Click image for details Editor-in-Chief: Bella Author: Mote Chan (WeChat: motechenfbif) Information gathering: Paris Zou, Liu Xiaomin, Jiang Haibin Proofreading: Shushu Li Layout: Wilbur Zhu Design: Feifei Foreword FBIF released the "2017 China Food & Beverage Top 100" (referred to as "FBIF Top 100") on August 24, 2017 (Beijing time). The FBIF Top 100 is a ranking of China's food and beverage industry based on performance, and 2017 marks its first release. Internationally, Food Engineering publishes an annual global food company top 100 list, and Food Processing publishes a North American food and beverage company TOP 100. However, in China, various institutions have released various lists, but readers rarely see "performance" in the rankings; or they are sorted based on some index; some even claim "rankings are in no particular order," making it difficult to understand the industry landscape, let alone be convincing. Understanding one's own development level and stage requires external reference. Understanding China's food industry also requires more transparent data, supplemented by global data for comparison, so that we can better see ourselves. The past was the "information age" emphasizing rapid access to information; whoever could grasp information faster had an advantage. But now it is the "data age." We believe the data age emphasizes openness and sharing of data. Only with more comprehensive data, more open information, and faster circulation can information become more valuable and promote industry development and progress. In the internet industry, almost all information is "data," clear at a glance. The vigorous development of the internet may also indirectly confirm that "information flow speed is proportional to development speed." "2017 China Food & Beverage Top 100" is the first edition. We cannot achieve 100% comprehensiveness, and the ranking criteria are still being explored. But this is the first step. We believe that through our efforts, we can inspire recognition of "data openness" and ultimately promote the development of the food industry. We also hope to accumulate data on China's food industry through the first ranking. The longer the time, the more comprehensive the data, the better we can clearly review history, find patterns, and better predict the future. For readers' convenience, reply with keywords to the subscription account to obtain different formats of the ranking: Reply "2017 China Food & Beverage Top 100" to get 1. PDF version report (with FBIF Top 100); 2. Excel version of FBIF Top 100 (including data sources). Table of Contents Part 1: List Analysis - WH Group ranks first - Yili and Mengniu grow steadily; Master Kong and Wahaha decline from peak - China's largest food group - Profit king, entry threshold, average performance, and 10-billion-yuan enterprises - Proportion of Top 100 in food industry and category champions - Emerging forces not to be ignored: "post-00s" and "post-10s" - China's largest food province Part 2: Comparison with Global and North American Top 100 - Significant gaps in both scale and quantity - Analysis of reasons for the gap between Chinese and global enterprises - Transformation path for Chinese food enterprises Part 3: Top 100 List - FBIF Top 100 - Basis for ranking Part 4: Contact Author, About FBIF - Contact Author - About FBIF Part 1: List Analysis WH Group ranks first WH Group Logo As the title previewed, WH Group (73.921 billion yuan), Yili (59.172 billion yuan), Master Kong (55.273 billion yuan), Mengniu (53.433 billion yuan), and Wahaha (52.91 billion yuan) rank in the top five. These five companies are also the only ones with performance exceeding 50 billion yuan. Currently, no enterprise has reached the 100-billion-yuan level. WH Group ranking first may not surprise everyone. In the Fortune China 500 list released by Fortune China on July 31, 2017, WH Group ranked first in the food industry with 143 billion yuan (21.534 billion USD). In this list, WH Group's performance is 73.921 billion yuan (11.074 billion USD, converted at 1 USD = 6.6752 CNY). As explained in our "Basis for Ranking" (below), 73.921 billion yuan is WH Group's "processed meat (i.e., processed food)" business, excluding "fresh pork" and "hog farming." In 2016, processed meat accounted for 51.4% of WH Group's revenue but contributed as much as 82.5% of profits. In 2013, Shuanghui acquired U.S. pork producer Smithfield for $7.1 billion, setting a record for the largest acquisition of a U.S. company by a mainland enterprise at the time. This move increased WH Group's annual revenue by more than 90 billion yuan (Shuanghui's 2016 revenue was 51.8 billion yuan) and made it the world's largest enterprise in processed meat, fresh products, and hog farming. WH Group has not stopped its globalization pace, continuing to acquire European and American companies in recent years. Now, with Smithfield, WH Group has become a multinational enterprise, with overseas performance far exceeding its domestic performance. WH Group's 2016 annual report shows: "China operations accounted for 36.0% of the Group's total revenue in 2016, while U.S. operations contributed 57.4% to the Group's total revenue in 2016." Yili and Mengniu grow steadily; Master Kong and Wahaha decline from peak Among the other four companies in the top five, over the past four years (since 2013), only Yili and Mengniu have achieved relatively steady growth. Yili grew from 47.8 billion yuan in 2013 to 60.6 billion yuan (overall performance), and Mengniu grew from 43.36 billion yuan to 53.78 billion yuan (overall performance). However, both Wahaha and Master Kong have declined from their 2013 peaks. In 2013, Wahaha achieved revenue of 78.3 billion yuan; now it is only 52.91 billion yuan. Master Kong's revenue peaked at 66.77 billion yuan in 2013; now it is 55.878 billion yuan (overall performance). Note: Master Kong's historical revenues are: USD (billion) 10.941 (2013); 10.237 (2014); 9.103 (2015); 8.372 (2016), with corresponding exchange rates of 6.0969 (2013.12.31); 