Nissin launched a new version of the taste product in July, Chairman Kiyotaka Ando praised the noodles for more soup and flavor

Special interviews

Written by: Kuang Yueting

2021-06-07 08:00

Last update date: 2021-06-07 08:00

As Hong Kong people gradually adapt to the new normal life under the epidemic, the scene of "crazy looting" for food and daily necessities at the beginning of the epidemic last year no longer appeared.

As a result, Nissin Foods (1475)'s Hong Kong business revenue in the first quarter of this year decreased by 6.3% to 336 million yuan. China's business revenue increased by 19.5% to 629 million yuan. Revenue was 964 million yuan, an increase of 9.03%.

Kiyotaka Ando, ​​executive director, chairman and CEO of Nissin Foods, said in an interview that Hong Kong people panicked to buy instant noodles and cup noodles in the first quarter of last year, but this did not happen this year, which caused a slight decline in sales, but the performance was still good. Fortunately, in the first quarter of 2019, some new customers will continue to buy their products repeatedly. He believes that after the switch, many tourists will buy Nissin products as souvenirs or souvenirs, and Hong Kong's business can regain growth by then.

In the first quarter, the mainland business revenue benefited from the "Chinese New Year in situ" policy during the Lunar New Year. Although sales declined slightly after the New Year, it still maintained a good momentum. Therefore, the company's goal for this year is to record a single-digit increase in revenue, which is similar to last year.

Click on the picture below to see the new version of Hewei Cup Noodles:

Many Hong Kong people prefer to buy the Japanese version of Nissin products. Will this affect the sales performance of Nissin Hong Kong?

Kiyotaka Ando revealed that the company will improve the quality of Hong Kong Cup Noodles every year, hoping to attract Hong Kong consumers to buy Hong Kong Nissin products. For example, in July this year, the company will launch a new version of the flavor products, the selling point is that the noodles are more soupy.

In addition, the company launches an average of 30 new products each year (new versions will also be included), and later will launch spicy tomato-flavored cup noodles and new flavors of potato chips.

"However, Hong Kong consumers still like Japanese products. This is their choice. It doesn't matter. We are the distributors of Nissin Japan. If Hong Kong people buy Japanese products, the company can also benefit from it."

The recent increase in the prices of food oils and raw materials may put pressure on Nissin’s gross profit margin.

Kiyoshi Ando said that Nissin's gross profit margin in the first quarter was maintained at 32.1%. The company will reduce costs by increasing production and doing a good job in supply chain management. There is no plan to increase prices.

"Don't worry too much about the increase in raw material prices, the company will take appropriate measures to offset it." At the same time, the company will increase investment in automated production lines in the future, hoping to gradually turn the factory into a smart factory and make full use of the production capacity of the Dapu plant.

He estimated that when the company integrates the production facilities in the Tai Po plant, and the new intelligent production line is put into production, it will increase production capacity by 10 to 15%.

Nissin launched fresh salad dishes in December last year. Kiyotaka Ando said the products are now on sale at Aeon and Donki, which are fresher than other imported salad dishes.

(Photo by Kwong Yueting)

In order to cater to people's healthy eating trend, Nissin must constantly strive for changes.

Kiyotaka Ando believes that instant noodles are not suitable for health-conscious people. Therefore, the company launched the Hewei Leyi Cup Noodles. The noodles inside are not fried, and dietary fiber is added to the noodles, and a variety of vegetable ingredients are added. Healthy cup noodles.

The company also sells fruits, cereals, cereals and fresh salads, and established a joint venture with Japanese food and vegetable juice brand Kagome in 2018 to develop vegetable juice business.

He continued that Kagome vegetable juice tastes like fruit juice, which can allow children and adults who do not like to eat vegetables to get enough fiber and nutrition. It is estimated that the market potential of this business is quite large.

In late May, the announcement of the marriage of Yui Aragaki and Gen Hoshino shocked Japan. Their marriage news was even dubbed "Nissin Marriage" by the Japanese advertising community, because Yui Aragaki once endorsed Nissin’s long-selling signature product "Chicken Sauce". "Ramen", and Hoshino Gento shoots an advertisement for the Nissin Oolong Bowl Noodle "どんBei".

When asked if he would have the opportunity to invite them to shoot commercials in the form of husband and wife files, Kiyotaka Ando said with a smile that the company was very happy to learn about their marriage, but if you want to invite them to shoot commercials, you need to discuss with them first and know if they have any schedule. No more information can be disclosed for the time being.

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