China Focus: Yili financial results, alternative protein localisation, clean label flavours and more feature in our round-up
Rapid innovation: Accelerated NPD strategy reaps rewards for Chinese dairy giant Yili
China dairy giant Yili has registered record growth and increased market share in its recently-released H1FY2022 financial report, and has attributed this success to the sales of its value-added dairy products as well as its efforts in rapid new product innovation.
According to the firm, its total revenue and net profits reached ‘new heights’ this year, rising 12.3% year-on-year in revenue to hit CNY63.5bn (US$9.2bn) and 15.4% year-on-year in profits to hit CNY6.1bn (US$890mn) in the first half of its 2022 financial year (ending August 30th 2022).
“Yili’s milk powder and dairy products business overall achieved a growth rate of 58.3%, which is the fastest [recorded in the local] dairy industry,” Yili Chairman and President Pan Gang stated when announcing the financial results.
Germinating growth: China alt protein scene increasingly competitive, but localisation key to success
China’s plant-based and cultured meat market is getting increasingly competitive, but industry collaboration and product localisation are going to be crucial if it is to become more ‘relevant’ to consumers.
One size no longer fits all, added Executive Director of the China Plant-Based Food Alliance (CPBFA) and AgFood Future Foundation (AGF) Ryan Xue.
“We see tremendous opportunity for leading alternative protein companies such as Eat Just to enter the Chinese market. It represents a real opportunity for new customers and to achieve significant growth. We would also like to see Eat Just move from being present in China to be more relevant in China, contend with the dynamic rate of change, and reshape the Chinese alternative protein market."
Going green: Flavour enhancement products need to be both ‘clean label and clean energy’ for China and Middle East
Flavour enhancement products today need to not only cater to consumers’ clean label demands, but also be made using clean energy if firms wish to capitalise on the current wellness and sustainability trends that are on the rise in the China and Middle East markets.
This is according to flavour enhancement specialist firm Angel Yeast, which has made a bid to increase the ‘cleanliness’ of their products – both in terms of content and manufacturing process – in order to maximise market value in some of its largest markets.
“[Clean label is not just a trend], it is a mainstream trend in many of the markets that we are operating in, including China and the Middle East,” Angel Yeast Europe Division and company spokesman Eric Ao told FoodNavigator-Asia.
Profits drop: Slump in gross margins for major Chinese infant formula players in first six months of 2022
Key players in China’s infant formula industry have reported a drop in their gross profit margins in the first six months of this year, including the biggest local player Feihe, as well as Health and Happiness Group (H&H Group), and Ausnutria.
The three companies, which are all listed in Hong Kong Exchanges (HKEX), have pointed out the above in their most recent financial reports for the first six months of this year.
Feihe, which is behind the brands Astrobaby, Organic Zhenzhi and Organic Chunrui, said gross profit margin was down from 73.3% to 67.6% mainly due to a decrease in revenue from the classic Astrobaby products.
‘Specific Chinese needs’: Nestle’s Garden of Life launches two new probiotics for kids’ growth and immune health
Nestle Health Science’s probiotics brand Garden of Life has launched two new probiotics targeted at kids’ growth and immune health on China’s offline retail market.
This is part of the firm’s strategy at growing its portfolio for supporting growth and addressing allergies among kids.