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Australian Food and Grocery Council (AFGC)
Address Level 2, Salvation Army Building 2-4 Brisbane Ave Barton ACT Australia 2600
Postal Address Locked Bag 1 Kingston ACT Australia 2604
www.afgc.org.au
ABN 23 068 732 883
This report was prepared by:
Expand into Asia www.trade-worthy.com
This Market Insights report is published for information only. It does not constitute advice or service, and no liability is accepted for negligence, omission or error of any nature. You must obtain your own advice and conduct your own investigations independently from this information.
© Copyright Australian Food and Grocery Council 2014
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CONTENTSTables V
Figures VI
Pictures VI
Message from AFGC VII
Message from Austrade VII
Introduction VIII
Product and Geographic Coverage VIII
Structure of the Report IX
Sources of Further Information X
Defined Terms in this Market Insights report X
Executive Summary XI
PART 1 11. The Big Picture 2
1.1 Demographics 2
1.2 Economic Overview 2
1.3 Food trade with Australia 3
2. Food and Beverage Trends 4
2.1 Broad trends in food and beverage consumption 4
2.2 Attitude to imported food and beverage 5
2.3 Outline of the food and beverage supply chain 6
3. Regulatory and Trading Environments 16
3.1 Trade policy position and approach to trade agreements 16
3.2 Trade Barriers 17
Summary 26
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PART 24. Snackfoods 22
4.1 Chocolates 22
4.2 Sugar Confectionery 26
4.3 Cereal-based Bars 30
5. Beverages 33
5.1 Fruit Juice 33
5.2 Tea 37
5.3 Premium Cold Beverages (non-alcoholic) 40
6. Baked Goods 44
6.1 Biscuits 44
6.2 Baking Mixes 48
7. Condiments 52
7.1 Premium Table Sauces 52
7.2 Jams 56
ANNEXES 60Annex I — Store Checks China 60
Annex II — Key Retailers in the Chinese Premium Retail Market 75
Annex III — Key Distributors in the Chinese Premium Retail Market 77
Annex IV — Key Players in China’s Premium HoReCa Market 79
Annex V — Key Government Bodies 80
Annex VI — Major Food and Beverage Trade Shows in China 82
Annex VII — Useful Links 83
Annex VIII — Food Regulation and Trade Barriers 84
Annex IX — Sources of Further Information 88
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TABLESTable 1: China GDP and GDP per capita 2
Table 2: Market sizes and anticipated 3 year CAGR for Selected Product Categories 4
Table 3: Top 10 hypermarket and supermarket operators in China 6
Table 4: Top 10 convenience store operators in China 9
Table 5: Top 3 online food and grocery retailers in China 13
Table 6: China's Free Trade Agreements 16
Table 7: Characteristics of surveyed snackfood sub-categories 22
Table 8: Overview of packaging and price point ranges — chocolate 22
Table 9: Overview of packaging and price point ranges — sugar confectionery 26
Table 10: Overview of packaging and price point ranges — cereal-based bars 30
Table 11: Characteristics of surveyed beverage categories 33
Table 12: Overview of packaging and price point ranges — fruit juice 33
Table 13: Tariff rates for selected types of fruit juice 37
Table 14: Overview of packaging and price point ranges — tea 37
Table 15: Overview of packaging and price point ranges — premium cold beverages 41
Table 16: Characteristics of surveyed baked goods categories 44
Table 17: Overview of packaging and price point ranges — biscuits 44
Table 18: Overview of packaging and price point ranges — baking mixes 48
Table 19: Characteristics of surveyed condiments sub-categories 52
Table 20: Overview of packaging and price point ranges — Premium Table Sauce 52
Table 21: Overview of packaging and price point ranges — Jams 56
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FIGURESFigure 1: Market Share of China's Total Food Imports 3
Figure 2: Routes to the market — Retailers 12
Figure 3: Routes to the market — HoReCa 14
Figure 4: Major chocolate brands in the Chinese Selected Premium Retail Market 23
Figure 5: Major sugar confectionery brands in the Chinese Selected Premium Retail Market 27
Figure 6: Major cereal-based bars brands in the Chinese Selected Premium Retail Market 30
Figure 7: Major fruit juice brands in the Chinese Selected Premium Retail Market 34
Figure 8: Major tea brands in the Chinese Selected Premium Retail Market 38
Figure 9: Major premium cold beverages brands in the Chinese Selected Premium Retail Market 41
Figure 10: Major biscuits brands in the Chinese Selected Premium Retail Market 45
Figure 11: Major baking mix brands in the Chinese Selected Premium Retail Market 48
Figure 12: Major Premium Table Sauce brands in the Chinese Selected Premium Retail Market 53
Figure 13: Major jam brands in the Chinese Selected Premium Retail Market 56
PICTURESPicture 1: Shelf display at Tesco China 7
Picture 2: China – geographical division for supply chain purposes 10
Picture 3: Shelf with chocolate gift boxes at Ole Supermarket 25
Picture 4: Shelf with sugar confectionery at City Shop 28
Picture 5: Cereal-based bars on wangooshop — a Chinese online retailer that caters to expatriates 31
Picture 6: Minute Maid displayed at end of gondola — Lianhua Supermarket 35
Picture 7: Shelf with tea boxes at Tesco China 39
Picture 8: Premium cold beverage shelf at City Super 42
Picture 9: Biscuits shelf at Tesco China 47
Picture 10: Baking mixes shelf display at City Shop 49
Picture 11: Stick on labels for baking mixes - Duncan Hines 50
Picture 12: Premium Table Sauce shelf display at Lianhua 55
Picture 13: Jams shelf display at City Shop 57
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MESSAGE FROM AFGCThe Australian Food and Grocery Council (AFGC) is the leading national organisation representing Australia’s food, drink and grocery manufacturing industry. The membership of AFGC comprises more than 178 companies, subsidiaries and associates which constitutes in the order of 80 per cent of the gross dollar value of the processed food, beverage and grocery products sectors.
The China Market Insight forms part of the AFGC’s renewed engagement on international trade issues. We hope that this information, along with the information on the markets in Malaysia and Thailand, will assist all food industry companies.
www.afgc.org.au
MESSAGE FROM AUSTRADEThe Australian Trade Commission — Austrade — contributes to Australia’s economic prosperity by helping Australian businesses, education institutions, tourism operators, governments and citizens as they:
� develop international markets
� win productive foreign direct investment
� promote international education
� strengthen Australia’s tourism industry
� seek consular and passport services.
We achieve this by generating market information and insight, promoting Australian capabilities, developing policy, making connections through an extensive global network of contacts, leveraging the badge of government offshore and providing quality advice and services. This activity has received funding from Austrade as part of the Asian Century Business Engagement Plan.
www.austrade.gov.au
The views expressed herein are not necessarily the views of the Commonwealth of Australia, and the Commonwealth does not accept any responsibility for any information or advice contained herein.
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INTRODUCTION With rising incomes and increasing consumer demand across Asia presenting export opportunities for Australian based food and beverage manufacturers, the Australian Food and Grocery Council (AFGC) commissioned a series of reports to deepen Australian industry understanding of particular markets.
While Australian and international research has focussed on export opportunities for products such as dairy, meat and wine across Asian markets, there has been little focus on the opportunities for manufactured food products such as snacks, non-alcoholic beverages, and confectionary.
The aim of this project is to provide insights into some of the opportunities that exist for specific manufactured food products in particular markets as a means of contributing to, and supporting the development of, better knowledge of export opportunities of manufactured food into Asia.
PRODUCT AND GEOGRAPHIC COVERAGEWhile there are export opportunities across Asia, the AFGC Market Insights focus on three key markets: Thailand and Malaysia because of improved access under the respective trade agreements; and China due to the long term food consumption forecasts.
This Market Insights series of reports focus on the premium retail and Hotels/Restaurants/Cafes (HoReCa) sector, for the following specific products:
� Snackfoods
– Chocolate
– Sugar Confectionery
– Cereal-based Bars
� Beverages
– Fruit Juice
– Tea
– Premium Cold Beverages
� Baked Goods
– Biscuits
– Baking Mixes
� Condiments
– Premium Table Sauces
– Jams
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By concentrating on specific products, the Market Insights report is able to bring deeper insights into the key considerations for Australian food & beverage manufacturers. These products have been selected for initial focus for two reasons: (i) each has witnessed significant import growth (between $6m–$219m from 2010–2012 1) into the target markets , and (ii) they are export items supported by capabilities of the Australian food & beverage sector. Together, these products represent opportunities for food & beverage exports from Australia into China.
The Market Insights report offers detailed practical insights into specific product categories, far beyond information which is in the public domain. Manufacturers in the product categories covered (snacks, beverages, baked goods, condiments) — or those with capability to extend into these categories — should find the detailed insights both practical and compelling.
STRUCTURE OF THE REPORT We recommend that you find your own path through this Market Insights report, which may not necessarily be from cover to cover.
Part I of this report contains important information about market size and growth, food & beverage trends, key trade shows and routes to market, as well as regulatory and trading considerations such as labelling standards. This information will be useful for new exporters and for established exporters looking to revisit the underlying market dynamics.
Those with some background and experience in China may wish to skip directly to the content relevant to their specific product lines, which falls in Part II of this Guide. There you will find details — for each covered product category – such as ‘share of shelf’ for key brands, packaging size, price points, tastes and promotional trends, any trade barrier details – and contacts for key retailers and distributors in the market. For those seeking even more detail, the report contains the detailed results of premium retail store surveys across China.
1 Analysis of data from UN Statistical Database ‘Comtrade’ 2014
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SOURCES OF FURTHER INFORMATIONCommercial realities, market averages and product trends change frequently. The insights and contact details provided in this Market Insights report are likely to change over time. The Annexes contain a list of organisations, agencies and companies that may assist in providing further information.
DEFINED TERMS IN THIS MARKET INSIGHTS REPORTThere are several defined terms used throughout this Market Insights report, which are critical to understanding the results and implications. These include:
Australian Suppliers Australian food and beverage manufacturers who may seek to export from Australia into China.
Premium HoReCa Market Premium hotel, restaurant and café groups and franchises targeting middle and upper-middle income customers.
Selected Premium HoReCa Market Those Premium HoReCa Market groups and franchises included in the survey underlying this Market Insights report, as set out in Annex IV.
Selected Premium Retail Market Those Premium Retail Market stores included in the survey underlying this Market Insights report, as set out in Annex II.
Selected Product Categories Those product categories included in the survey underlying this Market Insights report (snacks, beverages, baked goods, condiments).
Premium Retail Market Premium retail outlets supplying food and beverage to middle and upper-middle income customers.
Exchange Rates AUD 1 = 5.8 Chinese Renminbi
AUD 1 = 0.95 United States Dollars
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EXECUTIVE SUMMARYWith rising incomes and increasing consumer demand across Asia presenting export opportunities for Australian based food and beverage manufacturers, the Australian Food and Grocery Council (AFGC) with funding assistance from Austrade, commissioned a series of reports to deepen Australian industry understanding of the opportunities that exist. These reports examine opportunities for specific manufactured food products — snacks, beverages, baked goods and condiments – in Malaysia, Thailand and China.
This report is focussed on China — a market with immense and growing opportunities but a market which requires meticulous planning, a strategic approach to market entry, and patience.
While each manufacturer must uncover their own unique value proposition in the Chinese market — including by comparing their own offering with the prices, packaging, and flavours identified in this report, there are several consistent themes across the market:
� The Chinese processed food and beverage market is very much globalised with competitors from a diverse range of countries including Europe, the United States, and South East Asia through to local Chinese manufacturers.
� Australian food products are generally well regarded and more likely to be competitive at the premium end of the market – given our limited scale of production and global reputation.
� At the premium end, package sizes are shrinking and high quality defined-source ingredients (and verifiable health claims) are of growing importance to the Chinese consumer.
� Each exporter must map out their entry strategy – store format, target cities, direct or through distributors. If starting from scratch, premium food producers should consider targeting emerging premium supermarkets through experienced importer/distributors – some of which are identified in this report.
The challenges of market entry into China – labelling, import taxes and customs – should not cloud the opportunity. These can be deftly handled by experienced importer/distributors if they are convinced of the unique value to their target buyers.
In terms of the specific product categories, there are a wide range of opportunities to be considered as part of an individual company’s approach to the China market. This report highlights a number of opportunities for each category including:
� Chocolates: Gift giving is an important element of Chinese culture. Premium chocolate products with appropriate packaging can be marketed as gifts, particularly for festival celebrations.
� Sugar Confectionery: There is a trend toward sugar confectionery becoming a more regular snack in the market however there is a preference for less sweet products.
� Cereal Bars: Demand for healthy cereal bars is growing but currently in early phases of market development. Opportunity exists for Australian exporters to become established as part of growing market.
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� Fruit Juice: Similar to Australia, there is opportunity for premium fruit juice products in coffee shops in China. Opportunity exists for carbonated juice products to be sold as non-alcoholic beverages.
� Tea: There is currently a strong focus on traditional teas and the market for other types of tea, including flavoured tea, is in the early stages of development. There is an opportunity to promote Australian products as clean and safe however it is a very price competitive market.
� Premium Cold Beverages: There is a consumer focus on healthy beverages with fruity flavours and vitamins. A strong opportunity for healthy and natural carbonated beverages exists in the market.
� Biscuits: In a highly competitive market, the opportunity for biscuits is in gift giving, particularly in association with festivals. Products need premium packaging and strong product promotion appropriate for the market.
� Baking mixes: The market for baking mixes is in the early stages of development as ovens are not yet widely available at home. Cake mixes are more popular than bread mixes and a specific demographic is increasingly baking cakes on the weekend.
� Premium Table Sauces: Soy sauce is the first choice for Chinese households, with increasing popularity of chili and black bean sauces given the familiarity of flavours. Of western style sauces, Worcestershire and mayonnaise are increasingly popular however new flavour combinations may have greater appeal in a saturated market.
� Jams: The market for jams is characterised for a preference for less sweet products. Jam products will benefit from heavy promotion, with orange, strawberry, and mixed fruits the current popular flavours.
The AFGC hopes this Market Insights report assists Australian suppliers to understand the characteristics and export opportunities of the Chinese market and to assess whether their products suit the needs of Chinese consumers or require modification for this market.
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THE BIG PICTURE
1.1 DEMOGRAPHICSThe demographic picture of China is well known, and simply staggering. China’s growing population (currently 1.35 billion) is expected to reach 1.384 billion in 2020, with a growth rate of 0.5 per cent (2012). The population is growing older, with 15 per cent aged between 15 and 24, 47 per cent aged between 25 and 54, and 20 per cent aged 55 or older.2 The Chinese Government expects that China will become the world’s most aged society in 2030.
The ratio of urban to rural population is about 52:48.3 China has a high population density, with most densely populated areas located in the Yangtze River Valley, the Sichuan Basin, the North China Plain, the Pearl River Delta, and the Shenyang area in the northeast. Geographic income disparities are an entrenched feature, with an immense contrast between poor rural areas and the wealthier urban, coastal areas.
1.2 ECONOMIC OVERVIEWDespite its developing country status, China recently became the second largest economy in the world. From the initiation of the market reforms in the late 1970s, China continues to shift from a centrally planned to a market-based economy and has witnessed rapid economic and social development.
China’s GDP grew by 7.8 per cent in 2012 (AUD 8.66 trillion) and GDP per capita was AUD 6,412.
TABLE 1: CHINA GDP AND GDP PER CAPITA4
2009 2010 2011 2012
GDP (AUD billion) 5,254 6,243 7,707 8,660
Real GDP Growth 9.2% 10.4% 9.3% 7.7%
GDP per capita (AUD) 3,946 4,666 5,734 6,412
Closely linked to China’s GDP growth is rapidly rising disposable income in urban areas, resulting in a middle-income consumer boom in areas such as Shanghai, Guangdong, Beijing and Sichuan. Urban households earning more than USD 5,000 (AUD 5,263) per year are expected to grow by 24 per cent annually — a growing consumer base for high-quality and high-value imported food.
Research by McKinsey suggests that China’s urban incomes will double by 2022, with more than 22 per cent of China’s urban consumers considered middle class, earning USD 9,000 – 16,000, and 54 per cent considered upper middle class, earning USD 16,000 – 34,000.5
2 Worldbank (2014)3 Worldbank (2014)4 Worldbank (2014)5 http://www.mckinsey.com/insights/consumer_and_retail/mapping_chinas_middle_class
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1.3 FOOD TRADE WITH AUSTRALIA While China is one of the largest agricultural producers in the world, with production estimated at more than USD 947 billion, China is also a large net importer of food, with annual imports valued at AUD 89.8 billion.6 On current trends, China will import almost a third of all food globally available by 2030.7 Around 5 per cent of Chinese merchandise imports are food and beverage products.8
China is Australia’s 3rd biggest export market for food and beverage and the biggest in terms of groceries. China is also Australia’s 7th biggest export market for fresh produce. Australia’s market share of China’s total food imports has been between 3 per cent–4 per cent over the last decade, though has recently trended downward by comparison to other food export nations such as Indonesia, New Zealand and France (Figure 1 below). Australia’s major food and beverage exports into China are dairy, meat, wine, cereals, oils and fats, baked goods, and beverages. Major growth categories are oilseeds, chocolates, cereals, fruits and nuts, meat and gums.9
FIGURE 1: MARKET SHARE OF CHINA'S TOTAL FOOD IMPORTS (SOURCE: UNITED NATIONS STATISTICAL DIVISION)
6 Austrade (2014)7 Economist Intelligence Unit (2014)8 Worldbank (2014)9 Analysis of data from UN Statistical Database ‘Comtrade’ 2014
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FOOD AND BEVERAGE TRENDS
China is currently Asia’s second largest food and beverage market by value, after Japan. As China’s economy grows and appetite for sophisticated consumer products develops, there are significant and growing opportunities for Australian food and beverage companies seeking to enter the Chinese market — particularly at the premium end.
2.1 BROAD TRENDS IN FOOD AND BEVERAGE CONSUMPTION
In China, the total Premium Retail Market for the Selected Product Categories constitutes a considerable market with growth in the range of 4 per cent to 20 per cent expected over the next three years, as set out in Table 2 below.
TABLE 2: MARKET SIZES AND ANTICIPATED 3 YEAR CAGR FOR SELECTED PRODUCT CATEGORIES
Product Category China Market size in AUD million
Expected CAGR for the next 3 years
Snackfood 7,579 N/A
Chocolate 1,579 10% – 12%
Sugar Confectionery 5,789 7% – 8%
Cereal-based Bars 211 8%
Beverages 19,526 N/A
Fruit Juice 1,842 8% – 10%
Tea 4,000 15% – 17%
Premium Cold Beverages 13,684 14% – 20%
Baked Goods 1,526 N/A
Biscuits 1,158 15% – 20%
Baking Mixes 368 5% – 8%
Condiments 6,632 N/A
Premium Table Sauces 5,789 8% – 9%
Jams 842 4% – 5%
› Specific product trends and insights are included in the relevant product category sections .
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A shift in target groups
� Due to the combined effects of an increasing population, longer life expectancy and increasing individual food consumption, China will need to produce or import considerably more food in the future to cover demand.
� A broader middle class – with a higher average age – is increasing interest and consumption of higher quality and imported foods; particularly those with bona fide health claims.
� Single-person households are proliferating, resulting in stronger demand for smaller, “micro” portions in the food and beverage sector.
� With recent relaxation in China’s one child policy, there is expected to be an increase in demand for safe, healthy and organic food and beverages for babies and children.
Food Safety concerns
� Recent food safety incidents– especially related to milk, milk powder and meat – have resulted in food safety being a major concern for the Chinese, and growing demand for brands – particularly imported — that can demonstrate traceability in their supply chains to guarantee safety and authenticity.
Increasing importance of Western style products and health foods
� Western style products are perceived as high quality and more creatively flavoured.
� There is an increasing interest in fresh and better-for-you (BFY) foods, for which consumers pay premium prices. The health food market, which includes food with additional health claims and nutritional supplements, is valued at AUD 103.5 billion and forecast to reach AUD 172.4 billion in 2015.10 A large part of the health food segment is accounted for by organic food - in 2012, the Chinese spent AUD 13.8 billion on organic foods.11
2.2 ATTITUDE TO IMPORTED FOOD AND BEVERAGESince 2009, China has been the world’s third largest importer of goods and services. The key drivers of consumption of imported food and beverage in China are rising incomes and previous domestic food safety incidents. Imported food and beverage is considered good quality, nutritious and — most importantly — safe. Major imported food categories are dairy, meat, wine, snack foods, tree nut products and confectionery.
