If you go to a small shop in Xi'an to eat, then the "Three Qin Set Meal" must come to a set: cold skin, meat sandwich steamed bun with ice peak.
Source: Prospectus
Although the boss of the cool skin and meat sandwich steamed buns has different orders in the eyes of Lao Shaan, "Meridian Road Zhang Ji" may only dare to call himself "the top three of Xi'an meat sandwich buns", but "Bingfeng" will always be the NO.1 in Xi'an beverage industry.
After drinking Bingfeng, I came to Xi'an.
In recent years, the beverage industry has been chattering, carbonated drinks, sugar-free drinks, old-fashioned tea drinks, new tea drinks flocked out, in addition to the offline seizure of territory, in the capital market also showed a sword-rattling trend, ice peak but also survived safely.
Domestic sodas, which were once suppressed by Coca-Cola and Pepsico in the 1990s, are now eager to try.
Under the "national tide", the undercurrent is surging.
On July 9, Xi'an Bingfeng Beverage Co., Ltd. (hereinafter referred to as "Bingfeng Beverage" or "Bingfeng"), a 73-year-old domestic soda, submitted a prospectus to the main board of the Shenzhen Stock Exchange, which is expected to issue no more than 60 million shares, about half a year after Huachuang Securities began counseling and filing in January this year.
<h1 toutiao-origin="h2" > two-piece strokes, Ice Peak survived</h1>
Although soda was invented by the British, it was brought to China after the Dutch mastered the global maritime trade, so soda was originally called "Dutch water" in China.
Since the founding of China, soda factories have been built all over the country, including many brands that have gained fame in the last century, such as Tianfu Coke, Arctic Ocean Soda, Asian Cola and so on.
Bingfeng soda originated in 1948, when a businessman spent 3,000 yuan from Tianjin to introduce a set of soda manufacturing equipment and prepare to go to Xinjiang to build a factory, but was hindered by heavy snow, and had no choice but to leave the equipment in Xi'an.
It was also this fortuitous snowfall that was used to build xi'an's first soda factory in Machangzi - "Northwest Soda Factory", which is the prototype of Bingfeng. In 1953, the soda factory was nationalized, and the Xi'an Food Factory was established after the joint venture of the company, which became one of the six workshops.
At the end of the 1950s, there was another heavy snowfall, and it was rumored that there was an old well in the south alley of Xi'an, the water was clear and sweet, and the surrounding residents took water here. On that winter night, when the wind was howling and the snow was falling, the next morning people found that the wellhead and the rudder were covered with snow in the shape of an iceberg, which was a beautiful talk for a while.
"The snow is frozen like a small mountain", hence the name "Ice Peak".
The Bingfeng brand was thus established, and its logo was designed by Shi Jiangbin, a teacher of Shaanxi University of Science and Technology.
In the 1980s, the domestic soda industry achieved the "eight major factories".
Source: Network
However, in the 1990s, Coca-Cola and PepsiCo entered the domestic market and occupied China's soda market in the form of joint ventures. Subsequently, the two major Coke factories acquired seven of the eight factories except Zheng guanghe and occupied their sales channels to promote their own products. Gradually, local soda brands everywhere began to decline, or even disappear.
This period of history has been called the "Seven Armies of the Flood of Two Pleasures" by posterity.
Bingfeng escaped the disaster and took the initiative to choose reform. In 1997, the factory producing "Bingfeng" was renamed "Xi'an Bingfeng Food and Beverage Company" and began the market-oriented transformation.
In July 2008, the joint-stock system was transformed and the "Xi'an Sugar and Wine Group" was established.
In the past 10 years, local soda brands have independently re-emerged from the jianghu and walked out of their own different paths.
As far as the current sales structure is concerned, Bingfeng is still a corner of Shaanxi, and more than 80% of the revenue comes from Shaanxi.
Before the IPO, Sugar and Wine Group directly held 99% of the shares of Bingfeng Beverage and was the controlling shareholder of the company.
