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Why China's old-school sodas are now seeing lower and lower sales

"No Bingfeng, no set", Bingfeng is steeped in the memories of several generations of Xi'anites, and is also a "time warp" for locals to savor the past. There is a joke that the "purity" of a Xi'anese is tested by how many bottles of Bingfeng he drinks. This regional soda brand with a history of development, signed a listing counseling agreement with Huachuang Securities, to be listed on the Shenzhen Stock Exchange SME, before submitting IPO application materials. Not long ago, "old Beijing soda" Arctic Ocean just shell listing, one of the earliest domestic soda products and Lee soda through the replica version of the "Hankow two factories" to return to the rivers and lakes.

With the rise of the national tide, domestic soda is setting off a wave of beverage industry China tide and the collision of the new era, the old soda is trying to use the power of capital to return to the market and occupy a place. But in the new round of fighting, the face of different styles of rivals, these regional soda brands rely only on "sentiment" far from helping them to copy the successful model. Time change, put aside the sentiment of this label, the domestic old even if the evening on the "capital thighs" also have to face the difficult to turn over the reality.

Regional soda sinking history

As a foreign product, carbonated beverages imported into China's history is much longer than we think, the Empress Dowager Cixi was a loyal supporter of the Dutch sodas across the sea. After the founding of the country, the country independently developed the first batch of Chinese sodas - Laoshan Cola, from then on opened the road to the localization of soft drinks. With the development of market economy, soft drink factories blossomed all over the country. However, due to the fact that most of the sodas were packed in glass bottles in the early days, the limitation of the transportation conditions, the sodas from the factories could only be supplied to the local area for sale. As a result, there was also the scene of "one city, one IP".

The first thing that comes to mind for young people when they think of "happy water" is Coca-Cola or Pepsi. But for the older generation, the first thing that comes to mind is the eight major domestic soda brands that are full of childhood memories. They are: Beijing Arctic Ocean Food Factory, Tianjin Shanhaiguan Soft Drink Factory, Shanghai Zhengguang and Soft Drink Factory, Wuhan Hankou Beverage Factory, Guangzhou Asia Soft Drink Factory, Shenyang Bawangsi Soft Drink Factory, Chongqing Tianfu Cola Group Company and Shandong Laoshan Soft Drink Company.

The products of these eight companies occupy almost half of the national market share, and are not only the signature of local specialties, but also left an indelible mark on the history of China's beverage development. For example, Beijing Arctic Ocean, the average Beijing worker's monthly salary is only 40 yuan, Arctic Ocean's annual sales profit has reached 8,781,000, deservedly domestic soda bear.

And Arctic Ocean's next door, Tianjin Shanhaiguan soda factory is even better. It not only appeared in the Qing Emperor Puyi and Wanrong wedding ceremony. After that, it was also once designated as a special drink for state banquets. If the "Coke bubble wolfberry", is the contemporary "punk health" jokes, then in the last century, Shandong Laoshan Cola pioneered in the Cola added Chinese medicine ingredients, so that people have to call "insider! "The first time I've ever seen this, I've seen it in my life. Chongqing Tianfu Coke is exported overseas, set up a filling plant in Moscow, Japan Kazama Co., Ltd. agent, set up a sales company in the U.S. World Trade Center, successfully entered the U.S. market.

This is the best era of domestic soft drinks, for those who have experienced that era, the sweet cold taste memories have long been intertwined with childhood and youth, these good soft drinks have also become a kind of disappointing memories in the sentiment. It's a good thing to drink, why can't we see it now? This is all attributable to the "joint venture wave" that has made domestic sodas hateful. World-renowned beverage makers represented by Coca-Cola and PepsiCo have rushed into the Chinese market. These foreign beverage giants, whether in management, sales, supply chain and then to corporate management and business philosophy, are on the other side of the planned economy characteristics of the Chinese beverage industry crushing presence.

Instead of "sitting on the sidelines," the Chinese government is seeking to survive in the midst of death. "The GATT was signed and China decided to take a gamble. China Light Industry Federation with Coca-Cola and PepsiCo signed a *** with the development of beverage cooperation memorandum, and require "two music" to establish a filling plant, must produce at least 30% of the national brand drinks, the designated eight factories were with foreign cooperation, to retreat for progress, scattered breakout. However, a sensational "borrowed chicken to lay eggs" eventually evolved into "with the tiger for the skin", the local beverage brands not only did not survive the wave of joint ventures, but also be rapidly marginalized until the discontinuation of production. This is the domestic brand and related practitioners pained "two music drowning seven army".

Old soda breakout

China's domestic beverage brands rise from the policy of reform and opening up, the eight major soda factories have created a brilliant, but the decline and even disappearance of the road from the opening up of the exorbitant "tuition". In the domestic beverage brands have to the end of the time, "two music" but with the ready-made sales channels to speed up the sweep of the Chinese beverage market. With the "eight big soft drink factory" all shrinking and dying, a group of local brands rising from the grassroots to carry out the market battle with foreign brands. Which, once the first national drink Jianlibao as if "eye-catching" existence.

A brewery in Sanshui County, Guangdong Province, boldly took on an alkaline electrolyte sports drink invented by the Guangdong Sports Research Institute at the time and named it Jianlibao, which became the drink of choice for the Chinese delegation to the Los Angeles Olympics that year. A Japanese reporter after careful study, convinced that the penetration of the ancient Oriental mysteries, and then in the "Tokyo Shimbun" published a piece of lace news "China rely on" magic water "to speed up the strike", after the transmission of the country, the whole of China are aware of foreigners said "Oriental magic water ".

