Dalian cans close to 20 yuan life and death price increase two or three times up to 20%

From November to February of the next year, it is the peak season for canned sales. During the end of this peak season, the reporter found that the dominoes that were pushed down by the price increase of fruits such as peaches last year are still being transmitted.

"Production costs have risen sharply. No increase in price is not acceptable. In the industry, 800 grams of canned fruit can't be higher than 20 yuan. This is a 'life and death line', but now we are getting closer to this life and death line under the pressure of cost. Lin Nan, chairman of the Linjia shop, said.

The entanglement of price increases and costs is just one of the “problems” faced by canned food in Dalian. Dalian's forty or fifty canners and more than a dozen brands are deducing the “Warring States Period” of an industry. How the industry integrates and breaks out seems to be the next step in this scale of billions of industries.

A

Price increase 20%

Canned price approaches "lifeline"

"Now ordinary canned fruit can rarely be less than 10 yuan, and some large packs and even 26 yuan each, if you go up again, canned can not afford." Citizen Ms. Song complained.

“Since the second half of last year, many brands of canned goods have raised prices two or three times, and prices have risen by more than 20%.” Li Guangfu, general manager of Dalian Libao Can, said that this price is now the highest price in canned food.

In fact, price hikes are not an easy task for canners. “The cannery is a labor-intensive enterprise. Since last year, the wages of workers have risen by about 30%. Not only that, last year, domestic prices of yellow peaches were the most expensive in the world, and prices were higher than those in Greece and Chile, and almost doubled from last year’s prices. The cost of raw materials such as sugar, bottles, and bottle caps has also increased by about 20%. The high cost has swallowed most of the profits.” Lin Nan said that the current retail prices of canned foods of various specifications are approaching the “birth and death line”, once breakthroughs have been made. Article "lifeline" may be abandoned by consumers.

Ren Mingjun, another giant in the canned canteen industry in Guangzhou, also said that each price increase will have an impact on sales, and the market will need a period of adaptation.

Han Minqiang, Han Qiang, chairman of Han Qiang, said that although most of the canneries in Dalian have raised their prices, the net profit of the industry is only within 5% because of huge cost drag.

B

More than 40 canned cans in Dalian can be interpreted in the Warring States period. “The tangled price increase is just a representation of Dalian. For example, in this round of price increases, some small and medium-sized enterprises did not follow up. They maintained profits by compressing production costs, and when production costs When it is compressed to a certain extent, its food safety problems can not help but worry people,” said one industry source.

“Now, there are more than 40 large and small canneries in Dalian, and the brand is quite chaotic. The craftsmanship and quality standards vary from one manufacturer to another, resulting in significant differences in costs and market prices.” Ren Mingjun said that the above factors have led to the market There are a lot of chaos on it.

“Now, the canned industry in Dalian is like a Warring States period. Linjia shop, sincerity, taste hall, and top cards are among the best in the competition. Some small and medium-sized enterprises are also continuously acquiring and being merged.” Lin Nan said that canned food in Dalian Under the premise of increasing, the drama of the growing brand products and the gradual shrinkage of non-brand products is being performed.

“As a medium-sized cannery, last year, we had merged a small cannery in Pulandian City. I believe that this industry merger and integration will be completed in the next 3 to 5 years. By then, there will be 10 remaining cans in Dalian. Several powerful companies," said Li Guangfu.

“Now, the competition in the canned market in Dalian is very fierce, and the branding competition is particularly prominent. Some companies frequently carry out bombing-type advertising campaigns. As a result, the canning industry is ostensibly the most active 'star' on the advertising board, but in fact it is low-profit. The industry is earning a 'floating lively'.” Lin Nan said with emotion that now, some companies’ brand competition strategy has far exceeded the brand's own business.

C

Field cans invade Dalian canned "attack and defense"

“Dalian people can eat about 100 million cans per year. The remaining canned food in Dalian is sold to the Northeast market. Now, local canned food factories such as Shandong and Hebei where raw material prices are low are eroding the Northeast market. The largest sales base for canned food in Dalian.” Li Guangfu said that as far as the Dalian market is concerned, the share of canned foreign brands is exceeding 10% of the “defense line.”

In the face of aggressive foreign canned brands, how can Dalian's canned food break out? Lin Nan believes that Dalian should standardize the raw material base as soon as possible. “At present, the output of Dalian Peach is about 100,000 tons per year, but the time-to-market is very concentrated. Processing can not be achieved during the picking season; once the peak season is over, there is no raw material processing, so it is better to form obvious early and late maturing varieties on raw materials. The level of mechanization in the canned food industry in Dalian is not high, and it is constrained by the increase in manpower costs. This is related not only to the input of various companies, but also to the diversity of Dalian yellow peach varieties, and the fact that the peach kernel is not standardized and that it is difficult to mechanize.”

When the famous domestic venture capitalist Linjia shop is plugged into the fast-growing wings, when candid cans prodigiously launch the ambition to go public for five years, how can some of the Dalian canned enterprises stabilize the “base camp” of the Northeast market when they build factories or merge overseas? Raising and improving raw material bases is particularly important for this industry that wants to go out.

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