Key points of investment

The Qilu Food and Beverage team investigated China Tianyi Holdings today. The company is a leading producer in the frozen orange juice concentrate industry in China, and is one of the few local suppliers that supply frozen orange juice concentrate in China to the world's leading beverage producers (including China's Coca Cola, Japan's Suntory, and Wahaha). Since March of this year, the company has launched its own NFC orange juice brand, starting the company's transformation from the original B2B business to B2C business. Overall, thanks to the company's overall industrial chain layout and production process advantages, the quality of the company's NFC products has been recognized by consumers. However, the NFC market in China still needs to be developed. The company's product positioning is high-end, and a large amount of initial investment and time is still needed to train consumers. Future product sales can be further tracked and observed.

The growth rate of the juice industry is declining. 100% juice and NFC represent the latest consumption trend: orange juice accounts for 50% of juice in China. Although juice consumption in the Chinese market is currently on a downward trend, 100% juice and NFC products have contributed much of the increase. Currently, the juice market in China is 29 billion yuan, and there is a lot of room for development compared to the market size of 300 billion yuan for dairy products. The average annual consumption of juice by the European and American population is 4 liters, while in mainland China it is only 0.01 liters. There are three major orange-producing regions in the world, Brazil, the United States, and the Yangtze River Delta region of China. Looking at China, Chongqing in Sichuan, Jiangxi in Hunan, and Fujian have all planted large areas of orange trees.

23 years of experience in orange juice production, special packages create product memory points: Morimei has a 23-year history of making orange juice. Previously, it mainly did B2B business for products such as Coca Cola's juice source. The company has four orchards in China, which are located in Chongqing, Fujian and Hunan respectively. The company currently has 18 devices for squeezing oranges, and the technical barriers are relatively low, but most of the NFC orange juice on the market contains orange residue. The company's products do not contain orange residue, and contain pouches with the company's characteristics. The production season for agricultural products is generally only three to five months. By eight minutes of cooking (otherwise the sac will break when it is passed through the machine), the sac is first manually peeled and divided in half, and then separated by a machine. The sac has memory, providing a guarantee of taste. In June of this year, the company's products were exempted from inspection in Europe. Semmi's products were the first to dare to state on the packaging that no water, sugar, or any additives were added. Weizuan only promised that it did not contain additives. Since Morimei currently has 76,000 mu of orange trees, the company can blend orange juice from different periods and sweetness to ensure that the sweetness of the product is consistent. Currently, Weiquan has no raw materials; it mainly buys concentrated juice from Brazil, Israel, etc.

Product positioning is high-end, and the “supermarket+franchise+e-commerce” triple channel is working together

Product side: Positioning as a high-end orange juice expert. The company's orange juice products went on sale in March of this year, and there are three types of packaging: 300ML/price 19.8; 1L/price 48-50; 1.75L/price 78-80. The company's current product is still relatively single. Experts who make orange juice first may launch other products later.

Supermarket channels take the lead, and licensing and e-commerce channels follow up: The company's channel planning can be mainly divided into three parts: supermarket channels (planning accounts for 40%), licensing channels (planning accounts for 40%), and e-commerce channels (planning accounts for 30%). (1) Supermarket channels: Since March, the company's products have mainly been promoted in high-end supermarkets. Weiquan currently has 30,000 terminal sales outlets, while the company's promotion target is 3,000, and the final target is 1,500 by the end of this year. The supermarket channel can also be divided into three sections: high-end supermarkets such as OLE; large community mass retailers such as Carrefour and Walmart; and convenience store systems. The convenience store system is expected to enter on a large scale during the peak season next year. (2) Licensing channels: There are bakeries, such as 85 degrees C; coffee shops, like Starbucks (the products provided are plastic packaging, light affects quality, and the shelf life is only 30 days), juice is an added value increase for Starbucks, accounting for less than a point. There are also cinemas, which currently cover 600 households; there will also be a section for wedding parties in the future; there will also be trial hot pot restaurants in Guangzhou, where an average store can sell four boxes a day; there are also high-end kindergartens that promote it to parents; there are also high-end government kindergartens that promote it to parents; there are also government agencies that promote it to parents; A group purchase. It is estimated that there will be 8000 points of sale for future licensed channels. Currently, all companies follow a dealer system and are not self-operated, with the exception of Starbucks and 85°C, which have special requirements. (3) E-commerce channels: The company's e-commerce channel is managed by a sales company in Xiamen, and is currently online on Tmall and JD.

Adhering to product quality-oriented marketing methods, the company's revenue exceeded 20 million in half a year: sales of the company's products in July were 7.5 million, totaling more than 22 million since this year. Currently, supermarkets account for the highest share. Then there are licensed channels; e-commerce channels still have to wait. The revenue from cooperation between Hong Kong and Dachang Huajia is not included in this amount of more than 22 million dollars. The company's sales target for the end of this year is 120 million yuan, and next year it will reach 360 million yuan. The company's current marketing strategy is to find channels and consumers. There is online promotion on the Internet. A total of 720 trial camps were held in June and July, and there are QR code scanning and delivery activities at high-end office buildings in Shanghai. The company's future single products will not drop prices or be sold in bundles; there may be exchange prices (using small tickets) and shopping guides at sales points. The target is 20,000 yuan per month. Currently, the highest sales volume is recorded at the store with the highest sales volume of 36,000 yuan. 500 shopping guide stores have been set up in Shanghai, Beijing, Guangzhou, Shenzhen, etc., and promotion is carried out by shopping guides. Currently, dealers cooperating with the company are divided into three categories. The first category is those who have experience selling fruit juice; the second category is cold chain dealers who have never bought juice; and the third type is those who want to distribute it in Beijing, Shanghai, etc.