Recently, the official account of Dayao Beverage announced that it will upgrade the whole line of products to juice version, and at the same time launch a new 520ml pineapple flavor and PET series of lime flavor, pineapple flavor and frozen pear flavor; the time-honored soda brand Arctic Ocean launched low-sugar peach juice soda, and launched the "+1 yuan enjoyment" activity, the first batch of products planned to be put into 1 million boxes; Shaanxi soda brand Bingfeng issued the latest notice for dealers at all levels in Xi'an, suggesting that the terminal four products implement the latest price system of 2 yuan per bottle.
It seems to be the confrontation between the big kiln and the Arctic Ocean and the ice peak, reflecting the escalation of the dark war in the soda industry before the peak season. Industry analysts pointed out that in 2024, the competition in the soda brand market will become white-hot, whether it is Dayao, Arctic Ocean or Bingfeng, the brand's desire for market share is unprecedentedly strong, or triggering a new round of marketing climax.
Summer is approaching, and the soda industry has made frequent moves.
Dayao Beverage officially announced on the public account that the juice content of the three classic products Dayao Guest, Dayao Chengnuo, and Dayao Liai will be upgraded to juice soda. At the same time, three PET portable packs of pineapple, lime and frozen pear were launched. After the renovation and upgrading, the price of Dayao Juice Soda remains unchanged on the basis of the original 520ml specification, and the label of "quality-price ratio" is played.
At the same time, Dayao continued to hold high the media channel delivery model, and played "big soda, drink big kiln" advertisements in Xizhimen Station, Wangfujing Station, Guomao Station, Chaoyangmen Station, Xidan Station, Qingnian Road Station, Hujialou Station and other Beijing subways. The relevant person in charge of the Dayao brand said, "In 2024, the Dayao brand advertisement will land at more than 80 stations and 270 points in the Beijing subway, and the number of exposures is estimated to be 1.6 billion."
At the same time that the kiln was bombarded indiscriminately by advertising, the Arctic Ocean was also storming the line. Recently, the Arctic Ocean 480ml PET bottle low-sugar peach juice soda was officially launched, the packaging is mainly pink, and the classic 480ml PET bottle orange juice soda packaging has been renewed. From April 1, 2024, consumers who purchase low-sugar peach juice soda and classic orange juice soda with upgraded packaging can redeem 1 bottle of the 480ml product at a price of 1 yuan at any Arctic Ocean soda beverage sales point or designated prize redemption point with the complete winning cap.
According to the Arctic Ocean official account, the total number of products planned for this event is 1 million, including 300,000 boxes of "+1 yuan enjoyment" winning products, with a comprehensive winning rate of 30%. Through the "+1 yuan enjoyment" to detonate the peak season market, high-frequency repurchase allows products to continue to sell and help dealers improve profits.
Arctic Ocean related people said that when the peak season of beverage consumption is approaching, "+1 yuan enjoyment" can quickly enter the market with new products, establish emotional interaction with consumers, and ultimately drive terminal sales and lay the foundation for long-term profitability.
This promotional measure is similar to Bingfeng's price reduction in the catering channel some time ago. Recently, Shaanxi soda brand Bingfeng issued the latest notice for dealers at all levels in Xi'an. According to the notice, in response to the brand's call to make profits and boost consumer confidence, Bingfeng recommends that all catering and retail stores in the terminal implement the latest price system of 2 yuan per bottle for Bingfeng's 200ml glass bottle products (including orange soda, apple soda, sour plum soup, and sugar-free orange soda).
The big kiln is holding high, and the Arctic Ocean and Bingfeng are attacking the line, behind which are the different development paths of the three major domestic soda brands.
Zhu Danpeng, an analyst of China's food industry, said, "If you look at it as a whole, the three major brands have their own characteristics. The kiln is mainly driven by the high gross profit of the catering channel, as the first brand of domestic soda, with brand dividends and scale dividends, and has been doing innovation, this kind of innovation and upgrading and iteration is good for the consumer side, but for the channel side, the entire profit may be further compressed, which is a hard injury for the large kiln with a single channel; When the confidence and willingness are not very strong, we will make cost-effective adjustments."