Among them, Zhang Jun, who is currently the chairman and general manager of the sugar and wine group, directly holds 9.25% of the equity of the sugar and wine group, and is entrusted (Xu Zhenxing and Li Zhen, two anonymous shareholders) to hold 0.82% of the equity of the sugar and wine group, a total of 10.07% of the equity.
At the same time, Zhang Jun, as the executive partner, holds 20%, 3.37%, 3.37%, 3.53% and 15.78% of the shares of the Sugar and Wine Group, respectively.
Together, Zhang Jun controls 56.12% of the shares of Sugar and Wine Group. In addition, the relevant rights of 35.71% of the equity of Yingxin Guofu were also exercised by Zhang Jun.
Therefore, Zhang Jun controls a total of 91.83% of the voting rights of the Sugar and Wine Group through direct shareholding, partner and entrusted voting rights, and controls 100% of the voting rights of Bingfeng Beverage through the Sugar and Wine Group and Jiuyue Wine, and is the actual controller of the company.
Behind the equity structure is also the figure of Yingxin Guofu, and behind Yingxin is the liquor industry tycoon - Lin Jinfeng, who once started as the "most cattle shareholder of Moutai", and now appears in the wine circle as the chairman of Huijiu Group and an investor in Shaanxi Xifeng Liquor.
<h1 toutiao-origin="h2" > the hegemony of carbonated drinks is still delicious, Pepsi, and domestic brands survive</h1>
As a veteran soda manufacturer, Bingfeng beverage also has an enterprising spirit, in addition to the traditional orange flavored soda, and developed new products such as sour plum soup, the current product pattern of Bingfeng is based on orange flavored soda, sour plum soup and other plant beverages as a supplement.
Carbonated beverages (soda) are liquid beverages made by processing a certain amount of carbon dioxide gas based on food raw materials and accessories and (or) food additives. According to China's national standard, it can be divided into fruit juice type carbonated beverages, fruity carbonated beverages, cola carbonated beverages and other carbonated beverages.
Source: Prospective Industry Research Institute
The prospectus cites data from the Prospective Industry Research Institute to show that in terms of output, the output of carbonated beverages in China fell back in 2014-2016, but after 2016, the carbonated beverage market ushered in a new round of growth, and the industry output growth rate reached 6% and above in 2019-2020.
After years of survival of the fittest and market competition, the carbonated beverage market has formed an oligopolistic market dominated by international brands Coca-Cola and Pepsi Cola, supplemented by domestic brands such as Arctic Ocean, Jianlibao and Bingfeng.
With the significant enhancement of China's economic strength, The old Chinese soda brands that have been suppressed for 20 years have been restored to use, the Bawangsi soda has returned in 2003, Laoshan Cola resumed production in 2004, Arctic Ocean soda came back in 2011, Shanhaiguan soda restarted in 2014, and Tianfu Cola also announced its brand comeback in January 2016.
However, the market pattern of carbonated beverages has been basically stable, and Coca-Cola and PepsiCo occupy 80% of the market share of China's carbonated beverage market.
According to 2019 data from the Prospective Industry Research Institute, the total share of other carbonated beverage companies in the Chinese market is only 7.8%, while Coca-Cola accounts for 59.5% of the two giants, and PepsiCo ranks second with a market share of 32.7%.
From the perspective of its establishment time, Bingfeng is a veteran domestic soda, and has won the honors of "Xi'an Time-honored Brand", "Shaanxi Time-honored Brand", "Shaanxi Food Industry Best Popular Brand" and so on.
Bingfeng is indeed a hegemon in Shaanxi, "cool skin, meat sandwich steamed buns, and then a bottle of Bingfeng" is the mantra that western gourmets can't do without, and it is also the folk "Three Qin Set Meal".
However, according to the data of Zhiyan Consulting, the northwest market is currently the smallest region in China's carbonated beverage production.
In addition, another major product of Bingfeng, sour plum soup, belongs to the subdivision track of plant beverages, which is still in the growth stage, and the main manufacturers include Master Kong sour plum soup, Wang Laoji, XinyuanZhai and Jiulongzhai and other brands.