6.119 (2014.12.31); 6.4936 (2015.12.31); 6.6752 (2017.8.13). From the trend chart, it can be seen that Yili and Mengniu's growth has slowed, while Master Kong and Wahaha have declined from their peaks and have not yet returned to their 2013 performance peaks. Later, the author will analyze some reasons for the slowdown or decline in revenue by comparing with global enterprises. China's largest food group In the 2016 China Enterprise 500 list released by the China Enterprise Confederation and China Enterprise Directors Association on September 1, 2016, we screened and compared enterprise groups closely related to food, including China Resources, COFCO, Bright Food, and Beidahuang. China Resources Group China Resources Group's consumer goods segment has three companies, with corresponding processed food performance as follows: China Resources Beer: 28.694 billion yuan China Resources C'estbon: 9.347 billion yuan China Resources Ng Fung: 1.212 billion yuan (for the comprehensive food segment; the company achieved revenue of 10.653 billion yuan in 2016). In addition, China Resources Pharmaceutical holds a 28.14% stake in Dong-E E-Jiao, but since it does not reach controlling stake, it is not included in the statistics. The total processed food performance of China Resources Group is: 39.253 billion yuan. COFCO Group COFCO Logo According to the "COFCO Group 2016 Social Responsibility Report," "As an investment holding company, COFCO Group owns 11 listed companies." Based on this, we compiled food-related companies and their performance: Mengniu Dairy: 53.433 billion yuan (included in Top 100) China Foods: 23.645 billion yuan (included in Top 100) COFCO Tunhe: 16.4 billion yuan (included in Top 100) COFCO Meat: 0.949 billion yuan (for processed meat; total revenue is 6.616 billion yuan) Jiugui Liquor: 0.65 billion yuan COFCO Biochemical: 0.545 billion yuan (for edible oil and by-products; total revenue is 5.6 billion yuan) China Tea: Not listed and no data disclosed. Mengniu's controlled companies include: Modern Farming: 4.862 billion yuan (included in Top 100; as of March 21, 2017, Mengniu's controlling stake reached 61.3%) Junlebao: 8 billion yuan (included in Top 100; Mengniu holds 50.99%) Since Yashili and Dumex's performance is reflected in Mengniu's annual report, the two companies are not calculated separately. In addition, recent news reports that "COFCO Packaging plans to acquire approximately 30% equity of Qingyuan JDB." However, the performance that Qingyuan JDB can contribute is currently unknown. From the above, the total processed food performance directly or indirectly controlled by COFCO is at least: 108.484 billion yuan. Bright Food Group Bright Food's listed food companies include: Bright Dairy: 17.817 billion yuan (included in Top 100) Shanghai Maling Aquarius: 3 billion yuan (included in Top 100) Shanghai Jinfeng Wine: 2.125 billion yuan (included in Top 100) Total processed food performance: 22.942 billion yuan. Beidahuang Jiuyi Grain & Oil: 41.047 billion yuan (included in Top 100) Wandashan: 4.5 billion yuan (included in Top 100; estimated for 2015) Total processed food performance: 45.547 billion yuan Notes: 1. The above "processed food performance" only counts the performance of "controlled companies," excluding undisclosed performance. Data is for reference only. 2. Since subsidiaries of each group are mostly listed companies and operate independently, the group companies do not participate in this ranking. In subsequent analysis, "group companies" will not be used as a reference. Based on the above comparison, whether in terms of the number of controlled enterprises or total performance, COFCO Group is China's largest food group. If COFCO's overall processed food performance were included in the ranking, COFCO would undoubtedly be China's largest processed food enterprise. Profit king, entry threshold, average performance, and 10-billion-yuan enterprises Who is the profit king? Kweichow Moutai Image source: Oriental IC Since not all companies in the list are listed, we cannot compare profits for all. However, Kweichow Moutai, with revenue of 38.841 billion yuan (ranked 7th), has a net profit as high as 16.718 billion yuan, undoubtedly making it the profit king. In comparison, the top-ranked WH Group's overall profit is only 11.9 billion yuan (1.788 billion USD). Moreover, the profits of Yili, Master Kong, Mengniu, and Wahaha, which rank high, all do not exceed 6 billion yuan. A statistic by Beijing News in May 2017 based on iFind data from all listed companies showed the same result: Moutai ranks first in profits among all listed food companies. Minimum entry threshold This time, the 100th place is Hebei Hengshui Laobaigan Liquor, with performance of 2.065 billion yuan. Therefore, 2.065 billion yuan is the minimum entry threshold. According to our statistics of more than 400 companies, there are over 80 companies with performance between 1 billion and 2.065 billion yuan, most of which are listed companies. Because our statistics are incomplete, we believe there are more companies with performance far above this, including Lee Kum Kee and Infinitus. Average performance, how many 10-billion-yuan enterprises? The average performance of the FBIF Top 100 is 10.795 billion yuan. Exceeding 10 billion seems not an unattainable dream for domestic food companies. In this list, 26 companies exceed or reach 10 billion yuan, 16 companies exceed 20 billion yuan, and only 5 companies exceed 50 billion yuan. Proportion of Top 100 in food industry and category champions National Bureau of Statistics data shows: In 2016, the food industry (including agricultural and sideline food processing, food manufacturing, and beverage and refined tea manufacturing) above designated size achieved main business revenue of 11.1 trillion yuan (excluding Hong Kong, Macao, and Taiwan data). The total performance of the FBIF Top 100 is 1,079.453 billion yuan, accounting for 9.72% of the overall food industry. So, who are the category champions? Based on enterprise type, we