In response, retailers are increasingly open to imported products in more categories than ever before. The metropolitan areas of Beijing, Shanghai, Guangzhou, Shenzhen, Chongqing and Chengdu offer the largest range of imported foods and beverages, but emerging second tier markets and wealthy coastal cities are growing in appetite for imported food products. The majority of customers are still expatriates and upper-middle income locals.
Suppliers from the US and EU still have a competitive advantage over Australian suppliers in the food & beverage sector, due to deeper experience in the market, and economies of scale creating lower unit costs.
10 HKTDC Research (2013)11 Euromonitor (2013)
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However, Australian products, particularly meat and dairy, are perceived as very safe, providing opportunity to further leverage this reputation to Australian food production more generally. This creates the need for Australian suppliers to position themselves in the premium and gourmet market rather than trying to compete with lower-priced products.
2.3 OUTLINE OF THE FOOD AND BEVERAGE SUPPLY CHAIN China has a very fragmented food and beverage supply chain. Although management across the retail sector has improved recently, most store formats are difficult for foreign manufacturers to penetrate directly. In addition, the distribution generally network lacks consistency and has interrupted transport networks as well as a less sophisticated cold chain.
2.3.1 Retail store formats
The importance of traditional markets has decreased significantly in urban areas; consumers now tend to buy safer food from hypermarkets, supermarkets, specialty and convenience stores. As most Tier 1 and 2 cities are quite saturated with modern retail store formats, Tier 3 and 4 cities are the new focus of retail development. The leading hypermarket and supermarket chains are listed in Table 3 below.
TABLE 3: TOP 10 HYPERMARKET AND SUPERMARKET OPERATORS IN CHINA12
Rank Company Number of stores
2012 Sales (million Yuan)
Sales growth (%)
1 China Resources Vanguard 4,423 941,000 13.8
2 RT-Mart Shanghai 219 724,700 17.7
3 Lianhua Supermarket Holdings 5,120 657,302 -3.4
4 Wal-Mart China 395 580,000 3.6
5 Carrefour China 218 452,739 0.2
6 Nonggongshang Supermarket Group 2,734 303,028 0.2
7 Yonghui Superstores 249 279,300 37.0
8 Tesco China 111 200,000 11.1
9 SPAR Shandong 595 181,880 12.0
10 A-Best Supermarket 116 180,000 2.7
12 China Chain Store and Franchise Association and TradeWorthy research
› Check out Annex II for retailer information and contact details.
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PICTURE 1: SHELF DISPLAY AT TESCO CHINA
Hypermarkets
The Chinese hypermarket format has been largely designed by foreign operators, such as Carrefour Wal-Mart, Tesco, Auchan, Metro and RT-Mart. The proportion of imported food in hypermarkets is increasing with current levels around 60 per cent of total stock. Hypermarkets have a reputation for offering products of superior quality (compared to domestic stores) and greater levels of perceived food safety due, in part, to higher product volumes.
Hypermarkets are a major sales channel for imported products. There is a strong focus on in-store promotion, including free sampling. This trade spend can prove expensive in China, and may include listing fees and agreeing to accept returns of unsold products after promotional campaigns have ended.
Most Australian suppliers will find it difficult to deal directly with hypermarket operators, due to their heavy reliance on a network of favoured distributors. Distributors to hypermarkets tend to be large scale businesses, and may be risk averse when considering entirely new product lines.
Supermarkets
The Chinese supermarket segment is dominated by domestically owned companies with less experience of modern retail practices. The major names are Lianhua with more than 5,000 stores and China Resources Vanguard with almost 4,500 stores. Another player is Suguo with more than 900 stores. The market has a ‘long tail’ of small chain or independent supermarkets. Smaller style stores are the new trend — even for the larger chains. This reflects the desire to shop close to home as most customers do not own their own transport.
The supermarket segment is more price-driven than the hypermarket or convenience store segments, as the target group are lower middle income customers. Import penetration - especially state-owned larger chains – tends to be low. Smaller privately held chains are more likely to look for value in high-margin imports and they typically have better local distribution systems in place.
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Premium supermarkets
Several supermarket and hypermarket operators have invested in high-end stores specialising in imported foods. These offer, on balance, the greatest opportunity for Australian suppliers of high-end food and beverage products.
Responding to the growing demand for health foods and organic and fresh produce, China Resources Vanguard launched Ole as their high-end supermarket chain. They operate more than 20 stores in the large cities, with 70 per cent of their products imported. Other popular specialty supermarket chains are City Shop, Pines and City Super in Shanghai, with 12, 5 and 5 branches respectively in the CBD and high-end residential areas. City Shop stock over 80 per cent imported products on their shelves. Additionally, there are boutique retailers such as BHG in Nanjing, Hisense Plaza in Qingdao, and Jin Bou Da in Zhengzhou that sell imported food and beverages. Specialty supermarkets and boutique retailers are often located adjacent to department stores or in business areas and have been multiplying in first and second tier cities.
As hypermarkets have started to attract lower to middle-class income customers with their promotional activities — including offering free shuttle bus services — many high-end customers have moved to specialty supermarkets to avoid the big crowds.
Convenience stores
Convenience store numbers are growing, but with great geographic imbalance across China – in cities such as Guangzhou and Shanghai, competition is fierce, but in Tier 3 and 4 cities this store format is still developing. Like in the supermarket segment, domestic chains lead the convenience store business — e.g. the Sinopec Group with their Easy Joy stores. Despite this, 7-Eleven has become a strong player in Southern China. There have been regulatory initiatives to increase store coverage. For example, Beijing City offers subsidised loans for the establishment of convenience stores and supermarkets. China’s major convenience store chains are listed in Table 4 below.
The convenience store format differs significantly to the other retail types, since it requires smaller package sizes and single servings. To avoid high packaging costs, exporters now commonly use importers to act as “repackers” who can import products in bulk and then repackage them, including Chinese labels and appropriate packaging for the market.
TABLE 4: TOP 10 CONVENIENCE STORE OPERATORS IN CHINA
Rank Company Store Brand Number of stores in 2012
1 Sinopec Group Easy Joy 20,891
2 PetroChina uSmile 13,000
3 Dongguan Sugar & Liquor Group Meiyija 4,650
4 Zhejiang Gongxiao Supermarket Gongxiao; Jialian 2,115
5 Shanghai Lianhua Quik Convenience Stores Quik 2,031
6 Nonggongshang Group Kedi; Alldays 1,780
7 7-Eleven 7-Eleven 1,732
8 China Resource Suguo Suguo 1,694
9 Guangdong Sun-high Convenience Store Sun-high 1,559
10 Chengdu Hongqi Hongqi 1,336
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2.3.2 Premium HoReCa Market
China’s foodservice industry consists of over 6,500,000 food outlets (formal sector), with Yum! Restaurants being the key franchise player in the market, operating KFC, Pizza Hut and Taco Bell outlets. Currently the demand for outlets in non-standalone locations — such as department stores and petrol stations — is increasing. HoReCa chains will grow over the next decade as they build out networks in lower tier cities. HoReCa chains strongly promote their hygiene and food safety credentials, which will see their popularity increase as disposable incomes increase.
2.3.3 Routes to market
China does not have a consistent nationwide network of transport and cold chain, which means distribution channels change constantly. The channels are complex and vary widely throughout China based on geography, product type and retail sector. Geographically, China can be divided into three regions for supply chain purposes:
� North China, with Tianjin, Qingdao, Dalian and Qinhuangdao harbours
� East China, with Shanghai and Ningbo harbours
� South China, with Shenzhen and Xiamen harbours
From these big import hubs, goods are transported to secondary distribution centres like Harbin, Changchun and Shenyang in the northeast, Xi’an and Zhengzhou in the northwest, Wuhan in central China and Chengdu and Chongqing in the southwest. Tier 3 and 4 cities are serviced from there.
Direct import and distribution
Direct relationships between manufacturers (local and foreign) and retailers is increasing, though still the exception.
PICTURE 2: CHINA – GEOGRAPHICAL DIVISION FOR SUPPLY CHAIN PURPOSES
› Check out Annex IV for important Premium HoReCa Market contacts.
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Australian suppliers can establish a Foreign Investment Enterprise (FIE)13 in China and distribute products directly without any intermediaries. This gives them direct control over the import process into China and creates a direct link into the market. However, this is very time-consuming — building extensive networks and understanding the complex structures of the Chinese market are typically significant hurdles for small and medium-sized enterprises to take this route to the market.
Importers
Another option is to work with importers who can typically assist with the following:
� Checking for quarantine and sanitary requirements
� Transfer of documents
� Assisting with labelling issues
� Invoicing processes
� Warehousing and transportation
� Customs registration and clearance
� Payment of taxes and other fees
� Foreign exchange control
� Securing import quotas
Importers require a license and need to register with China’s Ministry of Commerce (MOFCOM). They can acquire an automatic import license if the product imported is in the product catalogue for automatic import license management. MOFCOM has published a database with certified importers for different product categories, which is available on their website.
It is typically more efficient to use an importer in China, particularly due to the regulatory and market complexities. Note that importers may or may not also act as distributors. If they are importers only, they will not attend to issues of in-market marketing and promotion.
Distributors
Distributors typically offer after-sales services and can partner with Australian suppliers for in-market marketing and promotional activities. They may also be licensed importers – which offers significant benefits in terms of a clear path to market.
Another option for Australian suppliers is to engage local agents to market products in China. They typically
13 Corporate forms of FIEs in China are Wholly foreign-owned enterprises (WFOE), Equity/Cooperative joint ventures (EJV/CJV), Foreign-invested companies limited by shares (FICLS), and Foreign-invested partnerships.
› The link to the MOFCOM distributor database can be found in Annex VII.
› Check out Annex III for importer/distributor information and contact details.
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have extended informal networks and are especially important for niche market products and distribution beyond the bigger cities on the Eastern Seaboard.
Australian suppliers seeking to enter Premium supermarkets should consider identifying distributors who ordinarily service the Premium HoReCa industry, as they are typically highly specialised and well networked in relation to a specific product sub-category.
FIGURE 2: ROUTES TO THE MARKET — RETAILERS
PRACTICAL TIPS
Dealing with Distributors
� Communicate your target market clearly
� Do not relinquish your trademark to a distributor
� Make sure that the distributor has a good record of references and has experience in your product category
� Make sure you agree on an appropriate distribution of costs in advance
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Internet retailing
Having the world’s largest number of internet users at more than 480 million, China has witnessed rapid growth in internet retailing. Most Chinese internet retailers target high-income consumers. The online retail market accounted for 6.2 per cent of total retail sales in 2012.14 In addition to domestic retailers who do not operate physical stores, such as TMall and JD, many international retailers have directly or indirectly entered internet retailing business. Wal-Mart launched an internet retailing site for its Sam‘s Club chain back in 2010, and has invested in the rapid growing domestic online supermarket Yihaodian, in 2012 when they bought a 51 per cent stake in the business. Other large international retailers like Carrefour, Metro and Lotus have introduced online operations likewise.
14 iResearch
AUSTRADE INSIGHTS
How to enter Internet Retailing in China?
Australian suppliers can set up their own stores on online retail platforms, such as Yihaodian, Tmall, and JD. However, they all have different business models and approaches to cooperating with potential overseas suppliers, and typically require a physical presence or importer/ distributor or partner in market.
For example, for TMall, if the Australian company has not established a presence in China, they can only set up their stores on the TMall International Channel.
Another example is Yihaodian (www.yhd.com). For Australian companies with products that already have official distributors in China, Yihaodian can use a sale- on-consignment model with those distributors. In such cases the distributor/supplier will decide the retail price (noting it usually has to be more competitive than the offline retail price). Yihaodian will assume responsibility for storage and distribution of the products via its own Distribution Centre in different cities in China, and will charge a commission on their sales revenue to the distributor.
Australian suppliers need to contact each online retailer individually to discuss opportunities, requirements and pricing expectations.
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TABLE 5: TOP 3 ONLINE FOOD AND GROCERY RETAILERS IN CHINA
Internet retailer Details Website
Yihaodian � Biggest food and beverage internet retailer � Wal-Mart bought 51% stake in 2012 � Fresh food delivery service in Shanghai and Beijing (with
expansion plans of this concept)
www.yhd.com
Jd.com � Second largest B2C e-commerce company � Holding stock in their own warehouses
jd.com
Tmall � Owned by Alibaba Group (spun off from Taobao) � Brands can operate their own online stores and manage
distribution themselves � The grocery business line has been introduced recently � A lot of promotional activity for foreign brands and fresh food
from overseas (e.g. seafood from New Zealand or cherries from the US that could be pre-ordered)
tmall.com
Premium HoReCa Market — distribution channels
The Premium HoReCa industry is difficult to penetrate for foreign suppliers, particularly given the sector’s need for rapid product supply and consumption. There are nonetheless significant opportunities in China. Exporters are most likely to enjoy success when they deal through Chinese importer/distributors with strong specialisation and networks among product category managers of the Premium HoReCa chains. These product category managers act as ‘dealers’ by marketing products to individual HoReCa branches.
› Check out Annex IV for information on Premium HoReCa players and their contact details.
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FIGURE 3: ROUTES TO THE MARKET — HORECA
2.3.3 Trade shows
To successfully export to the Chinese market, it is crucial to establish good long-term relationships with distributors, importers and agents, who are often exhibiting at industry trade shows. The following are major Chinese trade shows for the food and beverage sector:
SIAL China
� Shanghai, yearly
� Targets retailers, caterers, HoReCa players, food service businesses, importers and exporters and food manufacturers
China International Import Food Exhibition (FCE)
� Beijing, yearly
� Covers high-end food and beverage manufacturing, with a focus on imported food and beverage
› For more information on these major trade shows, refer to Annex VI.
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China Food and Drinks Fair
� Chengdu, yearly
� Aimed at producers, distributors and purchasers of alcohol, food, soft beverages, flavorings, food additives, food packages and food machines
International Food Exhibition & Import Food Exhibition
� Guangzhou, yearly
� Covers imported foods, nutritional and health foods, wine & spirits, olive and other edible oils, food additives and ingredients as well as food packaging and processing
Food & Hotel China (FHC)
� Shanghai, yearly
� Targets exporters and importers of food and beverage, wholesalers to the hospitality industry; foodservice equipment manufacturers
China International Food Industry Trade Fair (FADS)
� Beijing, yearly
� Aims at large supermarkets and shopping mall operators, the food wholesale market, other retailers, community chain supermarkets and convenience store operators; food trade companies; food manufacturers; the HoReCa industry
� Targets the high-end food and beverage sector
China Agriculture Trade Fair (CATF)
� Wuhan, yearly
� Covers agricultural produce and its distribution network, aiming at producers, traders, importers, and wholesalers
China International Organic Food Industry Expo
� Beijing, yearly
� Covers organic and natural produce and related enterprises – producers, importers, exporters, distributors, wholesale and retail store operators, and the HoReCa industry
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REGULATORY AND TRADING ENVIRONMENTS
3.1 TRADE POLICY POSITION AND APPROACH TO TRADE AGREEMENTSChina has Free Trade Agreements (FTAs) with the Association of Southeast Asian Nations (ASEAN), Chile, Costa Rica, Pakistan, New Zealand, Singapore, Peru, Hong Kong and Macao. Table 6 below summarizes China’s FTAs. FTAs with Switzerland and Iceland are expected to enter into force in 2014. With strong capability in agribusiness and food sectors and the same advantage of being counter-seasonal to China, New Zealand and Chile are the major competitors for Australian suppliers in the Chinese market enjoying FTA advantages.
FTA negotiations with Australia and Norway are underway. Australia-China FTA negotiations are progressing on tariffs and other China market access issues. These include tariff rate quotas, standards and technical regulations.
TABLE 6: CHINA'S FREE TRADE AGREEMENTS
Trade Partner Trade Agreement Effective Date
China-Iceland Planned to come into effect in the second half of 2014
China-Switzerland Signed in July 2013; Has not entered into force yet (planned for mid-2014)
China-Costa Rica 1 August 2011
China-Peru 1 March 2010
China-Singapore 1 January 2009
China-New Zealand 1 October 2008
China-Pakistan 1 July 2007
China-Chile 1 October 2006
ASEAN-China 1 January 2005
China-Macao 17 October 2003
China-Hong Kong 29 June 2003
Under negotiation
China-Australia
China-Norway
China has been a member of the World Trade Organization (WTO) since 2001.
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3.2 TRADE BARRIERS
3.2.1 Tariff Barriers
Since its entry into the WTO in 2001, China has applied tariff rates close to the rates at which it has promised (referred to as “bound” rates). Since accession to the WTO, China has reduced its overall average tariff for agricultural products from 21.2 per cent to 15.3 per cent. However, China still has pockets of high tariff protection — as high as 65 per cent on some key products of interest to Australia.
Tariff classification and reference pricing
A major issue in classifying products is that Chinese customs officers do not follow uniform guidelines and therefore, anticipating border charges has been difficult for exporters. Commonly, delays at customs and excessive fees unrelated to the services received are a major concern.15
3.2.2 Non-Tariff Barriers
China uses various non-tariff border barriers, such as import and export licensing, import quotas and so-called “notice-and-comment” procedures. As import quotas generally do not apply to processed foods in China, the major NTBs experienced by exporters are Notice-and-Comment Procedures.
Notice-and-comment procedures
15 US trade compliance report (2013)
› For individual tariffs applied to the food and beverage categories discussed in this report, please refer to the relevant sections of the report.
› For more details on tariff barriers, please refer to Annex VIII.
PRACTICAL TIPS
� Make sure that you you’re your ingredients lists ready before exporting to China. Customs will make their judgement on product classification based on this.
� Make sure you regularly check bacterial counts - mandatory quarantine checks are carried out during customs clearance, with bacterial counts being the major issue of rejection and subsequent destroying for Australian products.
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These are ad-hoc regulations issued by the China Inspection and Quarantine Bureau (CIQ) with little to no notice, e.g. a particular food category suddenly requires to undergo specific inspections or there is a change in requisite documents. Notice-and-comment procedures released by the CIQ are becoming more prevalent in the process of drafting trade laws, regulations, and departmental rules. This means that regulations can change any time and changes in regulations apply immediately. However, not all trade-related information is made available to the public, which can result in challenging situations at the border exporters cannot prepare for.
Although regulations are routinely published, laws are being passed at different levels — central, provincial, municipal – and can often contradict each other and leave a wide margin of discretion when it comes to apply them properly.
Australian products recently affected include meat and dairy. The best countermeasure to these changes is the establishment of strong relationships with Chinese authorities.
3.3 Overview of food regulation and import standards
Food trade into China is, predictably, heavily regulated. Recent legal changes to China’s Food Safety Law have increased focus on food safety through stricter monitoring and supervision – and severe punishment of offenders. In 2013, China streamlined all domestic food safety regulatory agencies into the China Food and Drug Administration (CFDA).
The Food Safety Law includes the following important features:
� All imported foodstuffs and beverages are subject to inspections by the China Inspection and Quarantine Bureau (CIQ). Each ingredient must be registered and permitted for entry. These procedures can be time consuming and costly. For most imported foods, China has strict documentation requirements related to quality, quarantine, origin and import control. Importers must keep detailed records for at least two years.
Food Safety concerns have led to wide-ranging regulatory changes regarding production and distribution of food. A new Food Safety Law is currently under consideration – requiring active attention. In China, laws (in particular those related to food) can change dramatically without notice.
3.3.1 Registration and Certification
The importing process into China requires licenses and certifications — the most important features are explained below.
› More details on food regulation and import standards can be found at Annex VIII.
› For a detailed overview of registration and certification requirements, please refer to Annex VIII.
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AQSIQ and CNCA registration
� Foreign producers need to register as “foreign exporter producer” through China's General Administration of Quality Inspection, Supervision and Quarantine (AQSIQ). For specific product groups such as meat, a—hygiene certificate is required by the manufacturer that has to be applied for at the Chinese Certification and Accreditation Administration (CNCA).