<h1 toutiao-origin="h2" > income exceeded 300 million, and the net profit margin exceeded that of Nongfu Spring</h1>
From 2018 to 2020, the operating income of Bingfeng Beverage was 286 million yuan, 302 million yuan and 332 million yuan respectively, with a year-on-year growth rate of 6% and 10%, and the growth rate was relatively stable.
From the perspective of sales, in 2020, the bottled orange flavored soda and canned orange flavored soda sold exceeded 100 million, of which 134 million were bottled and 117 million were canned, and the sales of cans increased year by year and the sales of bottles decreased year by year.
From the perspective of revenue structure, the company's main business income accounts for more than 99% of total revenue. Among them, according to the product category, orange flavored soda is still the main force of revenue composition, and from 2018 to 2020, the total proportion of glass bottles + cans is 86.38%, 84.38% and 81.48% respectively;
While the proportion of sour plum soup revenue has increased, the proportion of orange flavored soda has shown a slight downward trend. Among them, the proportion of canned soda has gradually increased, and it is close to 54% of revenue.
From the perspective of profitability, the gross profit margin of Bingfeng Beverage in 2018-2020 was 49.81%, 50.67% and 46.73%, respectively, and the gross profit margin fell by nearly 4 points in 2020. However, this decrease was mainly due to the introduction of a new revenue standard, which costs freight costs, which had an impact on gross margin.
If this factor is excluded, the consolidated gross profit margin in 2020 is about 50.58%, which is basically the same as in 2019.
By product, the gross profit margin of glass bottle soda is significantly higher than that of canned, while the gross profit margin of orange flavored soda is significantly higher than that of sour plum soup (the impact of freight has been excluded from the table below).
It is worth noting that as a veteran soda factory that started with glass bottles, Bingfeng now has more than 50% of its canned sodas, and sales are also on the way to catching up with bottles.
This is a point of concern, it is known that the cost of glass bottles is lower, and this can also be seen from the gross margin composition. However, there is a reason behind choosing to increase the proportion of canned products in the case of lower cost of glass bottles.
Although the cost of glass bottles is low, the beverages that generally use glass bottles have strong geographical attributes, because glass is not easy to transport, logistics costs and loss costs are high.
Therefore, the proportion of Bingfeng products can at least show that Bingfeng is not satisfied with the status quo of "a corner of peace", and is working hard to start from the product form and improve the structure of income sources.
However, although the proportion of canned products has increased, from the current situation, Shaanxi's market revenue still accounts for the absolute majority of Bingfeng's revenue, more than 80%.
However, it has been obviously better that the proportion of income from Shaanxi is decreasing year by year, from 87.44% in 2018 to 80.23% in 2020, a considerable decline.
From the comparison of other regions, the improvement of the two major regions of South China and North China is relatively significant; the ice peaks in other regions seem to have not been taken for the time being.
The proportion of e-commerce channels has increased from 1.43% in 2018 to 6.09% in 2020, an increase of significant, but the absolute number is low.
In terms of profitability, compared with peers, Bingfeng's gross profit margin is basically comparable to that of competitors, but the expense ratio is significantly lower than that of competitors, so the net profit is considerable.
From 2018 to 2020, Bingfeng achieved net profits of 69.69 million yuan, 77.67 million yuan and 65.25 million yuan, respectively, and the net profit in 2020 fell by 16%, while the net profit margin was 24%, 26% and 20% respectively.
However, the decline in net profit in 2020 is not the impact of operating factors, mainly due to equity incentives generating equity payment expenses of about 35.5464 million yuan, if this data is added back, the company's actual operating net profit in 2020 will exceed 100 million, and the net profit margin will exceed 30%.
