Recently, Uni-President released its 2021 annual report. The report shows: 2021 revenue hit a record high, reaching 25.2306 billion yuan, a year-on-year increase of 10.08%, establishing a new milestone. Among this, beverage business revenue was 14.7378 billion yuan, up 17.3% year-on-year; food business revenue was 9.5249 billion yuan, up 1.1% year-on-year. Data shows that the beverage business achieved double-digit growth, serving as the main growth driver, with tea and juice performing particularly well. Meanwhile, food revenue in the second half of the year grew 14% compared to the same period last year. Although the food segment's full-year growth was in single digits, the second-half growth rate significantly accelerated, providing strong support for the full-year growth. Classic Noodle Products Continue Double Growth The financial report shows that profit attributable to equity holders for the period was 1.5007 billion yuan, a year-on-year decrease of 7.7%. Earnings before interest, taxes, depreciation, and amortization (EBITDA) was 3.403 billion yuan, down 7.4% from last year; net profit was 1.501 billion yuan, down 7.7% from last year; gross margin was 32.6%, down 2.8 percentage points from last year. The report mentions that the decline in net profit was mainly due to the combined impact of one-time gains in the same period last year and rising raw material prices. In the second half of the year, net profit achieved double-digit growth, up 16.6% year-on-year. Among these, the food business recorded positive revenue growth. Tang Daren solidified its leadership in the premium soup noodle market, Kai Xiao Zao continued to receive market recognition, Uni-President Green Tea continued to enhance brand favorability and consumer identification, and Uni-President Assam Milk Tea maintained its market leadership position. It can be seen that noodles in the food segment and beverages still hold the top positions. The report shows that instant noodle revenue reached 9.0072 billion yuan. Tang Daren's revenue compound annual growth rate over the past five years maintained double-digit growth; Uni-President Qie Huang's revenue in 2021 achieved multiple-fold growth year-on-year; Kai Xiao Zao's revenue in 2021 showed double-digit growth. As a new product, Kai Xiao Zao, after four years of market refinement, has successfully become a growth source for Uni-President. Kai Xiao Zao's "wonton series achieves complete rehydration in 5 minutes with boiling water, with wrappers, fillings, and flavors reaching the level of fresh wonton shops. The product was in short supply upon launch, receiving enthusiastic consumer response and industry attention, and became the No.1 brand in the wonton category on Tmall during the Double 11 shopping festival." It has become Uni-President's most promising growth product. Uni-President Qie Huang, through the launch of Tomato Beef Noodles and Tomato Egg Noodles in March 2021, created a strong combination, establishing the seasoning standard of using "one Xinjiang tomato" per serving, completing a brand upgrade, and delivering a natural, sweet-and-sour taste experience to consumers. In addition to product upgrades, it supported Xinjiang tomatoes in terms of reputation, paid attention to lunch issues for children in mountain villages, and ultimately achieved double growth in revenue year-on-year. In fact, according to Nielsen data, in the first half of 2021, the instant noodle industry overall sales volume declined by 7.7%, and sales value declined by 7.3%. It is not difficult to understand why Uni-President's food revenue increased year-on-year, but gross profit declined. However, looking at it from another perspective, despite the unfavorable overall environment, Uni-President still achieved data growth, indeed fighting a beautiful "turnaround battle." In 2021, Uni-President Chairman Lo Chih-hsien once stated: In the past three years, Uni-President China has been in a period of stagnant growth (2018-2020 revenues were 21.772 billion yuan, 22.02 billion yuan, and 22.762 billion yuan, respectively). Now, after continuous internal adjustments, the company has restored healthy growth, and the signs of recovery are becoming increasingly evident. Beverage Growth Data More Impressive As mentioned earlier, Uni-President's beverage business revenue was 14.7378 billion yuan, up 17.3% year-on-year. Compared to the single-digit growth of the food business, beverages have always been Uni-President's "proud student." Assam Milk Tea, as a timeless market representative, is the best example. The report