classified and counted according to the following standards: Notes: 1. Unit: 100 million yuan (RMB) 2. "Comprehensive" means that the business cannot be described by a single category; an enterprise engaged in 2 or more categories is considered a comprehensive enterprise. From the table above, it can be seen that "comprehensive" enterprises not only have the highest number and performance, but also rank first in both global and North American top 100 lists. This seems to suggest that to achieve the highest performance, "non-focus" beats "focus." In terms of sub-categories, there are 18 liquor companies, the largest sub-category. If beer is included, a total of 22 companies have main business in liquor or beer, with a combined performance of 217.292 billion yuan, accounting for 20.13% of the entire list. In addition, dairy and beverages also occupy important shares, with 14 and 15 companies respectively, and performance of 180.058 billion yuan and 156.039 billion yuan, accounting for 16.68% and 14.46% respectively. The top companies in several major categories are as follows: The above companies are basically champions in their respective fields. For other categories, due to significant overlap with comprehensive enterprises or incomplete data, the category champions may be controversial. This article only provides a limited list for readers' reference. Emerging forces not to be ignored: "post-00s" and "post-10s" Three Squirrels Logo Due to the lack of rankings from previous years, we cannot conduct a comprehensive comparison of ranking changes. However, from the founding year and growth rate of enterprises, many have risen rapidly in a short period. In this ranking, 16 companies were established after 2000, belonging to the "post-00s" among enterprises. The youngest is Three Squirrels, established only in 2012, the only "post-10s." Relying on e-commerce, Three Squirrels achieved sales of 4.423 billion yuan in 5 years (2016, according to its prospectus), ranking 60th in this list. Its past growth rate has almost doubled every year. Other rapidly growing "post-00s" enterprises include: Juewei Food (rank: 74), Zhou Hei Ya (rank: 85), Bestore (rank: 41), Xiangpiaopiao (rank: 94), Ausnutria Dairy (rank: 89), Lai Yifen (rank: 76), etc. Their annual growth rates are astonishing. Ausnutria Dairy: 2016 performance increased 30.3% year-on-year Zhou Hei Ya: 2016 performance increased 15.8% from 2.432 billion yuan in the same period last year Juewei Food: 2016 revenue reached 3.274 billion yuan, a year-on-year increase of 12.08% Xiangpiaopiao: 2016 increased 18.32% compared to 2015 ...... In the rapidly changing Chinese market driven by the internet, e-commerce, and new retail, we have every reason to believe that the FBIF Top 100 will undergo dramatic changes every year. China's largest food province Note: Since this ranking does not include foreign enterprises, and foreign enterprises are mostly concentrated in Shanghai, Guangdong, and Beijing, our analysis conclusions focus on domestic enterprises. It is not difficult to guess China's largest food province; GDP and population are important factors. In 2016, the top three provinces in China's economy were Guangdong, Jiangsu, and Shandong; the ranking of provincial populations was Guangdong, Shandong, and Henan. The number of enterprises and total performance in each province basically conform to both economic and demographic factors. This time, Guangdong and Shandong each have 10 companies entering the list, tied for first, but in total performance, Shandong leads with 120.071 billion yuan, while Guangdong only has 81.106 billion yuan. Therefore, it is not an exaggeration to say Shandong is China's largest food province. In the provincial ranking, only "Inner Mongolia" is unique, with population and economy in the middle, but because the dairy duo almost supports half of Inner Mongolia's food industry. Part 2: Comparison with Global and North American Top 100 Notes: 1. The comparison objects are the global ranking: 2016 Global Food Enterprise Top 100 - Transformation of the New World (2015 performance) and the North American ranking: 2017 North American Food & Beverage TOP 100 (2016 performance). The global and North American rankings do not cover all enterprises globally. In the global ranking, only 4 Chinese companies are included (including Smithfield Foods acquired by Shuanghui). Based on the data from this Chinese ranking, calculated with the global ranking's minimum threshold of "$3.72 billion (24.675 billion yuan)", about 11 Chinese companies could be included. 2. The "food manufacturing" standard in the global and North American rankings is not exactly the same as this Chinese ranking. For example, the global and North American rankings include livestock and poultry slaughter performance, and the North American ranking includes pet food performance. 3. The North American ranking only counts sales in North America, but includes sales of non-North American companies in North America (e.g., Nestlé). The Chinese ranking counts the global sales of Chinese companies. 4. Based on the above factors, and with comparison data calculated at the exchange rate of August 13, 2017, there may be some errors in the data. Compared with the global and North American rankings, many gaps can be seen in both scale and quantity. We will briefly analyze the shortcomings of Chinese enterprises and the direction of transformation. Significant gaps in both scale and quantity Gap in scale In terms of overall performance scale, the total performance of the global top 100 is $1,275.875 billion, North America is $483.583 billion, while China is only $161.711 billion, only 1/3 of North America's scale. In the North American ranking, U.S. companies account for 83. If comparing China's top 83 companies with the U.S.'s 83, the total performance of U.S. companies is $383.825 billion, while Chinese companies' total performance is $155.444 billion (1,037.621 billion yuan). The total performance of U.S. companies is still nearly 2.5 times that of