� All exporters and importers of food and beverage require a permit for quarantine inspection. Packaged animal products or plant products require veterinary or phytosanitary certification. Local AQSIQ offices will assess product samples to check for quality and labelling as well as hygiene standards.
Chinese Food and Drug Administration
� Food and beverage with added health claims are required to be registered with the State Food and Drug Administration (CFDA).
Documentation and certificate of origin
� The importation of goods into China must be well documented, e.g. name, specification, quantities, date of production, batch numbers, use by date, name and contact details of the exporter, name and contact details of the importer, and delivery time need to be recorded and kept on file for two years minimum.
� For several import products, China requires a certificate of origin to accompany the export consignment, issued by the relevant authority in the exporter’s country (e.g. the NSW Business Chamber, VECCI or AIGroup).
Organic Certification
� The certification body for organic produce is the China Green Food Development Centre (CGFDC). The application process can be time-consuming and costly, with costs of up to AUD 47,000.
3.3.2 Labelling
The Chinese consider food labels the most useful source of information regarding health and nutrition issues. “No food additives”, “no preservatives”, “organic”, “sugar free” and similar wordings have become more popular on packaging.
No pre-packaged foods may be imported into China without appropriate Chinese labels. All imported pre-packaged food must be labelled in both English and Chinese (simplified Chinese as used in mainland China).
While on the face of it, over-stickering may spoil the display of imported products, it is preferred to changing packaging and labelling to Chinese style and language. Upper-middle class consumers look for the original packaging as would be used in the source country, as it assures them of the product’s authenticity.
› A full list of labelling requirements and a listing of relevant Chinese Government agencies can be found at Annexes V and VIII.
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SUMMARY — THE OPPORTUNITY IS IN THE DETAIL
The opportunities for Australian food & beverage exports to China are immense and growing fast. But there are no certain paths to achieving success – other than meticulous planning, a strategic approach to entering the market, and patience.
While each manufacturer must uncover their own unique value proposition in the Chinese market — including by comparing their own offering with the prices, packaging, and flavours identified in this report, there are several consistent themes across the products covered in Part II of this report:
� The Chinese processed food and beverage market is very much globalised — your product competition may come from Germany, Russia or a local Chinese manufacturer.
� Australian manufacturers, on the whole, are more likely to be competitive at the premium end of the market – given our limited scale of production and global reputation.
� At the premium end, package sizes are shrinking, and high quality defined-source ingredients (and verifiable health claims) are of growing importance to the Chinese consumer.
� Each exporter must map out their entry strategy – store format, target cities, direct or through distributors. If starting from scratch, premium food producers should target emerging premium supermarkets through experienced importer/distributors – some of which are identified in this report.
The challenges of market entry into China – labelling, import taxes and customs – should not cloud the opportunity. These can be deftly handled by experienced importer/distributors if they are convinced of the unique value to their target buyers.
We hope this report provides the practical insights to bolster confidence about exploring opportunities for your specific products. Part II and the Annexes, in particular, provide deep commercial insights at the specific sub-category level – information which is not available in the public domain.
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SNACKFOODS
For the purpose of this report, the category of “Snackfoods” covers chocolate, sugar confectionary and cereal-based bar sub-categories. The total Premium Retail Market size of these snackfood product categories in China was AUD 7.6 billion in 2013.16 Average price range and package size range for the selected sub-categories are set out in Table 7.
TABLE 7: CHARACTERISTICS OF SURVEYED SNACKFOOD SUB-CATEGORIES
Sub-Category HS Code Description of highest current trade growth products
Price Range in AUD
Package Size Range
Chocolates 1806 Filled/unfilled chocolate slabs, bars or specialty chocolates (i.e. boxes)
2.60–6.00 per 100g
75–375g most common: 100g
Sugar Confectionary
1704 Particularly non-cocoa confectionary, such as boiled Sweets, Liquorice, Lollipops, Mints, Pastilles, Gums, Jellies, Chews, Toffees, Caramels, Nougat, but not including chewing gum
Imported: 1.90–2.93 per 100g
Locally produced: 1.20–1.55 per 100g
Imported: 90–365g, most common: 200g
Locally produced: 45–70g
Cereal-based bars
1904 Roasted or unroasted cereal-based snack bars
4.48–4.66 per 6 bars
35g–40g per bar
4.1 CHOCOLATESThe total Premium Retail Market size for chocolate in China was AUD 1.6 billion in 2013 and is forecast to reach AUD 1.8 billion in 2015. The market is expected to grow at a CAGR of 10–12 per cent over the next 3 years.17
Average price range and package size range for chocolate in the Selected Premium Retail Market are set out in Table 8.
TABLE 8: OVERVIEW OF PACKAGING AND PRICE POINT RANGES — CHOCOLATE
Product Category Price Range in AUD Package Size Range
Chocolates 2.60-6.00 per 100g 75-375g, most common: 100g
16 Estimate: Euromonitor and decisionAsia analysis17 Estimate: Euromonitor and decisionAsia analysis
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4.1.1 Key players and brands
Figure 4 sets out the indicative “Share of Shelf” for chocolate brands in the Chinese Selected Premium Retail Market, including premium imported as well as local brands.
FIGURE 4: MAJOR CHOCOLATE BRANDS IN THE CHINESE SELECTED PREMIUM RETAIL MARKET
The premium market is dominated by US brands (imported as well as produced locally), with Dove — a Mars product - being the most prominent locally-produced brand. Key imported brands are Hershey from the US, MeiJi (Melty Kiss) from Japan, and Lindt, Ferrero (Rocher and Kinder) and Kraft from Europe. European companies are very successful in this market segment, since they can offer lower prices and have a focus promoting products aggressively, in particular with in-store promotions.
4.1.2 Packaging
The average package size for chocolates in the Selected Premium Retail Market ranges between 75 grams and 375 grams, with 100 gram packages being the most common size. For gift boxes in particular, images of tourist sites or animals on the boxes (e.g. the Great Wall of China or Koalas) appear to work very well in the Chinese market.
› A full list of surveyed package sizes is available at Annex I.
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4.1.3 Price points
The average price for chocolate in the Selected Premium Retail Market ranges between RMB 15–35 (AUD 2.60 – AUD 6) per 100 grams. Retailers in the Selected Premium Retail Market enjoy retail margins in the range of 5 per cent–12 per cent.
4.1.4 Product trends
The major flavours used in chocolates and chocolate bars are milk chocolate, almond, hazelnut or mixed nuts. New premium chocolates are increasingly using local flavours such as green tea and red beans or ginger in the winter season. Low sugar versions are also popular. Chinese premium customers prefer chocolates that are less sweet – with a stronger focus on dark chocolates.
Chocolates boxes are a popular gift item. Australian suppliers should target New Year, spring and May holidays to increase sales volumes. During other seasons, chocolate bars dominate the market.
4.1.5 Marketing and promotion
Common promotions for chocolates in the Premium Retail Market consist of price promotions and bonus packs for customers. Trade promotion and in-store promotion are typically required and form part of the retailers’ trading terms. Our survey of the Selected Premium Retail Markets could not identify any promotions (active during the survey period).
› A full list of surveyed retail prices is available at Annex I.
AUSTRADE INSIGHTS
� Small packages are ideal for people who snack at work (75-100g packages) .
� Gift-packaging (in nice tin or boxes) are also preferred in China as chocolates are typically used as gifts, especially during festival times.
� New competition has arisen in the market, including Russian chocolate that has recently entered retail stores in the North East region of China.
� Australian products are typically niche products (superior quality and higher price). Greater competition in chocolate imports is putting downward pressure on imported product prices, and narrowing the price gap with local brands.
� The recommendation on some chocolate products to store below 18 degrees typically cannot be meet by Chinese stores. Some high-end stores in China struggle to meet this recommended storage condition, even with air conditioning for the hot summer months. There is some consumer reluctance to purchase chocolate if the package includes such a warning.
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4.1.6 Trade barriers
Import duty is assessed on chocolate (blocks, slabs or bars) at a rate of 10 per cent CIF. Import duty is assessed on chocolate (filled blocks, slabs or bars) at a rate of 8 per cent CIF. Importers of chocolate are also required to pay VAT of 17 per cent.
PICTURE 3: SHELF WITH CHOCOLATE GIFT BOXES AT OLE SUPERMARKET
4.1.7 Routes to market
The typical route to the Premium Retail Market for imported chocolates and global brands that are produced locally is through 3rd party distributors, while local brand chocolate is mainly distributed directly by the manufacturers. A “Routes to Market” overview for China is provided at Section 2.3.3.
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Our survey has identified:
� 6 retailers in the Chinese Selected Premium Retail Market with a significant selection of imported chocolates.
� 6 distributors supplying the Chinese Premium Retail Market with a significant selection of imported chocolates.
Our survey has found that the Premium HoReCa channel is not sufficiently developed for the chocolate sub-category.
4.2 SUGAR CONFECTIONERYThe total Premium Retail Market size for sugar confectionery in China was AUD 5.8 billion in 2013. The market is expected to grow at a CAGR of 7–8 per cent over the next 3 years.18
Average price range and package size range for sugar confectionery in the Selected Premium Retail Market are set out in Table 9.
TABLE 9: OVERVIEW OF PACKAGING AND PRICE POINT RANGES — SUGAR CONFECTIONERY
Product Category Price Range in AUD Package Size Range
Sugar Confectionery Imported: 1.90–2.93 per 100gLocally produced: 1.20–1.55 per 100g
Imported: 90–365g, most common: 200gLocally produced: 45–70g
18 Estimate: Euromonitor and decisionAsia analysis
› An overview and contact details for retailers and distributors are available at Annexes II and III.
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4.2.1 Key players and brands
Figure 5 sets out the indicative “Share of Shelf” for sugar confectionery brands in the Chinese Selected Premium Retail Market, including premium imported as well as local brands.
FIGURE 5: MAJOR SUGAR CONFECTIONERY BRANDS IN THE CHINESE SELECTED PREMIUM RETAIL MARKET
The Premium Retail Market is dominated by European brands such as Katjes, Haribo and Perfetti van Melle (e.g. Mentos, Chupa Chups) and local brands like Four Seas and Fujiya.
4.2.2 Packaging
The average package size for imported sugar confectionery in the Selected Premium Retail Market ranges between 90 grams and 365 grams, with 200 gram packages being the most popular size. For locally produced sugar confectionery, the average package size ranges between 45 grams and 70 grams.
› A full list of surveyed package sizes is available in Annex I.
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4.2.3 Price points
The average price for sugar confectionery in the Selected Premium Retail Market ranges between RMB 11–17 (AUD 1.90 – AUD 2.93) per 100 grams for imported brands. Locally produced sugar confectionery in the Selected Premium Retail Market has an average price between RMB 7–9 (AUD 1.20 – AUD 1.55) per 100 grams. Retailers in the Selected Premium Retail Market enjoy retail margins in the range of 5 per cent–12 per cent.
PICTURE 4: SHELF WITH SUGAR CONFECTIONERY AT CITY SHOP
› A full list of surveyed retail prices is available at Annex I.
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4.2.4 Product trends
The major flavours used in sugar confectionery are fruit mixes, watermelon, strawberry, mint and milky flavours. New product trends in the high-end sugar confectionery category are milk candies and chewy candies as well as low sugar content options. The Chinese prefer sugar confectionery that is less sweet than the typical sugar confectionery sold in Australia — this applies specifically for the Northern Chinese. Liquorice is not very popular in the Chinese confectionery market.
Manufacturers are currently seeing a major opportunity in transforming candies and other sugar confectionery into snackfood to be consumed more regularly, e.g. at work. To implement this strategy, it is expected that they will tend to offering less sweet options in this market segment.
4.2.5 Marketing and promotion
Common promotions for sugar confectionery in the Premium Retail Market consist of individual “end aisle gondola displays”, separate from similar products. Trade promotion and in-store promotion are typically required and form part of the retailers’ trading terms. Our survey of the Selected Premium Retail Markets has identified 4 promotions (active during the survey period).
4.2.6 Trade barriers
Import duty is assessed on sugar confectionery (not containing cocoa) at a rate of 10 per cent CIF. Importers of sugar confectionery are also required to pay VAT of 17 per cent.
4.2.7 Routes to market
The typical route to the Premium Retail Market for imported sugar confectionery and global brands that are produced locally is through 3rd party distributors, while local brand sugar confectionery is mainly distributed directly by the manufacturers. A “Routes to Market” overview for China is provided at Section 2.3.3.
Our survey has identified:
� 6 retailers in the Chinese Selected Premium Retail Market with a significant selection of imported sugar confectionery.
� 6 distributors supplying the Chinese Premium Retail Market with a significant selection of imported sugar confectionery.
› The details of promotions identified during the survey period are available at Annex I.
Austrade Insights
Make sure you focus on premium ingredients for sugar confectionery as this is essential to be successful in the Chinese Premium Retail Market. Chinese consumers tend to prefer very “smooth” types of confectionery such as milk candy.
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Our survey has found that the Premium HoReCa channel is not sufficiently developed for the sugar confectionery sub-category.
4.3 CEREAL-BASED BARSThe total Premium Retail Market size for cereal-based bars in China was AUD 21 million in 2013. The market is expected to grow at a CAGR of 6–7 per cent over the next 3 years.19
Average price range and package size range for cereal-based bars in the Selected Premium Retail Market are set out in Table 10.
TABLE 10: OVERVIEW OF PACKAGING AND PRICE POINT RANGES — CEREAL-BASED BARS
Product Category Price Range in AUD Package Size Range
Cereal-based Bars 1.83–2.83 per 100g 25–50g per bar (4 or 6 bars per package)
4.3.1 Key players and brands
Figure 6 sets out the indicative “Share of Shelf” for cereal-based bars brands in the Chinese Selected Premium Retail Market, including premium imported as well as local brands.
FIGURE 6: MAJOR CEREAL-BASED BARS BRANDS IN THE CHINESE SELECTED PREMIUM RETAIL MARKET
19 Estimate: Euromonitor and decisionAsia analysis
› An overview and contact details for retailers and distributors are available at Annexes II and III.
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The Premium Retail Market is dominated by imported brands such as Corny, Kind, Power Bar Inc, and Slim Secrets.
4.3.2 Packaging
The average package size for cereal-based bars in the Selected Premium Retail Market ranges between 35 grams and 40 grams per bar.
PICTURE 5: CEREAL-BASED BARS ON WANGOOSHOP — A CHINESE ONLINE RETAILER THAT CATERS TO EXPATRIATES
4.3.3 Price points
The average price for cereal-based bars in the Selected Premium Retail Market ranges between RMB 26–27 (AUD 4.48 – AUD 4.66) for 6 bars. Retailers in the Selected Premium Retail Market enjoy retail margins in the range of 5 per cent–12 per cent.
4.3.4 Product trends
The major flavours used in cereal-based bars are almond, peanut and peanut butter, and mixed nuts. Cereal bars are still not very popular among the Chinese, however, there has been an increase in online retail sales of cereal bars.
› A full list of surveyed package sizes is available at Annex I.
› A full list of surveyed retail prices is available in Annex I.
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Only two supermarkets – City Shop and Ole – in the Selected Premium Retail Market currently carry cereal-based bars, which are exclusively imported products. Major demand is highest in expatriate residential areas and Chinese who have returned from overseas are also more likely to be interested in buying cereal bars.
4.3.5 Marketing and promotion
Cereal-based bars are not heavily promoted in the Chinese Premium Retail Market. Our survey of the Selected Premium Retail Markets could not identify any promotions (active during the survey period).
4.3.6 Trade barriers
Import duty is assessed on cereal-based bars at a rate of 25 per cent CIF for foods obtained by the swelling or roasting of cereals or cereal products. Import duty is assessed on cereal-based bars at a rate of 30 per cent CIF for foods obtained from unroasted or mixed of unroasted and roast cereals. Importers of cereal-based bars are also required to pay VAT of 17 per cent.
4.3.7 Routes to market
The typical route to the Premium Retail Market for imported cereal-based bars and through 3rd party distributors. A “Routes to Market” overview for China is provided at Section 2.3.3.
Our survey has identified
� 2 retailers in the Chinese Selected Premium Retail Market carrying cereal-based bars with a significant selection of imported cereal-based bars.
� 6 distributors supplying the Chinese Premium Retail Market with a significant selection of imported cereal-based bars.
Our survey has found that the Premium HoReCa channel is not sufficiently developed for the cereal-based bars sub-category.
Austrade Insights
� Current cereal bars on the market are often considered “too sweet” by Chinese consumers.
� Manufacturers have tried to highlight the “instant energy” benefit of cereal-based bars, but this has not been a successful strategy in the Chinese market.
� Make sure you highlight that your product is less sweet, or contains no fat and less sugar than similar products.
› An overview and contact details for retailers and distributors are available at Annexes II and III.
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BEVERAGES
For the purpose of this report, the category of “Beverages” covers fruit juice, tea and premium cold beverage sub-categories. The total Premium Retail Market size of these beverage product categories in China was AUD 19.5 billion in 2013.20 Average price range and package size range for the selected sub-categories are set out in Table 11.
TABLE 11: CHARACTERISTICS OF SURVEYED BEVERAGE CATEGORIES
Sub-Category HS Code Description of highest current trade growth products
Price Range in AUD Package Size Range
Fruit Juice 2009 Specific product types that represent local trends. For example, this done by examining shelf space allocation at major premium retailers.
Imported: 3.28–4.83 per litre Locally produced: 2.76–3.45 per litre
1-2 litres, most common: 1 litre
Tea 0902 Tea for consumption as warm beverage
Imported: 7.76–8.62 per 100gLocally produced: 1.20–1.72 per 100g
Imported: 50–100gLocally produced: 100–180g
Premium Cold Beverages
2202 Energy Drinks, Ready-to-drink tea (e.g. iced tea), premium non-cola carbonated drinks
6.90–10.35 per litre Energy-type drinks: 100–200mlOther: 250–450ml
5.1 FRUIT JUICEThe total Premium Retail Market size for fruit juice in China was AUD 1.84 billion in 2013 and is forecast to reach AUD 2.1 billion in 2015. The market is expected to grow at a CAGR of 8–10 per cent over the next 3 years.21 Average price range and package size range for fruit juice in the Selected Premium Retail Market are set out in Table 12.
TABLE 12: OVERVIEW OF PACKAGING AND PRICE POINT RANGES — FRUIT JUICE
Product Category Price Range in AUD Package Size Range
Fruit Juice Imported: 3.28–4.83 per litre Locally produced: 2.76–3.45 per litre
1–2 litres most common: 1 litre
20 Estimate: Euromonitor and decisionAsia analysis21 Estimate: Euromonitor and decisionAsia analysis
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5.1.1 Key players and brands
Figure 7 sets out the indicative “Share of Shelf” for fruit juice brands in the Chinese Selected Premium Retail Market, including premium imported as well as local brands.
FIGURE 7: MAJOR FRUIT JUICE BRANDS IN THE CHINESE SELECTED PREMIUM RETAIL MARKET
The Premium Retail and HoReCa Markets are dominated by local brands like Hui Yuan and Dahu. However, several import brands have established a strong presence in this segment, with Dole, Coca Cola, Tropicana, Santal and Ringo being the major players.
Australian juice such as Berri, Just Juice and Golden Circle Juice has entered the market in major cities such as Beijing, Shanghai and Guangzhou.
5.1.2 Packaging
The average package size for fruit juice in the Selected Premium Retail Market ranges between 1 litre and 2 litres. Fresh juice is commonly available in 1 litre packages, whereas juice concentrate is mostly available in 1.25 litre packages.
Juice packaging in China requires more colourful designs and brighter colours to be successful. Manufacturers are currently moving from cartons to plastic bottles. Small packages (e.g. 250 ml packs) are getting more popular for people who take juice to work or school.
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PICTURE 6: MINUTE MAID DISPLAYED AT END OF GONDOLA — LIANHUA SUPERMARKET
5.1.3 Price points
The average price for imported fruit juice in the Selected Premium Retail Market ranges between RMB 19–28 (AUD 3.28 – AUD 4.83) per litre. Locally produced fruit juice in the Selected Premium Retail Market has an average price between RMB 16–20 (AUD 2.76 – AUD 3.45) per litre. Retailers in the Selected Premium Retail Market enjoy retail margins in the range of 5 per cent–12 per cent. HoReCa players in the Selected Premium HoReCa Market have a 5 per cent–10 per cent margin.
