Chapter 346 Opportunities of Instant Noodles and Sausage
Chapter 346 Opportunities of Instant Noodles and Sausage
"Shatin Food Base." Yang Wendong thought for a moment and said, "In theory, it is feasible. The group's current resources are indeed very abundant, and with mutual promotion and help, it can be done.
However, there are many types of food, and we can’t make all of them. Do you have any specific plans?"
Liu Huayu said: "This is very simple. Our supermarket has data on various food retail sales every day. We can choose the best-selling products, and then investigate the group's resources and choose a few to try.
As long as it can be done, Carrefour’s sales can be guaranteed. If Carrefour can sell well, it means there will be a market for exporting to other parts of Asia. And we have no shortage of channels.”
Yang Wendong asked again: "Then what do you think is better to do first?"
Liu Huayu said: "I observed the sales of Carrefour's food products some time ago, and I think instant noodles and sausages are more suitable."
"Instant noodles?" Yang Wendong was a little moved. In fact, he had thought about it a long time ago.
However, his previous physical industries were all related to plastic products and paper. It was a bit risky to rashly enter an unfamiliar field. After all, instant noodles were not his original invention. Even if he squeezed in, he would just be competing with other peers and would not have much advantage.
But now its own retail industry has also grown to a certain scale, and with the expansion of shipping and grain trade and other industrial chains, it has finally brought a closed industrial loop to the instant noodle industry.
Liu Huayu explained: “Instant noodles were invented by a Japanese company in 1958. They are also called instant noodles. They are noodles made from flour, dried through equipment, and then added with ingredients;
In this way, anyone can eat it conveniently, whether soaked in water or eaten dry. Because it is very convenient, it sells very well in Japan. Some of it is also exported to Hong Kong, but it is expensive and not many people buy it.
I have tried it, and it is quite good. If we can produce it in Hong Kong, it will definitely sell well and can even be exported.”
"I know about instant noodles." Yang Wendong nodded and asked, "This thing should also have a patent, right?"
Changxing Group was founded on patents, so it also attaches great importance to patents. Moreover, as a large company, it must abide by the rules, and many products must have patents before they can be produced.
Liu Huayu replied: "Yes, there is a patent. Its holder is Momofuku Ando, who is also the founder of Nissin Foods. Although they have the exclusive patent for instant noodles, they do not produce them alone. Instead, they open up the business. Anyone who is willing can buy the patent license from him."
"Well, that's good." Yang Wendong asked, "Have you contacted them?"
For a normal patent, if the inventor is an ordinary person, the easiest way to make a quick profit is to authorize.
Changxing Group's early post-it notes were office supplies, so the terminals could easily control sales. In addition, the product was very simple and could be produced quickly, which led to its success.
Liu Huayu shook his head and said, "That's all. If the group sets up a food production company, I shouldn't interfere."
"Okay, you are right. Your suggestion is very good, but it really shouldn't be implemented by you." Yang Wendong thought for a moment and said, "Well, give me the sales list of various foods in Carrefour and I'll take a look at it first.
Please investigate various relevant materials, pick a few and check them in detail. In a few days, we will convene an internal meeting for relevant personnel to discuss this matter. "
Liu Huayu agreed: "Okay, I have checked a lot of information, I will sort it out in detail in the next two days."
As a subordinate, when you make a suggestion to your boss, you need to investigate a lot of information. Even if your boss may only need to check one piece of information or even not look at it, it is much better than checking it urgently when your boss needs it.
Of course, if the project involves too much money, you need to ask for instructions.
On May 5, several senior executives of the group gathered in Changxing Building to attend a meeting.
After Yang Wendong came in, everyone stood up.
"Sit down." Yang Wendong waved his hand and said, "Let's discuss business today. Lao Liu proposed to build various food processing factories in Shatin, including instant noodles, sausages, biscuits, and potato chips.
Firstly, these four items are the most in-demand foods for Carrefour itself. If we can supply them ourselves, we can reduce costs. Secondly, these items are also in high demand overseas, so we can also open up the market specifically for them.”