As the original electrolyte sports drink, focusing on sports and health care, Jianlibao has been among the first echelon of carbonated drinks for a long time. At its peak, Jianlibao threw $5 million to buy an entire floor of the Empire State Building as an office to enter the United States; the New York Times published a hard-copy publicity photo of "Mrs. Clinton, the newly elected president, Hillary, lifting a Jianlibao to drink at a party." ..... It is said that there are three things in America that are considered to be achieved with God's help: Winning the lottery; being elected President of the United States; and beating Coca-Cola. Unfortunately, the last one, Kenilworth almost did. Due to the hidden equity and the arrest of the owner of Kenilworth, the break in the capital chain and the exposure of the management problems led to a great deal of damage to Kenilworth, and after several changes of ownership, it returned to Kenilworth with a thousand holes in it.

Interestingly, the "Wahaha" group has also launched a "very cola" to "Chinese people's own cola" slogan once occupied the rural market. However, due to marketing strategy, market positioning and other aspects of the various mistakes, Wahaha Group stronger and stronger, very cola has long been difficult to find. History seems to have opened a not so small joke, the national brand "soda eight factories", very cola failed to see the current situation in the ever-changing market environment, Jianlibao finally fell in the intricate interpersonal relationships. In the industry "big brother" have fallen, the northwest corner of the ice peak but survived. Unbeknownst to the public, It was Xi'an's local protectionism that gave Bingfeng the possibility of a comeback.

Foreign manufacturers have set foot in the Chinese market, and under severe pressure from other brands such as Coca-Cola, Guinness, Schofield, and Zimmern, Bingfeng decisively entered into a joint venture with Pepsi to establish the "Xi'an Pepsi", on the premise that Pepsi was banned from producing glass bottles of beverages in Xi'an. As a result, Pepsi never appeared in glass bottles in Xi'an. Pepsi could only sell cans in the food service channel, and the price was more expensive than Bingfeng, so it finally had to give up on the Xi'an market. As a result, Bingfeng became the only local brand that survived the "flooding of the seven armies" war. , Bingfeng's position in Shaanxi's beverage industry has been untouchable.

Bingfeng have what the future

Xi'an, the sky above the goose feather snow, a businessman surnamed Li anxious. He brought a set of Tianjin soda factory equipment, was ready to go through Xi'an to Xinjiang to build a factory, but the road was blocked for days, the unblocking of the distant future. In desperation, this set of soda equipment was left in Xi'an. Another snowy day, Xi'an soda factory production of soda, water well wheel was frozen like ice peaks, everyone agreed, the bottle of soda simply called "ice peak". Rooted in Xi'an Bingfeng has occupied more than 80% of the market share of similar drinks in the local local market, Bingfeng soda has also become an indispensable part of Shaanxi restaurant culture. According to the prepared IPO application report, Ice Peak's performance is quite bright. In 2007, its operating income was 251 million yuan, 284 million yuan and 300 million yuan, and its net profit was 57.31 million yuan, 67.52 million yuan and 81.45 million yuan.

However, under the reputation, the challenges behind Bingfeng also emerge. In fact, Bingfeng announced its entry into the capital market, perhaps because of the Xi'an market "home business loss". In the city's specialty drinks list released by Hungry Mouse, Ice Peak soda in Xi'an's list tenaciously ranked fourth, in front of Sprite and two Coke. Ice Peak, which "sticks to the same flavors and packaging for decades," produces only one kind of soda. In other words, Ice Peak has never wanted to segment the market, and has been powerless in the face of a new generation of young people who have grown up with a choice of beverages.

The Ice Peak trademark is synonymous with "soda," which makes it impossible to spread the Ice Peak audience, and on the other hand, if you break away from the Ice Peak brand, it's like starting from scratch. A prominent example is that, in addition to the production of "Bingfeng" brand orange-flavored soda, but also launched a number of categories of drinks, including plum soup, pure water, protein drinks, but in addition to the "Bingfeng plum soup" in the local market, outside Xi'an, the majority of consumers do not have

Back to another old soda Arctic Ocean, after negotiations, Arctic Ocean with the help of feelings of Arctic Ocean's strong return, Arctic Ocean's sales of up to 600 million yuan, sold 12 million boxes a year. However, with the help of sentiment to return to the world, but also by the shackles of sentiment.

Arctic Ocean launched peanut walnut plant protein "walnut love". Arctic Ocean also launched a one-time 13 new products, including low-sugar, low-calorie and health products, have not caused a market reaction. As a soda brand with very strong regional attributes, these old-school sodas the road to nationalization is not smooth.

"Xi'an people have not forgotten the Bingfeng", sold out of the Bingfeng soda is still out of Xi'an people digested; loaded into the Dahao technology of the Arctic Ocean is bent on getting out of Beijing, the first production base only in Maanshan put into operation, but because of the price of 5 yuan a bottle by consumers! "tied up". It is worth mentioning that in the past two years, carbonated beverages industry above-scale enterprise income continues to be a downward trend, the creation of just a few years of Yuan Qi forest but with "0 sugar 0 fat 0 card" set off a new trend, steal the limelight.

Sentiment can always evoke memories, as well as not a small consumer desire, but people's nostalgia will eventually fade one day, sentimental card to play a moment can not play a world. Back to reality, in the highly competitive beverage market, how to get the hearts of a new generation of young consumers is the secret of these old domestic sodas to stay young.