Weilong Delicious Global Holdings Co., Ltd. Faces Decline in Sales of Spicy Strips
The financial report for 2023 from Weilong Delicious Global Holdings Co., Ltd. (Weilong Spicy Tiao) has revealed a decrease in revenue from their seasoned noodle products, specifically spicy strips. The report shows that revenue from spicy strips was 2.549 billion yuan, a decrease of 6.25% compared to the previous year. The sales volume also saw a decline, with 124,400 tons sold, 17.4% less than the previous year.
This decline in sales has led to a decrease in Weilong’s seasoned noodle product capacity utilization for the second consecutive year. The company’s designed production capacity dropped from 242,400 tons to 237,700 tons in 2023.
The spicy tiao business is a significant revenue source for Weilong, but with declining sales of spicy strips, its contribution to the company’s overall revenue has decreased. In 2023, the revenue share of seasoned noodle products dropped by 6.4 percentage points to 52.3%.
The decline in sales of Weilong Spicy Tiao is reflective of a larger trend in the Chinese food industry. The 2023 Global Premiere Hurun China Food Industry Top 100 List showed a decrease in the total value of companies in the industry, with Weilong experiencing the largest drop at 55%.
Analysts attribute the decline in sales of spicy strips to the company’s continued price increases. The average selling price per kilogram of seasoned noodle products has risen by approximately 43.36% from 2019 to 2023. Additionally, the market for spicy noodles is highly competitive, providing consumers with many options to choose from.
Despite the decline in sales of spicy strips, Weilong’s revenue from vegetable products has increased. In 2023, vegetable products revenue saw a year-on-year increase of 25.1%, accounting for more than 43% of total revenue.
The news of Weilong’s decline in sales has sparked discussion among netizens, with some attributing it to high prices and others citing concerns about taste and health. As consumer preferences shift towards healthier options, it remains to be seen how companies in the food industry will adapt to these changing trends.
Editor in charge: Liu Yi#