In the 1980s, Tsai Eng-Meng of Taiwan’s I Lan Foods saw an opportunity in the snack market and successfully launched rice flour chips, leading to the formation of Want Want China. Under Tsai’s leadership, Want Want China has become a billion-dollar business with over 80 factories and 41,000 employees, making him one of the richest men in Taiwan.
However, Want Want’s sales and shares have declined in recent years, with revenue falling by 4.4% to $3.2 billion in the last 12 months. The slowdown is attributed to weaker consumer confidence in mainland China, where the company generates about 90% of its business. Competitors in the domestic beverage market, such as Tingyi and Uni-President China Holdings, have also experienced declines in their stock prices.
To combat this decline, Want Want China is implementing new strategies, such as expanding its private-label snack business and introducing low-alcohol beverage drinks aimed at women. The company is also looking to increase its revenue share from outside of mainland China, with a focus on scaling up its factory in Vietnam.
Chairman Tsai has involved his family in the business, with his son Matthew serving as the company’s chief operating officer. The company’s iconic mascot, Hot-Kid, is being phased out as Want Want China shifts its focus towards private-label products and collaboration with retailers and other brand owners.
Despite its past success, Want Want China is aware of the need to innovate and introduce new products to stay competitive. The company is exploring opportunities in the coffee market and has introduced low-alcohol drinks in response to changing consumer preferences. Want Want China is also expanding its international business, targeting markets in Southeast Asia, Africa, the Caribbean, the U.S., and Australia.
The company’s expansion into international markets is supported by its Vietnam factory, which provides access to a large local market and convenient transportation to other Southeast Asian countries. Vietnam’s status as a top rice producer also benefits Want Want China, as it sources rice for its products from the country. Despite the challenges in the market, Want Want China remains focused on growth and innovation to maintain its position in the snack and beverage industry.
