After filling up the drinks, replace them with instant noodles! It is rumored that Master Kong’s price increases again in China due to upgraded vegetable buns

Master Kong (00322-HK), China\’s leading instant noodle brand, has recently become a hot topic on social media platforms because the company announced that it will increase prices for bagged and barreled noodles this month (May) due to rising raw material prices. The selling price has increased by RMB 0.2 to RMB 0.5. Previously, Master Kong had also raised the selling price of iced black tea and other beverages.

Master Kong (00322-HK), China\’s leading instant noodle brand, has recently become a hot topic on social media platforms because the company has announced that it will increase the prices of bagged and barreled noodles this month (May) due to rising raw material prices. The increase ranged from RMB 0.2 to RMB 0.5. Tingyi had also raised the price of iced black tea and other beverages before.
Although Master Kong has not come forward to confirm, according to Master Kong’s first-tier city salesmen, instant noodle agents, supermarket personnel and other people, the price increase seems to be imminent.
According to a report by China\’s \”Red Star Capital Bureau\”, Mr. Wang, a Master Kong agent in the southwest region, said that he was notified by the manufacturer in early May that the price of the products would increase due to the upgrade of vegetable bags. A staff member of a supermarket in Taizhou, Zhejiang said that a Master Kong salesperson said that around May 10 It was revealed that the price of barreled noodles will be increased across the board. The purchase price of barreled noodles has increased by about 0.4 yuan per barrel. The barreled instant noodles in stores have increased by 0.5 yuan per barrel.
A salesperson in a certain first-tier city pointed out that Master Kong will raise its recommended retail price starting next month. This increase affects national products, including classic barrels, classic single bags and classic five-packs. Sources also revealed that the latest batch of goods delivered by Master Kong has been printed. Add a new upgrade slogan.
Affected by the above news, the price increase of Master Kong\’s instant noodles became a hot search topic last Thursday (16th), and the discussion volume quickly exceeded 10,000 views and reached 120 million. Netizens\’ reactions to this news were generally more negative than positive.
In fact, this is not the first time that Master Kong has adjusted product prices.
As early as the beginning of 2018, Master Kong announced a price increase. Bag noodles increased by RMB 2 per box, and barrel noodles increased by RMB 1 per box. In the third quarter of 2021, prices for 20% of its items were increased to varying degrees. In the first quarter of the year before, Master Kong Classic Bags The price of classic barreled instant noodles increased by 12.5% ​​from 2.5 yuan to 2.8 yuan, and the price increased by 12.5% ​​from 4 yuan to 4.5 yuan. The background of these three waves of price increases is also the increase in raw material and personnel costs.
However, the price increase did not make Master Kong\’s instant noodle business more profitable. In the 2022 financial report, although the instant noodle business revenue increased by 4.17% year-on-year to 29.634 billion yuan, the gross profit margin decreased by 0.41 percentage points annually to 23.95%. This decline also continued into 2023. Year.
According to Nielsen IQ data, in the first 11 months of last year, the sales volume of instant noodles in the Chinese market dropped by 2.4% year-on-year, with physical and online sales falling by 0.7% and 17.5% respectively, indicating that the sales volume of China\’s instant noodle market continued to decline.
Therefore, the possible price increase this time is likely to increase revenue and alleviate the performance growth pressure faced by the group.

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