Today's Headlines Highlight 1: 46.45 billion yuan, a new starting point for Wahaha On June 7, the "2018 Zhejiang Business Top 500" list was released by Zhejiang Business Magazine, with several well-known food companies appearing. Among them, Wahaha's 2017 revenue was 46.45 billion yuan, a decrease of 6.46 billion yuan from the previous year, ranking 31st on the list. The data shows Wahaha's growth rate in 2017 was 1.9% (if calculated at this rate, the 46.45 billion yuan likely does not include Hong Sheng Beverage under Zong Fuli). Highlight 2: Expanding beyond Beijing! Beibingyang soda goes national Beibingyang (Arctic Ocean), a time-honored brand with 82 years of history, is expanding beyond Beijing to the whole country. It is reported that Beibingyang's East China base has officially started production, with the first batch of bottled Beibingyang soda coming off the line. The East China base, with a total investment of 120 million yuan and covering 126 mu, is the first investment project of Beijing Yiqing Food Group outside Beijing. The project is divided into two phases. The first phase includes four production lines with an annual output of 15 million cases of soda and a DIY food culture experience center, which has already begun operation. Li Qi, general manager of Beijing Yiqing Food Group, introduced that the project started construction at the end of April last year, completed fixed asset investment of 130 million yuan that year, and officially started production in just 13 months. This efficient construction and production rate has become a model for Beijing enterprises transferring outward. Highlight 3: Imported beverages face tariff cuts; Nestle and Danone respond on price cuts On May 31, the Customs Tariff Commission of the State Council issued a notice on reducing import tariffs on daily consumer goods. The notice states that from July 1, 2018, the most-favored-nation tariff rates for some imported daily consumer goods will be reduced, involving 1,449 tariff lines. In response to the new policy, many foreign brands said the impact is still under evaluation, but generally welcomed the decision. In reply to reporters' inquiries, Swiss food giant Nestle, which owns brands like Perrier, said: "We welcome this policy, which is beneficial to both the industry and consumers. As this policy has just been introduced, we need internal discussions before making a decision." French food giant Danone told the media: "The impact of this tariff reduction on Evian's business, and whether related product prices will change in the future, is still under evaluation." Highlight 4: Wumart's new brand 'Pin Supermarket' to debut as community fresh food store It is reported that the upcoming Wumart Pin Supermarket Guangda store is located at No. 9 Zhaogongkou Community, Fengtai District, Beijing, in Wumart's ground floor, positioned as a community fresh food supermarket. As a lifestyle supermarket under Wumart Group, Pin Supermarket mainly operates fresh food, groceries, cleaning products, and some daily necessities, serving nearby community consumers with high-quality, low-price goods, and providing convenient services such as online ordering and home delivery. The store has been fully upgraded with a bright and comfortable environment; fresh produce is directly sourced, individually packaged, fresh and fast; new technology benefits people, including electronic price tags, quick payment, free purchase, and self-checkout. New Product Highlights Highlight 1: Focusing on fiber + zero sugar, Coca-Cola to launch another new product Recently, reporters learned that after Sprite Fiber+ and Pure Joy Shen Fiber Water, Coca-Cola is launching another new product with added dietary fiber, and this time it's the cola itself—Coca-Cola Fiber+! It is understood that, like Sprite Fiber+, Coca-Cola Fiber+ contains dietary fiber equivalent to 2 apples (7.5g) per bottle, meeting about 30% of an adult's daily fiber needs. The main selling points are "fiber" and zero sugar, zero calories. As another new product in the Coca-Cola family, Coca-Cola Fiber+ is an important exploration by the company to create new beverages and a further deepening of Coca-Cola's own brand assets. Highlight 2: Attention Tiandi No.1! Pepsi is coming to take a share of the vinegar drink business It is reported that to follow the trend of healthy eating, PepsiCo will launch a new product in August 2018: "Vinegar Words" fruit vinegar sparkling drink, available in caramel apple and salted plum flavors. In terms of packaging specifications, "Vinegar Words" comes in 330ml cans and 1.25L bottles to meet different occasion needs. Highlight 3: Targeting the high-end ice cream market, Yili's Zhenxi ice cream fully upgraded In 2015, Yili's cold drinks division launched the new high-end product line "Zhenxi" series ice cream in Beijing. This year, Yili has fully upgraded the series, with comprehensive improvements in packaging, flavors, and quality. Yili has adopted a new brand logo and design for packaging, highlighting product features. Additionally, Zhenxi has added two new flavors—blueberry cheesecake and cream walnut—giving consumers more choices. Highlight 4: FamilyMart creates first beer soft serve Recently, FamilyMart convenience stores in Taiwan partnered with beer brand Gold Medal Three Malt to launch a new "Gold Medal Three Malt Beer" soft serve! It is reported that the Gold Medal Three Malt Beer soft serve is based on stout beer, without added flavors or colors, retaining the beer's roasted malt aroma and caramel notes. This is FamilyMart's first attempt at a soft serve based on a drink other than tea, with an alcohol content below 0.5%, classifying it as a general food. List Overview Highlight 1: Forbes releases Global 2000 list, featuring Master Kong, Yili, and others On June 7, Forbes magazine released