Zheng Zhijie said with a smile: "I think this idea is very good. It can kill two birds with one stone and make full use of the various resources of our group. I have absolutely no problem with it. As long as you say a word, Mr. Yang, I will immediately communicate with the Hong Kong government to buy large-scale land and build houses in Shatin.
The Hong Kong government itself is also thinking about developing the central New Territories. They will definitely be happy if we build a factory in Shatin. As long as the scale is large enough, I can definitely keep the land price to the lowest."
"Well, there's no big problem with real estate." Yang Wendong nodded and said, "And even if the group wants to make a big investment, it will be done step by step. It won't be necessary to buy a large area of land immediately."
Although hoarding land in less prosperous areas of Hong Kong would not result in huge losses during the real estate crisis in 66, there was no urgent need and no need to rush to throw money into the water. No matter how small the amount was, there would still be losses.
"Okay." Zheng Zhijie agreed, "Just let me know if you need anything."
Zheng Yuhua, who is in charge of shipping, also said: "I have no problem here. Whether it is a large ship or a small ship, I can provide it. If the wharf in Shatin is not enough in the future, I can also expand it. It is just to carry the needs of a large enterprise, and the demand for the wharf is not high."
"Well, OK." Yang Wendong said, "Lao Zhou, you are an expert in beverage inventions, so you should know something about the food industry. What do you think about this?"
"From the perspective of development direction, this is the right thing to do." Zhou Haoran looked at the information and asked, "Mr. Liu, have you considered the raw materials for these products?"
"I've thought about it." Liu Huayu said, "The main ingredient of instant noodles is flour, which Changxing Shipping can easily buy from the United States at a low price. The chicken in instant noodles can also be produced by us. Moreover, the chicken in a bag of instant noodles can only be said to be diced chicken, which is very small, only a few grams.
The same goes for biscuits. The main ingredients are flour, and the sugar is provided by Watsons' future sugar factory. Again, you can just go to Taikoo to buy it.
The raw material for sausages is pork, which we don’t have, so we can only buy it. The raw material for potato chips is potatoes, which is the same, so we can just ask China Resources for it.”
Zhou Haoran smiled and said, "You can also find China Resources. China Resources' three express trains have reduced the cost of meat prices by a lot."
"Well, that's fine. Since everyone thinks there is no problem, then let's approve this project first." Yang Wendong nodded and said, "In the initial stage, we will build a medium-sized food factory in Shatin, and then try production. We will decide how to develop it based on market demand in the future." In addition to political reasons, another reason why consortiums are prone to appear in Japan and South Korea is that their home countries are too small, which leads to the need to import many commodities, which is costly.
In order to reduce costs, large conglomerates have to launch projects themselves and gradually optimize the industrial chain, which is different from the mainland in the past.
If Carrefour could buy various supplies at very low prices in Hong Kong, it would not bother to move into the upstream of the industrial chain. The same is true for Changxing Industrial. If early plastic products had not been controlled by foreign companies and arbitrarily raised in price, it might not have thought of investing in the future "Formosa Plastics Group".
"Okay." Liu Huayu agreed and said, "What is the name of this food company? Which subsidiary does it belong to?"
Yang Wendong thought for a moment and said, "Just put it under Watsons, but Carrefour is now a major customer, so you two still have to negotiate and cooperate together."
Zhou Haoran and Liu Huayu agreed: "Okay."
Yang Wendong added: "I am not an expert in food, so I won't ask too many questions, but I also have an idea, you guys listen to it."
"Please speak, Mr. Yang." Zhou Haoran said hurriedly.
Most of the time, as long as the boss's ideas are not too outrageous, they basically need to be implemented. Not to mention, no one will doubt the boss's achievements over the years.
Yang Wendong went on to say: "Of these four products, I am not very optimistic about potato chips and biscuits. The market demand for these two products is indeed very, very large, but the competition is also very fierce. In addition, these two products are not very sensitive to transportation costs, so we do not have any special advantages."