› A full list of surveyed package sizes is available at Annex I.
› A full list of surveyed retail prices is available in Annex I.
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5.1.4 Product trends
The major flavours used in fruit juice are apple, orange, tropical mixes and peach, with tropical juice mixes being the major growth category. Orange juice still has a 40–50 per cent market share, which is expected to decrease in the next few years. New trends in the Premium Retail Market, however, are local flavours such as crystal sugar pear, honeysuckle pear and longan red jujube. The leading players that have picked up these new flavour trends successfully are Uni-President Enterprises (crystal sugar pear) and Suntory Holdings (honeysuckle pear and longan red jujube). Those beverages with traditional Chinese tastes are labelled as natural and with health benefits.
Fresh juices are still perceived as being too expensive, even for many customers in the Premium Retail Market.
5.1.5 Marketing and promotion
Common promotions for fruit juice in the Premium Retail Market consist of end gondola displays and product sampling in the form of free small juice packs (e.g. 33ml) attached to a carton or bottle to introduce new flavours. Trade promotion and in-store promotion are typically required and form part of the retailers’ trading terms. Our survey of the Selected Premium Retail Markets has identified 3 promotions (active during the survey period).
5.1.6 Trade barriers
Import duty is assessed on fruit juice at rates between 7.5 per cent–30 per cent CIF. Importers of fruit juice are also required to pay VAT of 17 per cent.
Austrade Insights
� Chinese retailers as well as distributors prefer a longer shelf-life for fruit juice (9 months and over).
� Imported Thai and Malaysian fruit juices are becoming increasingly popular as they offer lower priced options.
� For the HoReCa industry, Australian suppliers should target coffee shops. Most of them now sell bottled fruit juices and they typically prefer 500ml glass bottles.
� A new trend in carbonated grape juice as alternative to wine, for consumers who do not drink alcohol or who have alcohol allergies, is emerging. A South Australia winery has been successful with such a non-alcoholic beverage, noting there is currently little or no domestic competition.
› The details of promotions identified during the survey period are available at Annex I.
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TABLE 13: TARIFF RATES FOR SELECTED TYPES OF FRUIT JUICE
Product Tariff rate %
Frozen orange juice 7.5
Not frozen orange juice 30
Apple juice, Grape juice, Mixtures of fruit juices 20
Pineapple 10
5.1.7 Routes to market
The typical route to the Premium as well as the Premium HoReCa Market for imported fruit juice is through 3rd party distributors, while local brand fruit juice is mainly distributed directly by the manufacturers. A “Routes to Market” overview for China is provided at Section 2.3.3.
Our survey has identified:
� 6 retailers and 4 HoReCa players in the Chinese Selected Premium Retail Market with a significant selection of imported fruit juice.
� 6 distributors supplying the Chinese Premium Retail Market and the HoReCa industry with a significant selection of imported fruit juice.
5.2 TEAThe total Premium Retail Market size for tea in China was AUD 4 billion in 2013. The market is expected to grow at a CAGR of 15–17 per cent over the next 3 years.22
Average price range and package size range for tea in the Selected Premium Retail Market are set out in Table 14
TABLE 14: OVERVIEW OF PACKAGING AND PRICE POINT RANGES — TEA
Product Category Price Range in AUD Package Size Range
Tea Imported: 7.76–8.62 per 100g Locally produced: 1.20–1.72 per 100g
Imported: 50–100g Locally produced: 100–180g
22 Estimate: Euromonitor and decisionAsia analysis
› An overview and contact details for retailers and distributors are available at Annexes II and III.
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5.2.1 Key players and brands
Figure 8 sets out the indicative “Share of Shelf” for tea brands in the Chinese Selected Premium Retail Market, including premium imported as well as local brands.
FIGURE 8: MAJOR TEA BRANDS IN THE CHINESE SELECTED PREMIUM RETAIL MARKET
The Premium Retail and HoReCa Markets are dominated by the international brands Lipton (Yellow Label), Twinings, and Harvey and Sons. A major local brand is Le Er Fu (Ginger Tea). The market for traditional flavours appears to be quite saturated with more than 100 brands.
5.2.2 Packaging
The average package size for tea in the Selected Premium Retail Market is 100 grams or 25 bags of 4 grams for imported teas. The average package size for locally produced teas ranges between 100 grams and 180 grams.
› A full list of surveyed package sizes is available in Annex I.
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5.2.3 Price points
The average price for tea in the Selected Premium Retail Market ranges between RMB 45–50 (AUD 7.76 – AUD 8.62) per 100 grams. Locally produced tea in the Selected Premium Retail Market has an average price between RMB 7–10 (AUD 1.20 – AUD 1.72) per 100 grams. Retailers in the Selected Premium Retail Market enjoy retail margins in the range of 5 per cent–12 per cent. HoReCa players in the Selected Premium HoReCa Market have a 5 per cent–10 per cent margin.
5.2.4 Product trends
Traditional teas like green and white loose leaf are still the most enjoyed teas among the Chinese who prefer “pure” over flavoured teas. New trends in the Premium Retail Market are English Breakfast, Earl Grey, green tea with lemon flavour, Darjeeling and fruit and herbal teas. Imported brands such as Lipton and Twinings have a big demand in the Premium HoReCa Market and among expatriates and Chinese that have accepted Western style drinks. This target group also values the convenience benefit of tea bags.
PICTURE 7: SHELF WITH TEA BOXES AT TESCO CHINA
› A full list of surveyed retail prices is available at Annex I.
Austrade Insights
� With ever present food safety concerns and an increasing awareness and fear of pesticides in tea by the Chinese consumer, there is an increasing demand for imported teas that are perceived as safe.
� Imports from India and Sri Lanka are currently the most competitive, due to lower pricing.
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5.2.5 Marketing and promotion
Common promotions for tea in the Premium Retail Market consist of product sampling in the form of free tea bags to introduce new flavours. Trade promotion and in-store promotion are typically required and form part of the retailers’ trading terms. Our survey of the Selected Premium Retail Markets has identified 2 promotions (active during the survey period).
5.2.6 Trade barriers
Import duty is assessed on tea at a rate of 15 per cent CIF. Importers of tea are also required to pay VAT of 17 per cent.
5.2.7 Routes to market
The typical route to the Premium Retail Market and the Premium HoReCa Market for imported tea is through 3rd party distributors, while local brand tea is mainly distributed directly by the manufacturers. A “Routes to Market” overview for China is provided at Section 2.3.3.
Our survey has identified:
� 6 retailers and 4 HoReCa players in the Chinese Selected Premium Retail Market with a significant selection of imported tea.
� 5 distributors supplying the Chinese Premium Retail Market and the Premium HoReCa Market with a significant selection of imported tea.
5.3 PREMIUM COLD BEVERAGES (NON-ALCOHOLIC)The total Premium Retail Market size for premium cold beverages in China was AUD 13.7 billion in 2013 and is forecast to reach AUD 15.3 billion in 2015. The market is expected to grow at a CAGR of 14–20 per cent over the next 3 years.23
Average price range and package size range for premium cold beverages in the Selected Premium Retail Market are set out in Table 15.
23 Estimate: Euromonitor and decisionAsia analysis
› The details of promotions identified during the survey period are available at Annex I.
› An overview and contact details for retailers and distributors are available at Annexes II and III.
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TABLE 15: OVERVIEW OF PACKAGING AND PRICE POINT RANGES — PREMIUM COLD BEVERAGES
Product Category Price Range in AUD Package Size Range
Premium Cold Beverages 6.90–10.35 per litre Energy-type drinks: 100–200ml Other: 250–450ml
5.3.1 Key players and brands
Figure 10 sets out the indicative “Share of Shelf” for premium cold beverage brands in the Thai Selected Premium Retail Market, including premium imported as well as local brands
FIGURE 10: MAJOR PREMIUM COLD BEVERAGES BRANDS IN THE CHINESE SELECTED PREMIUM RETAIL MARKET
The Premium Retail Market is dominated by the international brands A&W, Snapple, Dr. Pepper, Rubican, Suntory, Kirin, Red Bull, and Gatorade. A major local brand is Wang Lao Ji. Herbal premium cold beverages like Wang Lao Ji canned herbal tea are produced locally, but many popular refreshment and energy drinks (carbonated and non-carbonated) are imported products from Western countries or Japan.
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5.3.2 Packaging
The average bottle or can size for premium cold beverages in the Selected Premium Retail Market ranges between 100 ml to 200 ml for energy drinks and between 250 ml and 450 ml for all other premium cold beverages.
5.3.3 Price points
The average price for premium cold beverages in the Selected Premium Retail Market ranges between RMB 40–60 (AUD 0.69 – AUD 10.35) per litre. Retailers in the Selected Premium Retail Market enjoy retail margins in the range of 5 per cent–12 per cent.
PICTURE 8: PREMIUM COLD BEVERAGE SHELF AT CITY SUPER
5.3.4 Product trends
Major flavour trends in the premium cold beverage segment are fruit, roots (e.g. root beer), milk (e.g. juices and iced teas mixed with milk), green and iced teas, herbal and coffee. In addition, there is high demand for energy drinks, with Red Bull – produced locally – being the most popular option. Sugar free and healthy beverages are typically preferred – many consumers are now looking for high vitamin content, fruity flavours and drinks with plant proteins. Younger generations are the major target group for this beverage sub-category, as more than 50 per cent of premium cold beverages are consumed by people aged between 25 and 44 years.
› A full list of surveyed package sizes is available in Annex I.
› A full list of surveyed retail prices is available in Annex I.
Austrade Insights
� Vitamin concepts are popular: Many manufacturers are now flavouring drinks with peach, pear or orange flavours and add vitamins to their beverages.
� A large share of premium cold beverages are sold in convenience stores (cans and small bottles) and vending machines (e.g. railway stations).
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5.3.2 Packaging
The average bottle or can size for premium cold beverages in the Selected Premium Retail Market ranges between 100 ml to 200 ml for energy drinks and between 250 ml and 450 ml for all other premium cold beverages.
5.3.3 Price points
The average price for premium cold beverages in the Selected Premium Retail Market ranges between RMB 40–60 (AUD 0.69 – AUD 10.35) per litre. Retailers in the Selected Premium Retail Market enjoy retail margins in the range of 5 per cent–12 per cent.
PICTURE 8: PREMIUM COLD BEVERAGE SHELF AT CITY SUPER
5.3.4 Product trends
Major flavour trends in the premium cold beverage segment are fruit, roots (e.g. root beer), milk (e.g. juices and iced teas mixed with milk), green and iced teas, herbal and coffee. In addition, there is high demand for energy drinks, with Red Bull – produced locally – being the most popular option. Sugar free and healthy beverages are typically preferred – many consumers are now looking for high vitamin content, fruity flavours and drinks with plant proteins. Younger generations are the major target group for this beverage sub-category, as more than 50 per cent of premium cold beverages are consumed by people aged between 25 and 44 years.
› A full list of surveyed package sizes is available in Annex I.
› A full list of surveyed retail prices is available in Annex I.
Austrade Insights
� Vitamin concepts are popular: Many manufacturers are now flavouring drinks with peach, pear or orange flavours and add vitamins to their beverages.
� A large share of premium cold beverages are sold in convenience stores (cans and small bottles) and vending machines (e.g. railway stations).
5.3.5 Marketing and promotion
Common promotions for premium cold beverages in the Premium Retail Market consist of product sampling. However, our survey of the Selected Premium Retail Markets could not identify any promotions (active during the survey period).
5.3.6 Trade barriers
Import duty is assessed on premium cold beverages (mineral waters and waters with added sugar, sweetener etc.) at a rate of 20 per cent CIF. Import duty is assessed on premium cold beverages (other non-alcoholic beverages) at a rate of 35 per cent CIF. Importers of premium cold beverages are also required to pay VAT of 17 per cent.
5.3.7 Routes to market
The typical route to the Premium Retail Market for imported premium cold beverages is through 3rd party distributors. A “Routes to Market” overview for China is provided at Section 2.3.3.
Our survey has identified:
� 6 retailers in the Chinese Selected Premium Retail Market with a significant selection of imported premium cold beverages.
� 7 distributors supplying the Chinese Premium Retail Market with a significant selection of imported premium cold beverages.
� Our survey has found that the Premium HoReCa channel is not sufficiently developed for the premium cold beverage sub-category.
› The details of promotions identified during the survey period are available at Annex I.
› An overview and contact details for retailers and distributors are available at Annex II and III.
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BAKED GOODS
For the purpose of this report, the category of “Baked Goods” covers biscuit and baking mix sub-categories. The total Premium Retail Market size of these baked goods product categories in China was AUD 1.53 billion in 2013.24 Average price range and package size range for the selected sub-categories are set out in Table 16.
TABLE 16: CHARACTERISTICS OF SURVEYED BAKED GOODS CATEGORIES
Sub-Category HS Code Description of highest current trade growth products
Price Range in AUD
Package Size Range
Biscuits 1905 Sweet biscuits (excluding gingerbread, waffles, wafers) Crisp savoury biscuits
3.45-5.17 per 100g
Imported: 90–175g Locally produced: 100–200g
Baking Mixes 190120 Baking mixes and prepared doughs for breads, cakes and biscuits
1.38–2.24 per 100g
450–500g
6.1 BISCUITSThe total Premium Retail Market size for biscuits in China was AUD 1.16 billion in 2013. The market is expected to grow at a CAGR of 15–20 per cent over the next 3 years.25
Average price range and package size range for biscuits in the Selected Premium Retail Market are set out in Table 17.
TABLE 17: OVERVIEW OF PACKAGING AND PRICE POINT RANGES — BISCUITS
Product Category Price Range in AUD Package Size Range
Biscuits 3.45–5.17 per 100g Imported: 90–175g Locally produced: 100–200g
6.1.1 Key players and brands
Figure 10 sets out the indicative “Share of Shelf” for biscuits brands in the Chinese Selected Premium Retail Market, including premium imported as well as local brands.
24 Estimate: Euromonitor and decisionAsia analysis25 Estimate: Euromonitor and decisionAsia analysis
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FIGURE 10: MAJOR BISCUITS BRANDS IN THE CHINESE SELECTED PREMIUM RETAIL MARKET
The Premium Retail Market for sweet biscuits is dominated by the international players Danisa, Cheez, Kjeldens and Oreo (produced locally). The high-end salty biscuit segment is led by Edo Pack (HongKong) and the local brand Kang Shi Fu, but brands from other Southeast Asian countries are becoming stronger due to price advantages. The Premium HoReCa Market is dominated by Jacob’s (imported) and Kang Shi Fu.
6.1.2 Packaging
The average package size for biscuits in the Selected Premium Retail Market ranges between 90 grams and 175 grams for imported products and between 100 grams and 200 grams for locally produced biscuits.
Chinese customers prefer big packages — even for small amounts of biscuits and are increasingly buying biscuits in metal containers rather than paper boxes. Australian packaging is often perceived as not being “impressive” enough, especially compared to colourful and bright packaging used by Malaysian and Indonesian producers.
› A full list of surveyed package sizes is available in Annex I.
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6.1.3 Price points
The average price for biscuits in the Selected Premium Retail Market ranges between RMB 20–30 (AUD 3.45 – AUD 5.17) per 100 grams. Retailers in the Selected Premium Retail Market enjoy retail margins in the range of 5 per cent–12 per cent. HoReCa players in the Selected Premium HoReCa Market have a 5 per cent–10 per cent margin.
6.1.4 Product trends
Major flavour trends in the salty biscuit premium segment are ginger and cheese. In the sweet biscuit segment, chocolate, vanilla and butter are the major flavours used. Butter biscuits are very popular and manufacturers from Denmark and the United Kingdom still have the largest market shares — even though domestic brands are now creating healthier options by offering butter biscuits with reduced butter content. The major trend in the premium biscuit segment is the use of sugar-free, high-in-fibre, wholemeal and vitamin concepts — manufacturers make use of health claims wherever they can.
In the Premium HoReCa Market, demand mainly exists for savoury biscuits — it is not yet sufficiently developed for the sweet biscuits.
6.1.5 Marketing and promotion
Common promotions for biscuits in the Premium Retail Market consist of product sampling in the form of bonus products or price discounts. Our survey of the Selected Premium Retail Markets has identified 2 promotions (active during the survey period).
› A full list of surveyed retail prices is available at Annex I.
Austrade Insights
� Biscuits are typically required to have a long shelf life (minimum 9 months).
� Chinese consumers prefer high-butter content shortbread or cookies.
� Crackers/wafers or biscuit (bread) stick which are designed to be eaten with Cheese or dips are not yet very popular in China, as eating cheese with crackers is still uncommon.
� Especially in the biscuit segment, Australian suppliers would benefit from investing in promotional activities as Australia does not have a strong brand image in this segment. Many Chinese for example, believe that Tim Tams are originally from Indonesia.
� The main holidays and festivals in China offer the option to sell biscuits, often as part of gift hampers. Gift-packaging design is important for this sector, as gifting biscuits is increasingly popular.
› The details of promotions identified during the survey period are available in Annex I.
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6.1.3 Price points
The average price for biscuits in the Selected Premium Retail Market ranges between RMB 20–30 (AUD 3.45 – AUD 5.17) per 100 grams. Retailers in the Selected Premium Retail Market enjoy retail margins in the range of 5 per cent–12 per cent. HoReCa players in the Selected Premium HoReCa Market have a 5 per cent–10 per cent margin.
6.1.4 Product trends
Major flavour trends in the salty biscuit premium segment are ginger and cheese. In the sweet biscuit segment, chocolate, vanilla and butter are the major flavours used. Butter biscuits are very popular and manufacturers from Denmark and the United Kingdom still have the largest market shares — even though domestic brands are now creating healthier options by offering butter biscuits with reduced butter content. The major trend in the premium biscuit segment is the use of sugar-free, high-in-fibre, wholemeal and vitamin concepts — manufacturers make use of health claims wherever they can.
In the Premium HoReCa Market, demand mainly exists for savoury biscuits — it is not yet sufficiently developed for the sweet biscuits.
6.1.5 Marketing and promotion
Common promotions for biscuits in the Premium Retail Market consist of product sampling in the form of bonus products or price discounts. Our survey of the Selected Premium Retail Markets has identified 2 promotions (active during the survey period).
› A full list of surveyed retail prices is available at Annex I.
Austrade Insights
� Biscuits are typically required to have a long shelf life (minimum 9 months).
� Chinese consumers prefer high-butter content shortbread or cookies.
� Crackers/wafers or biscuit (bread) stick which are designed to be eaten with Cheese or dips are not yet very popular in China, as eating cheese with crackers is still uncommon.
� Especially in the biscuit segment, Australian suppliers would benefit from investing in promotional activities as Australia does not have a strong brand image in this segment. Many Chinese for example, believe that Tim Tams are originally from Indonesia.
� The main holidays and festivals in China offer the option to sell biscuits, often as part of gift hampers. Gift-packaging design is important for this sector, as gifting biscuits is increasingly popular.
› The details of promotions identified during the survey period are available in Annex I.
6.1.6 Trade barriers
Import duty is assessed on biscuits (sweet) at a rate of 15 per cent CIF. Import duty is assessed on biscuits (savoury, e.g. ginger and roasted bread-type biscuits) at a rate of 20 per cent CIF. Importers of biscuits are also required to pay VAT of 17 per cent.
PICTURE 9: BISCUITS SHELF AT TESCO CHINA
6.1.7 Routes to market
The typical route to the Premium Retail Market and the Premium HoReCa Market for imported biscuits and global brands that are produced locally is through 3rd party distributors, while local brand biscuits are mainly distributed directly by the manufacturers. A “Routes to Market” overview for China is provided at Section 2.3.3.
Our survey has identified:
� 6 retailers in the Chinese Selected Premium Retail Market with a significant selection of imported biscuits.
� 6 distributors supplying the Chinese Premium Retail Market and the Premium HoReCa Market with a significant selection of imported biscuits.
› An overview and contact details for retailers and distributors are available in Annexes II and III.
