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    Home > Food News > Food Articles > The secondary formula registration gate is opened, and the infant milk powder brand continues...

    The secondary formula registration gate is opened, and the infant milk powder brand continues...

    • Last Update: 2022-04-26
    • Source: Internet
    • Author: User
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    Recently, the banners of Yili Jinling and Junlebao appeared in the new batch of formula registration approval list, and they were the first to get the "admission ticket" of the new national standard milk powder, and the prelude to the registration of the secondary formula of infant milk powder was officially opened
    .

    According to a reporter from the Beijing News, Yili and Junlebao have both made market plans for the new national standard products, and other domestic and foreign milk powder top brands are also preparing for the registration of secondary formulas
    .
    Some of the overseas factories of foreign brands have entered the second trial stage, but due to factors such as the international environment and the epidemic, the progress is still relatively lagging behind domestic factories

    .

    According to industry estimates, in the five years after the first formula registration was implemented in 2017, about 70% of domestic infant milk powder brands were eliminated
    .
    After the implementation of the secondary formula registration system, some small and medium-sized brands will automatically withdraw or be merged by large enterprises, and it is expected that 30%-50% of the brands will disappear from the market

    .

    With the further increase in the concentration of the infant milk powder industry, the industry predicts that the price scuffle of infant milk powder will continue, the gross profit space left for channel dealers will be compressed, and the mother and infant channel will enter the stage of "big waves wash out the sand"
    .
    Shifting profit points to student milk powder, adult milk powder and family nutrition is a common response method adopted by channel dealers

    .

    The first batch of new national standard milk powder "released"

    On March 18, 2021, the National Health Commission issued a new national standard for infant formula food series, which provided a standard basis for the secondary formula registration
    .
    The so-called "secondary formula registration" means that under the stipulation that the registration is valid for 5 years, the first batch of infant milk powder that passed the formula registration in 2017 must re-submit the application before 2022

    .
    As the new national standard puts forward new requirements for some ingredient content and nutritional indicators, it has become a high probability event for companies to re-submit product formula registration applications

    .

    "Strictly speaking, 2023 is an important node for the registration of the secondary formula
    .
    " According to Yili's interpretation, the new national standard has a transition period of 2 years from the promulgation to the implementation, giving enterprises time to make adjustments to meet the higher quality of infant formula powder threshold

    .
    "The official implementation date of the new national standard is February 22, 2023, and product formulations that have not completed the registration of the new national standard cannot be produced and sold

    .
    "

    According to Junlebao, starting from the feedback draft of the new national standard in June 2020, Junlebao Banner Dairy spent one year benchmarking against the new national standard, and it took 4 months from preparation to trial production, and has undergone product stability verification since then.
    , registration materials preparation, declaration and other processes, until January 29, 2022 to pass the review, and officially get the approval document on March 1

    .
    At present, the new national standard milk powder has become the main product of the next stage of the banner dairy industry, and the company has formulated promotion plans such as online precision marketing and offline preferential activities

    .
    All other milk powder series of Junlebao Dairy have undergone formula upgrades and are in the process of registering for the new national standard

    .

    Yili revealed to the Beijing News reporter, "Compared with the old national standard, the new national standard has presented a greater challenge to every brand in the industry
    .
    As the first batch of brands to complete the registration of the secondary formula, Jinlingguan is in time (distance from the standard).
    Deadline) has been shortened by nearly a year, which has a certain role in promoting the development of its own consumer market and the entire industry, and has also given the channel great confidence

    .
    The new national standard is a reflection of the national policy's emphasis on product quality , In the next promotion level, Yili will start with the high quality of the new national standard to promote consumers' recognition and recognition of it

    .
    "

    Difficulty registering overseas factories

    According to the Beijing News reporter's verification, at present, domestic and foreign top milk powder brands are actively preparing for the new national standard products, but compared with domestic factories, it is not easy for overseas factories to obtain secondary formula registration
    .

