China’s top private food & beverage companies of 2019

The list of the 2019 China Top 500 Private Enterprises has been published and I have extracted those whose core business is in the food and beverage industry. You can compare the changes with the same list of 2014.

Rank Company Core product Region
40 Yili dairy Inner Mongolia
45 Tongwei meat Sichuan
70 Daohuaxiang liquor Hubei
79 Shuanghui meat Henan
89 Herun cereal processing Zhejiang
93 Xiwang maize processing Shandong
106 Bohai soy processing Shandong
133 Weiwei soybean milk Jiangsu
140 Jinluo meat Shandong
144 Wellhope meat Liaoning
155 Wudeli flour Jiangsu
173 Xiangchi soy starch Shandong
214 Huaze liquor Hunan
248 Nongfu Spring mineral water Zhejiang
250 Dali bakery Fujian
282 Liyuan cooking oil Guangxi
312 Xulong fish Zhejiang
321 Haitian seasoning Guangdong
336 Zhucheng Waimao meat starch Shandong
353 Hengxing seafood Guangdong
365 Longda meat Shandong
384 Fulaichun beverages Shandong
399 Jinmailang instant noodles Hebei
404 Sanxing cooking oil Shandong
424 Yihai Taizhou soy processing Jiangsu
446 Jinpai liquor Hubei
453 Feihe dairy Liaoning
461 Gaojin meat Sichuan
469 Junlebao dairy Hebei
473 Jiannanchun liquor Sichuan
486 Huatai leisure food Anhui
489 Tieqi Lishi poultry Sichuan

Some of these companies have been mentioned in various posts, indicated by the links. Regular readers will, on the other hand, miss more than a few of the big names. However, note that these are privately operated enterprises; not state owned. However, this list does reflect an intriguing event: of the two dairy giants from Inner Mongolia, Yili and Mengniu, Yili started out as a state owned enterprise that was privatised through a management buy-out, while Mengniu, once China’s most successful private enterprise, became a wholly owned subsidiary of state owned COFCO.

Regional perspective

When we look at the regions, Shandong stands out as the number one with 8 companies. This makes sense, as that is China’s top food province and the home of Yantai, China’s unofficial food industry capital. Sichuan is runner up with 4, which indicates that these companies are quite evenly distributed over the country. A region that strikes me as disappointing is Guangdong. This province is known as China’s most entrepreneurial region, but this apparently does no lead to larger private enterprises. The Cantonese prefer to keep things small, so easier to manage.

Product perspective

A sorting according to core business shows that meat is the top industry with 7 companies, followed by soybean processing with 6 and cereal processing with 6. In this respect, the list is more concentrated than on the regional aspect. Most of the producs fall in the category processed primary produce. Apparently, more sophisticated food processes are less suitable for private investment in China.

Eurasia Consult Food knows the Chinese food industry since 1985. Follow us on Twitter.

Eurasia Consult Consulting can help you embed your business in Chinese society.

Peter Peverelli is active in and with China since 1975 and regularly travels to the remotest corners of that vast nation.

Mid Autumn Goody Box – fancier food for a traditional festival

Mid-Autumn Festival (Moon Festival) is a harvest festival, celebrated in China and other East Asian countries. Mid-Autumn Festival is the second most important festival in China after Chinese New Year. To the Chinese, the festival means family reunion and harmony. It is celebrated when the moon is full, and Chinese people believe a full moon is a symbol of reunion, harmony, and happiness. It’s always in September or October, on month 8 day 15 of the Chinese lunar calendar. In 2019, it will fall on September 13.

I have introduced that festival in my post on moon cakes, the typical food eaten on that festival. I have tried to keep you abreast with the latest trends on that post. I will continue to do so, but I recently received a note from a Chinese friend who had been given a Mid Autumn Gift Box, containing exquisite moon cakes, but also a few other luxury versions of Chinese local delicacies, not necessarily consumed during the Mid Autumn Festival.

Trends

This box represents a number of current trends and describing the contents of this box therefore gives a good insight in those trends; so good, that I prefer to do so in a post, rather than add it to the Trends page of my blog. The two trends are:

  • Goody boxes; goody boxes containing samples of part or all of the product range of a manufacturer has become a vogue in China this year. One of earliest of such presentations was a box of single portions of nuts and seeds by Three Squirrels. Such boxes suit Chinese communitarian culture: you can share the box with your family, colleagues or friends.
  • Local specialties; regional governments have become more aware of the value of local delicacies and have started actively developing their production to comply with the expectations of the modern Chinese consumer. Look, e.g., to my post on Jinhua Ham for a successful example. You can consult my post on local cuisines to find the locations mentioned here.

The box

So, now have a look at the overview picture, showing the fancy top of the box and its contents.

It includes a 3, because the manufacturer is supplying three grades. I am describing the top grade in this post. This is what was in the box my friend was presented.

Honey glazed walnut kernels from a mountainous region of Yunnan province

Dried apricots from Xinjiang in China’s far West.

Red can sugar candy from Lincang, Yunnan; it makes a sweet drink by solving it in hot water.

Spicy dried beef from Hunan province.

And, last but not least, fancy mooncakes.

  • Two milk tea moon cakes;
  • Two macha cassia moon cakes;
  • Two red tea moon cakes.