Chinese companies. China's largest food enterprise is WH Group at $11.074 billion. If WH Group's overall performance of $21.534 billion were compared in the global top 100, WH Group would only rank 17th globally (excluding errors due to exchange rate factors). The global number one, Nestlé, had performance of $79.4 billion in 2015, and the second, PepsiCo, had $63 billion (with $39.4 billion in North America). In scale, Nestlé is 3.7 times WH Group, and PepsiCo is nearly 3 times WH Group. In addition, according to our statistics of global 100-billion-yuan (RMB) and 10-billion-yuan enterprises, it can also be seen that China has no 100-billion-yuan enterprises, while globally there are 23, with the U.S. accounting for 7. In North America, the number of enterprises exceeding 10 billion is also considerable, reaching 71. China has only 26. Gap in quantity In the global top 100, there are 8 companies with performance exceeding WH Group ($21.534 billion): PepsiCo, Coca-Cola, Tyson Foods, Archer Daniels Midland, Mars, Mondelez International, Cargill, and Kraft Heinz. As mentioned above, about 11 Chinese companies can enter the global top 100. So, how many companies from other countries enter the top 100? China is currently the world's second-largest economy. Does it have a commensurate position in the top 100? Through the above table "Comparison of the number and performance of companies entering the global food enterprise top 100 by country," after adjusting China's companies to 11, it can still be seen that the number of Chinese companies entering the list is significantly different from the U.S. and Japan, and the total performance is weaker than the U.S., Japan, France, the Netherlands, Switzerland, and other countries. In terms of average enterprise scale, our comparison data is only higher than Germany. What exactly causes the gap between Chinese enterprises and global enterprises? Analysis of reasons for the gap between Chinese and global enterprises The deep-seated reason includes the stage of China's economic development. The mainland economy has truly developed for less than 40 years since reform and opening up. China's current GDP scale also largely depends on the population base. Compared per capita, China's development level is still relatively low. According to the IMF's global per capita GDP ranking, China ranks only 71st, at a medium level. This article only conducts a shallow analysis from the data surface, such as comparing the "founding history" of enterprises. It is one opinion and for reference only. First, historical accumulation We believe the first reason is the lack of historical accumulation. Chinese enterprises are too young, with too short a development time, while global top 100 enterprises are very "ancient." Chinese enterprises are still too young The nature of China's top 100 enterprises (state-owned, private, foreign). According to statistics, there are 28 state-owned enterprises, with total performance of 428.307 billion yuan, accounting for 39.68% of the total performance of the top 100. It can be said that state-owned enterprises are the mainstay of the FBIF Top 100. By checking the founding years of enterprises, we can see that most state-owned enterprises only implemented shareholding reform in the 1980s and 1990s, meaning their market-oriented operation time is very late, with only about 20 years of modern operation. For example, Yili's history can be traced back to the "Hohhot Huimin District Cattle Raising Cooperation Group" established in 1956, but it was not until 1993 that it began restructuring and established Yili Group, starting Yili's modern development history in 1993. In addition, private enterprises were also established relatively late. For example, Wahaha was established in 1987, and Luhua in 1986. According to our statistics table, it is very noteworthy that the "foreign" (referring to Hong Kong, Macao, and Taiwan enterprises) part has an average founding year of 1958, far earlier than state-owned and private enterprises. This is also reflected in performance: with less than 9% of the number of enterprises, they achieve more than 10.92% of performance. Well-known companies like Master Kong, Uni-President, and Want Want China are all Taiwanese enterprises. How ancient are global enterprises? Chinese enterprises are relatively "young," so how "old" are global and North American enterprises? From the above table, it can be seen that the average founding year of global enterprises is 1922. In fact, many very "young" enterprises globally, such as Germany's DMK (founded 2010) and Fonterra (founded 2001), actually have histories that can be traced back to earlier years, but the latest mergers were later, resulting in founding years after 2000. Looking at North American enterprises, they are basically only about 10 years younger than global enterprises. Whether global or North American, the development history has spanned nearly a century. The leading companies in the global top 100, such as Nestlé (founded 1866), PepsiCo (founded 1898), and Coca-Cola (founded 1886), are all well-known century-old enterprises established before 1900. The gap between Chinese food enterprises and global and North American enterprises is deeply related to the length of enterprise establishment. Currently, whether it is China's economic growth rate or the growth of food enterprises, it has been very rapid. Over time, Chinese enterprises will also have the opportunity to grow more. Second, brand strategy: global top 100 has many billion-dollar brands Besides historical accumulation, the second important factor is the brand strategy of Chinese enterprises. Billion-dollar brands: Nestlé has 29, PepsiCo 22, Coca-Cola 21 According to Fortune's 2010 report, Nestlé had 28 billion-dollar brands, such as Nespresso, Nescafe, KitKat, Maggi, etc.; according to Coca-Cola's official website, as of February 24, 2017, Coca-Cola had more than 21 billion-dollar brands, including Coca-Cola, Fanta, Sprite, Minute Maid, etc.; PepsiCo's official website also