In October, rice fields appeared at the New Catering Forces Conference to discuss new trends in industry development.

On October 15th, the Restaurant New Forces Conference, co-hosted by Youge Supply Chain and Jianmen, took place in Beijing. Among the participants was October Rice Field, famously known as a “kitchen food dark horse.” The brand’s founder, Wang Bing, engaged in a roundtable discussion alongside over 1,000 leaders from the chain restaurant industry, exchanging insights on development.

A prominent question arises: How can a food company carve out a market presence in a relatively mature landscape while achieving sustained growth? Observing October Rice Field’s developmental trajectory and its recently disclosed performance metrics, it may offer a valuable reference point for the industry.

The dual drivers of growth have put October Rice Field on a commendable upward curve, but achieving this has been no easy feat. As reported, the company released its financial results for the first half of 2024 at the end of September, revealing impressive figures that caught industry attention. The report indicated that October Rice Field earned 2.62 billion yuan in the first half of 2024, a 17.7% increase from the previous year, alongside an adjusted net profit of 149 million yuan, which marked a 30.6% rise.

During this reporting period, October Rice Field not only focused on its existing high-quality categories such as pre-packaged rice, grains, legumes, and dried products, but also expanded its product matrix. The company strengthened its sales network and enhanced its multi-brand commercial models while solidifying its supply chain management capabilities. This array of strategies has provided a stable foundation for its positive results.

Stability has emerged as a key theme in October Rice Field’s growth narrative. Data from its prospectus highlights a significant achievement: the company’s revenue climbed from 2.33 billion yuan in 2020 to 4.53 billion yuan in 2022, showcasing a remarkable compound annual growth rate of 39.6%, well above the industry average. The latest financial report further underscores this trend with a first-half revenue of 2.62 billion yuan, a 17.7% year-over-year increase, and an adjusted net profit of 149 million yuan, reflecting a 30.6% growth.

Notably, revenue from corn products surged significantly during this period, evidencing substantial innovation within its product line. The company successfully transformed corn into convenient, snackable fast-moving consumer goods (FMCG) with inventive offerings such as corn sticks, segments, kernels, and popcorn. By concentrating its efforts on this corn segment, October Rice Field has successfully charted a new growth trajectory.

In the context of an evolving economic cycle and escalating market competition, few companies have maintained such upward momentum. Success in this climate demands that firms overcome rigorous scrutiny on both operational performance and market adaptability. Achieving impressive results amid these tests highlights a company’s resilience, competitiveness, and potential for long-term growth.

Moreover, the stability of its core offerings cannot be overlooked. While the broader consumption market faces pressures and raw material costs rise, many grain and oil enterprises reported lackluster performance in the first half of 2024. Focusing specifically on rice products, October Rice Field reported revenues of 1.707 billion yuan during this period, a decrease of 1.9% attributed mainly to rising costs of raw rice materials, which led to adjustments in sales pricing and product mix. Despite this, October Rice Field has consistently been the leading brand in nationwide sales for northeastern rice for five consecutive years, serving 130 million Chinese households across all channels.

When examining the rapid growth of its corn-centered products, grains, and legumes, the figures reveal a remarkable 151.9% increase in revenues, reaching 726 million yuan. The escalating consumer demand for healthier food options has elevated corn’s status as a recognized health grain, enhanced by the growing trend toward staple foods. October Rice Field seized this momentum, utilizing its established industry advantages to launch convenient, attractively packaged, fresh and safe corn products that resonate with consumers, thus emerging as a notable player in the market.

Currently, October Rice Field’s corn category has evolved into another billion-yuan product segment, with ongoing efforts to explore the potential of the health-conscious consumer market.

In a landscape marked by volatility, the essence of long-term value emerges as the key to success. High-quality products cultivate strong market responses, driving steady growth and facilitating a complete loop of quality development. October Rice Field remains solidly anchored in premium agricultural regions of Northeast China and Inner Mongolia, investing millions in establishing modern factories equipped with advanced technology across five core grain-producing regions. Additionally, the company has developed a comprehensive logistics system and is actively engaged in both online and offline channels.

While internal strength is vital, an integrated approach enhances a company’s overall capabilities. Recently, October Rice Field has showcased its marketing innovation through various channels, including online TV commercials, posters, and live streaming, as well as offline advertising at airports and elevators. These marketing strategies boost brand awareness and stimulate external brand effects.

In this natural evolution of seeking growth amid fluctuations, a company’s long-term value is defined by its ability to sustain “blood generation,” moving beyond short-term volatility. October Rice Field has demonstrated resilience and adaptability through its stable rice foundation and groundbreaking corn segment, supported by a holistic strategy that enhances its operational structure, fortifying its risk management capabilities and fostering a more assured trajectory for future growth.

As we look ahead, creating long-term value will undoubtedly be critical for sustained development. October Rice Field exemplifies this potential, and it will be exciting to witness the growth trajectory they will carve out in the future.