"Prefabricated Dishes as the First Stock" Also Wants to Enter Campus

Recently, the topic of "pre made dishes entering the campus" has attracted public attention. Due to the adoption of a central kitchen catering model in many primary and secondary schools and kindergartens, many parents are concerned that the school's unified catering contains pre made dishes, which may be harmful to their children's health if consumed for a long time.

Weizhixiang, a semi-finished food listed company that went public in 2021, has been dubbed the "first stock of pre made dishes" by the market. Previously, the company had revealed that it will add school cafeteria business to its wholesale channels this year. How is the progress now?

"Prefabricated Dishes as the First Stock" Also Wants to Enter Campus

As early as November 2022, when asked by investors about the development of wholesale channels, Weizhixiang stated that the hotel, catering and other customer groups corresponding to the company's wholesale channels were to some extent affected by the epidemic. Therefore, the company is currently increasing the development of school and unit cafeteria customers on the basis of its existing customers.

"After the initial investment in development, this type of customer has high customer stickiness in the future, which helps to further achieve stable development of wholesale channels. In the long run, wholesale channels still have significant development space," said Wei Zhixiang.

In March of this year, when mentioning the development plan of wholesale channels, Weizhixiang emphasized again that the company's wholesale channels were mainly hotels, rural kitchens, and a small amount of cafeteria business. This year, the wholesale channel will add business development for social small catering and school and unit canteens. "The school and unit canteens are being supplied through bidding and are currently in the process of preparation."

In April, Weizhixiang stated during an institutional survey that the school and unit cafeteria have increased their development efforts. Through the integration with new customers, sales will gradually increase in the future. In addition, the development of small social catering is expected to have a certain supportive effect on overall sales in the second half of the year.

Weizhixiang is mainly engaged in the research and development, production, and sales of semi-finished vegetables. It has two major brands, "Weizhixiang" and "Cuiyu". In the first half of 2023, the company achieved a revenue of 417 million yuan, a year-on-year increase of 10.30%, and a net profit attributable to the parent company of 75 million yuan, a year-on-year increase of 6.12%. In April 2021, Weizhixiang was listed on the main board of the Shanghai Stock Exchange, becoming the "number one pre made vegetable stock" on the A-share market.

At the performance briefing on September 12th, investors asked about the issue of "pre made vegetables entering the campus". Xia Jing, Chairman and General Manager of Weizhixiang, said, "The concept of pre made vegetables is too broad and extensive. Many people believe that pre made vegetables are cooking packages and not within the scope of our company's production. The company mainly produces semi-finished vegetables, which are mostly raw."

As for the development progress of the school and unit cafeteria, as well as how much performance increment this part of the business can bring to the company, Xia Jing did not directly answer. He only said, "In the B-end channel of Dianyu, after exploration in the first half of the year, unlike the more scattered customer development methods in the past, the company will implement a '1+N' model in the second half of the year, look for large distributors in different regions or cities, develop products with the mindset of making big explosive products, and establish cooperation with them. By implementing customer development from point to surface, it is more conducive to customer service, and at the same time, consolidate the relationship with distributors, enhance the recognition and security of cooperation."

According to the Tianyancha App, currently, there are no school cafeteria related projects participated in by Weizhixiang and its affiliated enterprises in the bidding process.

On the 20th, in response to the controversy over the development of school cafeteria business and how to respond to the "pre made dishes entering the campus", China News Service sent an interview letter to Weizhixiang. In the reply, Weizhixiang did not mention the development of school cafeteria business, but only stated that Weizhixiang focuses on the research and development, production, and sales of semi-finished dishes, and its products belong to the category of ready to cook pre made dishes. The company attaches great importance to food safety and strictly controls product quality. From the entry of raw materials from suppliers, production, to the final storage of products, multiple product testing procedures are carried out to ensure production safety, compliance, and product quality.

"In the production process, professional equipment is usually used to quickly pass the pretreated products through the largest ice crystal area under the environment of less than -30 ℃, so that the temperature of the hot center of the frozen products can reach -18 ℃ and below, reducing the loss of nutrients, ensuring that the frozen food can still keep its original freshness after thawing, and the company does not add any preservatives, pigments, essence, etc. in the production process." Weizhixiang replied Zhongxin Jingwei.

