Recently, Crayon Shin-chan Foods issued a profit warning announcement, expecting a loss of 84 million yuan in the first half of this year, a significant decrease compared to the same period last year's sales of approximately 571 million yuan and net profit of 13.9 million yuan. Jelly is favored for its crystal-clear appearance, bright colors, and soft, smooth texture, but the industry's development has been unsatisfactory in recent years. Recently, Crayon Shin-chan, the second-largest player in the jelly industry, issued a profit warning, expecting first-half revenue of 415 million yuan, a year-on-year decline of 27.3%. Not only Crayon Shin-chan, but the entire jelly industry has seen sales decline compared to the past. Why has the jelly industry encountered a Waterloo? Jelly Giants See Significant Performance Declines Recently, Crayon Shin-chan Foods issued a profit warning announcement, expecting a loss of 84 million yuan in the first half of this year, a significant decrease compared to the same period last year's sales of approximately 571 million yuan and net profit of 13.9 million yuan. Crayon Shin-chan attributed the decline to weak consumer sentiment and the impact of the overall economic downturn; to boost consumer sentiment and further promote its brand image, the company's marketing and promotional expenses increased by about 50% year-on-year; in addition, part of the reason was the return of some goods by customers, as well as the impact of changes in domestic food additive disclosure regulations. In fact, Crayon Shin-chan began to incur huge losses in the second half of last year, with a full-year loss of 330 million yuan in 2015. Against this backdrop, the company turned from profit to a loss of 84 million yuan in the first half of this year. In recent years, the entire jelly industry has encountered a significant development crisis. Jinwa jelly, once popular nationwide, has now disappeared from public view; Qinqin jelly was eventually sold by Hengan; and Xizhilang, the industry leader, has also seen sales decline. Why has the jelly market developed slowly in recent years? Zhu Danpeng, a researcher at the China Brand Research Institute, said that jelly products are not a global product, mainly concentrated in the East Asian market of China, Japan, and South Korea. In addition, the overall innovation and upgrading of the jelly market has been too slow, with not many distinctive features, and it cannot adapt to market development. Zhu Danpeng also said that one reason for the jelly industry's predicament is the "toxic gelatin" incident. Data shows that in 2014, CCTV's "3.15" Gala exposed that upstream suppliers of companies such as Crayon Shin-chan and Yake used toxic gelatin raw materials, triggering a collective decline in the jelly and soft candy industries. Although later inspections by relevant regulatory authorities showed that products like Crayon Shin-chan met relevant food quality standards, the negative impact of the "toxic gelatin" incident continues to this day. Cui Haixia, a national second-level public nutritionist, said that the slow development of the jelly industry is not only due to market factors but also closely related to the inherent attributes of jelly products. "Jelly is not a healthy food; an obvious feature is that fewer and fewer parents buy jelly for their children." Children Should Not Eat Too Much Jelly On August 17, a reporter visited supermarkets in Beijing and found that more than ten different specifications of jelly occupied a place on the shelves. Cui Haixia introduced that jelly is made from edible gelatin, water, sugar, fruit or fruit juice, etc. It is not ruled out that some relatively good-quality brands contain 5%-10% fruit juice or pulp, and innovative jellies contain a small amount of soluble dietary fiber, but the nutritional value of the processed food itself is not significant. The reporter checked the ingredient lists of jellies and found that the sugar content is relatively high, with white sugar generally listed among the top ingredients. In addition, jellies generally contain various food additives such as citric acid, potassium sorbate, sodium alginate, sunset yellow, lemon yellow, brilliant blue, and allure red for thickening, flavoring, and coloring. Cui Haixia said that jelly contains a certain amount of sugar, which not only adds extra energy intake but also increases the intake of sugary foods and the risk of dental caries. To better reduce the risk of overweight and obesity, the 2016 Chinese Dietary Guidelines added a new restriction on added sugar: no more than 50g per day. Cui Haixia emphasized that children are in the stage of physical development, and long-term consumption of jelly can affect taste to some extent, and the seemingly delicious temptation can also affect appetite for regular meals. Especially for young children, whose body's self-protection mechanisms are not fully developed, if they are not careful when eating, it is easy to inhale into the trachea or bronchi, causing organ foreign body and suffocation. "The food label on jelly clearly states that children under three years old should not eat it, and the elderly and children should eat it under supervision." -END- The best learning platform for FMCG distributors in China Dedicated to providing professional, practical, and applicable tutorials for enterprises and distributors Committed to helping Chinese FMCG distributors grow rapidly The most professional and practical knowledge base in the FMCG industry Reply with the red number below to get the corresponding content Reply with number 1 to view the complete knowledge base | 001 Excellent article selection | 002 Distributor market operations | 003 Terminal visit management | 004 Sales supervisor skills | 005 Sales improvement techniques | 006 Channel expansion | 007 Managing distributors | 008 Distributor development | 009 Distributor internal operations management | 010 Team management | 011 Efficient distribution techniques | 012 Sales manager's eighteen skills | 013 KA operation methods and strategies | 014 First lesson for new salespeople | 015 Internet, brands | 016 Distributor B2B transformation | [Long press QR code to follow]