Changpeng Wan
From Humble Beginnings to a Condiment Empire
In the bustling landscape of China’s food industry, one company has managed to turn a simple packet of hotpot base into a multibillion-yuan enterprise. Tianwei Food, often referred to as the ‘Sichuan flavor king,’ recently announced its intention to pursue a listing on the Hong Kong Stock Exchange. This move aims to accelerate its globalization strategy and secure a stronger foothold in international markets. If successful, Tianwei will become the second ‘A+H’ listed condiment company after Foshan Haitian Flavouring & Food Co., Ltd., marking a significant milestone for the sector.
Founded in 2007 by former food technician Deng Wen and his wife Tang Lu, Tianwei Food started as a small operation focused on authentic Sichuan flavors. The couple’s dedication to quality and innovation helped the company grow from a regional player into a national powerhouse, culminating in its 2019 debut on the Shanghai Stock Exchange as the ‘first hotpot base stock.’ Today, with a market cap of around RMB 13 billion, Tianwei is setting its sights even higher.
The Rise of a Flavor Specialist
Deng Wen’s background as a technician at a Chengdu grain and oil factory gave him unique insights into the art of seasoning. His obsession with perfecting recipes led him to acquire key trademarks, including ‘Hao Ren Jia’ and ‘Da Hong Pao,’ for just RMB 140,000. These brands now form the core of Tianwei’s product lineup, which spans over 300 items ranging from hotpot bases to Sichuanese meal kits.
The company’s success hinges on its ability to balance tradition with modernity. While staying true to time-honored techniques—using ingredients like Pixian bean paste and Sichuan peppers—Tianwei also embraces industrialization and standardization. Innovations such as low-temperature extraction for preserving spice flavors and user-friendly ‘one-step’ cooking solutions have resonated strongly with consumers.
Navigating Competitive and Global Markets
Despite its strong domestic presence, Tianwei faces mounting pressure from rivals like Haitian, Qiaqia, and emerging brands. The condiment market is notoriously competitive, with price wars and rising costs squeezing margins. In response, Tianwei has accelerated its overseas expansion, exporting to over 50 countries including the U.S., Japan, and Australia. However, international sales still account for a small portion of revenue, and penetrating non-Asian markets remains a challenge.
Financially, the company has shown robust growth, with 2024 revenue hitting RMB 3.476 billion, up 10.41% year-on-year, and net profit surging 36.99%. But the first quarter of 2025 revealed vulnerabilities: revenue fell 24.8%, and profit plummeted 57.53%, underscoring the volatility of the industry and the need for strategic diversification.
Product Portfolio and Brand Strategy
Tianwei’s dual-brand approach has been instrumental in capturing diverse consumer segments. ‘Hao Ren Jia’ targets premium customers with positioning as a ‘Sichuan cuisine expert,’ while ‘Da Hong Pao’ appeals to the mass market with affordable hotpot bases. This strategy has enabled broad retail penetration, with products available in major chains like Walmart and Yonghui, as well as local convenience stores and e-commerce platforms including Tmall, JD.com, Douyin, and Kuaishou.
– Key Products: Hotpot base, Sichuan meal kits, sausage seasoning, and restaurant-ready premixes.
– Sales Channels: 1,000+ distributors, online marketplaces, and 200+ overseas outlets.
– Innovation Focus: R&D investment exceeding RMB 200 million from 2021-2023, resulting in 200+ patents.
Leadership and Vision for the Future
At the helm, Deng Wen and Tang Lu retain a firm grip on the company, owning approximately 67% of shares. Their hands-on, family-oriented management style has driven rapid decision-making but may require adaptation as Tianwei scales globally. In 2024, Deng announced a ‘second entrepreneurship’ initiative, emphasizing digital transformation and internationalization. This includes forming dedicated teams for online marketing and overseas business development, which have already boosted e-commerce sales by 45% and international revenue by 40%.
The proposed Hong Kong IPO is poised to provide the capital needed for these ambitions. Proceeds will likely fund deeper market entry in Southeast Asia and North America, brand building, and infrastructure upgrades. For Deng, it’s not just about business growth—it’s about sharing Sichuan’s culinary heritage with the world.
Overcoming Industry Headwinds
Tianwei operates in a sector where legacy players and newcomers clash fiercely. Established giants like Haitian and Lee Kum Kee are expanding their portfolios, while regional brands and restaurant-owned condiment lines add to the competition. Differentiating through quality, distribution strength, and cultural authenticity will be critical. Moreover, supply chain efficiency and cost management remain vital advantages, as replicating recipes is easier than replicating scalable operations.
– Challenges: Domestic saturation, price sensitivity, and cultural barriers in non-Asian markets.
– Opportunities: Growing global interest in Asian cuisines, diaspora demand, and trade partnerships.
– Strategic Moves: Earlier plans for a Swiss GDR were shelved in 2023, redirecting focus to Hong Kong.
The Road Ahead for the Sichuan Flavor King
Tianwei Food’s journey from a Chengdu-based startup to a potential dual-listed entity reflects broader trends in China’s consumer goods sector. Companies that blend traditional craftsmanship with modern business acumen are well-positioned to thrive. As Deng Wen often says, ‘Products speak for themselves,’ and Tianwei’s commitment to quality has earned it a loyal customer base.
However, the path forward requires balancing innovation with consistency. While the IPO could provide a significant boost, success will depend on executing global strategies without diluting brand identity. Investors and consumers alike will watch closely to see if this Sichuan flavor king can truly make its mark on the world stage.
For businesses and entrepreneurs, Tianwei’s story offers valuable lessons: niche markets can yield massive opportunities, and resilience paired with adaptability is key to long-term growth. As the company prepares for its next chapter, one thing is clear—the flavor of Sichuan is poised to reach far beyond China’s borders.
Stay updated on Tianwei’s IPO progress and market moves by following financial news platforms and industry reports. For those interested in investing or learning more about the condiment sector, consider exploring related stocks and global food trends.