Why do parents talk about changing the color of pre made dishes?

In the past two years, under the catalysis of factors such as the epidemic, the domestic pre made vegetable industry has developed rapidly. According to data, the size of China's pre made vegetable market was 419.6 billion yuan in 2022, and it is expected to reach 510 billion yuan in 2023 and rise to the trillion yuan level in 2026.

Along with the rapid development of the prefabricated food industry, there are also many doubts, such as whether prefabricated food is safe? Are pre made dishes healthy? And this is also the main consideration for parents to resist pre made dishes entering the campus.

Ruan Guangfeng, Director of the Science and Technology Communication Department of the Kexin Food and Health Information Exchange Center, mentioned that many parents believe that pre made dishes are "cooking bags" and are all additives, and are worried about their safety and health. In fact, ready to serve and ready to cook pre made dishes are the mainstream products in pre made dishes.

Ruan Guangfeng believes that ready to prepare and cook pre made dishes may be more effective in ensuring food safety in certain aspects. "This is because canteens are prone to outbreaks of foodborne diseases, while central kitchens that concentrate on processing prefabricated semi-finished products have a larger production scale, higher level of mechanization, and are equipped with professional personnel, which can more accurately control the ingredients, temperature, and time at each stage, effectively reducing food safety risks. However, the risks of prefabricated dishes mainly lie in cold chain transportation and storage. For food that requires cold chain, if it is de cooled, the safety risks will be greater."

It should be noted that due to the low threshold for the prefabricated food industry and the lack of unified national standards in China, the entire industry is still in a mixed state. Some individual businesses and workshop style processing and production models have not formed a relatively complete commercial operation model, and the products are single, which cannot guarantee product quality and food safety.

"At present, China's prefabricated food industry is not yet mature, and the relevant standards are not particularly perfect. Consumers may worry about food safety, nutrient loss, and other issues with prefabricated food." Wen Zhihong, an expert in chain operation industry and general manager of Hehong Consulting, told China News Service.

The "Pre made Vegetable Consumption Survey Report" released by the Jiangsu Provincial Consumer Protection Commission in February last year showed that consumers are most concerned about food safety issues for pre made vegetables, accounting for nearly 30%, including the freshness of ingredients and whether the production process is clean and hygienic. According to the results of this survey, some consumers have reported that their pre made dishes have deteriorated and spoiled, the ingredients are not fresh, the dishes contain foreign objects, and there are expired products.

"The development of standardized pre made dishes industry requires the country to introduce more specific and targeted standards and norms, including the application scenarios and scope of pre made dishes, and it is necessary to make corresponding regulations. Some pre made dishes can be sold in public restaurants, but may not be suitable for entering primary and secondary schools or kindergartens. The relevant standards should preferably be specific to different dishes, raw materials, etc., so as to not only improve the operational efficiency of restaurants and group meals, but also effectively ensure food safety." Wen Zhihong said.

Zhu Danpeng, Vice President of Guangdong Food Safety Promotion Association and Food Industry Analyst, also mentioned that the country should accelerate the formulation of unified national standards and regulations for the prefabricated vegetable industry, solve the current situation of small, scattered, and disorderly prefabricated vegetable industry, and potential food safety issues.

In addition to food safety issues, the controversy among consumers over pre made dishes also lies in the restaurant's failure to fulfill its obligation to inform.

In the "Analysis of Hotspot Complaints Accepted by the National Consumer Association in the First Half of 2022" released by the China Consumers Association, pre made dishes have been named, stating that "the labeling of pre made dishes is not detailed, the use of pre made dishes in takeout and dine in is not informed, and consumers' right to know and choose is damaged.".

Li Min, Senior Partner of Shanghai Hansheng Law Firm, told China News Service that when restaurants use pre made dishes, they should inform consumers in advance to help them make informed decisions. "Consumers have the right to know the source and preparation method of the food they consume, in order to make choices based on personal needs and preferences. If a restaurant uses pre made dishes without informing consumers, it may infringe on consumers' rights to information transparency, health, and choice."

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Multiple campus catering companies speak out

As the controversy over "pre made meals on campus" intensifies, multiple campus catering companies have responded.

