Mooncakes produced in the company’s 20,000 sq ft factory in Tsuen Wan carry the “Product of Hong Kong” label, lending them prestige, Lee said. He expects demand from mainland customers to continue to grow over the next few years, lifting its exports to the market to 80 per cent of production from 50 per cent at present.
Mooncakes have long been tied to the Chinese tradition of giving gifts to the elderly, relatives, friends and clients. While the Mid-Autumn Festival falls on September 21 this year, the traditional cakes have been available in many shops since last month.
A little over 100 million pieces of mooncakes worth some HK$5 billion (US$642 million) are sold annually in Hong Kong, according to the company’s estimates, making Multizen a small player against seasoned producers. Maxim’s and Wing Wah are among the most popular mooncake brands in Hong Kong, with the latter’s products sold in more than 100 countries.
Before the Covid-19 pandemic, mooncake sales in the city touched HK$2 billion, according to Yeung Wai-sing, chairman of the Association for Hong Kong Catering Services Management.
“We’re primarily a chocolate company, but as we have a Hong Kong manufacturing plant and mooncakes are such an important tradition this time of the year, we started making them,” Lee said.
The company typically makes the chewy pastry distinctly known for their egg yolks and bean paste for some 90 days from June to August. To achieve this year’s target of 1 million mooncakes, the company churns out about 11,100 pieces a day.
Given the changing preference of young Chinese consumers, the company’s research and development department continues to innovate and invent new flavours.
“Young people don’t like the traditional mooncakes, so now we’re making chocolate, coffee and custard lava mooncakes,” Lee said.
02:38
All you need to know about Mid-Autumn Festival: Chang’e, mooncakes and the Fire Dragon Dance
All you need to know about Mid-Autumn Festival: Chang’e, mooncakes and the Fire Dragon Dance
The company, founded in 1994 with a starting capital of US$20,000, now has a manufacturing plant each in Hong Kong, the US and mainland China, producing 10,000 tonnes of chocolates. Multizen is a contract manufacturer for the likes of US brands Mars, Hershey and the Belgian chocolate brand Godiva in mainland China.
The Hong Kong company also counts Disneyland, supermarket chains Wellcome, City’s Super and Yata, and biscuit and cupcake retailer Mrs. Fields Cookies among its clients.
Multizen is also looking at expanding its chocolate business. The company is keen on acquiring a facility in Japan that can produce confectionery for the Japanese market, but current travel restrictions have made it difficult to conduct on-site inspections, Lee said.
The company was open to raising capital via an initial public offering, but that would depend on available acquisition opportunities, he said.
This article appeared in the South China Morning Post print edition as: sweet success from Mars to mooncakes
ncG1vNJzZmivp6x7tK%2FMqWWcp51kr7a%2FyKecrKtfmLyuvMCnoJ6rX5a%2FtbXCpZxoa2FpgXqBj2ifqKaXYriwusZmmqGnk6S5osDEZqSao5Wneqmx0ayfnrFdoq6zv4yapZ1ll6SxqsLAZp2ippSoerTDxJ6r