shows it has more than 22 billion-dollar brands, including Pepsi, Gatorade, Lay's, Tropicana, Quaker, etc. Due to limited authoritative public information, we roughly counted the number of brands that leading companies currently have or have ever reached billion-dollar status: In China, we rarely see enterprises with numerous strong brand portfolios. Perhaps, to become a leading enterprise in the world's top 100, a company must have multiple billion-dollar brands. Multi-brand strategy based on cross-category is the foundation Coca-Cola custom bottles. In Interbrand's 2016 Best Global Brands list, Coca-Cola ranked third, first in the consumer goods category. Image source: buy.shareacoke.com Observing the world's leading top 100 enterprises, they often have several or even dozens of cross-category brands, and the brands are mostly solid leaders in a single category. For example, Coca-Cola and PepsiCo in the "cola" category; Lay's in the potato chips category; Nescafe in the coffee category, etc. However, a notable feature of Chinese enterprises is that one brand covers multiple categories. A company with several or even dozens of different products almost always uses one brand, unwilling to give up the company logo on any product. Leading enterprises occupy the leader position in individual categories, but it is difficult to become first again when crossing categories. "A single brand is difficult to lead multiple categories simultaneously." This view can be verified through the "Chnbrand Brand Ranking." Of course, the multi-brand strategy is suitable for enterprises to promote when they have developed to a certain stage. We suggest that in the early stage of an enterprise, before the brand becomes a representative brand in a certain category, it is not appropriate to carry out a diversification strategy. We see many small enterprises' websites full of various brand logos, most of which have never been heard of. Such a multi-brand strategy will only disperse the enterprise's originally limited resources. Third, globalization Besides historical accumulation and multi-brand strategy, another factor for the sustained growth of global top 100 enterprises is the globalization strategy. Globalization performance of global top 100 enterprises Nestlé Logo The notable feature of leading enterprises in the global and North American regions is a high degree of globalization. For example, as of 2016, Nestlé sold products in 191 countries and had 328,000 employees worldwide. According to Nestlé's 2016 Annual Review, we can see its performance in major global markets. We selected Greater China, the U.S., and Switzerland for comparison. Greater China's performance reached 45 billion yuan, accounting for 7.3% of global sales. Nestlé's Greater China performance would also be in a leading position in this FBIF Top 100. We can also see that as a Swiss company, Nestlé's domestic performance in Switzerland is only 1.65%, negligible for the group's overall performance. The U.S. is its largest market, accounting for 29.84% of overall performance. Therefore, some people evaluate Nestlé as the most globalized company. In addition, AB InBev has 200,000 employees in more than 50 countries, with 2016 performance of $45.517 billion, and North America reaching $15.698 billion, only 34.49% (AB InBev 2016 annual report). According to PepsiCo's 2016 annual report, PepsiCo serves more than 200 countries and regions globally, more than the number of United Nations member states. Overseas performance accounts for 42%, and outside North America contributes 24% of operating profit. The above are the globalization performances of the top 5 companies in the top 100. We specifically selected Kellogg Company (ranked 27th), which is relatively lower in the global top 100, to look at its degree of globalization. According to its 2016 annual report, as of February 21, 2017, its main products are produced in 21 countries and sold in more than 180 countries. Performance outside North America contributed 31.30% of performance. In summary, we can find that most (not all) leading enterprises in the top 100 operate globally (in more than 50 countries), and 1/3 or more of their performance comes from overseas. In the past few decades, these multinational enterprises have almost all enjoyed the dividends of globalization, especially the broad opportunities brought by the growth of emerging markets. Current globalization status of Chinese food enterprises "Globalized enterprises should integrate various resources globally, invest and set up operations in the most suitable places globally, and provide products and services to the global market." The Harvard Business Review article "How to Become a Truly 'Globalized' Enterprise?" also mentioned: "Towers Watson experts believe that enterprise globalization goes through five different stages: export-oriented, initial expansion, international, multinational, and global." According to the standards in the article, combined with the examples of the aforementioned global top 100 enterprises (markets in more than 50 countries), it is difficult to find enterprises that meet the definition of "globalized enterprise" among the mainstream food enterprises in the FBIF Top 100. Chinese enterprises are currently mostly in the initial expansion stage, or have entered the "multinational" stage: Enterprises in the "multinational" stage often purchase and market products locally, and overseas mergers and acquisitions occur from time to time; companies manage by business and regional portfolio, with increased coordination among countries; in organizational structure, headquarters implement differentiated management for overseas companies of different sizes. Larger overseas companies often directly upgrade to business divisions, managed directly by headquarters, while smaller overseas companies remain under the international company management. ("How to Become a Truly 'Globalized' Enterprise?") We believe that enterprises that relatively meet the "multinational" standard include WH