In other words, dun blame the Familee even when they are main cost driver due to their insatiable GREED!
<TABLE cellSpacing=0 cellPadding=0 width=452 border=0><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published September 13, 2008
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>High costs bite into mooncake profits
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</TD></TR><TR class=caption><TD></TD></TR></TBODY></TABLE>SOARING food costs have eaten into the profits of mooncake makers ahead of this year's Mid- Autumn Festival, offsetting a renewed appetite for the distinctively Chinese sweetmeat.
Mooncakes - heavy blocks of sticky lotus seed or red bean paste with two or four whole egg yolks encased in a thin pastry embossed with Chinese characters and motifs - have enjoyed a comeback among both old and young in recent years, Hong Kong bakers said.
But the increased demand for the treat, traditionally given as presents to mark the autumn moon, has not translated into profits for the bakeries because of the global rise in the cost of raw ingredients.
Wing Wah, the oldest mooncake manufacturer in Hong Kong, said the cost of peanut oil has jumped 80 per cent because of the surge in peanut prices in China. Flour costs 10 per cent more than last year while egg yolks - embedded whole in the filling to symbolise the phases of the moon - are up 20 per cent.
<TABLE cellSpacing=0 cellPadding=5 align=left border=0><TBODY><TR><TD bgColor=#ffffff>[FONT=Geneva, Helvetica, Verdana, Arial, sans-serif]<!-- REPLACE EVERYTHING IN CAPITALS WITH YOUR OWN VALUES --><TABLE class=quoteBox cellSpacing=0 cellPadding=0 width=144 align=left border=0><TBODY><TR><TD vAlign=bottom>
</TD></TR><TR><TD bgColor=#fffff1><TABLE cellSpacing=0 cellPadding=0 width=124 align=center border=0><TBODY><TR><TD vAlign=top>'We had no choice but to increase the price as the ingredients have become so expensive.'
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</TD></TR></TBODY></TABLE></TD></TR></TBODY></TABLE>The more costly ingredients have contributed to a 26 per cent increase in overall production costs, said Lee Ying-kuen, spokesman for the brand.
'We had no choice but to increase the price as the ingredients have become so expensive now,' Mr Lee said, adding that the company has capped its retail price rises at 5 per cent. 'We don't want to drive our long-time customers away by matching the prices with the cost of production. We'd rather live with smaller profits.'
The Mid-Autumn Festival is based on the legend of Chang E, a moon fairy who lives in a crystal palace and comes out only once a year to dance on the moon's shadowed surface. These days, families gather together for meals, traditionally on the evening of the new moon, which this year falls on Sept 14, with the mooncakes central to the celebrations.
Apart from the lotus-seed Cantonese version, mooncakes vary in style across China. Those from Chaozhou in Guangdong province, for instance, contain sweet yam paste.
But as shoppers become more health conscious, mooncakes have been criticised for their high fat and cholesterol content. The trend has led to the emergence of lighter and healthier versions using fruit and nuts, but also to creations with ingredients regarded as delicacies by the southern Chinese, such as abalone, as well as caviar and truffles.
'To stay ahead of the competition, Hong Kong bakeries are trying all means to improve the quality, packaging and pricing of their products,' said Wing Wah's Mr Lee. 'People are coming back because mooncakes are no longer just a calorie-laden confection.'
But the heavy, Cantonese- style mooncakes are also regaining popularity. 'I have noticed that many OLs (Office Ladies) in their 20s are buying our traditional mooncakes this year,' said a spokesman for Kee Wah Bakery.
In addition to the growth in demand from Hong Kong people, Mr Lee said many people from China, where food safety is a burning issue, are shunning the mooncakes at home and buying only famous brands from Hong Kong where quality and hygiene controls are more stringent.
The number of mooncake orders from across the border is up 20 per cent this year, compared to a 5-10 per cent increase in Hong Kong, said Mr Lee. AFP
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<TABLE cellSpacing=0 cellPadding=0 width=452 border=0><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published September 13, 2008
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>High costs bite into mooncake profits
<TABLE class=storyLinks cellSpacing=4 cellPadding=1 width=136 align=right border=0><TBODY><TR class=font10><TD align=right width=20>
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</TD></TR><TR class=caption><TD></TD></TR></TBODY></TABLE>SOARING food costs have eaten into the profits of mooncake makers ahead of this year's Mid- Autumn Festival, offsetting a renewed appetite for the distinctively Chinese sweetmeat.Mooncakes - heavy blocks of sticky lotus seed or red bean paste with two or four whole egg yolks encased in a thin pastry embossed with Chinese characters and motifs - have enjoyed a comeback among both old and young in recent years, Hong Kong bakers said.
But the increased demand for the treat, traditionally given as presents to mark the autumn moon, has not translated into profits for the bakeries because of the global rise in the cost of raw ingredients.
Wing Wah, the oldest mooncake manufacturer in Hong Kong, said the cost of peanut oil has jumped 80 per cent because of the surge in peanut prices in China. Flour costs 10 per cent more than last year while egg yolks - embedded whole in the filling to symbolise the phases of the moon - are up 20 per cent.
<TABLE cellSpacing=0 cellPadding=5 align=left border=0><TBODY><TR><TD bgColor=#ffffff>[FONT=Geneva, Helvetica, Verdana, Arial, sans-serif]<!-- REPLACE EVERYTHING IN CAPITALS WITH YOUR OWN VALUES --><TABLE class=quoteBox cellSpacing=0 cellPadding=0 width=144 align=left border=0><TBODY><TR><TD vAlign=bottom>
</TD></TR><TR><TD vAlign=top>Lee Ying-kuen, [/FONT]
</TD></TR><TR><TD vAlign=top>spokesman for Wing Wah, Hong Kong's oldest mooncake maker </TD></TR></TBODY></TABLE></TD></TR><TR><TD height=39>
'We had no choice but to increase the price as the ingredients have become so expensive now,' Mr Lee said, adding that the company has capped its retail price rises at 5 per cent. 'We don't want to drive our long-time customers away by matching the prices with the cost of production. We'd rather live with smaller profits.'
The Mid-Autumn Festival is based on the legend of Chang E, a moon fairy who lives in a crystal palace and comes out only once a year to dance on the moon's shadowed surface. These days, families gather together for meals, traditionally on the evening of the new moon, which this year falls on Sept 14, with the mooncakes central to the celebrations.
Apart from the lotus-seed Cantonese version, mooncakes vary in style across China. Those from Chaozhou in Guangdong province, for instance, contain sweet yam paste.
But as shoppers become more health conscious, mooncakes have been criticised for their high fat and cholesterol content. The trend has led to the emergence of lighter and healthier versions using fruit and nuts, but also to creations with ingredients regarded as delicacies by the southern Chinese, such as abalone, as well as caviar and truffles.
'To stay ahead of the competition, Hong Kong bakeries are trying all means to improve the quality, packaging and pricing of their products,' said Wing Wah's Mr Lee. 'People are coming back because mooncakes are no longer just a calorie-laden confection.'
But the heavy, Cantonese- style mooncakes are also regaining popularity. 'I have noticed that many OLs (Office Ladies) in their 20s are buying our traditional mooncakes this year,' said a spokesman for Kee Wah Bakery.
In addition to the growth in demand from Hong Kong people, Mr Lee said many people from China, where food safety is a burning issue, are shunning the mooncakes at home and buying only famous brands from Hong Kong where quality and hygiene controls are more stringent.
The number of mooncake orders from across the border is up 20 per cent this year, compared to a 5-10 per cent increase in Hong Kong, said Mr Lee. AFP
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