Mingming Henmang's private-label products lose prime shelf space as strategy shifts to cold chain

By Zheng Mingzhu, Economic Observer

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

In mid-September, an Economic Observer reporter visited several snack stores under Muming 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 store visits and online store surveys across multiple cities, the Economic Observer found that Muming Henmang's shift in private label strategy has become increasingly clear. At a time when many retailers are doubling down on private labels, Muming Henmang has chosen a different path, directing resources elsewhere.

Where Did the Private Labels Go?

When the Economic Observer visited two Zhao Yiming Snack stores under Muming Henmang, located north of the Fifth Ring Road in Beijing, it found that the central display areas featured products from Wahaha, Yili Pure Milk, and Haihe Milk. At the entrance, only one Muming Henmang-branded jasmine tea/oolong tea was available, priced at 1.9 yuan per bottle. At the back of the store, a single Muming Henmang steak crisp was on offer at 9.9 yuan per pack. No other private label products were found.

Online, the presence of Muming Henmang's private labels is also limited. On September 23, the reporter searched for multiple Zhao Yiming Snack stores in Beijing on the Meituan platform. The "group buying" option only featured a 600ml*3 pack of Muming Henmang jasmine tea/oolong tea, with a member price of 5.4 yuan, requiring registration or binding of a Zhao Yiming Snack membership. All group-buy vouchers were limited to in-store pickup, with no delivery option. The same situation was observed at Snack Henmang stores in Chengdu and Changsha. In Zhengzhou and Jilin City, several Zhao Yiming Snack stores on the flash-sale platform 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 Muming Henmang first launched its private labels in 2025.

In February 2025, Muming Henmang introduced its "Red Label" and "Gold Label" private label series, covering over 30 products including sugar-free oolong tea, whole milk, seaweed, and beef jerky. This was seen as a significant move by the snack retail industry to transition from a channel brand to a product brand. At the time, the most prominent positions in stores were occupied by the group's private label products.

The shift in Muming Henmang's private label strategy is also reflected in its financial reports. In its April 2025 listing documents, the company's strategic 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." However, this statement disappeared from the 2025 annual report and the 2026 interim report. In its January 6 listing documents, the company noted that for the nine months ended September 30, 2025, revenue from private label products was "not material."

From a high-profile launch to a quiet retreat, why did Muming Henmang make such an adjustment? What considerations lie behind this? Muming Henmang did not respond to inquiries.

However, on April 1, Yan Zhou, Chairman and CEO of Muming Henmang, stated at a performance briefing that private labels are not a core strategy. He said that retailers develop private labels for pricing power and higher gross margins, but about 80% of the products in Muming Henmang stores differ from those in traditional retail channels. For example, unique snacks like chicken feet, melon seeds, and beans already offer differentiation, so the company does not need private labels to achieve differentiated pricing. From a user experience perspective, if the store were filled with its own branded products, the sense of surprise and variety would disappear. Therefore, the company prefers to serve as a showcase for Chinese food manufacturers.

A Different Path

Under the duopoly of snack retail, the private label strategies of Muming Henmang and Wanchen Group (300972.SZ) are diverging.

A Muming Henmang franchisee told the Economic Observer that sales of Muming Henmang's private label products are average, with stores carrying more exclusive products in different specifications. In contrast, Wanchen Group's Haoxianglai stores have a relatively larger number of private label products.

In its 2025 annual report and 2026 interim report, Wanchen Group stated: "Based on deep insights into consumers in various regions, we deepen cooperation with upstream suppliers, continuously refine our product selection capabilities, and develop customized products and private label products to meet differentiated market demands."

When the reporter visited a Haoxianglai Snack Paradise store (Longde Plaza, Beijing), shelves on the right side of the entrance were filled with private label beverages bearing the "Haoxianglai Selection" logo, displayed alongside third-party brands such as Nongfu Spring, Genki Forest, and RIO. The same was true in the refrigerated cabinets. Further inside the store, shelves featured Haoxianglai coffee liquid and dark chocolate latte products. According to a September 17 post on Haoxianglai's official WeChat account, the company launched a "Autumn Flavor" themed private label series, including Haoxianglai Selection juice apricot dried fruit, Haoxianglai Selection juicy yellow peach, Haoxianglai Super Value star fruit and apricot juice tea drinks, Haoxianglai Selection pumpkin water, and Haoxianglai Selection taro paste and crispy pastry.

As Yan Zhou noted, retailers develop private labels for pricing power and higher gross margins. Looking at the gross margins of the two leading companies, Wanchen Group's snack retail business gross margins were 10.86%, 12.32%, and 12.74% in 2024, 2025, and the first half of 2026, respectively. Muming Henmang's gross margins were 7.6%, 9.8%, and 11.5% over the same periods. While Muming Henmang's gross margins have consistently been lower, its revenue scale is larger. In the first half of 2026, Wanchen Group reported revenue of 34.836 billion yuan, while Muming Henmang reported 45 billion yuan.

From an industry-wide perspective, Muming Henmang's choice is somewhat of an outlier. Most retailers are currently increasing their focus on private labels. An industry insider noted that the greatest 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 snack retail are particularly challenging, as they must maintain extremely low retail prices while leaving reasonable profit margins for suppliers. Previously, a supplier told the media that Muming Henmang's required profit margins and costs were so low that they broke the supplier's cost threshold, leading to the abandonment of the partnership.

Based on management's recent statements, Muming Henmang is now directing more funds toward new areas such as cold chain logistics. At the company's first post-IPO performance briefing in April, Yan Zhou mentioned that in 2026, the company would systematically advance cold chain construction. As consumers increasingly seek products with fewer additives, shorter shelf lives, and healthier options, Muming Henmang plans to make cold chain a long-term project, building new competitiveness by increasing delivery frequency and investing in infrastructure. At the same time, high-quality leisure foods such as freeze-dried durian and chestnuts are also key areas of focus.

(Author: Zheng Mingzhu)