Chinese have been eating walnuts, dried apricots or beef jerky as a snack for ages, but in this day and age, you need to get your walnuts from the high mountains of Yunnan or from an outpost of the ancient Silk Road to arouse the interest of present-day Chinese consumers. And, you have to wrap everything in packs and boxes matching the high quality of the foods. It makes you wonder what the next step will be.

Eurasia Consult Food knows the Chinese food industry since 1985. Follow us on Twitter.

Eurasia Consult Consulting can help you embed your business in Chinese society.

Peter Peverelli is active in and with China since 1975 and regularly travels to the remotest corners of that vast nation.

Eating grass – Chinese slowly discovering salads as meals

Many Chinese still describe eating mixed chopped raw vegetables as ‘eating grass’

Although vegetables have always been a major ingredient of the Chinese diet, they have never liked eating them raw, unlike their neighbours in Korea or Japan. Chinese are traditionally suspicious towards any raw food, meat, fish, or vegetable, only fruits are eaten raw. Chinese starters do include raw or semi-raw vegetables, but with an emphasis on the latter and always well-seasoned, to mask the earthy taste of raw vegetables.

One of the eating habits Westerners brought to China when they started living there was eating mixed chopped raw vegetables as meals. Chinese observing this described those Westerners as ‘eating grass (chi cao)’. This expression is still very common. Whenever my wife and I spend some time in Beijing, we meet a befriended couple in an Italian chain restaurant in a shopping mall near their home, where we have some wine and order one dish after another, slowly, often extending our stay to several hours. We always start with a few plates of various salads, which our friend describes as ‘chatting over a glass of wine, while eating some grass’. This is not a derogatory term. We all enjoy the mixes of fresh vegetables with various toppings: tuna meat, chunks of fish, etc. It is filling while not fattening.

There, salads are still part of a larger meal that also includes other types of food. Actually, ordering a salad as a complete meal is something that has only recently entered the Chinese food scene. However, it is definitely gaining ground. There are already a number of dedicated salad bars active in China.

The leading chain is Wagas. According to the introduction of its website, A young Dane named John F. Christensen had once trouble finding a good sandwich in Shanghai. And so, he opened a café – Wagas. Founded in 1999, Wagas is a chain of café-like restaurants serving – sandwiches, pasta, salads, cake, fresh juice and coffee. I first experience with Wagas was when a Shanghai friend and I were invited by a local business man to discuss a proposal. Interestingly, my friend knew the place and hated it so much that she refused to order anything but a coffee. I ordered a salad consisting of various finely chopped vegetables mixed with other ingredients including quinoa. It was topped with a few slices of good quality beef, hence its name: beef salad. I enjoyed it, washing it down with a healthy smoothie.

The second chain is Element Fresh, a rather clumsy translation of the Chinese name Xinyuansu. Its ‘signature salads’ look quite similar to those of Wagas. The ingredients are chopped less finely and I seem to miss a few of the finer ingredients like quinoa. For the remainder Element Fresh is good copy of Wagas.

Max & Salad is not even a clumsy translation of the Chinese name: Dakaishajie, literally: ‘widely open the salad world’. This chain again offers less refined versions of what you can order at Wagas. I haven’t discovered an English version of their web site, so apparently, they are concentrating on domestic consumers.

Miyoushala, what literally means ‘rice has salad’, is a transliteration of Meal Salad. The salads offered a getting courses, as we are descending on the ranking. However, Meal Salad salads are served with one or two slices of bread. That does not only address the expectations of Western patrons, but also appeals to the Chinese stomach’s need for a bit of staple food.

So Sala sounds frivolous, but is a rendering of shousala, which means: ‘lean salad’. The name says it all. Moreover, this chain positions itself as organic. The salads are, however, again more coarsely chopped than the one that I savoured at Wagas. Also note the avocado. Avocados are getting quite popular in China as a healthy food ingredient.

Sexy Salad is a direct translation of haose shala (this actually means ‘lecherous salad’, so the English translation is rather euphoric). However, haose literally means ‘to love colours’, which here also refers to the various colours of the ingredients. The salads are more of the same, but this company is very much focused on online sales.

These are the salad bars that are operating and seemingly viable at the time of writing this post. A recent market survey has counted the number of outlets in a few important cities.

 

City Wagas EF M&S SoS SS
Shanghai 33 16 12 6
Beijing 9 10
Shenzhen 3 2 2
Guangzhou 1 2 2 5
Hangzhou 3 2 2
Nanjing 2 2 3
Wuxi 1 4 1
Wuhan 1 1 1 1
Chengdu 2 1 1

 

Beijing is the only northern city included in this study. Guangzhou and Shenzhen are both located in the Pearl River Delta. Shanghai, Nanjing, Hangzhou and Wuxi represent the Yangtze Delft. Wuhan and Chengdu are provincial capitals in central and southwest China respectively. Please, consult my post on China’s Major Food Regionsfor those locations.

The concept of salad as a meal is there to stay in China, but the market is highly volatile and we can expect to see a number of chains to come and disappear again. Anyway, I will regularly refresh the information on this post.

Eurasia Consult Food knows the Chinese food industry since 1985. Follow us on Twitter.

Eurasia Consult Consulting can help you embed your business in Chinese society.

Peter Peverelli is active in and with China since 1975 and regularly travels to the remotest corners of that vast nation.