Recently online reportsThree squirrelsIn 2019, an advertisement page of a company limited by law used the “red scarf” pattern in violation of regulations, which aroused social concern. In this regard,Three squirrelsTo care, support, trustThree squirrelsOf consumers and all walks of life express their sincerest apologies.
Violation of the red scarf pattern used in commercial advertisements
Previously, in March 2019, three squirrels hosted the “331 Complementary Brain Festival” related topics. In the relevant advertisement picture, the pictures of two teenagers wearing red scarves were not compliant, and the contents of the advertisements are no longer available for viewing.
It is understood that the “Regulations on the Production and Use of the Chinese Youth Pioneer Team Flag, Team Emblem and Red Scarf, and Team Leader Logo” issued by the National Youth Work Committee on November 28, 2005 show: China Youth Pioneer Team Flag and Team Emblem Hehong scarves, team leaders’ logos and their patterns shall not be used in trademarks, commercial advertisements and commercial activities.
In addition, in 2020, the General Office of the Youth League Central Committee and the Office of the National Youth Work Committee issued the “Chinese Youth Pioneer Red Scarf, Team Flag, Team Emblem, Team Committee (Captain) Logo and Team Song Management Regulations” once again clarified: red scarf, team flag, Team emblems, team committee (captain) logos and their designs, names, team song names, lyrics, scores, etc. shall not be used or disguised as corporate names, trademark registrations, commercial advertisements, commercial, entertainment and other activities, and may not be used in private celebrations , Party and other inappropriate occasions.
Three squirrels apologize: the audit is not strict
On January 3, the three squirrels issued a letter of apology:
In response to the above problems, the company set up a working group as soon as possible to conduct self-examination and self-correction from advertising, official website, product packaging and detail pages in combination with similar issues that everyone has discussed recently.
After investigation, the advertisement was launched on March 28, 2019. Three Squirrels Co., Ltd. did not strictly check the online review of this page. After receiving a letter from the Wuhu Municipal Youth Work Committee, Three Squirrels Co., Ltd. realized the seriousness of the problem, and offline related pages and products on April 1, 2019, and strengthened internal compliance audits and employee training. Propaganda.
The three squirrels are rooted in China and founded in Wuhu, Anhui. They are a native national brand. All walks of life are welcome to continue to pay attention to the three squirrels. The three squirrels will humbly accept the supervision and criticism from consumers, regulatory authorities and the media, and use this as a lesson to correct deficiencies and avoid the recurrence of such problems.
“Squinted Eyes” Advertisement Accused of Demonizing Chinese People
Recently, some netizens posted the product promotion posters of the three squirrels in October 2019. Due to the “squinted eyes” and thick lips of the models in the posters, some netizens believed that the three squirrels were deliberately demonizing the Chinese people. “Squirrel Model” on the topicWeiboHot search.
In response to questions from some netizens, the three squirrels issued a statement stating that after investigation, the product was launched in October 2019. The model on the page is a Chinese, and their makeup is based on their personal characteristics, without deliberately ugly. The three squirrels apologized for the discomfort caused by the netizens, and the page was replaced at the first time, and the company’s other product pages have been arranged to prevent similar situations.
High marketing expenses
According to data, Three Squirrel Co., Ltd. was established in 2012, and its main business covers all types of snacks such as nuts, dried meat, dried fruit, puffed and so on. In July 2019, the three squirrels were listed on the Shenzhen Stock Exchange’s Growth Enterprise Market and became the “first share of national snacks”.
From revenue andNet profitLooking at the revenue and net profit of the three squirrels, they have steadily increased, but the marketing expenses have been consistently high and have been criticized.
