Peanut oil is widely-known for its aromatic flavour and health benefits. It is particularly preferred and favoured for high-temperature cooking (such as deep frying) due to its high smoke point. Smoke point is the temperature to which oil can be heated before it smokes and discolours, indicating decomposition. (Source: IMRR)
Peanut oil contains low levels of saturated fats and high levels of unsaturated fats, which help to maintain healthy blood cholesterol levels. It is also a good source of antioxidants (such as vitamin E) that are essential for health. (Source: IMRR)
In China, peanut oil is popular and considered to be a fine grade of edible vegetable oil due to its nutritional benefits as well as nutty aromatic flavour which bodes well with Chinese consumers’ taste preferences. In tandem with the increase in China’s disposable income and standard of living as well as the growing awareness of healthy living amongst Chinese consumers, peanut oil is envisaged to gain wider popularity in China’s domestic market. (Source: IMRR)
Henan XingHe’s branded peanut oil is positioned as a premium quality peanut oil targeted at the middle to high income group. The company differentiates its peanut oil based on high quality control standards and competitive pricing.
Blended oil is usually catered for consumers who wish to incorporate different types of edible oil in their diet, due to the different properties of each type of oil and the ensuing health benefits from their consumption. It is common for edible oil producers to blend several different types of edible oil. (Source: IMRR)
In 2011, Henan XingHe started to diversify its product portfolio by introducing blended oil. The company’s blended oil is produced from a combination of peanut oil and soybean oil. The soybean oil that is used in the company’s blended oil is sourced externally.
The introduction of blended oil is aimed to expand the company’s revenue stream as well as to widen its product portfolio to cater for the diverse needs of consumers with different preference and income levels.
To further diversify its product portfolio, Henan XingHe introduced soybean oil and corn oil under its own labels in 2012.
Soybean oil and corn oil are sourced externally which are subsequently bottled in the company’s production facility and marketed under the “XingHe” label.
Similar to blended oil, this is a strategic move by the company to broaden its customer base and revenue stream. Further, the widening of the company’s product portfolio is aimed towards building brand loyalty towards “XingHe” among consumers.