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6.2 BAKING MIXES The total Premium Retail Market size for baking mixes in China was AUD 368 million in 2013. The market is expected to grow at a CAGR of 5–8 per cent over the next 3 years.26
Average price range and package size range for baking mixes in the Selected Premium Retail Market are set out in Table 18.
TABLE 18: OVERVIEW OF PACKAGING AND PRICE POINT RANGES — BAKING MIXES
Product Category Price Range in AUD Package Size Range
Baking mixes 1.38–2.24 per 100g 450–500g
6.2.1 Key players and brands
Figure 11 sets out the indicative “Share of Shelf” for baking mix brands in the Chinese Selected Premium Retail Market.
FIGURE 11: MAJOR BAKING MIX BRANDS IN THE CHINESE SELECTED PREMIUM RETAIL MARKET
General Mills’ Betty Crockers, Dr Oetker, Duncan Hines and Australian White Wings are the key brands in premium retail. There are currently no local brands in this segment.
26 Estimate: Euromonitor and decisionAsia analysis
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6.2.2 Packaging
The average package size for baking mixes in the Selected Premium Retail Market ranges between 450 grams and 500 grams. For baking mixes, most exporters use stick on labels in Chinese language.
6.2.3 Price points
The average price for baking mixes in the Selected Premium Retail Market ranges between RMB 8–13 (AUD 1.38 – AUD 2.24) per 100 grams. Retailers in the Selected Premium Retail Market enjoy retail margins in the range of 5 per cent–12 per cent.
PICTURE 10: BAKING MIXES SHELF DISPLAY AT CITY SHOP
6.2.4 Product trends
Baking mixes are not very popular in the Chinese market yet, which is partly due to the fact that most families do not have baking ovens at home yet, but also due to high prices. However, the demand is picking up slowly, with major sales volumes realised in Shanghai. The most popular type of baking mix is cake mix, with chocolate and fudge flavours having the highest demand. In the Selected Premium Retail Market, only three supermarkets — Ole, City Super and City Shop — offer bakery mixes which are exclusively imported products.
› A full list of surveyed package sizes is available at Annex I.
› A full list of surveyed retail prices is available at Annex I.
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6.2.5 Marketing and promotion
Baking mixes are not highly promoted in the Chinese Premium Retail Market. Our survey of the Selected Premium Retail Markets could not identify any promotions (active during the survey period).
6.2.6 Trade barriers
Import duty is assessed on baking mixes at a rate of 15 per cent CIF. Importers of baking mixes are also required to pay VAT of 17 per cent.
PICTURE 11: STICK ON LABELS FOR BAKING MIXES - DUNCAN HINES
Austrade Insights
� Cake mixes are quite popular already whereas bread mixes are less so.
� Success story: Green’s Australia have successfully entered the Chinese Premium Retail Market (pricing: 340g cake mix, chocolate, AUD 5.17).
� Younger women have picked up baking on weekends; they are an excellent target group.
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6.2.7 Routes to market
The typical route to the Premium Retail Market for imported baking mixes is through 3rd party distributors or directly through the retailers’ distribution units. A “Routes to Market” overview for China is provided at Section 2.3.3.
Our survey has identified:
� 3 retailers and 1 HoReCa player in the Chinese Selected Premium Retail Market with a significant selection of imported baking mixes.
� 5 distributors supplying the Chinese Premium Retail Market with a significant selection of imported baking mixes.
› An overview and contact details for retailers and distributors are available at Annexes II and III.
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CONDIMENTS
For the purpose of this report, the category of “Condiments” covers premium table sauces and jams sub-categories. The total Premium Retail Market size of these condiments product categories in China was AUD 6.6 billion in 2013.27 Average price range and package size range for the selected sub-categories are set out in Table 19.
TABLE 19: CHARACTERISTICS OF SURVEYED CONDIMENTS SUB-CATEGORIES
Sub-Category HS Code Description of highest current trade growth products
Price Range in AUD
Package Size Range
Premium Table Sauces
2103 Table sauces, excluding tomato-based sauces, with a focus on ‘premium’ sauces
1.72–2.59 per 100g
450–500g
Jams 2007 Jams — particularly highest value flavours in each market
0.86–2.59 per 100g
225–350g
7.1 PREMIUM TABLE SAUCESThe total Premium Retail Market size for Premium Table Sauces in China was AUD 5.8 billion in 2013 and is expected to reach AUD 6.3 million in 2015. The market is expected to grow at a CAGR of 8–9 per cent over the next 3 years.28
Average price range and package size range for Premium Table Sauce in the Selected Premium Retail Market are set out in Table 20.
TABLE 20: OVERVIEW OF PACKAGING AND PRICE POINT RANGES — PREMIUM TABLE SAUCE
Product Category Price Range in AUD Package Size Range
Premium Table Sauce 1.72–2.59 per 100g 450–500g
7.1.1 Key players and brands
Figure 12 sets out the indicative “Share of Shelf” for Premium Table Sauce brands in the Chinese Selected Premium Retail Market, including premium imported as well as local brands.
27 Estimate: Euromonitor and decisionAsia analysis28 Estimate: Euromonitor and decisionAsia analysis
7
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FIGURE 12: MAJOR PREMIUM TABLE SAUCE BRANDS IN THE CHINESE SELECTED PREMIUM RETAIL MARKET
The competition in the Premium Table Sauce segment is intense. Domestic and Southeast Asian brands compete fiercely in the traditional sauces segment, whereas international brands — in particular US and European brands — compete in the Western style sauces category. The most popular local brand in Premium Table Sauces is Lee Kum Kee, which offers condiments with typical local flavours. Other strong domestic brands are Tai Yuan Huang Pai and Zhang Shi Ji. The most successful international brands are McIlhenney, Kraft, Hunt’s Master Foods, Kewpie and Heinz. The Premium HoReCa Market is dominated by these international brands, local brands are generally not in use.
7.1.2 Packaging
The average bottle content for Premium Table Sauce in the Selected Premium Retail Market ranges between 400 grams and 500 grams.
› A full list of surveyed package sizes is available at Annex I.
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7.1.3 Price points
The average price for Premium Table Sauce in the Selected Premium Retail Market ranges between RMB 10–15 (AUD 1.72 – AUD 2.59) per 100 grams. Retailers in the Selected Premium Retail Market enjoy retail margins in the range of 5 per cent–12 per cent. HoReCa players in the Selected Premium Retail Market have a 5 per cent–10 per cent margin.
7.1.4 Product trends
Soy sauce remains the major sauce used in Chinese households, due to its long-standing presence and its important role in local meals. There is a high demand for Premium Table sauces that contain local flavours such as chili and black bean. However, in the Premium Retail Market, barbecue, tabasco, brown (e.g. HP), cocktail and horseradish sauces — with wasabi sauce being a key contributor — have recently recorded strong growth in both value and volume terms. The major Western style sauces that have been highly successful in the Premium Retail Market are Worcestershire and mayonnaise-based sauces.
In the Premium HoReCa Market, chili-based and other traditional Chinese sauces remain in high demand, but as in the Premium Retail Market, Western style sauces — especially mayonnaise-based — are enjoying strong growth.
7.1.5 Marketing and promotion
Premium Table Sauce are not highly promoted in the Chinese Premium Retail Market. Our survey of the Selected Premium Retail Markets could not identify any promotions (active during the survey period).
7.1.6 Trade barriers
Import duty is assessed on Premium Table Sauce (sauces and mixed condiments) at a rate of 21 per cent CIF. Importers of Premium Table Sauce are also required to pay VAT of 17 per cent.
› A full list of surveyed retail prices is available at Annex I.
Austrade Insights
� Exporters should use transparent bottles to make the product as visible as possible.
� Current trends are healthier products (e.g. low fat options) as well as spicy flavours.
� Australian suppliers should focus on new flavour innovations — the traditional sauce market is fairly saturated by domestic products.
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Australian suppliers should also note that table sauces in plastic bottles or with plastic lids may have longer customs clearance times due to currently thorough inspections for residues (e.g. DEHP plasticiser). If residues are found, consignments will either be destroyed or sent back to their country of origin. This is due to recent issues with residues that were found in olive oil bottles and lids.
PICTURE 12: PREMIUM TABLE SAUCE SHELF DISPLAY AT LIANHUA
7.1.7 Routes to market
The typical route to the Premium Retail Market and the Premium HoReCa Market for imported Premium Table Sauce is through 3rd party distributors or directly through the retailers’ distribution units. A “Routes to Market” overview for China is provided at Section 2.3.3.
Our survey has identified:
� 6 retailers and 4 HoReCa players in the Chinese Selected Premium Retail Market with a significant selection of imported premium table sauces.
� 5 distributors supplying the Chinese Premium Retail Market and the Premium HoReCa market with a
significant selection of imported premium table sauces.
› An overview and contact details for retailers and distributors are available at Annexes II and III.
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7.2 JAMSThe total Premium Retail Market size for jams in China was AUD 842 million in 2013. The market is expected to grow at a CAGR of 4–5 per cent over the next 3 years.29
Average price range and package size range for jams in the Selected Premium Retail Market are set out in Table 21.
TABLE 21: OVERVIEW OF PACKAGING AND PRICE POINT RANGES — JAMS
Product Category Price Range in AUD Package Size Range
Jams 0.86–2.59 per 100g 225–350g
7.2.1 Key players and brands
Figure 13 sets out the indicative “Share of Shelf” for jam brands in the Chinese Selected Premium Retail Market.
FIGURE 13: MAJOR JAM BRANDS IN THE CHINESE SELECTED PREMIUM RETAIL MARKET
The Premium Retail Market is dominated by imported jams from Europe, the US and Japan, with Mott’s and Staud’s currently leading the segment. Other popular import brands are Mc Cormick, Movenpick, Smucker, Anne’s Feinste, Bonne Maman and Rigoni Di Asiago. Domestic brands are still rare in the Premium Retail and HoReCa Markets.
29 Estimate: Euromonitor and decisionAsia analysis
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7.2.2 Packaging
The average packaging size for jams in the Selected Premium Retail Market ranges between 225 grams and 350 grams. In the Premium HoReCa Market, smaller packaging sizes between 25 grams and 28 grams are preferred.
7.2.3 Price points
In the Selected Premium Retail Market, prices for jams vary strongly. The average price for jams in the Selected Premium Retail Market ranges between RMB 5–15 (AUD 0.86 – AUD 2.59) per 100 grams. Retailers in the Selected Premium Retail Market enjoy retail margins in the range of 5 per cent–12 per cent. HoReCa players in the Selected Premium Retail Market have a 5 per cent–10 per cent margin.
7.2.4 Product trends
For the Chinese premium retail sector, jams should not be too sweet and be rather tangy to be successful. The most popular flavours currently are orange, strawberry and mixed fruits. In the Premium HoReCa Market, blueberry jams are also in high demand.
PICTURE 13: JAMS SHELF DISPLAY AT CITY SHOP
› A full list of surveyed package sizes is available in Annex I.
› A full list of surveyed retail prices is available in Annex I.
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7.2.5 Marketing and promotion
Jams are currently not highly promoted in the Chinese Premium Retail Market. Our survey of the Selected Premium Retail Markets could not identify any promotions (active during the survey period).
7.2.6 Trade barriers
Import duty is assessed on jams (in airtight containers) at a rate of 5 per cent CIF. Import duty is assessed on homogenised jams at a rate of 30 per cent CIF. Importers of jams are also required to pay VAT of 17 per cent.
7.2.7 Routes to market
The typical route to the Premium Retail Market and the Premium HoReCa Market for imported jams is through 3rd party distributors. A “Routes to Market” overview for China is provided at Section 2.3.3.
Our survey has identified:
� 6 retailers in the Chinese Selected Premium Retail Market with a significant selection of imported jams.
� 6 distributors supplying the Chinese Premium Retail Market and the Premium HoReCa Market with a significant selection of imported jams.
› An overview and contact details for retailers and distributors are available at Annexes II and III.
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AN
NEX
I —
STO
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ger T
eaG
inge
r tea
Gin
ger t
ea10
box
es o
n 1
shel
f18
0g
12.2
RM
B 0
.07
Prem
ium
Col
d Be
vera
ges
Cho
cola
te
flavo
red
milk
te
a
Cho
cola
t, pl
ain
milk
te
aPl
ain
milk
tea,
C
hoco
late
60 b
ottle
s 2
shel
fs50
0m
l4.
3R
MB
0.0
1
AFG
C M
ARK
ET IN
SIG
HTS:
CHI
NA
64
PRO
DUCT
CA
TEG
ORY
SUB
-C
ATEG
ORY
BR
AN
DFL
AVO
UR
SHEL
F PR
ESEN
CE
PAC
K S
IZE
PRIC
E R
AN
GE
PRIC
E
Bra
nd o
f the
su
b-ca
tego
ry(m
entio
n al
l flav
our)
Top
3 fla
vour
sTO
TAL
Num
ber o
f pro
duct
di
spla
y in
the
fron
t row
of t
he
shel
f. Pl
ease
take
pho
togr
aph
in g
ram
sin
loca
l cur
renc
y,
base
d on
pac
ksiz
e(b
y 1g
r,
or 1
ml)
Bev
erag
es
(non
-al
coho
ic) /
R
TD
(con
t.)
Prem
ium
Col
d Be
vera
ges
Ool
ong
Tea
Ool
ong
Ool
ong
50 b
ottle
s 1
shel
f35
0m
l3
RM
B 0
.01
Prem
ium
Col
d Be
vera
ges
Wan
g La
o Ji
1 sh
elf 6
0 bo
ttles
500
ml
4.3
RM
B 0
.01
Sauc
es /
Con
dim
ents
/ Sp
read
s
Oliv
e O
ilEx
tra V
irgin
O
live
oil
1 Sh
elf 8
box
es15
00m
l16
2R
MB
0.1
1
Oliv
e O
ilEx
tra V
irgin
O
live
oil
6 bo
ttles
on
2 sh
elfe
s75
0m
l10
8R
MB
0.1
4
Oliv
e O
ilEx
tra V
irgin
O
live
oil
5 bo
ttles
on
1 sh
elf
750
ml
68R
MB
0.0
9
Jam
sM
ixed
Jam
mix
ed, s
traw
berry
Stra
wbe
rry, m
ixed
8 ja
rs o
n on
e sh
elf
170
g4.
5R
MB
0.0
3
Jam
sO
rang
e M
arm
elad
eO
rang
e, s
traw
berry
Ora
nge,
Stra
wbe
rry8
jars
on
one
shel
f35
5g
11.8
RM
B 0
.03
Prem
ium
Ta
ble
sauc
esH
unan
Chi
liC
hili
chili
10 ja
rs o
n on
e sh
elf
315
g4.
5R
MB
0.0
1
Prem
ium
Ta
ble
sauc
esSp
icy
Chi
li M
ixC
hili
chili
20 ja
rs o
n 2
shel
fs50
0g
7.5
RM
B 0
.02
Prem
ium
Ta
ble
sauc
esM
ayon
nais
ePl
ain/
Swee
tpl
ain,
sw
eet
10 ja
rs o
n on
e sh
elf
400
g18
.8R
MB
0.0
5
Bak
ed G
oods
Salty
Bis
cuit
Oni
on
Oni
on F
lavo
red
Oni
on fl
avor
ed20
pac
kage
s on
2 s
helfs
225
g9.
9R
MB
0.0
4
Salty
Bis
cuit
Sprin
g O
nion
C
rack
ers
Oni
on, s
easa
me
Oni
on, S
easa
me
10-1
5 bo
xes
on o
ne s
helf
250
g14
.5R
MB
0.0
2
AFG
C M
ARK
ET IN
SIG
HTS:
CHI
NA
65
CITY
SUP
ER
Dat
e co
llect
ed: 2
6 Fe
b 20
14
Stor
e: C
ity S
uper
St
ore
Add
ress
: Hua
hai M
iddl
e ro
ad N
o 95
N
B: f
ull p
rodu
ct in
form
atio
n, in
clud
ing
man
ufac
ture
r, di
strib
utor
and
impo
rter,
is a
vaila
ble
in s
epar
ate
docu
men
ts o
n th
e A
FGC
web
site
ww
w.a
fgc.
org.
au
PRO
DUCT
CA
TEG
ORY
SUB
-C
ATEG
ORY
BR
AN
DFL
AVO
UR
SHEL
F PR
ESEN
CE
PAC
K S
IZE
PRIC
E R
AN
GE
PRIC
E
Bra
nd o
f the
su
b-ca
tego
ry(m
entio
n al
l flav
our)
Top
3 fla
vour
sTO
TAL
Num
ber o
f pro
duct
di
spla
y in
the
fron
t row
of t
he
shel
f. Pl
ease
take
pho
togr
aph
in g
ram
sin
loca
l cur
renc
y,
base
d on
pac
ksiz
e(b
y 1g
r,
or 1
ml)
Bak
ed G
oods
BISC
UIT
Cho
cola
te C
hip
Cho
cola
te, v
anilla
choc
olat
e, v
anilla
8-10
box
es in
2 ro
ws
175
g49
.5R
MB
0.28
BISC
UIT
Dut
ch C
aram
el
Twis
tca
ram
el, c
hoco
late
cara
mel
, cho
cola
te8-
10 b
oxes
in 2
row
s20
pcs
49.5
RM
B2.
48
BISC
UIT
Gen
eva
Cho
cola
tech
ocol
ate
8-18
box
es in
2 ro
ws
175
g38
RM
B0.
22
Bake
ry M
ixes
Fros
ted
Cho
cola
teC
hoco
late
, fud
geC
hoco
late
, fud
ge5-
8 bo
xes
in 3
row
s50
0g
50.5
RM
B0.
10
Bake
ry M
ixes
Brow
nies
Cho
cola
te, v
anilla
choc
olat
e, v
anilla
5-8
boxe
s in
3 ro
ws
456
g52
RM
B0.
11
Bake
ry M
ixes
Fudg
e M
arbl
eFu
dge,
cho
cola
te,
vani
llaFu
dge,
cho
cola
te,
vani
lla5-
8 bo
xes
in 3
row
s45
6g
37.5
RM
B0.
08
BISC
UIT
Mon
Villa
geTw
ist O
lives
/Fro
mag
eTw
ist O
lives
/Fro
mag
e14
-16
boxe
s in
2 ro
ws
100
g29
.8R
MB
0.30
BISC
UIT
Edo
Salti
ne c
rack
er/
Che
ese
crac
ker/
Alm
ond
crac
ker/E
do
Prem
ium
cra
cker
/W
heat
pas
try
Salti
ne/A
lmon
d/Pr
emiu
m48
-50
boxe
s in
3 ro
w; 3
0-32
box
es
in 4
row
s (p
rom
otio
n ar
ea)
141
g19
.8R
MB
0.14
BISC
UIT
Saltl
etts
Sesa
me/
brez
elSe
sam
e/br
ezel
10-1
2 ba
gs in
2 ro
ws
150
g14
.8R
MB
0.10
AFG
C M
ARK
ET IN
SIG
HTS:
CHI
NA
66
PRO
DUCT
CA
TEG
ORY
SUB
-C
ATEG
ORY
BR
AN
DFL
AVO
UR
SHEL
F PR
ESEN
CE
PAC
K S
IZE
PRIC
E R
AN
GE
PRIC
E
Bra
nd o
f the
su
b-ca
tego
ry(m
entio
n al
l flav
our)
Top
3 fla
vour
sTO
TAL
Num
ber o
f pro
duct
di
spla
y in
the
fron
t row
of t
he
shel
f. Pl
ease
take
pho
togr
aph
in g
ram
sin
loca
l cur
renc
y,
base
d on
pac
ksiz
e(b
y 1g
r,
or 1
ml)
Snac
k Fo
ods
Cho
cola
teM
elty
Kis
sC
hoco
late
pure
cho
cola
te,
stra
wbe
rry c
hoco
late
, va
nilla
cho
cola
te
8-10
box
es in
2 ro
ws
150
g21
.5R
MB
0.14
Cho
cola
teSw
iss
Cho
cola
tech
ocol
ate
milk
cho
cola
te w
ith
nuts
5-8
bars
in 2
row
s10
0g
23.9
RM
B0.
