How China’s largest snack producer is fending off competition from Mars and Mondelez
- Three Squirrels counts on its knowledge of local culture and shopping habits to capture sales from Chinese millennials
- Company aims to increase its outlets to boost sales tenfold in the next 10 years
Three Squirrels Inc, China’s biggest snack food producer, is counting on the millennials with a distinct taste for local flavours to help grow its sales by tenfold to 100 billion yuan (US$14.4 billion) in the next decade.
“We hope Chinese consumers can favour our local snacks,” said Zhang Liaoyuan, founder of the Shenzhen-listed company, where red banners, rousing slogans and striking posters tells his affection for late Communist Party chief Mao Zedong.
While a sense of national pride has pushed Chinese millennials towards home-grown brands, Three Squirrels is also building its market presence by capitalising on its understanding of local tastes, work culture and shopping habits. Its bestselling titbits include nuts and fruits, duck neck and dried pork slices.
The advent of “996” culture, or working from 9am to 9pm six days a week, leaves many workers with less time for long lunch or dinner breaks, the company said. Its snacks have thus become the “replacement meals,” forming the basis for its growth expectations.
Ma Xiaoyi, who works with a consulting company in Shanghai, is one millennial who fits the profile of customers targeted by Three Squirrels.
During a lunch break earlier this month, she visited a Three Squirrels store located just below her office block and bought some packs of her favourite – spicy duck-neck titbits. The snacks come in handy at night when she needs to work overtime in the office.
“I still prefer spicy and salty snacks over chocolates and candies,” said the 21-year old executive. “More importantly, candies can cause weight problems and tooth decay.”