Source: Beijing Business Daily
A reporter from the Beijing Business Daily learned from many sourcesEncorepokerCoca-Cola recently issued price adjustment notices in Hebei, Henan, Shandong and other regions. Prior to this, a number of sodas under Pepsi Beverage also clearly raised prices. "two happy" price increases at the same time, domestic soda increases the penetration of terminal catering channels, a new round of competition in the soda industry kicked off.
In April, Hubei Swire Coca-Cola, Jiangxi Swire Coca-Cola and Zhengzhou Swire Coca-Cola successively issued notification letters on some product adjustments, saying that the supply prices of some products had been adjusted since late April, and the recommended retail price was adjusted from 3 yuan per bottle to 3.Encorepoker.5 yuan per bottle, with a price increase of 16%.
In May, the prices of several soda products under Pepsi Beverage were clearly raised, except for the recommended retail price of the main product of 550 ml to 3.EncorepokerIn addition to 5 yuan, Pepsi drinks will adjust the recommended retail price of 900 ml Pepsi, 7-up and Melinda series to 5 yuan per bottle.
At the same time, Coca-Cola has also raised prices openly or secretly in Hebei, Henan, Shandong, Jiangxi, Jilin, Chongqing and other regions, but the products and ranges of terminal price adjustments vary.
The owner of a convenience store in Chongqing said, "in the past, the purchase price of 500ml Coca-Cola was 1.9 yuan per bottle, but now it is about 2.1 yuan per bottle. It is estimated that it will rise to 2.3 million yuan per bottle in the summer." Originally, the merchants dared not raise the price for fear that the competition would be too strong. As a result, the manufacturers uniformly raised the price. I am afraid they will never get the purchase price of 2 yuan. "
Coca-Cola has been quietly raising prices since May last year, and standard soda has increased from 3.5 yuan per bottle to 3.8 yuan per bottle. However, the price increase has not had any impact on its sales, and its revenue and profits have increased. On March 19, 2024, Cofco Coca-Cola parent company Cofco Foods released its 2023 performance report. During the reporting period, sales income reached 21.446 billion yuan, an increase of 2.3% over the same period last year. Adjusted EBIT (profit before interest and tax) and EBITDA (profit before interest, depreciation and amortization) increased by 10.7% and 13.3% respectively over the same period last year.EncorepokerThe profit during the period reached 1.386 billion yuan, an increase of 14.47% over the same period last year, and the profit growth rate was faster than the income.
Zhu Danpeng, a Chinese food industry analyst, told Beijing Business Daily that the increase in the price of "Liangle" is not only due to the increase in costs brought about by internal innovation iterations, but also due to external competition and rising raw materials. Under the node of foreign capital price increase, more price space will be left for domestic soda. In recent years, domestic soda has also been a dividend of high-speed development, high-speed growth and high-speed expansion.
Production in sugar-producing countries India and Thailand fell due to the El Ni ñ o phenomenon, with sugar quoted at 7390 yuan per ton on Sept. 6, 2023, a 13-year high, according to the Food and Agriculture Organization of the United Nations. White granulated sugar, made from sugar, is also an important raw material for many drinks. According to Haitong Securities, 15% of the raw material cost of the soft drink industry comes from white granulated sugar.
Entering the domestic soda market for more than 30 years, the price has been the moat of Coca-Cola and Pepsi in the Chinese market. The "two pleasures" have raised prices one after another, or leave a lot of price space for domestic soda.
Recently, a reporter from the Beijing Business Daily visited and found that the price of 500 milliliters of newly canned big kiln soda on some catering channels is 4 yuan per can. In a barbecue restaurant in Shijingshan, orders were placed through a group-buying platform, and the 520 ml glass bottle kiln was as low as 3 yuan per bottle, a decrease of 62.5% compared with the suggested retail price.
In addition to Dayao, the prices of Beijing time-honored Arctic Ocean and Xi'an brand Bingfeng have also been reduced in catering channels. In a Shaanxi noodle restaurant in Haidian, Bingfeng soda, as one of the "three-piece sets" of old Shaanxi, costs 3 yuan for 330 milliliters and as low as 2 yuan for some channels. In a hot pot restaurant in Wukesong, the price of 248 ml glass bottles in the Arctic Ocean is 3.2 yuan per bottle, a drop of 60% compared with the recommended retail price. The owner of the hot pot restaurant told the Beijing Business Daily that the Arctic Ocean has been selling well and can sell one case a day.
Lan Shili, the controller of Wuhan No.2 Factory, said that he would seize the opportunity of the price increase of "Liangle" to use 1.99 yuan of fruit juice soda as the main product online. "this summer, we have made a great layout, especially in the surrounding provinces." such as Hunan, Anhui, Chongqing and Guangdong, there will be greater breakthroughs and improvements, including publicity, channels and brands, shipments will at least double this year.
The relevant person in charge of the Dayao brand said that the price increase of "Liangle" will not follow up. "the recent new products are still in the process of setting prices. At present, we still pursue the ratio of quality to price, and there are no plans to increase prices for the time being. In the future, we may also launch 2 yuan of high quality-to-price products.
Kong Wenxie, a reporter from Beijing Business Daily.