24
Cho
cola
teC
ioco
lato
Al
Latte
Cho
cola
teda
rk c
hoco
late
5-
8 ba
rs in
2 ro
ws
200
g55
.9R
MB
0.28
suga
r co
nfec
tiona
ryG
olde
n Be
arFr
uit m
ix, f
ruit
liquo
rish
Frui
t mix
, fru
it liq
uoris
h10
-15
bags
in 2
row
s20
0g
18.6
RM
B0.
09
suga
r co
nfec
tiona
ryM
ixed
Fru
it Bo
nbon
sFr
uit m
ix10
-12
cans
in 4
row
s15
0g
20R
MB
0.13
suga
r co
nfec
tiona
ryKa
tjes
drop
Lico
uris
h 5-
7 ba
gs o
n 8
hook
s16
6g
25R
MB
0.15
Bev
erag
es
(non
-al
coho
ic) /
R
TD
Frui
t Jui
ceO
rang
e Ju
ice
Ora
nge
Ora
nge,
app
le10
-20
bottl
es o
n on
e sh
elf
250
ml
6R
MB
0.02
Frui
t Jui
ceAl
bico
cca
Ora
nge
10-2
0 ca
rts o
n on
e sh
elf
1000
ml
28R
MB
0.03
Frui
t Jui
ceAp
ple
Juic
eAp
ple
Ora
nge,
pin
eapp
le10
-15
bottl
es o
n on
e sh
elf
720
ml
88R
MB
0.12
tea
Earl
grey
tea
Tea
Engl
ish
brea
kfas
t tea
10-1
5 bo
xes
on o
ne s
helf
520
g18
9R
MB
0.36
tea
A sy
mph
ony
of
flavo
urs
tea
earl
grey
, eng
lish
brea
kfas
t tea
8-10
box
es o
n on
e sh
elf
25ba
g49
RM
B1.
96
tea
Earl
grey
tea
tea
Engl
ish
brea
kfas
t tea
10-2
0 bo
xes
on 2
she
lfs10
0g
53R
MB
0.53
Prem
ium
col
d dr
inks
Snap
pel A
pple
Appl
e Ap
ple,
stra
wbe
rry,
pear
15-2
0 bo
ttles
on
3 sh
elfe
s47
3m
l13
RM
B0.
03
Prem
ium
col
d dr
inks
Frap
puch
ino
Cof
fe la
tte,
frapp
uchi
noFr
appu
chin
o, c
affe
la
tte10
-15
bottl
es o
n on
e sh
elf
281
ml
22R
MB
0.08
Prem
ium
col
d dr
inks
Ool
ong
Tea
no
suga
roo
long
tea
flavo
r10
-15
bottl
es o
n on
e sh
elf
350
ml
6R
MB
0.02
AFG
C M
ARK
ET IN
SIG
HTS:
CHI
NA
67
PRO
DUCT
CA
TEG
ORY
SUB
-C
ATEG
ORY
BR
AN
DFL
AVO
UR
SHEL
F PR
ESEN
CE
PAC
K S
IZE
PRIC
E R
AN
GE
PRIC
E
Bra
nd o
f the
su
b-ca
tego
ry(m
entio
n al
l flav
our)
Top
3 fla
vour
sTO
TAL
Num
ber o
f pro
duct
di
spla
y in
the
fron
t row
of t
he
shel
f. Pl
ease
take
pho
togr
aph
in g
ram
sin
loca
l cur
renc
y,
base
d on
pac
ksiz
e(b
y 1g
r,
or 1
ml)
Sauc
es /
Con
dim
ents
/ Sp
read
s
Oliv
e O
ilEx
tra V
irgin
O
live
oil
Oliv
e10
-20
bottl
es s
prea
d on
5 s
helfe
s 10
00m
l10
6R
MB
0.11
Oliv
e O
ilEx
tra V
irgin
O
live
oil
Oliv
e8-
10 b
ottle
s on
one
she
lf50
0m
l11
8R
MB
0.24
Oliv
e O
ilEx
tra V
irgin
O
live
oil
Cla
ssic
o
oliv
e8-
10 b
ottle
s on
one
she
lf10
00m
l85
RM
B0.
09
Jam
sAp
pric
ot
Pres
erve
sap
ricot
10-1
5 Ja
rs o
n on
e sh
elf
225
g42
.5R
MB
0.19
Jam
sW
ild B
lue
Berry
Blue
Ber
rybl
ue b
erry
, stra
wbe
rry3
row
s on
one
she
lf w
ith 5
jars
in
each
row
370
g39
RM
B0.
11
Jam
sR
aspb
erry
Jam
Ras
pber
ryra
spbe
rry, b
lue
berry
3 ro
ws
on o
ne s
helf
with
5 ja
rs in
ea
ch ro
w25
0g
47.5
RM
B0.
19
Prem
ium
ta
ble
sauc
eTa
basc
o Pe
pper
sau
cePe
pper
Pepp
er, g
arlic
pep
per
mix
,gre
en p
eppe
r1
shel
f 5 ro
ws,
5-6
bot
tles
in e
ach
60m
l20
.5R
MB
0.34
Prem
ium
ta
ble
sauc
eH
icko
ry B
BQ
Sauc
eH
icko
ry, t
radi
tiona
lH
icko
ry, t
radi
tiona
l3
row
s w
ith 5
in e
ach
on o
ne s
helf
500
ml
38R
MB
0.08
Prem
ium
ta
ble
sauc
eBa
rbec
ue
Sauc
ein
Trad
ition
al B
BQ,
Swee
t and
stic
ky2
row
s w
ith 5
-6 in
eac
h ro
w50
0m
l42
RM
B0.
08
AFG
C M
ARK
ET IN
SIG
HTS:
CHI
NA
68
CITY
SHO
P
Dat
e co
llect
ed: 8
Mar
201
4 St
ore:
The
Mal
l Ban
gkap
i St
ore
Add
ress
: 352
2 La
rpra
o R
d, K
long
jan,
Ban
gkap
i, Ba
ngko
k 10
240
NB
: ful
l pro
duct
info
rmat
ion,
incl
udin
g m
anuf
actu
rer,
dist
ribut
or a
nd im
porte
r, is
ava
ilabl
e in
sep
arat
e do
cum
ents
on
the
AFG
C w
ebsi
te w
ww
.afg
c.or
g.au
PRO
DUCT
CA
TEG
ORY
SUB
-C
ATEG
ORY
BR
AN
DFL
AVO
UR
SHEL
F PR
ESEN
CE
PAC
K S
IZE
PRIC
E R
AN
GE
PRIC
E
Bra
nd o
f the
su
b-ca
tego
ry(m
entio
n al
l flav
our)
Top
3 fla
vour
sTO
TAL
Num
ber o
f pro
duct
di
spla
y in
the
fron
t row
of t
he
shel
f. Pl
ease
take
pho
togr
aph
in g
ram
sin
loca
l cu
rren
cy, b
ased
on
pac
ksiz
e
(by
1gr,
or
1m
l)
Bak
ed G
oods
BISC
UIT
Land
keks
Whe
at,c
hoco
, ch
ocol
ate
Cho
cola
te, V
anilla
disp
laye
d on
one
full
shel
f, ar
ound
25
box
es20
0g
38R
MB
0.19
BISC
UIT
Che
ez-It
Che
es;S
wis
s,
amer
ican
,che
ddar
Swis
s Am
eric
an
Che
ddar
disp
laye
d on
one
full
shel
f, ar
ound
20
box
es32
0g
68R
MB
0.21
25
BISC
UIT
Fein
ster
Sp
ekul
atus
G
ewue
rz
Fein
ster
Spe
kula
tus,
le
benk
uche
n, m
imi
cont
essa
Fein
ster
Spe
kula
tus,
le
benk
uche
n, m
imi
cont
essa
200
g35
RM
B0.
175
Bake
ry M
ixM
arm
or
Kuch
enM
arm
or k
uche
n,
choc
olat
e ca
keM
arm
or K
uche
n,
Cho
cola
te c
ake
one
full
shel
f, ar
ound
30
485
g62
RM
B0.
1278
3505
2
Bake
ry M
ixFu
dge
Mar
ble
Cak
e M
ixFu
dge
Mar
ble,
Fre
nch
vani
lla, L
emon
Su
prem
e
Fudg
e M
arbl
e, V
anilla
517
g52
RM
B0.
1005
8027
1
Bake
ry M
ixM
oist
C
hoco
late
C
ake
Moi
st c
hoco
late
, go
lden
but
ter,m
oist
su
ltana
Moi
st C
hoco
late
, M
oist
Sul
tana
,gol
den
Butte
r
370
g48
RM
B0.
1297
2973
Snac
k fo
ods
Cho
cola
teM
ilka,
Alp
en
Milk
bar
Alpe
n M
ilk, D
aim
Al
pen
Milk
alpe
n m
ilk, D
aim
disp
laye
d on
thre
e sh
elfe
s, a
roun
d 30
bar
s10
0g
22.5
RM
B0.
225
Cho
cola
teH
ersh
eys
Milk
C
hoco
late
Cho
cola
de w
ith
alm
ond,
Milk
C
hoko
late
, her
shey
ki
sses
Milk
cho
cola
te,
Her
shey
Kis
ses,
C
hoco
lade
with
al
mon
d
disp
laye
d on
1 s
helf,
aro
und
1543
, 97
g16
RM
B0.
1649
4845
4
AFG
C M
ARK
ET IN
SIG
HTS:
CHI
NA
69
PRO
DUCT
CA
TEG
ORY
SUB
-C
ATEG
ORY
BR
AN
DFL
AVO
UR
SHEL
F PR
ESEN
CE
PAC
K S
IZE
PRIC
E R
AN
GE
PRIC
E
Bra
nd o
f the
su
b-ca
tego
ry(m
entio
n al
l flav
our)
Top
3 fla
vour
sTO
TAL
Num
ber o
f pro
duct
di
spla
y in
the
fron
t row
of t
he
shel
f. Pl
ease
take
pho
togr
aph
in g
ram
sin
loca
l cu
rren
cy, b
ased
on
pac
ksiz
e
(by
1gr,
or
1m
l)
Snac
k fo
ods
(con
t.)C
hoco
late
Ritt
er S
port
Pral
ine
Pral
ine,
Coc
onut
, Al
pine
Milk
, Whi
te
Cris
p
Alpi
ne M
ilk,P
ralin
e,
Coc
onut
Arou
nd 2
0 ba
rs in
one
she
lf25
0g
17.5
-19.
5R
MB
0.07
8
Suga
ar
Con
fect
iona
ryH
arib
o Va
mpi
reH
arib
o va
mpi
re,
gold
en b
ears
Har
ibo
Vam
pire
, go
lden
bea
rs5
row
s sp
read
out
,8 b
ags
in e
ach
200
g19
RM
B0.
095
Suga
ar
Con
fect
iona
rySa
ure
Joha
nnis
be
eren
2 ro
ws,
10
bags
in e
ach
200
g19
.5R
MB
0.09
75
Suga
ar
Con
fect
iona
ryM
ello
n Bu
bble
G
umw
ater
mel
on fl
avor
edW
ater
mel
lon
flavo
r4
row
s 5
bags
in e
ach
175
g19
.5R
MB
0.11
1428
571
Cer
eal B
arAl
mon
d C
ocon
utal
mon
d co
conu
tAl
mon
d, C
ocon
ut1
shel
f, 3
row
s, a
roun
d 20
bar
s40
g28
RM
B0.
7
Cer
eal B
arC
hoco
late
Pe
anut
butte
r ba
r
choc
olat
e pe
anut
bu
tter
Cho
cola
te -
Pean
ut
Butte
r1s
helf,
2 ro
ws,
aro
und
10 b
ars
65g
28R
MB
0.43
0769
231
Cer
eal B
arSl
im C
hoc
Nut
ca
ram
elva
nilla
, cho
cola
teC
hoco
late
, Van
illa1
shel
f,2 ro
ws,
aro
und
15 b
ars
28g
29.8
RM
B1.
0642
8571
4
Bev
erag
es
(non
-al
coho
ic) /
R
TD
Frui
t Jui
ces
Appl
e Ju
ice
Appl
e, o
rang
eO
rang
e, A
pple
half
of o
ne s
helf,
15
bottl
es10
00m
l13
RM
B0.
013
Frui
t Jui
ces
Ora
nge
Juic
eO
rang
e, A
pple
Ora
nge
Appl
eha
lf of
one
she
lf, 1
5 bo
ttles
1000
ml
27R
MB
0.02
7
Frui
t Jui
ces
Ora
nge
Juic
eor
ange
,gua
va,a
pple
, po
meg
rant
eO
rang
e, p
omen
gran
te,
Gua
vaon
e fu
ll sh
elf,
arou
nd 1
5 bo
ttles
1000
ml
23-2
5 R
MB
0.02
5
Tea
Cra
nbar
ry
rasp
berry
Earl
grey
,lem
on,e
nglis
h br
eakf
ast
tea,
darje
erlin
g
Earl
Gre
y, d
arje
erlin
g,
engl
ish
brea
kfas
t tea
5 sh
elfs
, aro
und
15 p
acka
ges
20ba
gs42
-108
RM
B2.
1
tea
Jasm
ine
tea
Jasm
ine,
gre
en te
a w
ith le
mon
Gre
en te
a w
ith le
mon
, Ja
smin
e1
shel
f, ar
ound
10
boxe
s50
g18
.2R
MB
0.36
4
tea
Dar
jeer
ing
Dar
jeer
ing
Dar
jeer
ing
half
of o
ne s
helf,
5 bo
xes
20ba
gs37
RM
B1.
85
Prem
ium
col
d be
vera
ges
Dr.P
eppe
r So
daH
alf s
helf,
aro
und
24 c
ans
330
ml
11R
MB
0.03
3333
333
AFG
C M
ARK
ET IN
SIG
HTS:
CHI
NA
70
PRO
DUCT
CA
TEG
ORY
SUB
-C
ATEG
ORY
BR
AN
DFL
AVO
UR
SHEL
F PR
ESEN
CE
PAC
K S
IZE
PRIC
E R
AN
GE
PRIC
E
Bra
nd o
f the
su
b-ca
tego
ry(m
entio
n al
l flav
our)
Top
3 fla
vour
sTO
TAL
Num
ber o
f pro
duct
di
spla
y in
the
fron
t row
of t
he
shel
f. Pl
ease
take
pho
togr
aph
in g
ram
sin
loca
l cu
rren
cy, b
ased
on
pac
ksiz
e
(by
1gr,
or
1m
l)
Bev
erag
es
(non
-al
coho
ic) /
R
TD
(con
t.)
Prem
ium
col
d be
vera
ges
A&W
Roo
tbee
rH
alf s
helf,
aro
und
24 c
ans
330
ml
10R
MB
0.03
0303
03
Prem
ium
col
d be
vera
ges
Spar
klin
g R
ubic
on G
uava
Man
go, G
uava
Hal
f she
lf, a
roun
d 24
can
s33
0m
l13
.8R
MB
0.04
1818
182
Sauc
es /
Con
dim
ents
/ Sp
read
s
Oliv
e O
ilEx
tra V
irgin
O
live
oil
1 Sh
elf,
arou
nd 3
0 Bo
ttles
1000
ml
108
RM
B0.
0225
Oliv
e O
ilEx
tra V
irgin
O
live
oil
1 sh
elf,
20 b
ottle
s10
00m
l10
8R
MB
0.10
8
Oliv
e O
ilEx
tra V
irgin
O
live
oil
70%
of s
helf,
10-
15 b
ottle
s50
0m
l13
8R
MB
0.27
6
Jam
sAp
ple
Sauc
e O
rigin
alAp
ple
2 sh
elf,
arou
nd 5
0 ja
rs68
g38
RM
B0.
5588
2352
9
Jam
sW
aldf
ruch
tBl
uebe
rry, S
traw
berry
Wal
dfru
cht,(
wild
ber
ry)
1 sh
elf,
arou
nd 2
0 ja
rs25
0g
42R
MB
0.16
8
Jam
sR
ed R
aspb
erry
Ras
pber
ry1
Shel
f, ar
ound
15
jars
510
g72
RM
B0.
1411
7647
1
Prem
ium
Ta
ble
Sauc
esH
P Sa
uce
1 Sh
elf,
2 ro
ws
arou
nd 2
0 bo
ttles
255
g22
.5R
MB
0.08
8235
294
Prem
ium
Ta
ble
Sauc
esBu
lls E
ye
Swee
t and
Ta
ngy
BBQ
Sa
uce
Trad
ition
al B
BQ s
auce
Swee
t and
tang
y,2
row
s on
one
she
lf, 3
bot
tles
in
each
510
g45
RM
B0.
0882
3529
4
Prem
ium
Ta
ble
Sauc
esTa
basc
o Pe
pper
Sau
ceG
reen
pep
per,G
arlic
pe
pper
Pepp
er, g
arlic
pep
per,
gree
n pe
pper
1 sh
elf,
arou
nd 3
0 bo
ttles
in 5
row
s60
ml
20.5
RM
B0.