Group, Ausnutria Dairy, and Xiwang Food. (Note: Hong Kong's Lee Kum Kee is a Chinese enterprise we found with similar multinational characteristics, with factories in the U.S. and products sold to more than 100 countries. However, since the enterprise does not provide revenue data, it is not included in this top 100, and we cannot compare.) WH Group As mentioned earlier, WH Group's 2016 annual report shows: "China operations accounted for 36.0% of the Group's total revenue in 2016, while U.S. operations contributed 57.4% to the Group's total revenue in 2016." In 2017, according to Reuters: "Smithfield has acquired several meat processing plants and pig slaughterhouses in Poland to expand its European business." In the future, WH Group will become even more international. Ausnutria Dairy Ausnutria Dairy operating segment information According to Ausnutria Dairy's 2016 annual report, the group's annual revenue was 2.74 billion yuan, with sales in China of 1.819 billion yuan, accounting for about 66.4%, and overseas sales of 0.92 billion yuan, accounting for 33.6%. Through "Ausnutria's business map and sales network," we can find that its business involves more than 30 countries. According to the recently released 2017 interim report, it can still be seen that Ausnutria Dairy's performance both in China and overseas is maintaining high growth. Xiwang Food Xiwang Food acquired Kerr Company, whose main business is sports nutrition and weight management health foods, for $730 million in 2016. "National Business Daily" reported that "for Xiwang Food, with total assets of only 2.218 billion yuan, this is a 'snake swallowing an elephant'." Of course, the performance return after the acquisition is astonishing. After the merger, in 2016, "the company achieved operating revenue of 3.375 billion yuan, a year-on-year increase of 50.43%." Xiwang Food's 2017 interim report shows: "In the first half of the year, the company achieved total operating revenue of 2.881 billion yuan, an increase of 145.66% over the same period last year; net profit attributable to the parent company was 0.141 billion yuan, an increase of 48.62% over the same period last year." According to the 2017 interim report, its overseas performance has reached 1.695 billion yuan, accounting for 58.8%. It can be predicted that for the full year of 2017, Xiwang Food's performance and profit will increase significantly. Expectations for globalization As for whether WH Group, Ausnutria, and Xiwang Food can continue their global expansion and become more thoroughly globalized in the future, we will wait and see. Considering China's current path of globalization, there have been many attempts in the past, but overall, Chinese food enterprises have not fully utilized the vast overseas market. China itself is the world's largest emerging market with unlimited growth potential. If they can also profit from the global market, Chinese food enterprises have greater imagination space. Transformation path for Chinese food enterprises In the previous paragraph "Yili and Mengniu grow steadily; Master Kong and Wahaha decline from peak," it was mentioned that we would analyze some reasons for the slowdown or decline in revenue of mainstream enterprises such as Yili, Mengniu, Master Kong, and Wahaha through comparative analysis. By comparing with global top 100 enterprises, we not only discovered the gap between Chinese and foreign enterprises but also helped us find some reasons for the gap. In March this year, we attempted to analyze the decline of traditional giants. Overall, the continuous rise of new categories and emerging enterprises has eroded the market of traditional giants. Under the background of overall economic and industry slowdown, enterprises that achieve growth mainly rely on two paths: one is to create new categories or rely on new categories for growth; the other is to maintain growth through channel changes (e-commerce, new retail). Summarizing the factors for the rise of Chinese food enterprises can be roughly classified as follows (only a partial list): Note: The new channel part refers to the description of the father's judgment on the current situation in "Squirrel Father and Three Squirrels: The Road to IP-based and Personified Operation of Internet Brands" (by Shu Niannian). Now looking at these traditional giants, we find that one brand represents too many categories. According to positioning theory, these enterprises attempt to extend the brand that once successfully captured consumers' minds to more categories, even completely unrelated categories. As consumers, the "positioning" of the brand is undoubtedly weakened by the continuously extended products. Moreover, the crisis for these giants is that the single-brand strategy means "all prosper together, all suffer together," which plants the seeds of crisis for these brands. The history of the rise of giants, the creation history of each new category is moving and tragic, including Master Kong's efforts to research Chinese tastes across the country to develop instant noodles; Zong Qinghou started a difficult business at the age of 42 and established Wahaha. Now, these giants quickly launch products to meet rapidly changing consumers, but few have touching stories. Combining the above and the global comparison, we propose the following suggestions for enterprises with slowing or declining performance:

  1. Implement a multi-brand strategy Based on solving consumer pain points or meeting consumer needs, use new brands to create new categories. Giants with stronger strength should implement a cross-category multi-brand strategy as soon as possible.
  2. Attempt globalization The overseas market is a new channel. Consider overseas mergers and acquisitions or going global to fully utilize global resources. The long discussion ends here. Now, it is time to show the list to readers. Part 3: FBIF Top 100 List
  • Performance: 2016 Unit: 100 million yuan Notes:
  1. "Est." represents estimated performance; "Est. 15" represents estimated 2015 performance.
