What was discussed at the Hsu Fu Chi 2024 press conference?

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1. "Compass" New Product Strategy Launch

A "perfect timing." This launch was a major strategic move by Hsu Fu Chi, timed with market trends and changing consumer needs, leveraging the Spring Sugar platform to attract attention and resources from within and beyond the industry. The aim was to showcase Hsu Fu Chi's brand strength, product power, and innovation, continuing its four-year streak of rapid growth.

A "new strategy." Now 32 years old, Hsu Fu Chi boasts over 1,200 products across various snack categories, including candies, chocolates, jellies, sachima, pineapple cakes, puffed snacks, biscuits, and seasonal gifts. Its classic sachima and pineapple cakes, along with crispy candies and New Year sweets, have undergone years of market testing and consumer approval, achieving a stable sales volume and a strong market presence. Deeply embedded in the Chinese consumer psyche with the nostalgic essence of "returning home for the New Year," Hsu Fu Chi has naturally forged a strong emotional connection with consumers, with the Spring Festival becoming a critical sales period.

"Hsu Fu Chi sells up to 328 different flavors of candies during the New Year, meeting diverse consumer needs and symbolizing the quintessential New Year experience, a key reason for its nationwide sales success," explained Liu Xinggang, President of Hsu Fu Chi International, during the 2024 New Year goods festival. He also announced a major new production investment following a significant expansion in 2023, with a plan to invest an additional six hundred million in production capacity from 2024 to 2027 to alleviate stock shortages.

"Root deeply, extend outwardly." Six years after returning to the top ranks of Guangdong's manufacturing giants, Hsu Fu Chi is setting even more ambitious goals. At the strategy launch, Hsu Fu Chi announced its 2024 product strategy, which includes a comprehensive upgrade of the Dr. Bear candy line, a new coconut jelly product showcasing technological innovation, and the introduction of Melo sport cookies, marking their debut in the domestic market.

2. "The Three Pillars" - Candy, Jelly, and Biscuits

"In summary, we maintain our strategic focus on Hsu Fu Chi’s core product categories while introducing a broader brand portfolio to offer consumers more variety," said Cai Dianru, Hsu Fu Chi’s Brand General Manager, at the launch. "Through brand revitalization and product innovation, we aim to strengthen our emotional connection with consumers and meet the diverse snacking needs of different generations at every moment."

Let's take a closer look at these "Three Pillars":

Candy - Dr. Bear

Hsu Fu Chi's fruit jelly candies have reached sales of 7.2 billion pieces, marking a 20% year-over-year growth and ranking among the top in the Chinese market.

In this context, Hsu Fu Chi has observed that modern consumers, when choosing gummy candies, are increasingly focusing not only on the flavor and texture but also on health trends. The company has uniquely revamped its Dr. Bear brand, established in 2009, with a comprehensive update in 2024: the product formulas now include 100% real fruit juice, and the logo, IP, and packaging designs have been updated to align with current aesthetic trends such as dopamine and childish charm.

As the industry's first gummy candies made with 100% fruit juice, these products meet the health-conscious demand of consumers who want their sweets to be as healthy as eating fruit.

Furthermore, targeting primary and middle school students, Dr. Bear aims to solidify its position as the leading fruit jelly candy brand in China.

Jelly - Fresh Coconut Jelly Hsu Fu Chi has been deeply involved in the jelly industry for 30 years. The newly launched fresh coconut jelly is made from 100% Southeast Asian imported coconut milk, using a unique process that preserves the natural sweetness of the coconut. "Fresh coconut jelly is crafted around the youthful concept of 'fresh coconut,' offering jelly consumers a completely new product experience," said Cai Dianru to the media. Aimed at young women who prioritize quality of life, the product line includes original fresh coconut, coconut latte, coconut pineapple (inspired by the cocktail "Coconut Breeze"), and a variety of other trendy flavors. To suit different consumption scenarios, it is available in squeeze pouches and small squeeze packets.

"With formula and production innovations, we've finely tuned the flavor to capture the coconut's natural sweetness in our jellies for the first time," Cai Dianru said. This represents not just a fusion of jelly and coconut but a revolutionary breakthrough in technology.

Biscuits - Milo The Milo brand, named after the ancient Greek strongman symbolizing nutrition, energy, and sports, was established in Australia in 1934. Today, Milo is sold in over 40 countries, energizing and invigorating young people worldwide.

What prompted its entry into the Chinese market? First, there is a demand in the Chinese market. In the post-pandemic era, as a health craze sweeps the nation and public enthusiasm for sports soars, the government promotes physical fitness, even including it as a criterion in school assessments. Against this backdrop, there's a significant demand for sports-oriented food products, a niche that Hsu Fu Chi's Milo sports biscuits are well-suited to fill due to the lack of such products in the market.

Second, the Milo brand is robust. Not only is Hsu Fu Chi a leader in the candy industry, but its biscuit line is also noteworthy. According to Nielsen data, Hsu Fu Chi's bulk biscuits lead the market; the company has a diverse product line, mostly with equipment imported from Germany and Japan, which highlights its advanced technology.

Notably, Milo sports biscuits are crafted using the Activ-go formula, professionally blended at the global R&D center, including Vitamin B2, iron, and calcium, along with Nestlé's proprietary nutritious malt extract. These ingredients help in energy conversion, formation of red blood cells, and maintaining bone density, providing energy before and after exercise while retaining the biscuit's crisp deliciousness.

"Launching the Milo sports biscuits series in China is not just a simple 'transport'; it is tailored for Chinese consumers based on Nestlé's technological expertise, equipped to make a significant market impact," said Cai Dianru.

Clearly, Hsu Fu Chi's latest product strategy launch not only showcases several new products for the year but also deepens its strategic insights and layout through craftsmanship, advancing Hsu Fu Chi's "sweet business" and demonstrating to distributors and consumers alike what "good products" truly are.

"Hsu Fu Chi is striving to be a world-class Chinese brand, and with the support of these three new products, we believe that by 2027, Hsu Fu Chi will have grown into a brand worth over ten billion," Cai Dianru remarked in his speech.