Therefore, although the gross profit margin is slightly lower than that of Nongfu Spring, with a three-year real net profit margin of 24%, 26% and 30%, Bingfeng has even surpassed Nongfu Spring, which sells water.
is <h1 toutiao-origin="h2" > "love card" still useful? </h1>
Bottles and cans each sell more than 100 million bottles, with annual revenue of more than 300 million and a net profit margin of up to 30%.
Founded in 73 years, Bingfeng can be said to be full of childhood memories of 3 generations of Shaanxi people.
Although it was also affected by Coca-Cola, Pepsi and Hans Chalet Fruit Beer, Bingfeng still received preferential treatment from the old Xi'an people, survived and lived well.
If you don't consider expansion, just by playing the "love card" to take root in Xi'an, Bingfeng can obviously live a good little life.
But this is an era of soft drink industry you chase me, Bingfeng is not satisfied with living in Xi'an, other manufacturers will not let it dominate Shaanxi, so the current Bingfeng is actually not very easy, there are several major challenges in front of you.
1. Price increase storm
The first is the challenge posed by the interior of the ice peak.
According to reporters, since the end of 2018, consumers in the Xi'an market have said that the original price of 2 yuan in glass bottles of ice peaks has risen to 3 yuan in some small restaurants. In 2019 and 2020, there were also individual consumers who reported similar situations. Time into the spring of 2021, small restaurants bingfeng retail prices rose across the board, 3 yuan is the norm.
Bingfeng also responded to this, saying that the suggested retail price was 2.5 yuan.
In the eyes of netizens, the ice peak in a 200 ml glass bottle has risen across the board. Netizen "post-95 railway brother" reflected: "Xi'an people's ice peak finally increased in price, went down to the bottom of the building to eat bowl noodles, and suddenly found that the ice peak of 2 yuan has now become 3 pieces." "Netizens" grapefruit jelly "reflected: "Has the price of ice peak increased? Has it become a bottle of 2.5? ”
As for whether "feelings" can buy it, netizens have different views.
After all, if you pay 3 yuan a bottle, you can already buy 600ml of Coca-Cola.
The prospectus also reflects the price increase, the factory price of 24 bottles of glass bottles has risen from 17 yuan in 2018 to 19 yuan in 2020, and most of the offline dealers have taken agents. According to media reports, at present, for offline restaurants, a box of 24 bottles of Ice Peak, the cost of catering stores from suppliers has increased from 22-23 yuan to 28-30 yuan, equivalent to a bottle of Ice Peak The highest purchase price is 1.25 yuan. They can still choose the selling price of 2 yuan / bottle, but the profit is reduced. For profit-based merchants, they can increase the selling price or choose to sell other drinks.
In addition to the price increase storm caused by itself, the outside world is also eyeing the tiger.
2. The Arctic Ocean will be listed on A shares
In the past 10 years, local soda brands that were previously hidden by Pepsi And Coca-Cola have independently re-emerged. Including Tianfu Coke, Wuhan Second Factory, Laoshan Coke, etc., all became Internet celebrities because of the unique taste and packaging of the products.
However, once their heat subsided, they did not go too far out of the mainland.
At present, the domestic soda, from the perspective of market volume, the fastest growing is Beijing Arctic Ocean soda.
Moreover, at the end of 2020, the Arctic Ocean belonging to the Yiguang Group is planned to be included in the listed Dahao Technology along with the shares of Red Star to achieve curve listing. Earlier this month, Dahao Technology's additional issuance plan has been accepted by the CSRC.
Judging from the information disclosed by Dahao Technology, the total revenue of arctic ocean and Yili has approached 1 billion. The plan does not split the specific income of the Arctic Ocean in this part of the revenue, but according to media reports, the Arctic Ocean's own income is close to 1 billion.
Source: Dahao Technology Announcement
Of course, in the eyes of Xi'an people, "the Arctic Ocean is sweet, and it is not as good as the ice peak." ”
But behind the "national tide", the taste is actually secondary, and the most important thing is the appeal of culture.
Beijing's cultural export capacity is much stronger than other cities in the north, especially in the beverage industry, and it can be seen from the regional map that the northwest is the weakest market.
