Another home-based business is made bigger.
Chinese localized sauce producer Sichuan Dandan Pixian Bean Paste Group, hereinafter Dandan (Chinese: 丹丹) was reported to conduct initial public offering counseling and filing recently. According to the record, it signed an agreement with China Merchants Securities on June 17, 2022, and the entire listing counseling will continue until April 2023.
As of press time, the date of the official IPO has not been announced to the public.
As "PI County Broad Bean Paste" representative brand, Dandan was founded in 1984, with current registered capital of CNY 401 million. At present, the main products of Dandan are Pixian fermented bean paste (a.k.a. doubanjiang), hot pot base, kimchi, multifunctional compound seasoning, etc.
From 2015 to 2021, Dandan sales revenue grew from CNY 405 million to CNY 700 million, and its production also reached more than 60,000 tons.
According to public sources, China's 2021 compound seasoning market size was about CNY 165.8 billion, with a three firm concentration ratio, or CR3, less than 10%. According to the Chinese spices association data, China's fermented bean paste industry revenue scale reached CNY 40.7 billion, up 13.2%; PI County fermented bean paste industrial output value reached more than CNY 10 billion.
The ready-to-eat food, personalized flavor seasonings and other new categories greatly broadened the use of traditional PI County fermented bean paste scene. And Dandan continues to deep plow restaurant channels at the same time by launching PI County fermented bean paste flavor dry pot seasoning and crawfish seasoning and other products. This move not only makes consumers accept their products, but also expands the market capacity of PI County fermented bean paste through segmentation.
The continued impact of the epidemic on the restaurant industry led to the demand for condiments in the short term being affected, which may also lead Dandan to further seek capitalization. But in any case, Dandan’s IPO is not only the PI County fermented bean paste self-righteousness of the key step, but also plays a great leading and promoting role in the entire traditional sauce-producing industry and food processing industry.