Click 'Read Original' for details. Source: Condiment Business Circle (ID: twpsq0909) Since entering the Chinese mainland market in 1992, Lee Kum Kee has never competed for a share of the domestic vinegar market. 2018 marks the 130th anniversary of Lee Kum Kee. At this special moment, the company has quietly launched new vinegar products. Is there deeper meaning? Will the traditional, even somewhat backward, Chinese vinegar market be revitalized by Lee Kum Kee's entry? 1 Lee Kum Kee Begins Selling Vinegar Currently, leading brands are increasingly pursuing a 'diversification' strategy. In this regard, Zhu Qiming, Chairman of Wharton Think Tank Technology, used an apt metaphor: 'Whether you herd one cow or ten cows, it's the same effort!' Take Haitian Weiye as an example: once Haitian soy sauce became an industry giant with a dense distribution network and stable customer resources, it could quickly generate revenue by introducing other condiments such as oyster sauce, sauces, cooking wine, and vinegar. The same logic applies to Lee Kum Kee. ▲ Lee Kum Kee's first batch of vinegar new products pre-sale Recently, on Tmall's Lee Kum Kee official flagship store, Lee Kum Kee rice vinegar, aged vinegar, and aromatic vinegar entered the pre-sale period. On July 6, the first batch of pre-sold products began shipping. It is understood that Lee Kum Kee's rice vinegar and aromatic vinegar come in two series: 'Chunniang' and 'Zhenxuan', both in 500ml bottles, priced between 29.4 and 35.5 yuan per three bottles. The new Lee Kum Kee aged vinegar comes in 500ml and 800ml bottles, priced at 33.6 yuan per three 500ml bottles and 35.5 yuan per three 800ml bottles, respectively. It is worth noting that Lee Kum Kee's rice vinegar, aged vinegar, and aromatic vinegar all feature a 'zero-additive' concept. Among them, aged vinegar and aromatic vinegar use traditional solid-state fermentation, while rice vinegar uses German liquid-state deep fermentation. 2 Why is Lee Kum Kee Focusing on the Vinegar Market? According to an unnamed Lee Kum Kee insider, 'In the Chinese market, although Lee Kum Kee has never formally produced vinegar products, the company has been planning this field for a long time.' Zhang Ji, founder of Zhihui Strategic Marketing, believes that Lee Kum Kee's move into vinegar is essentially seeking new growth points for its performance. 'Since 2012, Lee Kum Kee's growth has shown a slowing trend.' In recent years, the soy sauce and sauce sectors have been exceptionally lively, with new brands, categories, and concepts emerging. In contrast, Lee Kum Kee has been relatively quiet in its core products like oyster sauce, soy sauce, and sauces, with no continuous stream of new categories. Lee Kum Kee's foray into vinegar may also be driven by the category's growth potential. 'Among all condiment subcategories, after soy sauce and sauces have matured, the vinegar industry indeed presents more opportunities,' Zhang Ji said. Industry data shows that China's total vinegar production exceeds 4 million tons, with over 6,000 vinegar manufacturers nationwide. Branded companies account for only about 30% of production, while regional and workshop-style small enterprises account for over 70%. The vinegar industry suffers from intense regional brand competition and chronic price wars, leading to internal friction, extreme fragmentation, and low-cost blended vinegar flooding the market, dragging down the overall value of the industry. The vinegar sector urgently needs a large enterprise with scale, distribution, and brand advantages to change this situation. Could Lee Kum Kee be the company to disrupt the vinegar industry landscape? 3 Can Lee Kum Kee's Entry Disrupt the Vinegar Market? It can be seen that Lee Kum Kee's new vinegar products are priced above 10 yuan per bottle and introduce the 'zero-additive' concept, already mainstream in the soy sauce sector, into the vinegar industry. This aligns with consumption upgrades and could give Lee Kum Kee a first-mover advantage in vinegar. ● Zhang Ji believes that, first, Lee Kum Kee selling vinegar will have a positive impact on the entire vinegar industry. 