Breaking through the gap between Red Bull and physical fitness, what makes Dong Peng drink?
Recently, Dong Peng Beverage released its first semi-annual report with a daily limit of 15 and a market value of over 100 billion. During the reporting period, the company achieved an operating income of 3.682 billion yuan, a year-on-year increase of 49.11%; The net profit attributable to shareholders of listed companies was 676 million yuan, a year-on-year increase of 53. 14%.
Dong Peng Beverage said that in the first half of 20021,while actively exploring the national market, the company continued to deepen the Guangdong market. The continuous growth of 500ml golden bottle sales has driven the rapid growth of the company's sales revenue and net profit. In the second half of the year, the company will further improve the national distribution of sales network, strengthen channel construction, ensure market supply, gradually promote the company's new products to the whole country, and actively develop healthy functional drinks to meet the diversified consumption needs of consumers.
In terms of categories, the company's energy beverage revenue reached 3.547 billion yuan, up 56. 1 1% year-on-year. Among them, in the first half of this year, the sales revenue of the leading product Dong Peng special drink accounted for more than 98% of energy drinks, and the sales revenue of "Dong Peng Jiaman" was 365,438+065,438+039, 200 yuan; The new product "0 Sugar Special Drink" launched in April this year was tried in Guangzhou, Zhongshan and other regions, and was fully promoted in Guangdong, Guangxi and online channels in June this year. During the reporting period, the sales revenue was 30.742 million yuan.
It is understood that 0 Sugar Special Drink and Dong Peng Jiaman are still on trial sale in Guangdong. If you want to do large-scale marketing, you must basically complete the nationwide distribution. But at present, the nationwide layout has not been completely completed, and there are still a lot of blank markets waiting to be developed.
However, during the reporting period, Dong Peng's non-energy beverages only achieved operating income of 654.38+0.3 billion yuan, down 33% year-on-year. This series of products mainly include citrus lemon tea, old beer special drink, refreshing drink (chrysanthemum tea, melon juice drink, refreshing tea) and milk-flavored drink.
In terms of regions, in the first half of the year, Dong Peng Special Drink achieved sales revenue of 65.438+65.5 billion yuan in Guangdong, up 39.47% year-on-year; Sales revenue outside Guangdong reached 65.438+64.8 million yuan, a substantial increase of 60.25% year-on-year, and the income of direct sales headquarters also increased by 56.5438+0.365438+0% to 370 million yuan. It can be said that while the development momentum of Dong Peng beverage in Guangdong is maintained, the markets in East China and Central China are also showing a good growth trend.
At the mid-year conference call, the person in charge of Dong Peng's special drink said that the growth momentum of the Guangdong market mainly comes from two aspects: First, the channels and drinkers are broadened, and the high-end products are infiltrated upwards. Guangdong market launched 250 ml and 335 ml canned zero-sugar special drinks, 355 ml canned Dong Peng aerated, paying attention to the penetration of middle and high-end people, and 250 ml PET was admitted to the science park to penetrate into white-collar people; The second aspect is that the company has carried out channel sinking action in Guangdong market, and the university market and Internet cafe market have brought new quantity.
In the East China market with strong physical fitness, Dong Peng's special drink has also achieved good growth in the cracks. Yi Dongpeng's East China distributor said that last year's task was about 80,000 cases, and this year's task doubled, requiring 6.5438+0.6 million cases, which had been completed 48% before, and the expectation in the third quarter was still good. The main increase this year comes from 500 ml PET packaging.
According to reports, Dong Peng's situation in southern Jiangsu is better than that in northern Jiangsu, which is related to product positioning, price, market situation and consumer cognition. The consumption energy in northern Jiangsu is slightly weak. Previously, Jiangsu's overall market share was red, and Dong Peng's special drink ranked third in physical fitness.
According to the internal communication minutes of Dong Peng Beverage, at present, the sales volume of Dong Peng in Central China has also increased greatly. The company expects that the production capacity can meet the demand of Central China before 2023. With the development of the market, there may be some capacity pressure after 2023. Therefore, the company laid out the Changsha factory in advance. If the land bidding, auction and hanging procedures go smoothly, the Changsha factory is expected to be put into production in March 2024, and will mainly undertake the delivery tasks of Hunan, Hubei and Jiangxi provinces after it is put into production.
It is worth noting that while the performance has increased substantially, the sales expenses of beverages in Dong Peng have also increased simultaneously. The financial report shows that the sales expenses of Dong Peng beverages increased by 76.6 1% in the first half of the year. The promotion fee increased by 1 14.04% year-on-year.
In this regard, Dong Peng Beverage said that after the successful listing, the company increased the investment in brand building and promotion activities, with an increase of 66.6762 million yuan compared with the same period of last year, and the investment in freezer and supermarket promotion was about 9714130,000 yuan. These measures have led to a substantial increase in publicity and promotion expenses year-on-year, further expanding the influence of sales channels and increasing the market share of products.