On September 7th, Guangzhou Duomanfen Food Co., Ltd. issued a statement stating that all Duomanfen student meals were made on the morning of the dining day at the fresh site of the central kitchen. The raw materials were sourced from well-known brand suppliers and were processed and cooked on-site at the central kitchen. All processes strictly followed national standards.

Afterwards, Shandong Lixiang Central Kitchen, Hubei Duogu Central Kitchen, Fujian Shangwei Central Kitchen, and Zhoukou Qiansheng Central Kitchen also stated that the company uses fresh ingredients in the process of making student meals, which are processed on-site and made on the same day, without any pre made dishes.

Previously, the relevant person in charge of Ganzhou Ruizong Enterprise Management Co., Ltd., the parent company of Ganzhou Ruizong Central Kitchen, also publicly stated that the company has never purchased pre made dishes, all of which are fresh dishes.

According to media reports, after the start of this autumn semester, several parents in Rongjiang New District, Ganzhou, Jiangxi Province reported that the student meals delivered by the central kitchen of Ruizong in Ganzhou were not delivered in time, and the dishes did not meet the taste, and it was possible that they were pre made dishes.

Many of the above-mentioned companies have significant influence in the field of local campus catering. Among them, Guangzhou Duomanfen was founded in 2003 and claims to be the "most influential large-scale student nutrition meal unit in the Pearl River Delta". As early as 2017, it served more than 40 primary and secondary schools. At present, the registered capital of Guangzhou Duofufen is 55 million yuan.

Shandong Lixiang Central Kitchen is affiliated with Shandong Lixiang Hezhi Catering Management Co., Ltd. It is the first modern central kitchen in Licheng District, Jinan City. The company was established on April 16, 2021, with a registered capital of 50 million yuan. It was jointly established by Jinan Licheng Holding Group and Shandong Clam Brothers Cultural Development Co., Ltd., with the two holding 49% and 51% respectively. Among them, Jinan Licheng Holding Group is actually controlled by the Finance Bureau of Licheng District, Jinan City.

On August 27, 2021, Lixiang Central Kitchen was officially launched and put into operation, with a designed production capacity of 50000 units, including 40000 student meals, which can cover more than 70 primary and secondary schools in Licheng District with catering needs. In addition, there is a production capacity of 10000 units of clean vegetables, serving as a restaurant for the unit.

Public information shows that Ganzhou Ruizong Enterprise Management Co., Ltd. was established on May 16, 2023, with a registered capital of 20 million yuan. Xuchang Ruizong Enterprise Management Service Co., Ltd. holds 85% of the shares, and Ganzhou Rongjiang New Area Jinrun Catering Service Co., Ltd. holds 15% of the shares. And Ganzhou Rongjiang New Area Jinrun Catering Service Co., Ltd. is actually controlled by the Ganzhou Rongjiang New Area Management Committee.

It is reported that the total investment of Ganzhou Ruizong Central Kitchen Project is 100 million yuan, with a daily production capacity of 60000 units. As of August 28th, distribution intentions have been reached with 25 schools in Rongjiang New Area, Ganzhou.

Zhoukou Qiansheng Central Kitchen Main Company is Zhoukou Qiansheng Central Kitchen Catering Management Service Co., Ltd., established on October 19, 2020 with a registered capital of 10 million yuan, and is a member of Zhoukou Urban Investment Development Group.

In addition, Hubei Duogu Central Kitchen and Fujian Shangwei Central Kitchen are respectively affiliated with Hubei Duogu Ecological Agriculture Technology Development Co., Ltd. and Fujian Putian Shangwei Central Kitchen Catering Management Co., Ltd. The former was established on November 24, 2021, with a registered capital of 30 million yuan; The latter was established on September 29, 2021, with a registered capital of 12 million yuan. The shareholders of both companies are natural persons.

It is worth mentioning that some companies have a business scope that covers both student meals and pre made dishes. For example, Fujian Appreciation Central Kitchen mainly provides enterprise and public group meals, student nutrition meals, and social meals, but also offers pre made dishes, Mao Cai, and other businesses.

As for whether pre made dishes are used in student meals, Fujian Shangwei Central Kitchen stated in a statement that the company adheres to fresh ingredients, on-site processing, and no pre made dishes are produced.