'Blended vinegar has plagued the industry for years and is detrimental to its development. Lee Kum Kee's introduction of solid-state and German liquid-state fermented vinegars serves as a good guide for the industry.' ● Furthermore, Lee Kum Kee selling vinegar will play a leading role in the vinegar industry. Once the 'zero-additive' concept is introduced, other brands are likely to follow. As more companies follow suit, the overall product quality and consumer awareness and trust in the vinegar industry will significantly improve. ▲ Lee Kum Kee's vinegar new product promotion combined with various dishes Moreover, given Lee Kum Kee's strength in the foodservice channel, when it combines vinegar with dishes and cooking concepts, it will inevitably bring in more innovative ideas. This will provide reference for traditional vinegar companies and drive the entire traditional vinegar industry forward. 'Lee Kum Kee's vigorous promotion in the foodservice channel will greatly benefit the overall performance of the vinegar industry, because while household consumption is important, the larger capacity and breakthrough point for vinegar lies in the foodservice channel,' Zhang Ji said. Zhu Qiming believes that Lee Kum Kee's entry into the vinegar camp will help cultivate more mid-to-high-end consumers, expand the market base for such consumers, and promote quality and brand upgrades in the vinegar industry, positively impacting healthy market development. 'Lee Kum Kee selling vinegar is, in my opinion, a good choice!' For Lee Kum Kee, fully utilizing existing channels and terminal resources to enhance their value is certainly a positive move. As a representative of Asia's high-end condiment companies, Lee Kum Kee enjoys a good reputation and brand image. Many of its products are kitchen staples, especially in Cantonese restaurants, where Lee Kum Kee is ubiquitous and holds high prestige among chefs. Now, with Lee Kum Kee entering the rice vinegar, aromatic vinegar, and aged vinegar segments, it is believed that it will soon carve out a place in the mid-to-high-end condiment market and the Cantonese cuisine market. 'As for whether Lee Kum Kee selling vinegar will sweep through the industry with devastating effect, I think that's unlikely. After all, Shanxi Old Vinegar and Zhenjiang Hengshun Aromatic Vinegar have years of market accumulation; toppling their dominance and breaking consumer loyalty built over many years is no easy task,' Zhu Qiming said. From August 22 to 24, the '2018 FMCG China Digital Innovation Conference (2018FDIC)', hosted by the China FMCG Industry Association and organized by New Distribution, with the theme 'Finding New Growth Engines', will be held in Shanghai! The three-day conference will focus on two main themes: marketing and supply chain, with six parallel forums covering brands, channels, communication, B2B, same-city logistics, and innovative retail. We will invite industry leaders, CEOs, and senior brand executives to deeply interpret the trends and drivers of digital transformation in the FMCG industry. We will bring together over 500 FMCG company executives, 200+ B2B industry CEOs, and 1,000+ major FMCG distributors to discuss how the FMCG industry can leverage digital tools to achieve renewed high growth in the digital era. This conference will build a bridge for brand owners, distributors, retail enterprises, and marketing agencies, helping FMCG manufacturers obtain the latest information, understand best practices, and master more transformation skills. Proposed Invited Companies Conference Time August 22-24, 2018 Conference Venue Shanghai Baohua Marriott Hotel Conference Agenda August 22: Full-day registration Afternoon 14:00-17:30: Distributor same-city logistics parallel forum Evening 18:30-21:00: New Distribution Night Gala Dinner August 23: Theme: Marketing Digital Innovation Morning 9:00-12:00: Main forum on marketing digital innovation Afternoon 14:00-17:30: Parallel forums on brands, channels, and communication August 24: Theme: FMCG Supply Chain Digital Upgrade All day: FMCG Supply Chain Conference Registration Method Registration is now open. Long-press the QR code below or click 'Read Original' to register. Limited-time group discount prices are available! Registration Consultation Ticket Inquiries: Media Cooperation Inquiries: Highlights of Previous New Distribution Conferences Click the links below to review the highlights of the 1st, 2nd, 3rd, and 4th FMCG + Internet Conferences: -END-