Channel transformation releases new momentum: Happy Family actively expands into the snack wholesale market with notable results

The China food and beverage industry is currently undergoing profound structural changes, and traditional business logic is being redefined. As the macroeconomic environment evolves and consumer behavior becomes more fragmented, the fast-moving consumer goods market has transitioned from the former “channels matter most” approach to a new stage centered on “value for money” and “convenience.” Against this backdrop, traditional distribution channels are generally facing difficulties of growth pressure due to rising traffic costs and constraints on operating efficiency, and the industry as a whole has entered the deep waters of stock-based competition. Meanwhile, snack bulk retail chain channels, leveraging a flattened supply chain structure, frequent SKU updates, and highly competitive terminal pricing, have rapidly pushed down into lower-tier markets, captured consumer mindshare, and gained the advantage from consumer perceptions. This trend toward “disintermediation” at the channel end not only changes the efficiency of product circulation, but also places extremely high demands on brand owners’ response speed and channel adaptation capability.

In response to the decline in distribution channel sales revenue caused by pressure on the consumer environment, Huanlejia has demonstrated keen market insight and strong strategic execution. By proactively seeking change, it has seized the growth window released by the snack segment. The company deeply recognizes that consumer trends are evolving toward “health, snacking, and portability.” Therefore, while maintaining its original sales model, it has decisively chosen to deeply integrate with emerging snack bulk retail chain systems. This transformation is not simply a matter of moving inventory onto shelves; it is based on accurately meeting demand for “high-quality and cost-effective” products. By embracing leading and mid-tier specialty snack channels, Huanlejia successfully achieved a business breakthrough during a period of industry volatility.

According to the company’s latest 2025 annual report, Huanlejia’s performance in emerging channels has been notably effective: the snack bulk retail channel sales model generated operating revenue of RMB 175 million in the reporting period, a year-on-year surge of 52.06%. Behind this impressive result is the full penetration of core products such as canned yellow peaches, canned oranges, and coconut juice across snack retail chain systems. As the number of channel customers increased, product categories expanded, and existing customer order volumes rose steadily, this business segment has gradually formed scale effects. In addition, to adapt to changes in consumer demand, the company has continued to invest in R&D, launching portable new products such as high-barrier bag packaging and fruit cup packaging. At the same time, by reinforcing the brand’s youthful image through diversified approaches such as IP cross-industry collaborations, it has comprehensively enhanced brand visibility across different consumption scenarios.

From the perspective of operating efficiency, Huanlejia’s channel transformation provides strong support for its long-term fundamentals. While actively expanding into new channels, the company has consistently adhered to lean management. By optimizing its marketing system, improving the efficiency of sales expense use, and focusing on the effectiveness of investment, the company’s overall sales expense ratio decreased by 1.25 percentage points in the reporting period. This strategy of pursuing both “expanding channels” and “increasing efficiency” not only effectively alleviates the pressure arising from fluctuations in traditional channels, but also enables Huanlejia to secure a favorable position in the emerging snack bulk retail segment. With the further release of scale effects in specialty snack chain channels, Huanlejia is expected to achieve steady improvement in operating performance through ongoing channel deepening and enhancements to its product matrix.

Statement: This content is sourced from publicly available information. This article is posted for the purpose of conveying more information. The content is for reference only and does not constitute investment advice. There are risks in the market; invest cautiously!

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