Zhou Haoran also agreed: "Yes, we can only say that in the early stage we will mainly rely on Carrefour's demand, and then try other places and exports."
"Well, you guys can discuss this among yourselves." Yang Wendong added, "What I want to say is that I am more optimistic about instant noodles. This product has only been available for a few years and is a high-calorie, high-salt, and high-fat food, which is very suitable for places with average economies. So I ask you to focus your resources on this area in the future."
In the 21st century, instant noodles were called junk food and were criticized, but those born in the 70s or 80s should have memories that when they were young, instant noodles were the highest quality food and many children wanted to have a bite.
The core logic is that instant noodles themselves are not junk food. They are just high in calories, salt and oil. In the material-rich mainland of the 21st century, eating too much of such food will affect the three highs and cause malnutrition.
But in poor areas or areas affected by natural disasters, such things are excellent tonics. Nowadays, billions of people in Asia are basically in poverty. Although their economic consumption capacity is limited, there will definitely be enough market for instant noodles.
"Okay." Zhou Haoran agreed.
Yang Wendong asked again: "I remember that the instant noodles in supermarkets are all packaged in barrels, right?"
Liu Huayu replied: "Yes, in paper barrels."
"Old Wei." Yang Wendong looked at Wei Zetao, who had little presence, and said with a smile, "I called you here today because I have something important to discuss with you."
"Please speak, Mr. Yang." Wei Zetao said hurriedly. He was also very curious about what he was asked to do in this matter. It turned out to be useful.
Yang Wendong said: "The cost of instant noodles in paper barrels is high, and the transportation cost is also high, so I want to try to put the instant noodles in a sealed plastic bag. Changxing Industry now has some achievements and R&D capabilities in the field of plastics, so this matter needs to rely on you."
In the past, the price of instant noodles in barrels was basically two or three times that of bagged noodles, but the size was similar. The core reason was that the packaging and transportation costs were high. In this era, there are no containers, and the truck technology is not as good as in the past, so the transportation cost is even higher. On the contrary, flour itself does not cost much.
"Packaging instant noodles in plastic bags?" Wei Zetao thought for a moment and said, "It should be possible. I'll go back and arrange for someone to study it."
"Well, okay. Whether our instant noodles can be sold well in Asia depends on you." Yang Wendong smiled and said, "Remember, you have to register the packaging patent."
Once low-cost packaged instant noodles appear, they will definitely have a chance to become the mainstream market demand. At least people who travel frequently will choose this. Packaged instant noodles can also be eaten dry, take up little space in luggage, and can quickly replenish calories and salt. They are simply perfect.
Even, under special circumstances, it is very convenient as military food
"Okay, no problem." Wei Zetao agreed.
"Okay then." Yang Wendong said, "Old Zhou, the food factory is now handed over to you. The first thing to do is to obtain the Japanese patent. Although it may seem like nothing wrong, it is indeed the foundation of our production."
Zhou Haoran replied: "Okay, I will go to Japan tomorrow. Nissin Foods has authorized many companies, and the price is not very expensive. If it is too expensive, others will just try to circumvent it, and even a lawsuit will not be able to clear it up."
"Well, OK, let's get this done as soon as possible." Yang Wendong nodded, and then said, "Then the next one is sausage. I'm not optimistic about this thing either, but what I want is that we make another food similar to sausage. I call it ham sausage."
What many people don’t know is that ham was actually invented in the 80s. Before that, sausages were the mainstream and were full of meat.
"Ham sausage?" Zhou Haoran asked, "What is this?"
Yang Wendong said: "Not everyone needs to eat pure meat sausages. Most people actually need appropriate meat and a lot of starch, so my idea is to combine starch with meat to make sausages.
Although it is just an idea now, according to my estimation, this kind of ham sausage will be softer and not greasy. I predict that the market will be even bigger.”
"Starch + meat?" Zhou Haoran thought about it and said, "We can give it a try."
"Then let's make it ourselves first." Yang Wendong said: "And it will take some time to adjust the proportions."
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(End of this chapter)