China Focus: Mondelez advancement, Ingredion investment and Sapporo strategy in the spotlight

By Gary Scattergood contact

- Last updated on GMT

Mondelez, which runs digital stores on Tmall and JD, saw its e-commerce business in China grow by 90% in the first half of this year. ©GettyImages
Mondelez, which runs digital stores on Tmall and JD, saw its e-commerce business in China grow by 90% in the first half of this year. ©GettyImages

Related tags: China, Mondelez, Ingredion, Sapporo

This month’s review of the latest need-to-know industry news from China features developments from big name firms including Mondelez, Sapporo and JD.

Mondelez catching up with competitors in China’s e-commerce space: Bernstein report

The US snacks and confectionary giant Mondelez is catching up with its rivals despite a late entry into China’s e-commerce space.

Mondelez, which runs digital stores on Tmall and JD, saw its e-comm​erce business in China grow by 90% in the first half of this year.

The firm which started to sell via China’s e-commerce platforms in 2016 is also the only Western company to enjoy success in the online sales of cookies, chocolate, and gum categories.

In fact, it seized a greater market share in online as compared to offline retail for its chocolate and gum products.

 

Ingredion pumps up starch production business in China with new investments

Ingredion is looking to grow its starch production and wet-milling capacity​ in China.

The US firm announced a US$60 million investment to grow its specialty food ingredients business in APAC recently.

China will be one of the investment priorities.

For instance, investments will be pumped into 1) completing a 30% expansion of its modified food starch capacity and to 2) further improving its corn wet-milling capacity in China.

 

Premium push: Sapporo partners we AB InBev to target high-end beer market in China

Sapporo has designated Anheuser-Busch InBev (AB InBev) as the master distributor of its Sapporo Premium Beer​ in China, with its eye on the premium booze market.

 “[The] premium segment of [the China beer] market inclusive of imported beer brands is in particular continuing to exhibit dramatic growth,”​ said Sapporo in an official statement.

“[We] also intend to gain a foothold in this market segment and expand its distribution channels.”

 

China traceability rule changes: “QS” quality and safety logo no longer permitted for use

Food and beverage manufacturers operating in China are now required to use a new set of quality and safety marks.

Manufacturers can no longer use the “QS” logo, but to replace it with an identification code that comprises of the alphabets “SC” and 14 digits.

The new system is meant to improve product tracing mechanism.

 

Over the moon: JD.com garners more than 60% of online mooncake sales

JD.com has emerged as the champion of mooncake sales this year, with the e-commerce giant selling a total of 100 million mooncakes​ between Sep 1 and Sep 19.

A sales spike was observed from Sep 17, which was exactly a week before the actual day of mooncake festival.

It also snatched more than 60% of the online mooncake sales. 

As compared to the same period last year, the number of product orders this year was 106% higher.

Quality customer experience such as making relevant recommendation, providing options of different prices were reasons for the site’s success, said Li Changming, the general manager of dried food and snacks, JD FMCG and Foods.

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