3416
6666
7
Bak
ed G
oods
Salty
Bis
cuits
Che
dsC
heds
, Sco
ttish
fing
erC
heds
, Sco
ttish
fing
ers
2 ro
ws
on o
ne s
helf,
7 in
eac
h ro
w25
0g
58R
MB
0.23
2
Salty
Bis
cuits
Dig
estiv
eN
atur
alN
atur
al3
row
s on
1 s
helf,
aro
und
5 in
eac
h40
0g
15R
MB
0.03
75
AFG
C M
ARK
ET IN
SIG
HTS:
CHI
NA
71
OLE
Dat
e co
llect
ed: 3
Mar
201
4 St
ore:
Ole
St
ore
Add
ress
: Jin
g An
Ker
ry C
entre
Bui
ldin
g B
NB
: ful
l pro
duct
info
rmat
ion,
incl
udin
g m
anuf
actu
rer,
dist
ribut
or a
nd im
porte
r, is
ava
ilabl
e in
sep
arat
e do
cum
ents
on
the
AFG
C w
ebsi
te w
ww
.afg
c.or
g.au
PRO
DUCT
CA
TEG
ORY
SUB
-C
ATEG
ORY
BR
AN
DFL
AVO
UR
SHEL
F PR
ESEN
CE
PAC
K S
IZE
PRIC
E R
AN
GE
PRIC
E
Bra
nd o
f the
su
b-ca
tego
ry(m
entio
n al
l flav
our)
Top
3 fla
vour
sTO
TAL
Num
ber o
f pro
duct
di
spla
y in
the
fron
t row
of t
he
shel
f. Pl
ease
take
pho
togr
aph
in g
ram
sin
loca
l cu
rren
cy, b
ased
on
pac
ksiz
e
(by
1gr,
or
1m
l)
Bak
ed G
oods
BISC
UIT
Cre
pe
Den
telle
2 R
ows
on 5
she
lfes,
8 b
oxes
in
each
row
90g
38R
MB
0.4
2
BISC
UIT
Cho
carre
Cho
clat
e, p
lain
Cho
cola
te, p
lain
2 ro
ws
on 6
she
lfs, 8
box
es in
eac
h ro
w10
0g
34.9
RM
B 0
.35
BISC
UIT
Man
aCoo
kies
Mix
ed fr
uits
, C
hoco
late
, Pla
in1
row
on
6 sh
elfs
, 8 b
oxes
in e
ach
row
175
g25
RM
B 0
.14
Bake
ry M
ixes
Cho
cola
te
Fudg
eVa
nilla
, Dev
ils fo
od,
Rai
nbow
Vani
lla, d
evils
food
, ra
inbo
won
e fu
lls s
helf,
aro
und
60-7
0 bo
xes
540
g52
RM
B 0
.10
Snac
kfoo
dsC
hoco
late
No
suga
r ad
ded,
Dar
kD
ark,
dar
k w
ith
Alm
onds
dark
cho
cola
te,
dark
cho
cola
te w
ith
alm
onds
5 ro
ws
on o
ne s
helf,
6 b
ars
in e
ach
row
100
g45
RM
B 0
.45
Cho
cola
teSw
iss
Milk
Milk
cho
cola
te,
haze
lnut
Milk
Cho
cola
te,
haze
lnut
5 ro
ws
on o
ne s
helf,
6 b
ars
in e
ach
row
100
g19
.5R
MB
0.2
0
Cho
cola
teC
ream
y M
ilkD
ark,
cof
fee
coca
oD
ark,
cof
fee
coca
o9
row
s 5
bars
in e
ach
row
100
g29
.8R
MB
0.3
0
Suga
r C
onfe
ctio
nary
Frui
t Rol
lsM
ixed
Fru
itM
xed
fruit
20-3
0 ba
gs o
n tw
o sh
elfs
164
g19
.9R
MB
0.1
2
Suga
r C
onfe
ctio
nary
Dam
la
Cen
ter fi
lled
stra
wbe
rry
fruit
Che
w
Mix
ed fr
uit,
stra
wbe
rryM
ixed
frui
t, st
raw
berry
50 b
ags
on 5
han
gers
90g
6R
MB
0.0
7
AFG
C M
ARK
ET IN
SIG
HTS:
CHI
NA
72
PRO
DUCT
CA
TEG
ORY
SUB
-C
ATEG
ORY
BR
AN
DFL
AVO
UR
SHEL
F PR
ESEN
CE
PAC
K S
IZE
PRIC
E R
AN
GE
PRIC
E
Bra
nd o
f the
su
b-ca
tego
ry(m
entio
n al
l flav
our)
Top
3 fla
vour
sTO
TAL
Num
ber o
f pro
duct
di
spla
y in
the
fron
t row
of t
he
shel
f. Pl
ease
take
pho
togr
aph
in g
ram
sin
loca
l cu
rren
cy, b
ased
on
pac
ksiz
e
(by
1gr,
or
1m
l)
Snac
kfoo
ds
(con
t.)Su
gar
Con
fect
iona
ryG
old
Bare
nM
ixed
frui
ts, m
ixed
fru
it w
ith li
quor
ish,
sa
uer m
ango
Mix
ed fr
uits
, mix
ed
fruit
with
liqu
oris
h,
saue
r man
go
2 ro
ws,
10
bags
in e
ach
100
g10
.5R
MB
0.1
1
Cer
eal B
ars
Cho
cola
te
Cho
cola
te, m
ixed
frui
tch
ocol
ate,
mix
ed fr
uit
5 ro
ws,
4 b
oxes
in e
ach
25g
x6
bars
, 15
0g
g28
RM
B 4
.67
Cer
eal B
ars
Mue
sli B
arM
uesl
i, m
ixed
frui
tsM
uesl
i,, m
ixed
frui
t4
row
s on
2 s
helfs
, 4 b
oxes
in e
ach
row
180g
(6
ba
rs)
bar
27.8
RM
B 4
.63
Cer
aBr
eak
n'Bo
ost
Cer
eal B
ar3
row
s on
2 s
helfs
,5 b
oxes
in e
ach
125
g24
.5R
MB
0.2
0
Bev
erag
es
(non
-al
coho
ic) /
R
TD
Frui
t Jui
ces
Ora
nge
Apel
sine
Ju
ice
Appl
e, p
ine
appl
e,
oran
geO
rang
e,ap
ple,
pi
neap
ple
Arou
nd 2
0 bo
ttles
spe
rad
over
5
shel
fs10
00m
l18
.9R
MB
0.0
2
Frui
t Jui
ces
Ora
nge
Juic
eO
rang
e, L
emon
, App
leO
rang
e, a
pple
, lem
onAr
ound
20
bottl
es s
pera
d ov
er 5
sh
elfs
1000
ml
19.8
RM
B 0
.02
Frui
t Jui
ces
Gra
pefru
itPi
neap
ple,
Exo
tic,
grap
efru
itG
rape
fruit,
pin
eapp
le,
Exot
icAr
ound
15
bottl
es s
prea
d ov
er 4
sh
elfs
1000
ml
29.5
RM
B 0
.03
Tea
Afte
rnoo
n te
aEn
glis
h br
eakf
ast t
ea,
earl
grey
, gre
en te
a 15
box
es o
n on
e sh
elf
125
g85
RM
B 0
.68
Tea
Earl
Gre
y Su
prem
eEn
glis
h br
eakf
ast t
ea,
earl
grey
, En
glis
h br
eakf
ast t
ea,
earl
grey
10-2
0 bo
xes
40g
189
RM
B 4
.73
Tea
Man
go
Stra
wbe
rryM
ango
Stra
wbe
rryM
ango
Stra
wbe
rry8-
10 b
oxes
on
one
shel
f10
0g
26R
MB
0.2
6
AFG
C M
ARK
ET IN
SIG
HTS:
CHI
NA
73
PRO
DUCT
CA
TEG
ORY
SUB
-C
ATEG
ORY
BR
AN
DFL
AVO
UR
SHEL
F PR
ESEN
CE
PAC
K S
IZE
PRIC
E R
AN
GE
PRIC
E
Bra
nd o
f the
su
b-ca
tego
ry(m
entio
n al
l flav
our)
Top
3 fla
vour
sTO
TAL
Num
ber o
f pro
duct
di
spla
y in
the
fron
t row
of t
he
shel
f. Pl
ease
take
pho
togr
aph
in g
ram
sin
loca
l cu
rren
cy, b
ased
on
pac
ksiz
e
(by
1gr,
or
1m
l)
Sauc
es /
Con
dim
ents
/ Sp
read
Oliv
e O
ilEx
tra V
irgin
O
live
Oil
25 b
ottle
s on
2 s
helfs
500
ml
61R
MB
0.1
2
Oliv
e O
ilEx
tra V
irgin
O
live
Oil
25 b
ottle
s on
2 s
helfs
750
ml
88R
MB
0.1
2
Oliv
e O
ilEx
tra V
irgin
O
live
Oil
15 b
ottle
s75
0m
l93
RM
B 0
.12
Bev
erag
e /
RTD
Prem
ium
col
d D
rinks
Red
Bul
l Ex
tra35
Can
s on
one
she
lf25
0m
l10
.9R
MB
0.0
4
Prem
ium
col
d D
rinks
Stra
wbe
rrySt
raw
berry
, wild
ber
ry,
mix
ed fr
uits
30
-40
Bottl
es o
n 3
shel
fs47
3m
l16
.9R
MB
0.0
4
Prem
ium
col
d D
rinks
Vita
min
Su
pply
10 b
ottle
s50
0m
l3.
8R
MB
0.0
1
Sauc
es /
Con
dim
ents
/ Sp
read
Jam
sBe
ry H
imbe
re
Ras
pber
ryR
aspb
erry
, Kiw
i, Bl
ue
Berry
Ras
pber
ry, b
lue
berry
Ki
wi
30 ja
rs o
n 1
shel
f25
0g
68R
MB
0.2
7
Jam
sSt
raw
berry
(F
reza
)St
raw
berry
, Blu
e be
rry, a
pple
Stra
wbe
rry, B
lue
berry
, app
le20
jars
on
1 sh
elf
325
g38
RM
B 0
.12
Prem
ium
Ta
ble
Sauc
esSi
chua
n H
ot
Spic
y C
hili
Sauc
e
Chi
liC
hili
30 ja
rs o
n 2
shel
fs23
0g
19.9
RM
B 0
.09
Prem
ium
Ta
ble
Sauc
esLo
uisi
anna
Th
ick
Chi
li Sa
uce
Roa
sted
G
arlic
Roa
sted
Gar
licR
oast
ed G
arlic
30 b
ottle
s on
one
she
lf88
ml
15R
MB
0.1
7
Prem
ium
Ta
ble
Sauc
esTa
basc
o Pe
pper
Sau
ceO
rigin
al, g
reen
pe
pper
, pep
per g
arlic
30 b
ottle
s on
2 s
helfs
60m
l21
.8R
MB
0.3
6
AFG
C M
ARK
ET IN
SIG
HTS:
CHI
NA
74
PRO
DUCT
CA
TEG
ORY
SUB
-C
ATEG
ORY
BR
AN
DFL
AVO
UR
SHEL
F PR
ESEN
CE
PAC
K S
IZE
PRIC
E R
AN
GE
PRIC
E
Bra
nd o
f the
su
b-ca
tego
ry(m
entio
n al
l flav
our)
Top
3 fla
vour
sTO
TAL
Num
ber o
f pro
duct
di
spla
y in
the
fron
t row
of t
he
shel
f. Pl
ease
take
pho
togr
aph
in g
ram
sin
loca
l cu
rren
cy, b
ased
on
pac
ksiz
e
(by
1gr,
or
1m
l)
Bak
ed G
oods
Salty
Bis
cuits
Sala
ti cr
acke
rsa
lati,
cer
eal &
se
sam
e, n
on s
alat
i, in
tegr
ali
Sala
ti, c
eral
&ses
ame,
in
tegr
ali
112b
oxes
, 4 s
helv
es, 7
laye
rs in
ea
ch s
helf
and
4 bo
xes
each
laye
r25
0g
25.8
RM
B 0
.10
Salty
Bis
cuits
EDO
pac
k sa
ltine
cr
acke
r
salti
ne, s
eaw
eed,
ch
eese
, pre
miu
m
(orig
inal
), po
tato
, al
mon
d
Salti
ne, c
hees
e,
seaw
eed
112b
oxes
, 4 s
helv
es, 7
laye
rs in
ea
ch s
helf
and
4 bo
xes
each
laye
r14
1g
22R
MB
0.1
6
Salty
Bis
cuits
Aust
ralia
n W
heat
C
rack
er
Switz
erla
nd m
ilk,
Hok
kaid
o sa
ltine
, Au
stra
lian
whe
at, o
at
Switz
erla
nd M
ilk,
Hok
kaid
o Sa
ltine
, Au
stra
lian
Whe
at
112b
oxes
, 4 s
helv
es, 7
laye
rs in
ea
ch s
helf
and
4 bo
xes
each
laye
r16
0g
18.8
RM
B 0
.12
AFG
C M
ARK
ET IN
SIG
HTS:
CHI
NA
75
AN
NEX
II —
KEY
RET
AIL
ERS
IN TH
E C
HIN
ESE
PREM
IUM
RET
AIL
MA
RKET
Stor
e Fo
rmat
Nam
eD
etai
lsN
umbe
r of S
tore
sC
onta
ct D
etai
lsIn
clud
ed
in R
epor
t U
nive
rse?
Supe
rmar
ket
Hyp
erm
arke
tTe
sco
UK
supe
rmar
ket c
hain
, car
ry fr
esh
prod
ucts
and
impo
rted
prod
ucts
, m
ainl
y fro
m U
K
115
outle
ts, 1
0 in
Sha
ngha
iR
oom
921
, Bui
ldin
g 16
, Chi
na C
entra
l Pla
ce,
No
89 J
iang
uo R
oad,
Cha
oyan
g D
istri
ct, B
eijin
g, 1
0002
5
Ph.:
+86
10 5
203
7821
Yes
Con
veni
ence
st
ore
Tesc
o Ex
pres
sU
K su
perm
arke
t cha
in, c
arry
fres
h pr
oduc
ts a
nd im
porte
d pr
oduc
ts,
mai
nly
from
UK
N/A
Roo
m 9
21, B
uild
ing
16, C
hina
Cen
tral P
lace
,
No
89 J
iang
uo R
oad,
Cha
oyan
g D
istri
ct, B
eijin
g, 1
0002
5
Ph.:
+86
10 5
203
7822
Yes
Supe
rmar
ket
City
Sho
pH
igh
end
supe
rmar
ket,
focu
sed
on
impo
rted
good
s. O
ver 8
5% o
f City
Sh
op‘s
pro
duct
s ar
e im
porte
d.
City
Sho
p ca
rries
nea
rly 3
,000
Am
eric
an fo
od a
nd n
on-fo
od
prod
ucts
12 s
tore
s, 1
0 in
Sha
ngha
i and
2
in B
eijin
gR
m. 1
701,
Hai
sen
Int’l
Man
sion
, 146
9 Ka
ng D
ing
Roa
d,
Shan
ghai
Ph.:
+862
1-62
3270
70
Supp
lier E
mai
l: in
fo@
city
shop
.com
.cn
Yes
Supe
rmar
ket
City
Sup
erH
K su
per m
arke
t cha
in, i
s ex
pand
ing
in C
hina
and
als
in
Shan
ghai
. Foc
us o
n im
porte
d go
ods
as w
ell a
s lo
cal b
rand
s.
5 st
ores
in S
hang
hai
Rm
. 150
5, 1
258,
Yuy
uan
Roa
d , C
hang
ning
dis
trict
, Sh
angh
ai
Ph.:
+862
1 51
75 8
208
Yes
Supe
rmar
ket
Pine
sSm
all S
hang
hai b
ased
cha
in,
focu
sed
on h
igh-
end
and
impo
rted
food
, cat
erin
g m
ainl
y to
fore
igne
rs.
This
is s
imila
r to
BHG
in B
eijin
g.
5 st
ores
in S
hang
hai
No
18, L
ane
896
Jian
He
Roa
d, 2
0033
6 Sh
angh
ai, C
hina
Fax:
+86
21
6262
756
5
Yes
AFG
C M
ARK
ET IN
SIG
HTS:
CHI
NA
76
Stor
e Fo
rmat
Nam
eD
etai
lsN
umbe
r of S
tore
sC
onta
ct D
etai
lsIn
clud
ed
in R
epor
t U
nive
rse?
Hyp
erm
arke
t Su
perm
arke
t C
onve
nien
ce
stor
e
Lian
hua
Chi
na’s
larg
est g
roce
ry c
hain
, w
ith m
ost o
utle
ts lo
cate
d in
ne
ighb
orho
ods
with
a la
rge
fore
ign
popu
latio
n —
Lia
nhua
st
ocks
mai
nly
impo
rted
good
s.
The
Gro
up o
pera
tes
in th
ree
mai
n re
tail
segm
ents
— h
yper
mar
kets
, su
perm
arke
ts a
nd c
onve
nien
ce
stor
es
5120
11th
- 15
th fl
oors
Sic
huan
Roa
d (N
orth
) Roa
d, S
hang
hai
2000
80 C
hina
.
Ph.:
+86
21 6
393
7700
Yes
Supe
rmar
ket
Chi
na
Res
ourc
es
Vang
uard
—
Ole
Ole
is C
hina
Res
ourc
es V
angu
ard
(Gov
ernm
ent-o
wne
d) s
peci
alty
su
perm
arke
t cha
in.
mor
e th
an 2
0N
o
Supe
rmar
ket
SPAR
Sh
ando
ngSh
ando
ng J
iajia
yue
Gro
up C
o. L
td
is a
larg
e ch
ain
grou
p sp
ecia
lizin
g in
sup
erm
arke
t cha
ins
(SPA
R)
as w
ell a
s co
verin
g lo
gist
ics
and
dist
ribut
ion,
food
pro
cess
ing,
w
hole
sale
s of
agr
icul
tura
l pro
duct
s an
d fo
reig
n tra
de b
usin
ess.
The
y ha
ve s
tore
s in
34
citie
s.
595
Suite
150
1, J
in H
ang
Tow
er, N
o. 8
3 W
anha
ngdu
Roa
d
Jing
An
Dis
trict
, Sha
ngha
i 200
040,
PR
of C
hina
Ph.:
+86
(0)2
1 62
88 8
799
No
AFG
C M
ARK
ET IN
SIG
HTS:
CHI
NA
77
AN
NEX
III —
KEY
DIS
TRIB
UTO
RS IN
THE
CHI
NES
E PR
EMIU
M R
ETA
IL M
ARK
ETN
ame
Det
ails
Prod
uct T
ypes
Key
Bra
nds
Con
tact
Det
ails
DKS
H C
hina
A le
adin
g m
arke
t exp
ansi
on c
ompa
ny a
nd d
istri
buto
r in
Asia
. DKS
H C
hina
has
10
regi
ster
ed b
ranc
h of
fices
and
64
bus
ines
s lo
catio
ns a
cros
s C
hina
, inc
ludi
ng S
hang
hai,
Beijin
g, T
ianj
in, C
heng
du, C
hong
qing
, Gua
ngzh
ou,
Shen
zhen
, Wuh
an, F
uzho
u, H
angz
hou,
Wuh
an, a
nd X
i'an
Wid
e pr
oduc
t ra
nge
Wid
e ra
nge
Uni
t 220
8, In
nov
Tow
er, B
lock
A, 1
801
Hon
gmei
Roa
dSh
angh
aiPh
. +86
21
5383
881
1W
ebsi
te: w
ww.
dksh
.com
.cn
Goo
dwel
l Foo
dsLe
adin
g C
hine
se im
porte
r and
dis
tribu
ter o
f foo
d pr
oduc
ts. A
ppro
x 2,
500
SKU
s ac
ross
diff
eren
t cat
egor
ies.
Wid
e pr
oduc
t ra
nge
Berri
, Leg
go’s
, Ar
la, D
ilmah
, Ba
hlse
n, L
emno
s,
Frito
s, C
alvo
27F,
NO
.228
MEI
YU
AN R
OAD
,EN
TER
PRIS
ES
SQU
ARE,
SHAN
GH
AI 2
0007
0,C
HIN
APh
one:
+86
216
086
3200
E-m
ail:
good
wel
l_sh
@go
odw
ellc
hina
.com
Web
site
: ww
w.go
odw
ellc
hina
.com
Feng
kuan
gyua
nshi
ren
Com
pany
Ltd
Shen
zhen
bas
ed im
porte
r and
dis
tribu
ter o
f foo
d pr
oduc
ts. D
istri
butio
n m
ainl
y fo
cuse
d on
Sou
th C
hina
.W
ide
prod
uct
rang
eM
iste
r Nut
, R
isto
n, E
litol
i,
Hon
eyla
nd, M
aric
h C
hoch
olat
es :
Alm
ond
Roc
a
Ph.:
+86
0755
869
6778
5
Shan
ghai
Sha
nlon
g in
dust
rial C
o Lt
d.Sh
angh
ai b
ased
med
ium
siz
e im
porte
r of f
orei
gn fo
od
prod
ucts
, dis
tribu
tes
natio
nwid
e.W
ide
prod
uct
rang
eH
ersh
eyKr
aft -
Tang
, Sug
us,
Max
wel
l Hou
se
Cof
fee,
Tob
lero
ne,
Lipt
on, K
norr,
Pe
rfetti
van
Mel
le
Ph.:
+86
21-5
2527
733
AFG
C M
ARK
ET IN
SIG
HTS:
CHI
NA
78
Nam
eD
etai
lsPr
oduc
t Typ
esK
ey B
rand
sC
onta
ct D
etai
ls
Sino
dis
Impo
rter a
nd d
istri
buto
r of v
ario
us fo
od a
nd b
ever
age
prod
ucts
Wid
e pr
oduc
t ra
nge
Bega
, Arn
ott's
, Pa
uls,
Bar
illa,
Alpe
n, D
r Oet
ker
Roo
m 1
705
Zhon
gyu
Plaz
a,G
ongt
o Be
i Roa
d 6A
,Cha
oyan
g D
istri
ct, B
eijin
g 10
0027
Ph.:
+86
10 5
166
8747
Emai
l: in
fo@
sino
dis.
com
.cn
Web
site
: ww
w.si
nodi
s.co
m.c
n
Vand
erge
eten
Impo
rter a
nd d
istri
buto
r of b
eer a
nd c
hoco
late
s, w
ith
offic
es in
Bei
jing
and
Gua
ngzh
ouC
hoco
late
, Bee
rTo
bler
one,
Cot
e D
'Or
Leffe
, Ste
lla A
rtois
Roo
m 7
07, S
anlit
un S
OH
O, G
ongR
en T
iTu
Cha
ngEa
stR
oad,
Cha
oyan
g D
istri
ct, B
eijin
gPh
.: +8
6 0
5935
939
0Em
ail:
cont
act.b
j@vd
gcn.
com
Web
site
: ww
w.vd
gcn.
com
Uni
wor
ld In
tern
atio
nal
Impo
rter a
nd d
istri
buto
r of s
nack
food
s an
d be
vera
ges,
se
rvin
g th
e w
hole
sale
and
reta
il se
ctor
sBe
vera
ges
(incl
. Ju
ice)
, Dai
ry, S
ugar
C
onfe
ctio
nery
, C
erea
l, Bi
scui
ts
Pfan
ner,
Har
ibo
Roo
m 2
05 B
uild
ing
B, J
iuxi
anqi
ao M
iddl
e R
oad,
C
haoy
ag D
istri
ct, B
eijin
gPh
.: +8
6 10
529
3 48
60Em
ail:
impo
rt@ui
tfood
.com
Web
site
: ww
w.ui
tfood
.com
AFG
C M
ARK
ET IN
SIG
HTS:
CHI
NA
79
AN
NEX
IV —
KEY
PLA
YERS
IN C
HIN
A’S
PR
EMIU
M H
ORE
CA
MA
RKET
Nam
eD
etai
lsB
ranc
hes
Prod
uct C
ateg
orie
sC
onta
ct D
etai
lsD
rei K
rone
n 13
08G
erm
an b
eer b
rew
ery
and
rest
aura
nt c
hain
with
mul
tiple
bra
nche
s al
l ov
er c
hina
(Bei
jing,
Sha
ngha
i, Ti
anjin
) cur
rent
ly e
xpan
ding
into
tier
2
citie
s(W
uhan
, Han
gzho
u). C
ater
ing
to b
oth
wes
tern
cus
tom
ers
and
upsc
ale
loca
l Chi
nese
con
sum
ers.