    A relevant person in charge of a foreign milk powder brand revealed to a reporter from the Beijing News that its European factory audit has been completed, and samples of the new national standard have been sent to China for secondary audit and testing.
    The
    ratio will lag a little bit

    .

    For Ausnutria, which has production capacity at home and abroad, the new national standard has always been the focus of its attention
    .
    "In fact, when the new national standard was introduced, the company has already carried out the procurement and improvement of supporting facilities and equipment.
    At present, it has submitted a variety of formula registration materials, always pay attention to the latest requirements of the new national standard, and adjust the registration work methods and ideas

    .
    " Ausnutria said.

    .

    According to relevant regulations in China, infant milk powder produced by overseas factories enters the Chinese market through general trade, and it is necessary to obtain the factory registration qualification in China and the milk powder formula registration qualification at the same time
    .
    Affected by the trade environment and epidemic factors, the industry generally believes that the audit process of overseas factories is relatively lagging behind, which is also the main reason why some foreign milk powder brands have recently acquired domestic small and medium-sized milk powder companies

    .

    In February this year, Mead Johnson China acquired a 100% stake in Mead Johnson Goat Milk Co.
    , Ltd.
    , which has now been renamed Mead Johnson Dairy (Tianjin) Co.
    ,

    Ltd.
    On March 2, the shareholding information of Hunan Obiga Nutritional Foods Co.
    , Ltd.
    changed.
    The French dairy giant Danone subscribed for 286.
    786 million yuan to hold 95% of Obiga's shares and became the new actual controller

    .
    In response to the Beijing News reporter, Danone said that Danone and Obiga have reached a strategic cooperation to invest in and develop their local infant formula factories and products.
    The transaction is expected to be completed in the first quarter of 2022

    .

    Dairy expert Song Liang believes that Mead Johnson China's acquisition of Mecocote and Danone's acquisition of Obiga are the first to look at the formula registration qualification of the latter's infant milk powder, followed by the deployment of new categories such as goat milk powder
    .
    At present, the registration gate of infant milk powder secondary formula has opened, and the registration process of overseas factories is relatively long, and the new national standard products such as Yili and Junlebao are ready, and the product launch is equivalent to half a year or even a year and a half earlier than foreign milk powder.
    Brands are in a hurry and are trying to do things with domestic factories

    .

    30% to 50% of milk powder brands are expected to disappear

    Compared with the implementation of the formula registration system in 2017, channel dealers generally have a stable attitude towards secondary formula registration, and it is expected that the market concentration of infant milk powder will further increase
    .

    According to public data, before the implementation of the formula registration system, 108 domestic milk powder manufacturers had more than 2,300 formulas
    .
    In 2016, the "Administrative Measures for the Registration of Infant Formula Milk Powder Products", which is known as the "strictest in history", was issued, which stipulated that a factory can only apply for registration of 3 series and 9 formulas at most, and re-apply for registration after the expiration of the 5-year validity period

    .

    According to Song Liang's estimation, after the implementation of the first formula registration, about 70% of domestic infant milk powder brands have been eliminated
    .
    With the increasing concentration of the milk powder market, many small brands can only achieve an annual revenue of 10 to 20 million yuan, and the cost of formula registration and clinical verification is not low, so many small and medium-sized enterprises will naturally withdraw, and some Milk powder companies will be merged

    .
    Therefore, after the implementation of the secondary formula registration, from the perspective of declaration, about 40% of the milk powder brands will disappear

    .

