Black sesame paste has always been a traditional health food in autumn and winter. It can nourish the body and supplement calories. In the food industry, the leading enterprise of black sesame paste belongs to the South Black Sesame Group. But the company, which has been making sesame paste for nearly 30 years, is no longer content with its niche and has opted to enter the highly competitive market of plant-based beverages.
Black sesame entered the beverage industry full of confidence:
Wei Qingwen, chairman of Black Sesame, said in an interview with the media that no matter how well black sesame paste is done, even if it occupies all the market shares, it is still a very small category and cannot support the demand for long-term growth of listed companies’ performance. “Before, we were rolling in a small river, but now we are going into the sea. In the next 5 or 10 years, beverage machinery will be our focus. In order to form core competitiveness in this field, we cannot do it in 3 to 5 years without 2 billion to 3 billion yuan investment. The important thing is persistence.” It can be seen that black sesame is determined to march to the beverage industry.
It is understood that the southern black sesame paste was born in 1988, and has taken a market share of more than 60% in the paste category. In 2015, Southern Black sesame Paste Group’s operating income in the first half of the year was 712 million yuan, including paste sales revenue of 358 million yuan, gross profit rate of 42.69%, the company’s net profit of 40.2553 million yuan, an increase of 23.81%.
It is an industry trend for black sesame to enter the beverage industry:
Since 2013, the beverage business has been regarded as an important part of the strategic development of Black Sesame. It is expected that beverages will contribute one-third of the capacity of Black Sesame in the ten-billion plan.
In 2013, in the field of black sesame drink, black sesame milk and other products were launched. In the first half of 2015, the sales revenue of this part of the business was 947.119 million yuan, and the gross profit rate was only 33.18% lower than that of paste products. Both gross profit rate and net profit are lower than the original paste products, but black sesame is still full of expectations for this competitive beverage field. This time, they plan to enter the beverage market with a new plant-based protein black black milk.
Industry insiders believe that, “From the perspective of industry upgrading, milk powder to milk, from one billion yuan to hundreds of billions of yuan, walnut powder to ready-to-drink walnut dew from hundreds of millions to tens of billions of yuan, Wanglaoji granule to Wanglaoji beverage also from one million to ten billion yuan, this is a trend.”
Blue Sea, a vegetable protein drink, is not an example of black sesame:
In fact, fancy plant protein beverage industry is not only black sesame. This year, Coca-Cola and PepsiCo have been laying out their plans, with the former revealing plans to buy Xiamen Coarse Grain King Beverage for $400 million in April and the latter launching its first milk drink in China, Quaker Fiber Oat Milk Drink, in August.
At the same time, the vegetable protein field has also cultivated a number of domestic beverage brands, such as “Chengde Lulu”, the revenue in 2014 reached 3.16 billion yuan, six walnut public data shows that the performance in 2014 has exceeded 10 billion yuan scale.
However, the industry analysis, the current plant protein beverage has entered the mature period, the intervention may be a little late at this stage. Vegetable protein drinks have been cultivated in the market and category for a long time in the last 5 years, and have reached a relatively mature stage. In 2012 and 2013, the growth was more than 20%, but the decline from Yinlu can also see that from the growth period to the maturity period next year may enter the brand elimination period. It may be a little late to step in, and even if done right, the cost will be high.
Beverage industry competition is fierce beverage machinery to reap the benefits of fishing weng:
Beverage machinery industry not only vegetable protein beverage market “personnel tends to be saturated”, the competition is fierce. Tea, once a favourite, is also on the wane.
Nielsen data showed that in the first half of 2015, both the sales volume and the sales volume of tea drinks (non-dairy) showed a decline, and traditional tea drinks are facing the transformation of consumers. Wahaha’s revenue of 72 billion yuan in 2014 is far from its target of 102.3 billion yuan.
Besides tea drinks, the decline of carbonated drinks is also obvious. Beverage industry reform and innovation is in full swing, which is a big beneficiary of the upstream beverage machinery production enterprises. Because of all changes, even if the beverage enterprise transformation for development, is nothing more than the development of new drinks, or segmentation of a new consumer market, the demand for beverage machinery will continue to grow with the expansion of the market.
However, the push of the beverage industry is new. As a production equipment provider, beverage machinery manufacturing enterprises must keep up with its development pace and develop machinery suitable for, or even ahead of, the development of beverage enterprises. In this way, in the beverage war, really get the “fisherman’s profit.”