Looking at the application potential of condiments in the food industry from the prospectus of Weilong

 

On May 8, Weilong Foods just completed a Pre-IPO financing of about 3.
52 billion yuan, with a valuation of about 60.
4 billion yuan.
This is the first time that it has introduced external funds publicly for more than 20 years.
It has been ignored by capital for 20 years.
It is also the only round of financing before its listing.
This round of financing was jointly led by CPE Yuanfeng and Hillhouse, followed by well-known institutions such as Sequoia China, Tencent, and Yunfeng Fund.

 

The prospectus shows that Weilong's total revenue from 2018 to 2020 will be 2.
75 billion yuan, 3.
38 billion yuan, and 4.
12 billion yuan, respectively.
According to this growth rate, Weilong's revenue in 2021 should exceed 5 billion yuan.
Its net profit margin is also increasing, from 2018-2020 to 17.
3%, 19.
4% and 19.
9%.

 

What kind of food is Weilong's flagship product, spicy strips? According to the "Announcement on Strengthening the Quality and Safety Supervision of Seasoned Noodles" issued by the State Administration for Market Supervision, spicy strips are officially classified as "seasoned noodles.
" According to the definition of Baidu Encyclopedia, seasoned noodles generally refer to seasoned noodles.
Seasoned noodles are instant foods made from wheat as the main raw material through ingredients, extrusion, cooking, molding, and seasoning.
The main difference between seasoned noodles and general noodles lies in the seasoning.
At present, in terms of taste, Weilong has introduced more than ten flavors such as pickled pepper, barbecue and five flavors, and meets the needs of consumers through the diversification of product tastes.

 

　　People put food first, and taste first.
Taste has always been the core element of food, and foodmate.
net/tag_346.
html" class="zdbq" title="Condiment related food information" target="_blank">condiments play a very important role in it.
In recent years, the condiment industry has developed rapidly.
According to the statistics of China's top 100 condiments statistics, the total output of my country's seasoning food reached 14.
289 million tons in 2019, an increase of 12.
82% year-on-year.
The sales revenue of the top 100 companies in the condiment industry has increased year by year.
In 2019, the total sales revenue of the top 100 companies exceeded 100 billion for the first time, reaching 105.
11 billion yuan.

 

　　Catering, household and food processing are the main markets for condiments.
With the continuous development of the takeaway market, the proportion of condiments in the catering market has gradually increased, while the proportion of the household market has declined.
Since food processing belongs to the TO B market, it has received less attention.
But in fact, condiments are widely used in the food processing market.
In the early days, it was mainly used as a base material in food processing.
Later, various forms of compound seasonings were used in food manufacturing.
Take Weilong as an example.
In the prospectus, it is clearly mentioned that seasonings and other auxiliary materials such as cumin, chili and Chinese pepper are used in the production process.
In 2020, the company's raw material costs (including soybean oil, flour, konjac and seasonings, etc.
) accounted for approximately 27.
8% of the total revenue during the same period.
Although the company announced the specific proportion of seasonings in the prospectus, spicy seasonings play a very important role in spicy seasoned noodle products.
To this end, the company also wholly established Luohe Lewei Seasoning Co.
, Ltd.
in 2017 with a registered capital of 20 million yuan.
The business scope is: the production, processing and sales of seasonings and seasonings; technological development, technology transfer, technical consultation, and technical services of seasonings and seasonings; sales of pre-packaged foods.

 

　　According to data in the Weilong prospectus, Weilong's market share in spicy snack foods is approximately 5.
7%, and its market share in seasoned noodle products is approximately 13.
8%.
Only spicy condiments have a huge market space in food processing.
At the same time, condiments are still widely used in sauces and convenience foods.
In recent years, the rapid growth of one-person food concept foods is also commonly used with condiments in the form of seasoning packets.

 

　　In the future, with the improvement of living standards, consumers will pursue more diversified and healthy tastes.
On the one hand, food processing enterprises must meet the diverse taste needs of consumers, and on the other hand, they must also comply with consumers' demands for safety and health.
It is foreseeable that the application prospects of condiments in the foodmate.
net/tag_1660.
html" class="zdbq" title="Food information related to the food industry" target="_blank">food industry will be more extensive.