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Microwave Popcorn, Waiting To Explode
By Mabel Zhuang
Now sold only in Shanghai and
other coastal Chinese towns, high-quality U.S. popcorn could be a
new and attractive snack food for inland cities where domestic
popcorn sales are already strong.
Popcorn consumption in China began early in the 20th century. Street vendors popped corn on Shanghai streets, but with a little twist: Customers, usually children, brought their own corn.
In the late 1980s, the first U.S. brand of popcorn, called Halic by the Chinese, became an overnight fad. Selling in Shanghai at its peak, sales dropped after two or three years, but its legacy remains--to this day, all U.S. imported popcorn is generically called Halic.
Popped corn is now sold on the street for immediate consumption; bulk kernels and microwaveable packages are available in wet markets, department stores and supermarkets for home consumption.
Homemade Popcorn
Chinese view the preparation of popped corn in a wok over a gas flame to be dangerous. Yi-Mei is the only domestic brand of stove-top popcorn available in supermarkets, handily popped in the tin in which it's sold. The tin can is considered a minor improvement over the wok technique.
Hulibao is a local corn kernel developed specifically for microwave popping. The packager, familiar with local distribution channels, gets its product on the shelves of many department stores, supermarkets and convenience stores. They initially furnished 100 microwave ovens to serviced retail outlets.
Another brand, Popfun, is the product of a U.S.-Shanghai joint-venture company. The company imports U.S. kernels and repacks them in Shanghai. Because of the high tariff that raises product cost, the company is checking out the possibility of substituting the Hulibao variety, importing only the paper bag.
Act II is the first U.S. microwaveable popcorn introduced to Shanghai markets. The company's sole agent is Shenzhen Le Conte Marketing Service Co., Ltd., Shanghai Branch. Le Conte actively promotes Act II and sells to large state-owned department stores as well as supermarkets. This year, the distributor has been expanding sales to many cities within 100 miles of Shanghai.
Popcorn sales lag behind other snack products. Shanghainese still have not acquired the habit of making popcorn at home.
Thus far, there are no popcorn advertisements on the major Shanghai TV or radio stations, although Popfun has recently started advertising on Shanghai cable TV. The lack of advertising leaves children, who eat the most popcorn, unaware that it's possible to pop up a batch in the microwave oven. Because of low demand, stores normally carry only one brand.
Consumed on Premises
Most popped corn is sold at fast- food chain stores. The two leading brands are CalSun, a joint-venture business selling popcorn, ice cream, juice and hot chocolate; and Dingguagua, a Taiwan business.
CalSun imports all its ingredients from the United States. They distribute popcorn to fast-food shops and offer retailers a free placement of popcorn makers and a popcorn push cart. Key customers include fast-food restaurants, food courts, entertainment facilities and street-front retailers. Retail price varies from 36 cents per cup ( 10 ounces) to 48 cents per cup.
Dingguagua, another on-premise business, mixes domestic and U.S. kernels and imports oil and poppers from the United States.
A note for savvy promoters: Sales of popped corn increase markedly on the weekend when children accompany their parents on outings.
Tariffs and Labeling
Duties on popcorn increased from 35 percent in 1995 to 114 percent in 1996 (plus a 17-percent value added tax).
Act II, the only U.S. microwaveable popcorn selling in Shanghai, strictly adheres to the Chinese food labeling law. Chinese characters include the product name, ingredients, expiry date, manufacturer's address, importer's address and cooking instructions.
On-premise popcorn is served in paper cups, usually labeled only with brand names.
The Chinese consumer is accustomed to traditional sweet popcorn that is either yellow or white. Promoters wanting to create interest in a product might consider introducing what has worked back home--brightly colored corns with flavors that appeal to the children most likely to consume them.
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The author is the secretary with the Shanghai, China, Agricultural Trade Office. Tel.: (011-86-21) 6279-8622; Fax: (011-86-21) 6279-8336; E-mail: atos@public.sta.net.cn
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