rapid growth in the past three years since its listing, bringing a steady stream of surprises to investors.
Dongpeng Special Drink "Master"
Other drinks bloom more
According to Dongpeng Beverage's 2023 annual report, the company will achieve operating income of 11.263 billion yuan in 2023, a year-on-year increase of 32.42%, and net profit attributable to the parent company of 2.040 billion yuan, a year-on-year increase of 41.60%.
On the one hand, the company's main business income mainly comes from Dongpeng Special Drink, accounting for 91.87%. Dongpeng Special Drink achieved annual revenue of 10.336 billion yuan, an increase of 26.48% over the previous year, and successfully achieved the goal of 10 billion yuan.
On the other hand, Dongpeng Beverage continues to build a "second growth curve", and the company has insight that in 2023, consumers will prefer healthy, sugar-free, low-sugar, compound teas, and fruity innovations when drinking, which puts forward higher requirements for the diversity and diversification of the company's product research and development.
As a result, in 2023, Dongpeng Beverage will launch a cheap and high-quality electrolyte drink to the market - "Dongpeng Hydration", which has expanded the drinking scene from the original hospital to many consumption scenarios that need to maintain the balance of human body fluids such as exercise and sweating, and has become the company's second widely loved product. In addition, Dongpeng Beverage has also conformed to the consumption trend of Chinese tea drinks, and launched the "Pengyou Shangcha" sugar-free tea drink full of the spirit of hospitality and tea ceremony.
Coupled with the previously launched "Dongpeng Big Coffee" series, packaged drinking water and other product lines, Dongpeng Beverage's other beverage revenue increased by 186.65% year-on-year, accounting for 8.13% from 3.76% in the previous year, of which the total revenue of "Dongpeng Hydration" and "Dongpeng Big Coffee" accounted for 5.11%, and the product structure was continuously optimized.
Thanks to the cost-effective pricing and precise positioning of consumption scenarios, the newly launched electrolyte water "hydration" and sugar-free tea "oolong tea" terminals performed well, and the company's second growth curve took shape. The open source securities research report pointed out that the new product of "Dongpeng Hydration" relies on the company's existing channels to quickly distribute goods, and follows the winning red envelope playing method and cost-effective advantages such as one-yuan joy to quickly open the market, which is one of the new products that have performed well in recent years.
Horizontal layout across the country
Thickening the channel vertically
In recent years, Dongpeng Beverage has continued to promote the layout of channels, actively strengthened the development of traditional channels in the national market, and further improved the overall market coverage and breadth of products.
Horizontally, Dongpeng Beverage continued to promote the national development strategy and strengthened the development of terminal outlets. In 2023, the number of cooperative dealers will increase from 2,779 to 2,981, and the cooperative dealers will cover all prefecture-level cities in the country. As of the end of 2023, the company's active terminal outlets nationwide have increased from more than 300,000 to 3.4 million, a year-on-year increase of approximately 13.4%.
After the national sales were fully rolled out, the regional sales structure of Dongpeng Beverage continued to be optimized. The proportion of revenue in the Guangdong market decreased from 39.50% to 33.44%. The sales revenue outside Guangdong increased by 41.40% year-on-year, and the proportion of revenue increased from 50.17% to 53.54%. Among them, the revenue growth in North China, East China and Southwest China was relatively rapid, with growth rates of 64.83%, 48.41% and 64.71% respectively, which was higher than the growth rate of the national region.
Vertically, Dongpeng Beverage promotes channel sales with the concept of "freezer is the best display", taps the potential of existing channels, and actively explores emerging channels. In the annual report, the company said that it has always adhered to the extreme display of freezers and terminal high potential energy, cooperated with the company's major strategic improvement of multi-category products, and carried out consumer activities in a differentiated manner according to time and place. In an investor survey in November last year, Dongpeng Beverage said that the company had accumulated more than 100,000 freezers in the city and would continue to increase investment in 2024.
In addition, Dongpeng Beverage also took the initiative to embrace community group buying platforms such as Duoduo Food, Meituan Preferred, and Taocaicai, and actively explored catering channels and cross-border cooperation with new products, exploring innovative sales models. A variety of all-round sales channels go hand in hand, promoting the company's continuous good progress in channel expansion, and feeding the popularity and reputation of Dongpeng Beverage brand.
It is worth mentioning that in order to shorten the transportation radius and provide consumers with health effects drinks more efficiently, Dongpeng Beverage has been steadily promoting the production capacity layout in recent years, successively completing the construction and production of Zhejiang production base in East China and Changsha production base in Central China, and also preparing and starting the construction of Tianjin production base in North China in 2023, completing the regional layout in an orderly manner, achieving the established expansion target, and laying a good supply foundation for the company's national channel construction and terminal expansion. As of the end of 2023, the design capacity (output) of the company's production base has exceeded 3.35 million tons/year.
Occupy the "tired" mind
Deeply rooted in the brand image
In 2023, Dongpeng Beverage will continue to focus on the customer strategy of "8 groups and 20 categories" of key groups, and promote the brand symbol of "Tired, Sleepy, Drink Dongpeng Special Drink" through all-round and multi-form marketing methods, so as to consolidate the company's energy drink brand and become the first association in the "tired" moment.
First of all, Dongpeng Beverage has carried out in-depth cooperation with TV stations to carry out high-frequency hard and wide advertising on Dongpeng Special Drink, and also precipitated brand equity through various forms of advertising such as products, print, TVC, etc., and increased the brand promotion of new product series such as "Dongpeng Hydration", "Dongpeng Big Coffee" and "Pengyou Tea".
Second, Dongpeng Beverage has sponsored the Hangzhou Asian Games through ladder media and settled in the core subway package station, created a brand image of "winning glory for the country and Dongpeng energy", integrated online and offline resources such as TV, ladder media, Migu, Douyin and self-media, sponsored the top professional league of Honor of Kings for two consecutive years, and sponsored the RNG League of Legends team for six consecutive years Five popular dramas were branded and continuously maintained in the heat of communication and interaction with young people in new marketing forms such as cross-border sail books.
Thirdly, we will combine various tool platforms such as AutoNavi, Didi, Huolala, and Manbang to conduct in-depth scenario-based communication with heavy consumers of functional drinks, and actively embrace social platforms such as Xiaohongshu, Zhihu, and Douyin for product planting, and carry out various promotion projects around key groups, conduct in-depth interactive communication, and enhance the visibility and influence of the company's brand through online and offline promotion.
In general, Dongpeng Beverage continues to focus on providing consumers with beverage products with stable price, stable quality and stable taste with self-positioning as a "beverage expert", and practices the mission of "providing energy for strugglers". After successfully achieving the goal of 10 billion yuan, Dongpeng Beverage is committed to building a multi-category matrix and gradually developing from a single category to a multi-category comprehensive beverage group.
(This article does not constitute any investment advice, and the information disclosure content is subject to the company's announcement.) Investors act accordingly at their own risk. ）