"Our business operations do face significant challenges," said Su Zhijie, Greater China General Manager of Associated British Foods, reflecting to Foodinc. This includes inevitable impacts from the consumer environment, such as the slower-than-expected consumption recovery post-pandemic, as well as geopolitical factors.

However, he emphasized that Associated British Foods' market operating philosophy is long-term oriented, and they remain committed to investing in China in the future.

In response to changing consumer preferences, this multinational food and beverage giant has shown considerable agility. For example, amid a trend of cautious consumer spending, Ovaltine has introduced more small-pack products to lower the price threshold for purchase and trial. In addition to adjusting packaging sizes, last year's launches of sugar-free and reduced-sugar formula products, as well as "internet-famous snacks" offering creative eating combinations, have become new selling points for Ovaltine.

It's evident that now, building upon "deliciousness," as consumers desire both indulgence and reduced calorie intake, Ovaltine is undergoing a new round of product positioning adjustments.

In the snack category, Ovaltine' innovation focuses on creative blends. "What really amazed us was the sauce-flavored biscuits launched in November last year, a product developed locally, which excited other market managers greatly when they saw it. The performance of this new product skyrocketed quickly after its launch in November last year, giving us a big surprise in sales," Su Zhijie revealed.

Regarding the new product plans for 2024, Su Zhijie "teased" Foodinc by saying that powder products will continue to focus on sugar reduction, introducing more healthy and delicious new products. In the beverage segment, there are plans to launch some co-branded products, and besides consolidating its position in the biscuit domain, "we will introduce new items and explore categories related to chocolate."

Foodinc noted that through third-party authorized cooperation, Ovaltine' product forms and combinations have been greatly enriched. "As the brand owner, we focus more on brand building, while they are more grounded, focusing more on product development and sales operations," Su Zhijie said. In the future, Ovaltine hopes to cooperate with more like-minded partners who have a long-term operating philosophy, ensuring food safety, product quality, and after-sales support.

"We have made many co-branded attempts in the B2B catering business, and consumers will soon see more new co-branded collaborations," Su Zhijie told Foodinc.

In the Chinese market, Unilever Food also holds another "ace": Twinings Tea. "Earl Grey and English Breakfast Tea are our most classic core products, and now our sleep tea is also selling very well, becoming a sales highlight in 2023," Su Zhijie told Foodinc. In the Chinese market, Twinings Tea will focus more on telling stories about tea's health and wellness benefits.

Su Zhijie said, "If these two brands, Ovaltine and Twinings, disappear in China, then our company also disappear, so we have no retreat, only to move forward. We are full of confidence in the future growth potential of our business in China."