Author丨Wu Chaofan
Editor丨Tangerine
At a time when the competition for functional drinks stock is intensifying, Dongpeng Beverage, which "made its fortune" in the South China market, is going to speed up its layout in the northern market. Recently, at the FBIF2024 Food and Beverage Innovation Forum, Jiang Weiwei, vice president of Dongpeng Beverage, and Nei Sanjun exchanged views on topics such as regions, products and strategic planning that the company will focus on this year.
Speed up the layout of the north
For Dongpeng Beverage, the northern market is of great strategic significance. Jiang Weiwei told Nei Sanjun: "Last year, Dongpeng's northern market performed very well. Many northern provinces and cities have seen double-digit growth, and in some areas have nearly doubled. ”
It is worth noting that this view has been presented in the company's financial report before. According to the data, in 2023, Dongpeng Beverage's revenue in North China will be 1.009 billion yuan, a year-on-year increase of 64.83%.
Jiang Weiwei said that based on the positive news from the northern market, Dongpeng Beverage will focus on the northern market this year. She further revealed: "Dongpeng Beverage's Tianjin production base has started. Relying on this, this year, we will focus on Beijing and Tianjin. ”
In fact, the beverage market in the north is not yet fully opened up for Dongpeng Beverage.
In this regard, Jiang Weiwei believes that "previously, Dongpeng put the northern market in a relatively backward strategic position, which was based on factors such as strong local competitors and high construction costs. ”
Jiang Weiwei said, "Now, with the gradual completion of the distribution system in the northern market, and we believe that the growth space of the northern market is still very large, and the development speed is also very good, Dongpeng will accelerate the layout of the northern market." For example, she said, "In this regard, we will cooperate with some outdoor advertising in North China, sports event sponsorship, etc., with the help of these high potential energy behaviors, so that the market can quickly accept and understand Dongpeng." ”
Exploring the north may also mean new growth space for Dongpeng Beverage.
The next big item?
For many years, Dongpeng Special Drink has been the core product of Dongpeng Beverage, but the industry's doubts about its "high dependence" have never stopped. The "second growth pole" has always been urgent for Dongpeng Beverage.
When talking about Dongpeng's product strategy, Jiang Weiwei said: "This year, our main new product is the electrolyte drink - 'hydration'. This product has not been on the market for a long time, but it has already performed well in the market. She revealed, "According to our data monitoring, dynamic sales have exceeded expectations. "It is reported that this year's distribution outlets will reach 2 million.
Judging from the overall sales situation of the market, Jiang Weiwei said: "Since its launch, the market feedback of hydration has been particularly good, and based on its hydrating characteristics, it has sold very well in youth basketball leagues, campuses, sports venues, scenic parks, etc. We believe that it has the potential to become a multi-billion dollar item in the future. ”
The background is that the boom in electrolyte drinks continues.
According to the "2023 China Electrolyte Beverage Industry Market Insight Report" released by the Prospective Industry Research Institute, the market size of electrolyte beverages in 2022 will increase by 50.1% year-on-year to 2.7 billion yuan, becoming a new outlet for the beverage track. In addition, according to the data of "Win Now", in the first half of 2023, the market share growth rate of the sports drink category represented by electrolyte water will reach 35.76%, ranking second among all categories.
Judging from the current performance, Dongpeng Hydration may be expected to become the second largest item after Dongpeng Special Drink.
"Firm" freezer strategy
For beverage companies, freezers often mean prime spots and close contact with consumers. Therefore, many beverage companies will put freezers on a large scale to broaden the distribution area and increase the exposure of products.
This is also what Dongpeng is currently actively promoting. It is understood that Dongpeng will consider continuing to add freezers this year. Such a large-scale launch this year is related to our 1+6 strategic layout. As Dongpeng's product range continues to expand, we believe that the freezer strategy will also expand. ”
In view of the current market situation of freezers, Jiang Weiwei also said: "At present, many brands of freezers on the market have occupied a lot of good positions, but we still have to unswervingly do this. First of all, the freezer has a life cycle and will be replaced; Secondly, we also need freezer placements to display our ever-expanding product range. ”
Regarding the construction goal of terminal online stores, Jiang Weiwei said: "Last year, our terminal online stores reached 3.4 million, and this year it is expected to reach nearly 4 million. As for the details of the construction, Jiang Weiwei revealed to the internal staff: "Guangdong Province is deeply cultivating the original points while developing, and the areas outside Guangdong will increase the development of more new regional points." This year, we also plan to increase the development of catering channels. ”
The growth target of the point may also lead to the growth of the business target. According to public information, Dongpeng Beverage plans to achieve a growth target of no less than 20% in operating income and net profit in 2024.
Jiang Weiwei said: "In the future, Dongpeng's goal is at least 20 billion yuan, and the composition of this is diversified, with Dongpeng Special Drink as the core and other brands as the support to achieve this goal." ”
In the case of adhering to the current strategy and being effective in parallel, Dongpeng Beverage's goal of 20 billion may not be far away.