Intelligent Finance News App has learned that Zhongtai Securities released a research report stating that it is bullish on the investment value of China's leisure snack industry and looks forward to breakthroughs in Chinese-style snack single products. Two directions are worth noting: (1) the leading Chinese spicy snack category with rapid development, recommended Yanker Shop Food (002847.SZ), Jinzai Food Group (003000.SZ); (2) the nut snack category after historical verification, recommended Chacha Food, with attention to Three Squirrels Inc. (300783.SZ), Ganyuan Foods (002991.SZ).

Zhongtai Securities' main points are as follows:

"Big industry, small companies" is a prominent characteristic of China's snack industry. China's snack industry has a scale of hundreds of billions, with high proportion and fast growth of flavor snacks. China's snack industry is highly dispersed, with low concentration in the flavor snack sector. There are few big brands in the snack industry, and Chinese-style snack single products are even scarcer.

What is the necessity and possibility of Chinese-style snack single products?

(I) Necessity: (1) Channel and inventory management. Snacks have many long-tail categories, and channel management is difficult. As a result, they are more susceptible to channel changes and it is difficult to establish channel advantages. (2) Improve cost-effectiveness. A small category size means greater tolerance of channel deductions and lower cost-effectiveness ratio. (3) Build brand awareness. The inability to solve the problems of category survival and stable output is the main reason why small category snacks cannot form strong brands.

(II) Possibility: (1) Consumers are still willing to pay a premium for emotional value. (2) Lower unit prices reduce consumption thresholds and broaden consumption scenarios. (3) Diverse channels improve consumer coverage and touchpoints.

Review: How did Oreo stage a comeback?

(I) "Doing the right thing": (1) Product design: Oreo product naming and styling are more popular and "modern." (2) Channel construction: Nabisco's channel construction started earlier and has deeper accumulation. (3) Brand marketing: Oreo brand positioning is clearer (Oreo = childlike, Oreo ≠ biscuit), grasping TV advertising bonuses and continuously outputting emotional value.

(II) Historical background: (1) The US economy moved from the Great Depression toward great inflation, and "emotional consumption" ushered in a historical opportunity. (2) The rise in the status of women during World War II and the "baby boom" after the war drove the development of the "she" economy and the mother and baby-related industries. (3) Suburbanization in the United States after World War II promoted the formation of suburban middle class, further expanding the American middle class and promoting the development of consumerism and modernist design.

Prospects: What kind of category is more likely to produce Chinese-style snack single products?

(I) Consumer side: Strong "satisfaction" and weak "fullness." (1) The origin of "enticing" lies in the brain's "reward mechanism," which triggers mechanisms including low-level repetitive actions and high-calorie, high-fat, and high-sugar foods. (2) Low "caloric density" makes the diminishing marginal benefits curve slope flatter.

(II) Producer side: both "broad-spectrum" and "memorable points." (1) The "availability" of raw materials affects the consumption threshold of snacks. The development of new varieties and technologies improves crop yield and planting area, thereby driving the development of related snack categories. (2) The formation of "taste memory" means that the product has stirred the user's emotions, occupied the user's mind, and the product has gained continuous vitality.

Risk Warning: Macro-economic fluctuations, intensified market competition, food safety issues, and the risk that the publicly-available information used in research reports may be out of date or have not been updated in a timely manner, as well as the risk of third-party data distortion.