    "The channel's attitude towards the new national standard products is relatively stable, and they are not as worried about small and medium-sized brands as the first formula registration
    .
    The second formula registration is mainly concentrated on big brands, and there will be no major problems

    .
    " "Founder Tang Li believes that leading companies have strong R&D strength and brand power, and their original products have a high probability of passing the secondary formula registration, but small brands with an annual income of one or two hundred million in technology research and development, adding equipment, There is a lot of pressure in clinical verification, registration application, etc.
    , and may choose to "sell out" or withdraw

    .
    "We infer that after the implementation of the secondary formula registration, 30%-50% of the brands will withdraw, and the phase-out period will be about 3 years

    .
    "

    Junlebao believes that the new national standard superimposes the registration of secondary formulas, the state has stricter supervision on the infant milk powder industry, and the industry access threshold is tightened, and the market will accelerate the concentration of leading companies with technical advantages and product advantages
    .
    It is more beneficial both for the protection of consumer interests and for the supervision of the industry

    .

    "There are no real small and medium-sized brands anymore, and they were basically eliminated three years ago
    .
    " said Li Maoyin, chairman of Maternity and Infant United Industrial (Shanghai) Co.
    , Ltd.
    , consumers in third- and fourth-tier cities are now beginning to pay attention to brands, and small and medium-sized milk powder It's getting harder and harder for brands to survive

    .
    As far as its mother and baby channels are concerned, the number of milk powder brands has decreased by more than 10%

    .

    "I don't pay special attention to the registration of the secondary formula.
    Now our channel sells all the top brands, and we are more confident

    .
    " Wu Rui, the owner of Jiangxi mother and baby shop, told the Beijing News that although his store is located in the Jiangxi county market, the baby products he operates Infant milk powder is basically dominated by domestic first-line brands.
    "In the past, there were about 30 milk powder series combined, but now about half of them are cut

    .
    Only 1-2 models of small and medium-sized brands are reserved, and foreign milk powder only retains a2 to the beginning and Aitamei.
    Zhuo Cui, other brands do not have natural traffic and cannot help acquire new customers

    .
    Now not only is the market concentrated, but many marketers of small and medium-sized milk powder brands are also heading to the top

    .

    Channel price war will continue

    With the further increase in the concentration of the infant milk powder industry, the profits of distributors did not rise but fell, and the elimination of channels and brands were carried out simultaneously
    .

    According to Li Maoyin, the sales of infant formula powder in the maternal and infant channel still account for a relatively high proportion, the first- and second-tier markets account for 45%-50%, and the third- and fourth-tier markets account for 65%-75%.
    “Compared with three or four years ago, the gross profit of infant milk powder in third- and fourth-tier maternal and infant stores has dropped by more than ten percentage points

    .
    The decline in gross profit is related to the increase in the concentration of milk powder brands.
    After the Internet channels divert customers, the stores will also need to reduce prices

    .
    2021 About 20% of mother and baby stores across the country are closed, and another 20% are expected to close this year

    .
    "

    "After the birth rate has decreased, the passenger flow has decreased, and the brand concentration has increased, the stores are vying for several big brands.
    The most effective way is to increase the promotion

    .
    " According to Tang Li, the milk powder price war has continued from the end of 2018 to the present.
    And getting worse

    .
    Before the price war, a single can of milk powder sold at 350-450 yuan, the gross profit was 150-200 yuan; milk powder sold at 300-350 yuan, the gross profit was 120-150 yuan; the price was 200-300 yuan The gross profit of milk powder is between 80 yuan and 150 yuan

    .
    Now under the price war, the gross profit has to be cut by 2/3

    .
    "Compared with the brand side, the channel is more involved, there is no good way to obtain passenger flow, and it is not driven by capital like the online channel, and it has entered the stage of sweeping the sand

    .
    "

    Wu Rui sighed that now the channels can no longer control the purchasing behavior of consumers, especially the new generation of mothers, who prefer domestic milk powder and are more "partisan", and will actively check whether the brand has a black history, whether it is OEM, and whether the formula, milk The source and process are all-round attention
    .
    In order to increase store profits, Wu Rui's strategy is to focus on first-line infant formula brands, with small profits but quick turnover, and at the same time increase the sales of student milk powder and adult milk powder to increase the gross profit margin, which is also a common response method adopted by many mother and baby brands

    .

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