The secondary market did not show much concern about the food safety incident that came to light last week for Tsing Tao Beer (600600.SH).

Before the opening of trading on October 23, Tsing Tao Beer issued a notice saying that he had paid attention to the report of Tsing Tao Beer's third factory, and had called the police and sealed all the malt of the batch, and everything was normal. After that, Tsing Tao Beer once showed that 10cm fell by the limit before trading, but opened high with a decline of 6.77% after opening, and the decline gradually narrowed to 1.17% before midday.

On Friday, a video circulated on the Internet showed that "at Tsing Tao Beer's third factory, employees urinated in the raw material warehouse."

According to China Business News, people familiar with the matter said that the location of the incident was not the raw material warehouse of Tsing Tao Beer's third factory, but the transport car of the logistics operator. The people involved are not Tsing Tao Beer employees, but outsourced labor stevedores.

At present, the identity of the man in the video has not been confirmed by Tsing Tao Beer.

ID:TradeWind01 called Tsing Tao Beer several times to verify the authenticity of the above disclosure, who said that everything is subject to the announcement and the Pingdu Public Security Bureau will release relevant information later.

In fact, in the food and beverage industry, the food safety incident not only puts pressure on the stock prices of listed companies, but also opens the supply-side reform of the companies involved and even the whole industry.

For example, after the melamine incident in 2008, the Ministry of Health issued a new national standard for dairy products in 2010, but under this standard, the protein content is lower than the international standard, but the total number of bacteria in raw milk is much higher than the international standard, which is controversial.

After it was revealed that the plasticizer exceeded the standard in 2011, 000799.SZ lost money for two years from 2013 to 2014, and its revenue plummeted from 1.652 billion yuan in 12 years to 388 million yuan in 2014. Finally, Jiugui Jiu ushered in the state-owned Cofco at the end of 2014 and made a comeback in the liquor boom cycle of the past five years, with revenue exceeding 4 billion yuan last year.

In Tsing Tao Beer's beer track, as per capita beer consumption tends to be saturated, companies in the industry have begun to "reduce costs and increase efficiency" to make profits, and Tsingtao Beer is also one of them.

In 2019 and 2021, Tsing Tao Beer closed two factories to eliminate backward production capacity, reducing the number of factories from 62 to 58. Its total number of employees declined after reaching 43000 at the end of 2016, leaving only 32000 at the end of 2022. The management fee rate of Tsingtao Beer has also declined year by year since 2019, from 6.8% to 4.78% last year.

However, if, as reported above, the employees involved are outsourced services, it is not surprising that the management expense rate of Tsingtao Beer has declined, but the management and control of all aspects of production still need to be further refined.