its 2018 "Global 2000" list, including listed companies from 60 countries. The companies on the list have total sales of $39.1 trillion, profits of $3.2 trillion, assets of $189 trillion, and market value of $56.8 trillion. All indicators increased by double digits year-on-year, with profits up 28%. Chinese food and beverage companies on the list include: WH Group, Yili, Mengniu, Haitian, Dali, Want Want, etc. (WH Group and Mengniu are listed in Hong Kong and are included in the Hong Kong region.) Highlight 2: Beverage king loses to soy sauce king?! Haitian's Pang Kang should not be underestimated On June 4, reporters found from the Forbes real-time list that soy sauce king Pang Kang surpassed beverage king Zong Qinghou, becoming the second-largest FMCG company after Xu Shihui! However, the next day saw a dramatic change: the soy sauce king disappeared and fell behind 200th place, while Zong's ranking remained stable at 160! Reporters found that soy sauce king Pang Kang's wealth surpassed beverage king Zong Qinghou for the first time. The reason is that Haitian Weiye's market value has been soaring, and on June 4 it rose 5.27% to a record high of 210.5 billion yuan. The next day's decline was due to a stock market downturn. Although it was a temporary surpass, reporters noted that Pang Kang, a relatively unknown figure, surpassing former richest man Zong Qinghou is no coincidence; his strength should not be underestimated. Industry News Highlight 1: Wuliangye: 2017 annual shareholders' meeting to be held on June 8 On June 4, Wuliangye announced that its 2017 annual shareholders' meeting would be held on June 8. Highlight 2: Dairy sector sees big gains; third- and fourth-tier cities cultivating consumption become important future direction Recently, the dairy sector saw another surge after a few days of adjustment. As of today's close, VV Food and Yili shares hit the daily limit, while Bright Dairy, Sanyuan, and Tianrun Dairy also gained over 6%. Market analysts believe that with the upgrade of mass consumption, especially strong demand from third- and fourth-tier cities, dairy and other food and beverage industries will continue to benefit, with high industry prosperity. In terms of performance, the dairy sector has seen steady improvement since the fourth quarter of last year, with a positive long-term outlook. Highlight 3: To solve childhood obesity, UK to ban supermarkets from selling candy at checkout Recently, foreign media reported that the UK government plans to ban supermarkets from creating "guilt zones" and buy-one-get-one-free offers on high-sugar cakes and biscuits to address childhood obesity. UK Chief Medical Officer Jeremy Hunt said high-fat, sugar, and salt junk food is often placed in the most prominent positions and most commonly promoted with buy-one-get-one-free deals. He said he will push for a series of new regulations, including banning cartoon characters or celebrities from endorsing junk food, banning restaurants from offering unlimited refills of fizzy drinks, and from 2020, high-sugar and salt food ads can only be shown after 9 PM. Highlight 4: Shanxi Fenjiu: Controlling shareholder transfers part of shares to Huachuang Xinrui On June 5, an announcement stated that Shanxi Xinghuacun Fenjiu Group Co., Ltd. received approval from the State-owned Assets Supervision and Administration Commission of the State Council regarding the transfer of some shares held by the state-owned shareholder of Shanxi Xinghuacun Fenjiu Factory Co., Ltd. The approval agrees in principle to transfer 99,154,497 shares held by Shanxi Xinghuacun Fenjiu Group to Huachuang Xinrui (Hong Kong) Co., Ltd. Highlight 5: Budweiser launches renewable energy project at smart low-carbon factory in Putian, Fujian On June 5, World Environment Day, Budweiser announced the official launch of its renewable energy project at its world-class smart low-carbon factory in Putian, Fujian. Budweiser China also released a green strategy to upgrade green energy, aiming to source 100% of purchased electricity from renewable sources by 2025. It is said that Budweiser's world-class smart low-carbon factory will become the largest distributed photovoltaic power station connected to the grid in Putian City and the largest in the beer industry. The project has a total investment of 105.056 million yuan. After full grid connection by the end of June, it is estimated to generate 15 million kWh annually from 2019, providing 18% of the electricity for the Putian factory. Based on Budweiser's consumption of 0.041 kWh per bottle (550ml), this could produce 360 million bottles of Budweiser beer. The Putian factory is Budweiser's largest beer factory in the Asia-Pacific region, with a full capacity of 1.5 million tons of beer per year, and is the most important production base for Budweiser China's southeast market. Highlight 6: Daqing Dairy: Resumes trading after six-year suspension; betting on hot pot for rebirth One week after officially changing hands to Longhui Catering, Daqing Dairy announced on June 4 a name change. Its board proposed changing the English name from "Daqing Dairy Holdings Limited" to "Longhui International Holdings Limited" and the Chinese name from "大庆乳业控股有限公司" to "龙辉国际控股有限公司". On May 28, Daqing Dairy, which had been suspended for six years, held a special shareholders' meeting and approved the acquisition of the parent company of "Little Brother Hui Hot Pot"—Longhui International Catering Management Holdings Co., Ltd., which also triggered a reverse takeover of the target company. This means Daqing Dairy has completely transformed into a catering company, and Longhui Catering and its concert party Hong Ruize, with 73.53% equity, became the controlling shareholder of Daqing Dairy. Today's Video What is the level of the first commercial sterile water line in China? -END-