The increased popularity of take-out food and increased health consciousness among Chinese consumers have triggered a sharp decline in demand for instant noodles, pressuring major players in the field to enrich their cash flows by selling assets. According to the World Instant Noodle Association, the demand for instant noodles was 38.5 billion servings in 2016, down 7.7 billion compared with three years ago or 16.6 percent…Full Article: ECNS.cn Aug 2017

Key Points

  • In November 2016, Uni-President sold its stake in Guangdong Jianlibao for CNY 950 million [~USD 137 million].
  • In May 2016, Uni-President sold its 47.83% stake in Hebei’s Jinmailang Food (instant noodles) for CNY 1.29 billion [~USD 186 million].

ChinaAg Comments

  • In July 2017, Uni-President Enterprises (UPE) and President Chain Store Corp (PCSC) sold their respective 20% and 30% shares in President Starbucks Coffee Shanghai Corp to Seattle-based Starbucks for USD 1.33 billion. Afterwards, Starbucks gained full control of approximately 1,300 Starbucks outlets in the eastern Chinese provinces of Jiangsu and Zhejiang, as well as Shanghai (~600 outlets). At the same time, UPE and PCSC purchased a 50% stake in Taiwan’s President Starbucks Coffee Corp, giving the two companies full control of Taiwan’s Starbucks outlets.
  • In January 2017, Master Kong instant noodles announced they would exit (dissolution of subsidiary) the Taiwanese market. During the same month, an online promotion between LeEco (tech company) and Master Kong suffered from computer code glitches. According to an unnamed source, 100,000 LeEco memberships were sold in the black market for very low prices. In addition, more than 500,000 codes for Master Kong’s noodle products were also impacted by the reported glitch.
  • From 2010 to 2015, according to Mintel Group, Chinese retail sales of instant noodles increased by 2.2% to CNY 65.3 billion [~US$10.4 billion]. However, in 2020, sales are forecasted to decline to CNY 62.1 billion. The four companies of Tingyi Holdings (Master Kong), Uni-President, Baixiang and Jinmailang account for 80% of China’s instant noodle sales.
  • In 2014, Tingyi Holdings (Master Kong) had a 42.2% share of China’s instant noodle market. Tingyi Holdings was followed by Uni-President 13.3%, Jinmailang Food at 11.5%, Baixiang Food at 10.5%, Si Mei Te Food at 4.3%, Nissin Foods Holdings at 3.2%, Henan Nanjiecun Group at 1.5%, and Nongshim at 1.2%.
  • In October 2014, Ting Hsin International Group (parent company of Tingyi) was implicated in the Taiwan’s cooking oil scandal [mixing cooking oil and animal feed oil for retail sale]. The subsequent fallout irrevocably damaged sales of its instant noodles on the island.
  • Founded in 1992 and headquartered in Tianijn, Tingyi (Cayman Islands), subsidiary of Ting Hsin International Group (HKG:0322) is a beverage and instant noodle producer/distributor.

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