shows that the milk tea business in 2021 generated revenue of 5,743.4 million yuan, up 13.3% year-on-year. Among this, Assam Milk Tea achieved double-digit growth. As a leader in the ready-to-drink milk tea market, Uni-President Assam Milk Tea uses advanced R&D and blending technology to perfectly combine tea, milk, and other ingredients, creating a rich, layered, and smooth milk tea taste. It is truly the "milk tea sales champion" in China, continuously leading the development of ready-to-drink milk tea. Regarding development in 2022, the report also mentions: Assam Milk Tea will continue to implement the "fast, stable, fresh" business strategy, with freshness management as the cornerstone, continue to focus on "smooth and good mood," promote brand rejuvenation, expand dining, home, and hot drink consumption scenarios, and expand channel boundaries. In addition, Uni-President's juice business revenue was 2.2194 billion yuan, up 40.6% year-on-year. Among this, Fresh Orange Duo achieved double-digit growth, driving the growth of the juice category from the side; Uni-President Kumquat Lemon achieved multiple-fold growth in revenue in 2021. It can be seen that Uni-President's diversified product strategy, with low-concentration juices more aligned with young consumers' tastes, while also expanding the high-concentration juice market to meet consumers' health needs. It is worth mentioning that "Hai Zhi Yan" achieved double-digit growth in 2021. It should be noted that Lo Chih-hsien once mentioned: Kumquat Lemon and Fresh Orange Duo have been filling the "lost part" of the two once-proud products - Hai Zhi Yan and Xiao Ming Tong Xue. But the double-digit growth data of Hai Zhi Yan in 2021 gives people a pleasant glimpse of the greater development potential of several beverage products. Premium Products Have a Promising Future From a specific category perspective, Uni-President's classic products, whether noodles or beverages, have great potential; future premium products are also full of hope; including other products like "Qie Huang" are showing strong upward momentum. But driven by the premiumization trend, future premium products will also be a key series for Uni-President to develop. The report shows that "Tang Daren" maintained double-digit compound annual growth rate in revenue over the past five years and continued to solidify its leadership in the premium soup noodle market last year. Uni-President, which once quickly captured the market with its "Laotan Sauerkraut Beef Flavor Noodles," became an instant noodle leader alongside Master Kong. However, in recent years, with continuous consumption upgrades and the rise of online food delivery, instant noodles have been marginalized. Marketing strategy expert Zhou Shiren said, "Enterprise development and product establishment will shift towards healthier, premium, and personalized products, and from mass market to niche market choices. In the future, as consumption levels rise, people will pursue higher-quality food. This is also the strategy and approach Uni-President has adopted in response to market changes." As Uni-President's premium product, from 2014 to 2015, Tang Daren alone contributed 77.3% of Uni-President's instant noodle sales growth. Therefore, the 2021 annual report also highlighted Tang Daren: As a premium product, Tang Daren collaborated with Generation Z and spokesperson Wang Junkai in 2021 to create a brand TV commercial (TVC), enhancing user stickiness and expanding brand boundaries. While meticulously crafting products, it continuously spreads the brand concept of "good noodle soup," forming a good brand impression in consumers' minds and solidifying its position in the premium soup noodle market. At the same time, Uni-President is entering the premium bagged noodle market with the "Ji Wei Guan" series, meeting consumers' home dining needs during the pandemic normalization period, gaining favor from mid-to-high-end users, and achieving steady sales growth. Overall, in the future, both Uni-President's classic products and premium products will have great potential and promising momentum. Looking at the entire Uni-President, in December 2021, Uni-President announced the launch of its second 50-year growth momentum. Uni-President Group Chairman Lo Chih-hsien publicly stated: The company will take "lifestyle brands" as its strategic core, with four main axes: manufacturing + R&D, trade + distribution, retail + experience, and alliances + mergers and acquisitions, hoping to build an Asian circulation lifestyle platform. Are you "watching" me?