Mingming Henmang's Private-Label Products Fade from Prime Shelves as Strategy Shifts to Cold Chain

By Zheng Mingzhu, Economic Observer

It has been a year and a half since MUMU HENMANG Commercial Chain Co., Ltd. (01768.HK, "MUMU HENMANG") launched its private label products with great fanfare in February 2025.

In mid-September, an Economic Observer reporter visited several snack stores under MUMU HENMANG and found that its private label products were no longer placed in prime shelf positions but had been moved to corners. Meanwhile, the company's 2025 annual report and 2026 interim report made no mention of "developing private label products," a strategy that had been listed as a "strategic pillar" in its April 2025 listing documents.

Based on recent in-store visits and online store surveys across multiple cities, the Economic Observer found that MUMU HENMANG's shift in private label strategy has become increasingly clear. At a time when many retailers are doubling down on private labels, MUMU HENMANG has chosen a different path, directing resources elsewhere.

Where Did the Private Labels Go?

An Economic Observer reporter visited two Zhao Yiming Snack stores under MUMU HENMANG, located north of the Fifth Ring Road in Beijing. The findings were as follows:

• Central shelves: Displayed products from third-party brands such as Wahaha beverages, Yili pure milk, and Haihe milk.
• Entrance shelves: Only one MUMU HENMANG-branded product was visible — jasmine tea or oolong tea, priced at RMB 1.9 per bottle.
• Back shelves: One MUMU HENMANG steak crisp product was found, priced at RMB 9.9 per pack.

No other private label products were observed.

On online platforms, MUMU HENMANG's private label presence was also muted. On September 23, the reporter searched for multiple Zhao Yiming Snack stores in Beijing on Meituan. The "group buying" option only featured a 600ml x 3 pack of MUMU HENMANG jasmine/oolong tea, with a member price of RMB 5.4, requiring registration or membership binding. All group-buy vouchers were limited to in-store pickup, with no delivery option. Similar conditions were found at Snack HENMANG stores in Chengdu and Changsha. In Zhengzhou and Jilin, some Zhao Yiming Snack stores on flash-delivery platforms offered delivery but only six private label products: jasmine tea, oolong tea, crispy seaweed, mini dried beef, craft beer, and Pilsner beer.

This stands in stark contrast to the scene when MUMU HENMANG first launched its private labels in February 2025.

At that time, the company introduced its "Red Label" and "Gold Label" series, covering over 30 products including sugar-free oolong tea, whole milk, seaweed, and beef jerky. The launch was seen as a significant move by the snack retail industry to transition from a channel brand to a product brand. Back then, the most prominent shelf positions were occupied by the company's own private label products.

Strategic Shift Reflected in Financial Reports

The shift in MUMU HENMANG's private label strategy is also evident in its financial reports:

• April 2025 listing document: The strategy section specifically listed "developing private label products," stating: "We plan to further analyze consumer preferences, taste trends, and other aspects to identify unmet consumer needs and strategically develop private label products."
• 2025 annual report and 2026 interim report: This statement no longer appears.
• January 6, 2026 listing document: Noted that for the nine months ended September 30, 2025, revenue from private label product sales was "not material."

From a high-profile entry to a quiet retreat, why did MUMU HENMANG make such an adjustment? What considerations lie behind it? MUMU HENMANG did not respond to inquiries.

However, on April 1, 2026, MUMU HENMANG Chairman and CEO Yan Zhou stated at an earnings call that private labels are not a core strategy. He explained that retailers typically pursue private labels for pricing power and higher gross margins, but about 80% of MUMU HENMANG's in-store products differ from those in traditional retail channels. For example, unique snacks like chicken feet, melon seeds, and beans already offer differentiation, eliminating the need for private labels to achieve that goal. From a user experience perspective, if the store were filled entirely with its own branded packaging, the sense of surprise and variety would disappear. Therefore, the company prefers to serve as a showcase for Chinese food manufacturers.

Diverging Paths in a Duopoly

In the duopoly landscape of the snack retail industry, MUMU HENMANG and Wanchen Group (300972.SZ) are taking diverging paths regarding private labels.

A MUMU HENMANG franchisee told the Economic Observer that sales of MUMU HENMANG's private label products have been average. The stores carry more exclusive products in various specifications, while Wanchen Group's Haoxianglai stores offer relatively more private label products.

Wanchen Group's 2025 annual report and 2026 interim report both stated: "Based on deep insights into consumers across regions, we are deepening cooperation with upstream suppliers, continuously improving product selection capabilities, and developing customized products and private label products to meet differentiated market demands."

A reporter visiting a Haoxianglai Snack Paradise store (Beijing Longde Plaza) observed:

• Right-side shelves near the entrance: A large number of private label beverages with the "Haoxianglai Selection" logo were displayed alongside third-party brands such as Nongfu Spring, Genki Forest, and RIO. The same was true in the freezer.
• Further inside: Shelves featured Haoxianglai coffee liquid, dark chocolate latte, and other products.

A September 17 post on Haoxianglai's official WeChat account announced the launch of an "Autumn Flavor" themed private label series, including Haoxianglai Selection juice apricot dried fruit, Haoxianglai Selection juicy yellow peach, Haoxianglai value starfruit and apricot juice tea drinks, Haoxianglai Selection pumpkin water, and Haoxianglai Selection taro paste and crispy pastry.

As Yan Zhou noted, retailers pursue private labels for pricing power and higher gross margins. Comparing the gross margins of the two industry leaders:

| Period | Wanchen Group (Snack Retail) | MUMU HENMANG | |--------|------------------------------|--------------| | 2024 | 10.86% | 7.6% | | 2025 | 12.32% | 9.8% | | H1 2026| 12.74% | 11.5% |

MUMU HENMANG's gross margin has consistently lagged behind Wanchen Group's, though its revenue scale is larger. In the first half of 2026, Wanchen Group reported revenue of RMB 34.836 billion, while MUMU HENMANG reported RMB 45 billion.

A Minority Choice in Retail

From an industry-wide perspective, MUMU HENMANG's approach is somewhat of an outlier. Most retailers are currently doubling down on private labels. According to industry insiders, the core value of private labels lies in stabilizing and improving overall gross margins, but this requires sufficient scale, supply chain capabilities, and customer trust. Private labels in the snack retail sector are particularly challenging, as they must maintain extremely low retail prices while leaving reasonable profit margins for suppliers — a difficult balance. Previously, a supplier told the media that MUMU HENMANG's required profit margins and costs were so low that they breached the supplier's cost tolerance, ultimately leading to the termination of the partnership.

Based on management's recent statements, MUMU HENMANG is now directing more capital toward new areas such as cold chain logistics. At the company's first post-IPO earnings call in April 2026, Yan Zhou mentioned that the company would systematically advance cold chain construction in 2026. As consumers increasingly seek products with fewer additives, shorter shelf lives, and healthier options, MUMU HENMANG plans to make cold chain a long-term infrastructure project, enhancing delivery frequency and infrastructure investment to build new competitive advantages. Meanwhile, high-quality leisure foods such as freeze-dried durian and chestnuts are also key areas of focus.

(Author: Zheng Mingzhu)