Therefore, it is not easy for Ice Peak to fight through the Arctic Ocean in the short term.
However, North China is a major new battlefield for Ice Peak, so after both ushered in capital blessings, Ice Peak pressure is not small.
In addition, the Arctic Ocean is not safe in North China, in order to win the southwest market, the Arctic Ocean also began to build factories in Chongqing.
3, Jianlibao directly pounded the Yellow Dragon
If the Arctic Ocean and Bingfeng are still different battlefields, what is even more fatal is that shortly after Bingfeng just submitted the prospectus, on July 15, the news said that Jianlibao's latest glass bottle soda has recently been sold in Xi'an, priced at only 2 yuan... This is to pound the yellow dragon straight.
If you only look at the price, Jianlibao's glass bottle soda is 1 yuan cheaper than Bingfeng, which is closer to the local consumption level in Xi'an.
Jianlibao gave two reasons for entering Xi'an: 1, there is a factory in Xi'an; 2, the locals like orange flavored soda.
Jianlibao, which once disappeared from public view, returned to the market in 2016, and in 2018, there were reports that CITIC Group intervened to help Jianlibao prepare for the listing, but this news has not yet been confirmed.
Although the development of Jianlibao has been bleak in recent years, in terms of comprehensive strength, brand power and national popularity, it is generally stronger than Bingfeng.
But whether it can win the battle in the Xi'an market is really difficult to say.
Bingfeng, which relies on feelings, is facing tremendous pressure when it is listed, and Xi'an, as a base camp, is a market that Bingfeng cannot afford to lose.
Whether the "local feelings" win or the "national feelings" wins, perhaps this year's Bingfeng annual report can be seen.
However, this is not the first time that Bingfeng has faced market competition from competitors, as early as the 90s of the last century, Jianlibao, Coca-Cola, etc. had entered the Xi'an market in a high profile, but they were all repelled by Bingfeng, and Bingfeng's status has been sublimated into the label of Xi'an's local cuisine and become an irreplaceable urban memory.
This time, whether Bingfeng can win the game again may depend on how to attack the "heart" of the Shaanxi people.
< h1 toutiao-origin="h2" > the worst case scenario may be to maintain the status quo</h1>
In the current situation, Bingfeng can only say that it is "a little difficult", and it is not completely out of chance.
Different from the routes of the two main competitors, when the Arctic Ocean and Jianlibao were building factories off-site to reduce logistics costs, Bingfeng not only had no plans to build factories off-site, but also outsourced the production of non-glass bottled beverages.
It seems that Bingfeng does not intend to fight a price war with heavy assets.
But in the development of new products and marketing, Bingfeng has made efforts.
1. Products
In addition to producing canned products to open up the market, Bingfeng has also made great efforts in product types, wanting to cater to the tastes of a new generation of consumers, and launched a white peach flavored soda, tea drinks and so on. However, only from the sales data of Bingfeng Taobao stores, the most sold is still canned orange flavored soda, and many Xi'an people may not even know that Bingfeng also has tea drinks.
2. Marketing
In addition to products, Bingfeng also strives to do marketing, and the fundraising plan is left with a large number of marketing and brand building.
This direction may be correct.
Although orange flavored soda has some taste differences, the most fundamental thing is cultural output. What cultural output is, is marketing.
It is not easy for local brands to move towards national brands and national brands.
In the case of internal and external attacks, Bingfeng must not only defend the challenge of the locality, but also strive to expand to the whole country, and the road ahead is not difficult.
However, with the 73-year history and the capital assistance after the listing, the worst case scenario is that Bingfeng chooses to "lie flat", which may be to maintain the status quo; if you want to win beautiful, Bingfeng may need to lean on the road of "Internetization".
Perhaps make good use of the "first share of domestic soda", preempt competitors to obtain capital support one step at a time, and then learn about Weilong, go to the "earth" flavor, find some marketers with a good sense of the new generation of networks, and Bingfeng really rushed out.
Cover image source: Network
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