8 ou
tlets
Beve
rage
s (in
cl. t
ea),
prem
ium
tabl
e sa
uce
Chi
na V
iew
5, 1
/F, G
ongt
i Don
glu
Al
lan
Duf
fy
Food
and
Bev
erag
e D
irect
orEm
ail:
info
@dr
eikr
onen
1308
.com
Ph.:
+86
21 5
5215
355
Saiz
eriy
aSa
izer
iya
is a
Jap
anes
e ap
prox
imat
ion
of a
n Ita
lian
styl
e re
stau
rant
. The
y cl
aim
to h
ave
100s
of l
ocat
ions
in J
apan
, the
re a
re 7
in S
hang
hai,
mos
tly
loca
ted
in s
hopp
ing
mal
ls. F
ood
is s
impl
e an
d ch
eap
(10r
mb
past
a/6r
mb
glas
s of
win
e). K
now
n to
be
the
chea
pest
wes
tern
food
to g
et in
Chi
na.
52 o
utle
ts in
Sha
ngha
i an
d 41
in G
uang
zhou
(in
clud
ing
Saiz
eriy
a Ex
pres
s)
Beve
rage
s (in
cl. t
ea),
prem
ium
tabl
e sa
uce,
br
ead
mix
es
No.
32 W
anha
ngdu
Roa
, 2nd
floo
r, Sh
angh
ai,
2000
3-0,
Chi
na
Yum
bra
nds
Yum
! Bra
nds,
Inc.
or Y
um! i
s a
Uni
ted
Stat
es-b
ased
For
tune
500
co
rpor
atio
n. Y
um! o
pera
tes
or li
cens
es T
aco
Bell,
KFC
, Piz
za H
ut a
nd
Win
gstre
et re
stau
rant
s w
orld
wid
e. P
rior t
o 20
11, Y
um! a
lso
owne
d Lo
ng
John
Sile
ver’s
and
A&W
rest
aura
nts.
KFC
of 4
600
outle
tsPi
zza
Hut
– 1
000
outle
tsBe
vera
ges
(incl
. tea
), pr
emiu
m ta
ble
sauc
eYu
m! B
rand
s In
c., C
hina
Div
isio
n.
12F–
19F,
2 G
rand
Gat
eway
,3
Hon
gqia
o R
d, S
hang
hai
2000
30,P
.R.C
hina
.Ph
. +(8
6 21
) 240
7-77
77Ba
kers
Piz
zaPi
zza
rest
aura
nt w
ith a
loca
tion
arou
nd s
hang
hai a
nd T
ier 2
citi
es li
ke
Han
gzho
u an
d ot
her t
ouris
t des
tinat
ion
area
s to
cat
er fo
reig
ners
Less
than
10
in to
tal
Beve
rage
s (in
cl. t
ea),
prem
ium
tabl
e sa
uce
Roo
m15
05, N
o.18
, Lan
e126
5,
Zhon
gsha
nxi L
u, C
hang
ning
D
istri
ct. T
el. +
86 (0
)21-
5783
0503
AFG
C M
ARK
ET IN
SIG
HTS:
CHI
NA
80
AN
NEX
V —
KEY
GO
VERN
MEN
T BO
DIES
Gov
ernm
ent B
ody
Res
pons
ibili
ties
Web
site
Gen
eral
Adm
inis
tratio
n of
Qua
lity
Supe
rvis
ion,
Insp
ectio
n an
d Q
uara
ntin
e of
the
PRC
(AQ
SIQ
)
Nat
iona
l qua
lity
cont
rol f
or im
ports
and
exp
orts
(qua
rant
ine
cont
rol)
resp
onsi
ble
for e
nsur
ing
the
safe
ty o
f im
porte
d an
d ex
porte
d fo
odN
atio
nal s
tand
ardi
satio
n of
regu
latio
nsLi
cens
ing
and
certi
ficat
ion
for
impo
rters
and
exp
orte
rsPr
oduc
t sam
plin
g an
d as
sess
men
t of w
heth
er in
gred
ient
s co
nfor
m w
ith
ingr
edie
nts
list,
asse
ssm
ent o
f lab
ellin
gSa
nita
ry c
ertifi
catio
n
ww
w.a
qsiq
.gov
.cn
or: e
nglis
h.aq
siq.
gov.
cn
Chi
na E
ntry
and
Exi
t Ins
pect
ion
and
Qua
rant
ine
Bure
au (C
IQ) –
pro
vinc
ial
bran
ches
of A
QSI
Q
Rep
rese
ntat
ion
of n
atio
nal a
nd p
rovi
ncia
l lev
els,
com
mitt
ee o
f Gov
ernm
ent a
nd
indu
stry
offi
cial
s, p
rovi
ding
a c
ondu
it be
twee
n th
e G
ener
al A
dmin
istra
tion
of
Qua
lity
Supe
rvis
ion,
Insp
ectio
n an
d Q
uara
ntin
e (A
QSI
Q) a
nd th
e
Chi
nese
indu
stry
Beijin
g:w
ww
.bjc
iq.g
ov.c
nSh
angh
ai:
ww
w.s
hciq
.gov
.cn
or: w
ww
.shc
iq.g
ov.c
n/en
glis
hG
uang
zhou
:w
ww
.gz.
gdci
q.go
v.cn
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AN
NEX
VI —
MA
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D A
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AN
NEX
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Subj
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tp://
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ciq.
cn
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ANNEX VIII — FOOD REGULATION AND TRADE BARRIERS
3.2 OVERVIEW OF FOOD REGULATION AND IMPORT STANDARDSFood trade into China is, predictably, heavily regulated. Recent legal changes to China’s Food Safety Law have increased focus on food safety through stricter monitoring and supervision – and severe punishment of offenders. In 2013, China streamlined all domestic food safety regulatory agencies into the China Food and Drug Administration (CFDA).
The Food Safety Law includes the following important features:
Under China’s Food Safety Law, all imported food products, food additives and food-related products are subject to the national food safety standards of China. China's current Food Safety Law was adopted on 28 February 2009 and was made effective from 1 June 2009. The law has been enacted to improve food safety in China through stricter monitoring and supervision, tougher safety standards, recall of substandard products and severe punishment of offenders. The laws are applicable to both imported and domestically produced food and cover production and trading of food and food additives, packing materials, vessels, detergents and disinfectants for food and equipment used in food production, food additives and food-related products used by food producers and traders, and safety management of food, food additives and food related products. In 2013, China streamlined all domestic food safety regulatory agencies into the China Food and Drug Administration (CFDA).
All imported foodstuffs and beverages are subject to inspections by the China Entry-Exit Inspection and Quarantine Bureau (CIQ). Quarantine and inspection of food and beverage items can be complicated and challenging, and is often time consuming and costly. All foreign food distributors and producers that import food products into China are required to register with the appropriate authorities. For those ingredients or components not registered in China, it is required to apply to the CIQ to register them as new-to-China components. Any food or food ingredient that has had an import history prior to the new Food Safety Law will be allowed entry even if there is no Chinese standard.
For most imported foods, China has strict documentation requirements related to quality, quarantine, origin and import control. These can vary dependent on the individual products and product categories. Products also have to meet packaging requirements, pre-clearance, treatment options, labelling requirements, and container conditions - accessing up-to-date information on requirements can be difficult at times. Importers must record the foods imported and distributed in China, and must keep those records for a minimum of two years.
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Food Safety concerns have been leading to the introduction of new regulations and an increase in food and beverage imports, but have also resulted in increased non-tariff barriers with additional testing and requirements. In October 2013, the CFDA released a draft of a revised Food Safety Law and asked for public input. The revised version includes more severe punishments for violating food safety regulations and new standards for manufacturing and distribution to be expected. Exporters to China should make sure to stay updated on the amendment process.
3.3 TRADE BARRIERS
3.3.1 Tariff Barriers
Since its entry into the World Trade Organization in 2001, China has applied tariff rates close to the rates at which it has promised (referred to as “bound” rates). Since accession to the WTO, China has reduced its overall average tariff for agricultural products from 21.2% to 15.3%. However, China still has pockets of high tariff protection — as high as 65% on some key products of interest to Australia.
Tariff classification and reference pricing
A major issue in classifying products is that Chinese customs officers do not follow uniform guidelines and therefore, anticipating border charges has been a difficult for exporters. Commonly, delays at customs and excessive fees unrelated to the services received are a major concern.30
Chinese customs officers continue to use arbitrary forms of reference pricing. Following the WTO accession, China’s customs valuation regulations had been amended and transaction prices should now be applied. Nevertheless subjectivity remains an issue, as reference pricing is still accepted as alternative measure when customs officers consider transaction pricing to not be suitable. The Government decides on benchmark prices for all products that enter China and has a reference price list — which is not publicly available — that customs officers can use to value goods. Alternatively, they can use their own experience and compare prices of goods to prices of similar or the same type of goods they have dealt with before. If the product prices of exporters are too far away from the relevant benchmark price, customs officers will substitute an alternative and usually higher valuation instead.
30 US trade compliance report (2013)
Practical Tips
� Make sure that you have ingredients lists ready before exporting to China. Customs will make their judgement on product classification based on this.
� Make sure you regularly check bacterial counts - mandatory quarantine checks are carried out during customs clearance, with bacterial counts being the major issue of rejection and subsequent destroying for Australian products.
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3.3.2 Non-Tariff Barriers
China uses various non-tariff border barriers, such as import and export licensing, import quotas and so-called “notice-and-comment” procedures. As import quotas generally do not apply to processed foods in China, the major NTBs experienced by exporters are Notice-and-Comment Procedures.
Notice-and-comment procedures
Notice-and-comment procedures released by the CIQ are becoming more prevalent in the process of drafting trade laws, regulations, and departmental rules. This means that regulations can change any time and changes in regulations apply immediately. However, not all trade-related information is made available to the public, which can result in challenging situations at the border exporters cannot prepare for.
Although regulations are routinely published, laws are being passed at different levels – central, provincial, municipal – and can often contradict each other and leave a wide margin of discretion when it comes to apply them properly.
3.3.2.1 Registration and Certification
The importing process into China requires licenses and certifications – the most important features are explained below.
AQSIQ and CNCA registration
Foreign producers need to register as “foreign exporter producer” through AQSIQ, which can be done online.31 The registration number received is valid for four years and needs to be stated on the packaging of the imported products. For specific product groups such as meat, a hygiene certificate is required by the manufacturer that has to be applied for at the Chinese Certification and Accreditation Administration (CNCA).
Importers are required to register products online through AQSIQ and they are also required to have a relevant business license for the relevant product categories they are dealing with. In addition, importers, distributors and agents need to be registered as “foreign trade operator” with MOFCOM.
All exporters and importers of food and beverage require a permit for quarantine inspection which must be also applied for at the Chinese quarantine authority (AQSIQ) representative office prior to any shipments. Packaged animal products or plant products require veterinary or phytosanitary certification. Local AQSIQ offices (CIQs) will assess product samples to check for quality and labelling as well as hygiene standards.
Chinese Food and Drug Administration
Foods and beverages with added health claims are required to be registered with the State Food and Drug Administration (CFDA) and sampling and quality checks can be expected to take longer.
Documentation and certificate of origin
The importation of goods into China must be well documented, e.g. name, specification, quantities, date of production, batch numbers, use by date, name and contact details of the exporter, name and contact details of the importer, and delivery time need to be recorded and kept on file for two years minimum.
31 Refer Annex VII
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For several import products, China requires a certificate of origin to accompany the export consignment, issued by the relevant authority in the exporter’s country (e.g. the NSW Business Chamber, VECCI or AiGroup). Australian suppliers should collaborate with their importers on the certificate of origin, since they are better informed about the Chinese standards to satisfy quarantine and customs authorities.
Organic Certification
The certification body for organic produce is the China Green Food Development Center (CGFDC). The process can be time-consuming and costly. Australian suppliers have paid up to AUD 47,000, for instance, to be certified organic by Chinese authorities – compared to costs of about AUD 2,000 in Australia for organic certification. However, exporters who obtained certification in the past, have been very successful in increasing sales volumes in the Chinese market, being able to label those as “organic”.
3.3.2.2 Labelling
The Chinese consider food labels the most useful source of information regarding health and nutrition issues. “No food additives”, “no preservatives”, “organic”, “sugar free” and similar wordings have become more popular on packaging.
No pre-packaged foods may be imported into China without appropriate Chinese labels. All imported pre-packaged food must be labelled in both English and Chinese (simplified Chinese as used in mainland China). The updated general standard for the labelling of pre-packaged food (GB7718-2011) is applied to the labelling of all pre-packaged foods directly or indirectly offered to consumers. The following minimum information is required on all food packaging:
� Standard name of foodstuffs
� List of ingredients
� Quantitative labelling of ingredients (percentage of ingredient)
� Net weight and configuration
� Name, address and contact info of manufacturer and local agent or distributor
� Production date, use by date and guidance for storing
� Generic name of the food additives as used in the national standard
� Quality grade
� Food production license number
� Code of the product standard
� Special contents if there are any (e.g. irradiated food, genetically modified, nutrition list for baby food or diet food)
Requirements often change and it is encouraged that Australian suppliers re-confirm requirements for labelling and other product certifications with their Chinese importers or relevant departments prior to dispatch of goods for export.
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ANNEX IX — SOURCES OF FURTHER INFORMATION
INDUSTRY ASSOCIATIONS
Australian Food and Grocery Council (AFGC)
The Australian Food and Grocery Council (AFGC) is the leading national organisation representing Australia’s food, drink and grocery manufacturing industry.
W: www.afgc.org.au
Contact Details:
Level 2, Salvation Army Building, 2–4 Brisbane Ave, Barton ACT 2600 P: 02 6273 1466 F: 02 6273 1477
Australian Chamber of Commerce and Industry (ACCI)
ACCI is Australia's largest business association, speaking at a national and international level on behalf of the nation's peak State and Territory Chambers of Commerce and Industry and National Industry Associations from all sectors of the economy.
W: www.acci.asn.au
Contact Details:
ACCI Canberra
Commerce House, Level 3, 24 Brisbane Avenue, Barton ACT 2600 P: 02 6273 2311 F: 02 6273 3286 E: [email protected]
Australian Industry Group (Ai Group)
The Ai Group is a peak industry association in Australia which represents the interests of businesses in an expanding range of sectors including the food industry.
W: www.aigroup.com.au
Contact Details:
Sydney 51 Walker Street, North Sydney NSW 2060 Postal Address: PO Box 289, North Sydney NSW 2059 P: 02 9466 5566 F: 02 9466 5599
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Department of Foreign Affairs and Trade (DFAT)
DFAT provides foreign, trade and development policy advice to the government and works with other government agencies to coordinate Australia’s global, regional and bilateral interests.
W: www.dfat.gov.au
Contact Details:
R.G. Casey Building, John McEwen Crescent, Barton ACT 0221 Australia P: +61 2 6261 1111 F: +61 2 6261 3111
Export Council of Australia (ECA)
The ECA is the industry body for the Australian export community. It supports sector specific associations that represent business engaged in international trade and makes representations to and on behalf of exporters to decision makers.
W: www.export.org.au
Contact Details:
Export House, Level 2, 22 Pitt Street, Sydney NSW 2000 P: 02 8243 7400 E: [email protected] F: 02 9251 6492
Food Innovation Australia Limited (FIAL)
FIAL is an industry-led, government funded initiative to accelerate commercially-driven collaboration and innovation in the Australian food industry.
W: www.fial.com.au
Contact Details:
S6 Bld2 Tech Enterprise Ctr., La Trobe Uni 2 Research Av., Bundoora VIC 3086 P: 03 9479 6043 E: [email protected]
AUSTRALIAN TRADE CHAMBERS AND STATE GOVERNMENT OFFICES
Australian Trade Commission (Austrade)
The Australian Trade Commission in China provides information, advice and services for Australian exporters.
W: www.austrade.gov.au
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Contact Details:
Austrade Beijing 21 Dongzhimenwai Street, Sanlitun, Beijing P: +86 10 8532 8686 F: +86 10 6532 4606
Austrade Chengdu Room 410, Crowne Plaza Chengdu City Center, 31 Zongfu Street, Chengdu P: +86 28 8678 6128 F: +86 28 8678 6228
Austrade Guangzhou 12/F Development Center, 3 Linjiang Dadao, Zhujiang Xincheng, Guangzhou 510623 P: +86 20 2887 0188 F: +86 20 2887 0201
Austrade Hangzhou Suite 5F-J, Zhongtian Mansion, 173 Yu Gu Road, Hangzhou P: +86 571 8517 3529 F: +86 571 8763 1984
Austrade Hong Kong Suite 2404, 24th Floor, Harbour Centre, 25 Harbour Road, Wan Chai P: +85 2 2588 5302 F: +85 2 2827 4145
Austrade Kunming Room 2202, Hongta Mansion, 155 Beijing Road, Kunming Yunnan P: +86 871 6356 1002 F: +86 871 6356 1020
Austrade Nanjing Suite 1163, World Trade Centre, Jinling Hotel, 2 Han Zhong Road, Nanjing Jiangsu P: +86 25 8471 1178 F: +86 25 8470 1068
Austrade Qingdao Room 1001, Crown Plaza, 76 Middle Hong Kong Road, Qingdao P: +86 532 8575 3585 F: +86 532 8577 8960
Austrade Shanghai
2101 CITIC Square,1168 Nanjing Road West, Shanghai P: +86 21 6103 5656 F: +86 21 6321 1222
Austrade Shenyang Room 2604, 26th floor Office Tower, L’Avenue 10 Huigong Street, Shenyang P: +86 24 2278 8269 F: +86 24 2278 8280
Austrade Shenzhen
Shenzhen, Shenzhen Guangdong P: +86 755 6135 2118 F: +86 755 6135 2135
Austrade Wuhan Room 1308B, New World International Trade Tower I, 566 Jianshe Road, Wuhan Hubei P: +86 27 8548 6700 F: +86 27 8576 0026
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New South Wales Trade & Investment
W: www.business.nsw.gov.au
Contact Details:
Australia
Level 47, MLC Centre, 19 Martin Place, Sydney NSW 2000 P: +61 2 9338 6600 F: +61 2 9338 6950 E: [email protected]
Department for Manufacturing, Innovation, Trade, Resources and Energy — South Australia
W: www.dmitre.sa.gov.au
Contact Details:
Level 9, The Conservatory, 131–139 Grenfell Street, Adelaide, South Australia 5000 P: +61 8 8303 2400 F: +61 8 8303 2410 E: [email protected]
Victorian Government Business Offices (VGBO)
W: www.business.vic.gov.au
Contact Details:
CBD — Inner Melbourne Region
121 Exhibition Street, Melbourne VIC 3000 P: (+61 3) 9651 9239 F: (+61 3) 9651 9505 E: [email protected]
Department of State Development — Western Australia
W: www.dsd.wa.gov.au
Contact Details:
1 Adelaide Terrace, East Perth, Western Australia 6004 P: +61 8 9222 0555 F: +61 8 9222 0505
Trade and Investment Queensland (TIQ)
W: export.qld.gov.au
Contact Details:
ASEAN Contact
ANZ Tower, 16th Floor, Jl. Jend Sudirman Kav 33A, Jakarta Marah Hoessein Salim, Trade and Investment Commissioner P: + 62 21 5790 5620