The financial report shows that from 2016 to 2020, the three squirrels achieved revenues of 4.423 billion yuan, 5.554 billion yuan, 7.01 billion yuan, 10.173 billion yuan and 9.794 billion yuan, respectively, and attributable net profits were 237 million yuan, 302 million yuan, 304 million yuan, 239 million yuan and 301 million yuan. Sales expenses during the same period were 917.8 million, 1.075 billion, 1.461 billion, 2.298 billion, and 1.712 billion, accounting for 20.75%, 19.36%, 20.87%, 22.59%, and 17.48% of revenue.
The 2021 third quarter report released by the three squirrels shows that the company achieved the first three quartersOperating income7.07 billion yuan, a year-on-year decrease of 2.23%, and realized attributable net profit of 442 million yuan, a year-on-year increase of 67.35%. Among them, sales expenses are 1.466 billion yuan, accounting for 20.74% of revenue.Compare snack brandsWant Want China(0151.HK), operating income in the first half of the year was 11.597 billion yuan, sales expenses were 1.427 billion yuan, and the sales expense ratio was 12.30%.
The huge marketing investment really gave the three squirrels a bonus. The three squirrels were originally a Tmall store selling nuts. Relying on excellent brand marketing and rapid development of e-commerce dividends, in just 5 months of its establishment, it achieved sales of 7.66 million yuan in Double 11 in 2012.
Since then, the three squirrels have dominated the Tmall Double 11 food list all year round, and Moutai has been left behind by them. On Double Eleven in 2021, three squirrels will become Tmall,JingdongNo. 1 among the four core channels. Tmall’s nut sales far exceed the sum of 2-10, with a market share of 62% of the nut gift package sales.
Quality problems are frequently questioned
Increasing with sales is the quality of the three squirrels.
In February 2016, three squirrels fell into the whirlpool of the cyclamate-excess incident. In May of the same year, they were fined for adding drugs to food.
In August 2017, a pistachio was listed on the “black list” of the regulatory authority due to the mold exceeding 1.8 times the standard. On August 10 of the same year, he was fined 50,000 yuan by the Wuhu Food Supervision and Administration Bureau because the food produced did not meet the food safety standards.
In September 2020, the pecan kernels produced by Anhui Squirrel Yunzhan’s Food Co., Ltd., in which three squirrels participated, were sampled and found that the mold item did not meet the requirements of GB19300-2014 “National Food Safety Standard Nuts and Seeds”. The mold detection value was 35CFU/g, which was judged as “unqualified”. The company was eventually confiscated by the Market Supervision and Administration Bureau of Jixi County, Anhui Province, 63.9kg of pecan kernels that did not meet the food safety standards, and fined 15,000 yuan.
In October 2020, the Shenzhen Consumer Council selected 15 domestic and foreign well-known brand potato chips for comparative tests. The test results showed that the content of acrylamide (category 2A carcinogen) in three squirrels original crispy potato exceeded 2000μg/kg, and The benchmark level set by the European Union is 750μg/kg.
On October 31, 2020, the Heilongjiang Provincial Institute of Quality Supervision and Inspection carried out the task of national food safety supervision and sampling, and selected a batch of open pine nuts (specifications) from the Chengdu branch of Chongqing Carrefour Commercial Co., Ltd. Model: 160g/bag; production date: 2020-05-23). After inspection, the “peroxide value (calculated as fat)” item was unqualified.
In November 2020, the three squirrels’ potato chips acrylamide was too high, reaching 2000μg/kg, far exceeding the benchmark level of 750μg/kg previously set by the European Union.
In May 2021, the General Administration of Market Supervision announced that the content of open pine nuts sold in the Chengdu branch of Chongqing Carrefour Commercial Co., Ltd. in Sichuan Province and nominally divided by Three Squirrel Co., Ltd. in Wuhu City, Anhui Province, had a peroxide value (calculated as fat). 2.2g/100g, while the standard value is less than or equal to 0.50g/100g, the exceeding range is up to 3.4 times.
Advertising rollovers and quality issues are frequently questioned. Is the three squirrel re-marketing model okay?
(Source: CDC Finance)
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