  2. For detailed data sources and estimation basis, please refer to the source introduction in the Excel version. Rank | Company | Listed | Performance 1 | WH Group | Y | 739.21 2 | Yili | Y | 591.72 3 | Master Kong | Y | 552.73 4 | Mengniu | Y | 534.33 5 | Wahaha | N | 529.10 6 | Jiuyi Grain & Oil | N | 410.47 (2015) 7 | Kweichow Moutai | Y | 388.41 8 | JDB | N | 295.00 9 | Jinluo Group | N | 294.40 10 | China Resources Beer | Y | 286.94 11 | Tsingtao Beer | Y | 258.18 12 | China Foods | Y | 236.45 13 | Luhua | N | 232.30 14 | Wuliangye Group | Y | 227.04 15 | Uni-President | Y | 204.00 16 | Huifu Grain & Oil Group | N | 201.64 17 | Want Want China | Y | 197.10 18 | Bright Dairy | Y | 178.17 19 | Dali Foods | Y | 174.10 20 | Yanghe | Y | 167.83 21 | COFCO Tunhe | Y | 164.00 22 | Lingyunhai Sugar Group | N | 163.60 23 | Nongfu Spring | N | 150.00 24 | Haitian | Y | 120.68 25 | Yanjing Beer | Y | 109.85 26 | Jinmailang Noodles | N | 100 (Est.) 27 | China Resources C'estbon | N | 93.47 28 | Jing Brand | N | 92.15 29 | Strong Group | N | 85.00 30 | Langjiu Group | N | 85 (2015) 31 | Luzhou Laojiao | Y | 80.74 32 | Junlebao Dairy Group | N | 80.00 33 | Guangzhou Baiyunshan Pharmaceutical | Y | 77.69 34 | Aoxing Grain & Oil | N | 76.22 (2015) 35 | Hebei Yangyuan Zhihui Beverage | N | 74 (Est.) 36 | Jiannanchun Group | N | 70.12 (2015) 37 | Fuwa Group | N | 70 (Est. 15) 38 | Feihe Dairy | N | 68.00 39 | Fufeng Group | Y | 64.43 40 | Bestore | N | 60.00 41 | Standard Foods | Y | 59.67 42 | Gujing Gongjiu | Y | 58.76 43 | Synear Food | N | 58.37 (2015) 44 | Panpan Food Group | N | 58.00 45 | Huiyuan Group | Y | 57.41 46 | Sanyuan Foods | Y | 56.00 47 | Dong-E E-Jiao | Y | 53.71 48 | Lanjian Beverage | N | 53.00 49 | Shunxin Agriculture | Y | 52.70 50 | Tanguo International | Y | 52.18 51 | New Hope Dairy | N | 50.00 52 | Modern Farming | Y | 48.62 53 | Sanquan Food | Y | 47.68 54 | Meihua Group | Y | 47.40 55 | Changyu Group | Y | 47.18 56 | Vitasoy | Y | 46.00 57 | Laoganma | N | 45.49 58 | Wandashan | N | 45 (Est. 15) 59 | Three Squirrels | N | 44.23 60 | Shanxi Fenjiu | Y | 43.57 61 | Baiyunbian | N | 43.54 62 | Coconut Palm Group | N | 40.21 63 | Baixiang Food | N | 36.38 (2015) 64 | Wei Chuan Foods | Y | 35.45 65 | Lam Soon Group | Y | 35.13 66 | Qiaqia Food | Y | 35.13 67 | China Shengmu | Y | 34.67 68 | Huishan Dairy | Y | 34.66 69 | Zhujiang Beer | Y | 34.25 70 | Xiwang Food | Y | 33.75 71 | Xifeng Group | N | 33.50 72 | Taoli Bread | Y | 33.05 73 | Juewei Food | Y | 32.74 74 | Nanning Sugar | Y | 32.65 75 | Lai Yifen | Y | 31.81 76 | VV Group | Y | 31.28 77 | Namchow Group | Y | 31.25 78 | Jinmailang Beverage | N | 30 (Est.) 79 | Shanghai Maling Aquarius | Y | 30.00 80 | Dongpeng Special Beverage | N | 30 (Est.) 81 | Fujian Anjoy Foods | Y | 29.97 82 | Juzhi High-tech | Y | 28.95 83 | Changshouhua Food | Y | 28.79 84 | Zhou Hei Ya | Y | 28.16 85 | Anhui Yingjia Gongjiu | Y | 27.98 86 | Anhui Kouzi Liquor | Y | 27.81 87 | Beingmate | Y | 27.64 88 | Ausnutria Dairy | Y | 27.40 89 | Jiangsu Jinshiyuan Liquor | Y | 25.27 90 | Chengde Lulu | Y | 25.17 91 | Daoxiangcun | N | 25.00 92 | Synutra International | Y | 24.37 93 | Xiangpiaopiao | N | 23.89 94 | Zhanjiang Guolian Aquatic Products | Y | 23.04 95 | By-Health | Y | 22.98 96 | Daohuaxiang | N | 22.9 97 | DaChan Greatwall Enterprise | Y | 22.42 98 | Zhejiang Yiming Food | N | 22.4 99 | Shanghai Jinfeng Wine | Y | 21.25 100 | Hebei Hengshui Laobaigan Liquor | Y | 20.65 Basis for Ranking To facilitate understanding of the ranking basis and information sources, the following is explained: Food manufacturing 1. We only count the "food manufacturing" performance of enterprises (the product categories adopted mainly refer to the "Food Production License Classification Catalog" of the China Food and Drug Administration, but excluding four categories: grain processing products, starch and starch products, food additives, and other foods. According to this standard, this table includes categories such as "edible oil and sugar"). 