Mead Johnson, which has been stable at 234 yuan since the 2010 Spring Festival, will face the first price adjustment after more than two years in the next month. The Southern Capital Reporter was exclusively informed that the company is planning to replace its new equipment at the end of March and upgrade its price increase. The adjustment rate may be 10%-20%. Due to the benchmark position of Mead Johnson in the Chinese market, the industry forecast that the Golden Shield series will be stable at 229 yuan after June 2010 will soon be moving in this year. Coupled with Abbott, which has already heard price rumors, and Wandashan, which has confirmed to start raising prices on the 2nd of next month, public milk brands are bound to set off a new wave of price adjustments in March and April of this year.

Hong Kong milk powder will also increase prices next month

Following the price increase of Bright, Mengniu, Yili and Sanyuan in December last year, Yantang also increased its price by 5% after the start of the new year. The reporter learned that Wei Ji has already adjusted its price by nearly 10%. Hong Man Lou has also increased its quotation, and has gradually reflected it from wholesale channels to supermarkets and other modern channels. The average increase before the end of the month will be 3%. Yakult, which has not risen for 10 years, will also start from this month. The supermarkets in Guangdong will be adjusted from a row of 8.8 yuan to a row of 9.8 yuan, and will be reflected in the channel of “Miss Yakult” before the end of the month. Bright suppliers revealed that yogurt products are also brewing an average price increase of 10% starting next month.

The change in the price of infant formula powder affects consumers more. Wandashan has issued a notice to increase the ex-factory price to the channel, and it is expected that the adjustment will be completed before March 21st. Southern reporters learned that Mead Johnson, after not moving for two years, will also make a facelift in the next month, raising the price by more than 10%, and the news that Abbott will rise by another 10% in the same period. In this regard, Mead Johnson responded to the reporter's report that it has not received the relevant notice, and Abbott said that it has no such plan.

“The Hong Kong-based Mead Johnson has completed a facelift upgrade. At present, there is no promotional section for HK$294.” According to industry sources, Mead Johnson and Mesophyll are two of the most popular brands in Hong Kong, and the latter will also start to offer next month. The price of about 10%, and led to the overall price adjustment of other brands wave. "Actually, Dumex, which has a market share of about 12%, has been targeting Mead Johnson's price target. After Wyeth, Nestle, and Abbott launched more than 300 yuan of ultra high-end milk powder and experienced several rounds of price increases, the two largest brands have become the selling price. The lowest foreign milk powder, so this round is bound to follow in the near future."

Dumex told the Southern Capital Reporter that it divided into the Jinlingzhi series, Beilejia series and the Golden Shield series. The latter accounted for 70% of the sales volume. After products were upgraded and improved in May and June 2010, prices were adjusted. There is no price change "for the time being, adjustments have not been considered and will not change due to competitors."

Wyeth's bid for the U.S. Alliance PK Nestle next week

In the past two years, the price adjustment of milk powder can be described as one after another. In 2010, Nestlé officially increased the price of some adult milk powder by 5%-10%, followed by Ausnutria, Beinmei, 10%, followed by Mead Johnson by 8%, Wyeth and Meisu by 5%-10% after the end of May. Abbott raised prices. Also reached 4.97% -7.69%. Last year, after Ausnutria and Messine raised their prices by 10% in April and were regulated by the National Development and Reform Commission, Wyeth and Abbott took the lead in breaking through the red line by 10% in June.

According to the 2011 financial report released by Mead Johnson, sales increased by 17% to US$3.677 billion. The gross profit margin has indeed declined slightly from 2009 to 2009, from 65.5% to 63%, but it has remained stable. Directly constitute the basis for price adjustment.

“The multiple price adjustments of major brands confirm that China’s infant formula milk powder field is a totally inelastic market, that is, the amount brought by price increase is greater than the reduction.” Song Liang, Analyst of China Business Center for Circulation Productivity Promotion Said to South.

The upcoming Wish bid for March 5th will profoundly change the pattern of the global, especially China's milk powder market. According to foreign media sources, Pfizer has approved Danone's joint bid with Mead Johnson to conduct PK with Nestle.

In Song Liang’s view, this bid will become a key event for “who will have Asia’s dominance.” Any party that eats Wyeth will cause an anti-monopoly investigation in China. “But it should not be rejected. It mainly depends on Whether or not the market is maneuverable, whether or not joint price increases are to be made, etc. From this point of view, the price adjustment at this time is bound to be more cautious for the major ocean milk powder giants.

Industry claims

Song Liang, Analyst of the Center for the Promotion of Circulation Productivity of China Merchants Co., Ltd.: The lack of elasticity in the field of milk powder has been confirmed by several price adjustments by major brands. China's infant formula milk powder field is a market that is completely inelastic, that is, the increase in the ratio caused by price increases. More volume. The distrust of domestic brands and the blind trust in foreign milk powder have led to 85% of foreign brands in the first and second tier cities. Among them, 5 brands account for 60%, and 3rd and 4th tier cities import brands account for 30%-40%. Only 5 Only 90% of domestic brands in the line market have space.