With "big soda" as its brand strategic positioning, Dayao Beverage has listed four categories: carbonated drinks, fruit and vegetable juice drinks, vegetable protein drinks, and functional drinks. In terms of taste innovation, Dayao Beverage has launched a series of soda sparkling water, Xiaoyao fruit steam, Cha Yuanxiang fruit juice bubble tea, pomelo love honey and grapefruit bubble tea series. In 2023, Dayao Beverage will launch energy coffee into the functional drink, and launch Kiln Fruit Li, featuring "chewing and drinking" large fruit juice.
In recent years, the kiln has marched from Inner Mongolia to the whole country, penetrating deep into the hinterland of the Arctic Ocean and ice peaks. In 2023, Dayao will choose to build two new production bases in Baoji, Shaanxi Province and Tai'an, Shandong Province, and will be put into operation this year. Up to now, Dayao Beverage has built seven production bases across the country, with production capacity covering seven regions in North China, Northeast China, East China, Central China, South China, Southwest China and Northwest China.
In the face of the attack of the big kiln, both the Arctic Ocean and Bingfeng chose to stick to the local market and compete in the dislocation of products. Arctic Ocean relies on Yiqing Holdings to continuously strengthen the brand image of time-honored soda brands, while catering to young consumers, such as fermented orange juice soda launched last year, with new flavors and new packaging, which is more in line with the choice of young consumers;
Zhu Danpeng believes that in 2024, China's FMCG will enter an all-round, multi-dimensional, and high-intensity competition pattern, no matter which category or track is full of gunpowder, "the entire Chinese soda has entered a node of rapid growth, rapid development, and rapid expansion."
In the past 2023, the term "price increase" appeared frequently. Following Coca-Cola's announcement in November 2021 that the suggested retail price of 500ml bottles would increase from 3 yuan per bottle to 3.5 yuan per bottle, Coca-Cola once again announced in June 2023 that the suggested retail price of 500ml bottles would continue to rise to 4 yuan per bottle.
Coca-Cola's price increase may be a forced move based on performance pressure. Coca-Cola's two major bottling companies in China are China Foods, a subsidiary of COFCO, and Swire Coca-Cola, a subsidiary of Swire Pacific. According to the 2023 annual report released by China Food, the revenue was 21.446 billion yuan, an increase of 2.3% year-on-year, and the profit attributable to the company's owners was 833 million yuan, an increase of 26.18% year-on-year. Sales volume increased by 0.5%, but gross margin declined by 0.6 percentage points. Swire Coca-Cola's revenue in Chinese mainland was HK$24.725 billion, down 5.4% year-on-year, with a net profit of HK$790 million and a profit attributable to HK$755 million, excluding non-recurring gains, down 16% year-on-year.
Coca-Cola's price hike is in stark contrast to the price reduction of domestic soda before the peak season, reflecting the desire of domestic soda brands to compete for market share. Zhan Junhao, a well-known strategic positioning expert and founder of Fujian Great Aim Brand Positioning Consulting, said, "Judging from the situation of Dayao and Arctic Ocean, they are actively seeking product innovation, trying to attract consumers' attention by launching products with new flavors or new packaging. Dayao's juice version of soda and new flavors not only enrich the product line, but also demonstrate its determination to keep up with market trends. The low-sugar peach juice soda in the Arctic Ocean is a positive response to the trend of healthy consumption."
Chen Fangchao, general manager of the industry department of Kmind Strategic Consulting, also said that he is more optimistic about the market actions of Dayao and Arctic Ocean, "At present, health and taste enrichment have become the mainstream trend of the beverage industry, and we have taken the initiative to upgrade better raw materials and launch a variety of new flavors to meet the needs of customers for consumption upgrades." At the same time, if the kiln itself creates a difference in the product and communication end of the kiln soda, it is more conducive to further benign stimulation of consumption choices."
Regarding the implementation of relevant promotional measures, a reporter from Beijing Business Daily sent an interview letter to the Arctic Ocean and Bingfeng by email, but did not receive a reply as of press time.
Beijing Business Daily reporter |
Edited by Topol