SHANGHAI: Want Want China Holdings Ltd is facing growing pressure to revive growth after its founder described the company’s recent performance as a “major operational crisis”, prompting a rare public response from the snack maker and renewed calls from consumers for healthier products.
An internal letter from chairman and chief executive officer Tsai Eng-men circulated widely on social media this week.
In the letter, Tsai said the group’s first quarter revenue and profit had fallen short of expectations and urged employees to confront structural challenges, including weak product innovation and an ageing distribution network.
The candid remarks quickly sparked discussion online, with many consumers expressing nostalgia for the snack and beverage maker, while offering suggestions for revitalising the brand.
The most common recommendation was to reduce sugar, with the hashtag “Want Want’s biggest rival turns out to be sugar” trending on Weibo last Friday.
Later that day, Tsai Wang-chia, the company’s chief operating officer and the second son of the chairman, responded in a post on social media.“Every consumer is our bread and butter,” he wrote, saying the company had listened carefully to consumer feedback and would continue to innovate. “Want Want people fear no challenge.”
Want Want also sought to address the criticism through its official “Want Want Club” account, highlighting a portfolio of sugar-free and low-sugar products, including beverages and snacks, in an apparent effort to reassure consumers that it has already begun adapting to changing dietary preferences.
The online debate underscores the challenges facing the legacy food and beverage companies as consumers increasingly seek healthier products while competition from emerging domestic brands intensifies.
Founded in 1962, Want Want expanded into the mainland in the early 1990s and built one of the country’s leading snack and beverage businesses through an extensive manufacturing and distribution network.
The company’s food and beverage holding arm, Want Want China Holdings, was listed in Hong Kong in 2008. — China Daily/ANN