2. Based on the above principle, for listed companies, due to more transparent information, we only adopt food-related parts. If the revenue composition in the annual report shows "other," we do not adopt it. Therefore, in the ranking, we will indicate whether the enterprise is "listed" or not. For non-listed companies, since revenue composition cannot be distinguished, the vast majority default to the company's overall performance as processed food performance. If the main business includes other non-food businesses that may account for 1/4 or more (subjective judgment), the enterprise will not be included in this ranking. Enterprise scope 1. "2017 China Food & Beverage Top 100" only ranks enterprises in mainland China (including Hong Kong and Taiwan); 2. Due to limited information, the first edition does not include foreign enterprises (excluding Hong Kong, Macao, and Taiwan) and enterprises acquired by foreign enterprises. If you have relevant data, please provide it; 3. The performance statistics include global performance, not limited to performance in China; 4. To ensure the comprehensiveness of the ranking, we surveyed more than 400 enterprises, including: a) Food, liquor, agriculture, and pharmaceutical-related enterprises listed in mainland China, Hong Kong, and Taiwan b) Top 100 lists or light industry lists of various provincial administrative units and some large cities c) Top 10-20 enterprises in each sub-category Data sources 1. Enterprise performance mainly comes from annual reports and data published by authoritative channels. A very small portion is directly provided by enterprises or estimated by us based on public information. To ensure fairness, openness, and transparency, we will note the data sources in the ranking. Please refer to the "Source" column in the Excel version of the Top 100; 2. To avoid duplicate statistics and ensure accuracy, this ranking calculates member enterprises of COFCO Group and Bright Food Group separately. WH Group is a listed company, and its annual report performance includes Shuanghui and Smithfield, so Shuanghui and Smithfield do not participate in the ranking. Other listed companies are handled similarly. 3. Estimated performance is limited to those provided by enterprises, reported by mainstream media, with reliable estimation basis, and at least able to estimate 2015 performance. Enterprises that can only be queried for performance before 2015 will not participate in the ranking. 4. Enterprises for which public data cannot be found, enterprises refuse to provide, or we have no channel to contact to confirm performance, will not participate in the ranking. 5. Considering our limited information, or unavoidable human errors leading to information errors or omissions, we welcome criticism and correction from industry friends. 6. Finally, we hope everyone actively provides data to make the ranking more complete in the future. Currency unit and exchange rate 1. The ranking currency is RMB, unit is 100 million. 2. Unless otherwise stated, the exchange rate is converted at the rate of August 13, 2017. USD to RMB | 1 USD = 6.6752 CNY HKD to RMB | 1 HKD = 0.8536 CNY TWD to RMB | 1 TWD = 0.2204 CNY Part 4: Contact Author, About FBIF Contact Author To make a more complete and authoritative list in the future, we welcome readers to provide more information, and also welcome criticism and correction! About FBIF Food & Beverage Innovation Forum (FBIF) is the most influential food industry event in the Asia-Pacific region. FBIF is committed to helping industry decision-makers gain insights into future trends and promoting the development of the food and beverage industry by sharing the most successful business cases and the most innovative concepts and technologies globally. FBIF started in 2014 and is held annually. Previous conferences have attracted participation from many brands such as Nestlé, Coca-Cola, PepsiCo, Mondelez, Nongfu Spring, COFCO, Master Kong, Danone, Mengniu, Yili, Abbott, and others. Source: FBIF Food & Beverage Innovation (ID: FoodInnovation) Click image for details The 3rd China FMCG + Internet Conference (CFIC) will be held in Chongqing in October 2017. At this conference, New Distribution has invited 1,000+ distributors, 500+ brand owners, founders of 200+ B2B platforms, and 100+ investment and financing institutions to participate. The theme of this conference: New Forces, New Ecosystem. We will invite well-known domestic B2B industry experts, mentors, and B2B platform founders to discuss the following topics:

How can the FMCG industry achieve new growth opportunities through B2B

How to build the new supply chain behind new retail

How can intra-city logistics help B2B achieve leapfrog development Highlights of this conference: The industry's first "2017 China FMCG B2B Industry Competitiveness White Paper"

B2B and investor project closed-door matchmaking meeting

Conference site + exhibition center, dual internet technology exhibition

Alibaba, EAS, Best Store Plus, GLP, Unilever, Hd, Yunmei shares, and other well-known enterprise leaders in various fields will deliver speeches and express pioneering views. October 17-18, 2017 Chongqing Convention and Exhibition Center Registration is now open. Long press the QR code below or click "Read Original" to register. Early bird tickets before September 15 enjoy a 30% discount! Add friend and note "Conference Registration" -END-