① Under the favorable policies of "expanding domestic demand," food and beverage companies represented by those listed on the Shanghai Stock Exchange have not only solidified the foundation of "stability" but also achieved breakthroughs in "progress." ② From the perspective of "stability," the performance of industry leaders is as solid as a rock, with the essential consumer needs and high-frequency consumption characteristics providing companies with stable cash flow and risk resistance capabilities. ③ From the perspective of "progress," innovation-driven development will become the core motivation for corporate growth.
According to the Financial Associated Press on April 20 (Reporter Wu Weiling), under the favorable policies of "expanding domestic demand," food and beverage companies represented by those listed on the Shanghai Stock Exchange have not only solidified the foundation of "stability" but also realized breakthroughs in "progress" through innovative momentum.
Strong operational performance effectively supports high dividends from food and beverage companies on the Shanghai Stock Exchange. Statistics show that among the 31 companies that have disclosed their 2024 Earnings Reports, the total dividends exceed 80 billion yuan, of which 18 companies have a cash dividend ratio exceeding 50%. Companies like Kuaijishan Shaoxing Rice Wine (601579.SH), Zhongyin Babi Food (605338.SH), and YouYou Foods (603697.SH) have seen their dividend amounts nearly double.
Stability: Expanding domestic demand strengthens the fundamental base, while essential consumer needs release resilience.
From the perspective of "stability," the essential consumer needs and high-frequency consumption characteristics of the food and beverage industry will continue to provide companies with stable cash flow and risk resistance capabilities. Data shows that food and beverage companies listed on the Shanghai Stock Exchange, which have disclosed their 2024 Earnings Reports, have a net operating cash flow totaling 124.5 billion yuan, a year-on-year increase of 32%.
In terms of performance, industry leaders are as solid as a rock. Driven by policies to "expand domestic demand and promote consumption," initiatives like the issuance of consumption vouchers directly stimulate domestic demand growth. Baijiu leader Kweichow Moutai (600519.SH) achieved revenue of 174.1 billion yuan, with net income of 86.2 billion yuan, both revenue and net income growing over 15% year-on-year, confirming strong demand for high-end consumption. Sports drink leader Eastroc Beverage (605499.SH) realized total operating revenue of 15.8 billion yuan, a year-on-year increase of 41%, and net income of 3.3 billion yuan, a year-on-year increase of 63%. The market share of its core product, Eastroc Special Drink, in the national energy drink market increased from 43% in 2023 to 48%, making it the best-selling energy drink in the country for four consecutive years.
In response to uncertainties in the international market such as the USA imposing additional tariffs, food and beverage companies quickly adjusted their strategy and accelerated their layout in the domestic demand market. E-commerce platforms like Hema and JD.com support food and beverage companies in transitioning to domestic sales and further broaden their sales channels. Wufangzhai (603237.SH) has established an online sales network covering major e-commerce platforms like Tmall, JD.com, Douyin, and PDD Holdings, set up 37 direct-operated e-commerce stores and over 300 partnered stores, continuously adapting and optimizing operational strategies during the reporting period, stabilizing the operational efficiency across all platforms, thereby achieving a year-on-year increase of 8.05% in gross margin.
The Chairman of Zhongyin Babi Food, Liu Huiping, stated: "The company’s retail business is also developing rapidly, with deepening cooperation with some core clients, and sales are continuously increasing. For example, the monthly sales of Hema have increased over threefold, and the Meituan channel has also achieved an excellent result with annual sales surpassing ten million yuan."
Progress: Innovation-driven growth allows multiple products to achieve volume expansion.
From the perspective of 'Progress', innovation-driven development will become the core driving force for enterprise growth. Whether it is the rise of emerging categories or the benefits of new channels, new points of growth will be provided to enterprises. At the same time, trends such as the 'rise of domestic products' and the 'silver economy' will also bring more market opportunities for enterprises.
Shanghai Stock Exchange food and beverage companies continue to deepen the strategic layout of multiple categories, achieving breakthroughs in scenarios through differentiated product innovation and seizing the initiative in Consumption Upgrade. For example, against the backdrop of increasing penetration rates for sugar-free tea and functional beverages, Dongpeng Beverage's electrolyte drink 'Dongpeng Recharge' has exploded in the market since its launch last year, with sales in 2024 expected to surge by 280.37% year-on-year due to precise positioning as a 'fast electrolyte replenishment'. This has successfully extended the consumption scenario from the traditional 'fatigue' scene to the exercise replenishment 'sweat point' scene. In addition, products such as the company's coffee beverage 'Dongpeng Daka' and the sugar-free tea beverage series 'Shangcha' are also increasingly expanding brand influence in their respective niche markets.
Moreover, the organic integration of bulk snack food and channel innovation assists enterprises in breaking through. YouYou Foods, primarily engaged in spicy chicken feet, stated in its 2024 earnings report that amidst the shrinking traditional retail channels in the industry, the company achieved structural breakthroughs by innovatively overcoming membership-based retail systems and establishing cooperation with leading brands. In 2024, the company entered membership-based supermarket channels in cooperation with Sam's Club and Costco, and the new product boneless duck feet launched for Sam's Club became a bestseller. The company achieved an annual profit of 0.157 billion yuan, a year-on-year increase of 35.44%. Looking ahead to 2025, YouYou Foods stated that after careful assessment, revenue growth is expected to be no less than 20%.
Industry experts have analyzed that emerging channels such as snack supermarkets, content e-commerce, and membership-based supermarkets are growing significantly faster than traditional channels like circulation and comprehensive e-commerce. Companies embracing an omnichannel approach are expected to achieve product volume expansion.
'The rise of domestic products' and 'the silver economy' have also become industry highlights. The time-honored brand Ganso Co., Ltd. (603886.SH) caters to health trends by launching low-sugar pastries. The company stated that healthy baking products such as low-sugar, low-fat, high-fiber, and additive-free items have become market hotspots, and functional baking foods (such as those with added probiotics and dietary fiber) are also favored by consumers. The growth in these demands has driven the company's innovation in product development and ingredient selection. The company continues to optimize product processing techniques, adopting healthy cooking methods, simplifying ingredients, and selecting high-quality raw materials to ensure products meet modern consumer demands for healthy eating.
'Chinese time-honored brand' Guangzhou Restaurant Group (603043.SH) closely follows the trends of the silver economy and the integration of medicine and food, exploring new tracks of 'Cantonese-style light nourishment' and 'Cantonese-style leisure desserts' by launching products like ginseng nutritious black-boned chicken soup and candied lotus seeds with red beans. The company continues to deepen research and development of new items, launching a series of meat products such as squab and chicken steaks, further enriching its product matrix. This combination of tradition and innovation not only meets the diverse demands of consumers but also injects new vitality into the brand.