In short, in the first half of the year, Dong Peng Beverage further increased the publicity and display costs.
Among them, Guangxuan increased its investment because Red Bull, the industry leader, was dragged down by trademark disputes and gradually stopped brand promotion, and its brand influence gradually weakened among the newly growing generation of consumers. As the second child in the industry, Dong Peng Special Drink needs to continuously strengthen the mental education of consumers, build a brand and show the strength of the company, so as to empower the investment of new products.
The increase of terminal cost is closely related to the continuous spread of sales network. By the end of the reporting period, there were 2,002 beverage distributors in Dong Peng, and the sales network covered about 6,543.8+0.79 million terminal stores nationwide, an increase of over 40% compared with 6,543.8+0.2 million at the beginning of the year.
The person in charge of Dong Peng Beverage said that if the outlets are not covered, the company can verify whether they are its own outlets through data tools, but if they are registered but have not been sold or scanned, they are not valid merchants. In addition, effective outlets generally take 3-6 months, and if they have not been used for 3-6 months, they may be invalid outlets.
In the view of Dong Peng Drinks, the 6,543,800+7,900 outlets are actually covered by sales staff. It takes time to open new outlets and cultivate surrounding consumer groups; Moreover, the new terminal will increase the cost of freezer and display, so the sales cost of opening up the blank market is relatively large.
In addition, due to the company's new incentive scheme, employees' wages have generally increased. During the reporting period, the company's management expenses were 6.5438+32 million yuan, up 50% year-on-year, and the management rate was 3.59%, up 0.20% year-on-year. The cost of roadshows, cocktail parties, R&D fees and other costs increased when the company went public, which brought a certain increase to the company's cost.
It seems that Dong Peng beverage is trying to gain more market share by increasing effective investment. However, in the second half of the year, in addition to the marketing challenges that FMCG industry generally faces, Dong Peng beverages also face the risks of market competition and raw material price fluctuation.
Although the price of PET began to rise gradually this year, it brought great challenges to the production end of the beverage industry. The scale effect of Dong Peng beverages can hedge, so as to control the fluctuation of gross profit margin within 2-3 percentage points. For example, South China Base * * * has four production lines, which greatly increases the scale effect; Nanning base used to be the first phase, but now it is the second phase. Chongqing base will be put into production in April-June, and more production lines will be added next year. The scale effect of the gradual arrival of production capacity can offset the upward impact of costs.
In addition, because the sales revenue of 500 ml PET bottles accounts for the highest proportion, its gross profit margin is higher than that of 250 ml PET bottles, and the increase of 500 ml PET bottles will also lead to an overall upward trend in gross profit margin.
Market competition risk, specifically, is how to build a moat for competitors such as physical fitness while continuing to challenge Red Bull.
At present, Dong Peng beverage is still in the stage of actively catching up with and seizing the market share of Huabin Red Cattle.
The objective reality is that the total profit is still red, because red is bigger. At the same time, however, due to the relatively high pressure of inventory and prepayment and low profit rate, the agent willingness of Red Bull dealers declined. In addition, Hua Bin has not made a big investment now, mainly because Wei and Anneji have not caused enough threats; Come and see, the price war between Anakin and flavored drinks is not. In addition, even if the price war starts, it will not affect Dong Peng, but it will damage the brand.
It is worth noting that some major markets in Dong Peng can achieve about a quarter of the sales at the catering end, while other competitors currently lack the layout at the catering end. Therefore, catering is also a growth point for Dong Peng in the future.
On the other hand, in the competition with physical fitness and Lehu, Dong Peng beverage has achieved a breakthrough through differentiated channel operation.
A Dong Peng beverage distributor said that from the brand point of view, the main market of physical energy is suburban counties, which can reflect the price advantage, rather than pursuing sales volume, and the investment is mainly decoration, with little emphasis on brand building. Music is a business+distribution model with no relatively high cost; On the other hand, Dong Peng is omni-channel, hoping to build a brand.
He said: "If the standard is red, the market price in Dong Peng can reach 70% of that in Hongpu, which is similar to physical energy. The reason for the sales gap may be that the red in the nuclear city sells better, and a bottle of 5 yuan Xiang Dongpeng in rural areas is cheaper, so it sells better. " However, in terms of sales volume, the space for physical improvement has been limited. Looking back, Dong Peng was the one who had the opportunity to buy functional drinks.
An industry insider concluded, "Dong Peng announced that it is better to vote, and the display of physical fitness is better." However, for brands with national layout, the number will be announced at the investment stage. This part of the notice is not good for consumers, mainly to let dealers see the reality of the company. Therefore, dealers are happy to accept Dong Peng. In addition, although the store display is aimed at consumers, now Dong Peng drinks have gradually increased investment in consumer education, and the progress of the display side is also frequent. "