China Food

300 million bottles a year! The only local soda that beat Coca Cola is coming on the market?

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days ago, Xi’an Bingfeng Beverage Co., Ltd. has signed a listing guidance agreement with Huachuang securities to list on the SME Board of Shenzhen Stock Exchange, and is expected to submit IPO application materials before May 31, 2021.
 ”

When it comes to “happy water”, what comes to mind first?
 
For today’s young people, as long as the mention of “happy water” and “fat house water”, Coca Cola will definitely come to mind first.
 
But for the parents of this generation, the first thing they think of when they mention “happy water” is the eight domestic soda brands full of childhood memories. They are Beijing Arctic Ocean, Tianjin Shanhaiguan, Qingdao Laoshan, Shenyang Bawang temple, Chongqing Tianfu, Wuhan No.2 factory, Guangzhou Asia and Shanghai zhengguanghe.
 
It is no exaggeration to say that at that time, no matter which of the eight domestic soda brands were well-known, they became a local characteristic signboard.
 
It was not until the 1990s that China’s soda market ushered in great changes with the entry of a number of foreign brands headed by Pepsi Cola and Coca Cola (hereinafter referred to as “liangle”)!
 
Affected by the impact of these two foreign brands, the market share of the eight domestic cars at that time was seriously squeezed, and the sales performance declined seriously.
 
Seeing this opportunity, these foreign brands put forward the idea of joint venture with these local brands. After all, for “liangle”, by using the resources of these local brands, these foreign brands can also be better distributed and promoted locally. For local enterprises, it is better to keep the factory open than to close down.
 
But what these local soda brands didn’t expect is that the meaning of these cunning foreign brands is not wine!
 
In fact, in the beginning, “liangle” was running to completely acquire these local brands. Therefore, in the process of joint venture, the local brand market is constantly suppressed by various means, and foreign brands eventually nibble and acquire these local brands step by step, and hide them one by one.
 
As a result, Coca Cola and Pepsi Cola at that time encroached on and hid local soda brands. Later, many people laughed and called them “seven armies flooded”!
 
So many people may have to ask, why are the eight local brands only “flooded” by seven?
 
Because, under the attack of “liangle”, only Shanghai out of the eight local brands at that time, became the winner, in addition to the ninth Xi’an – Bingfeng soda!
 
Not only that, today’s ice peak will also be listed!
 
According to relevant media reports, Xi’an Bingfeng Beverage Co., Ltd. has signed a listing guidance agreement with Huachuang securities to list on the SME Board of Shenzhen Stock Exchange, and is expected to submit IPO application materials before May 31, 2021.
 
So after 60 years of development, how did Bingfeng go public step by step? How did Bingfeng break through the siege of “liangle” and become a survivor in the famous “flooded seven armies” war in the 1990s?
 
Today, let’s talk about the story of Bingfeng soda!
 

 
When it comes to eating, many people have heard of the “Sanqin set meal”. In the “Sanqin set meal”, besides rougamo and Liangpi, Bingfeng is also an indispensable part.
 
It is no exaggeration to say that in Xi’an, Bingfeng is absolutely an unshakable existence in the beverage industry. No matter in the streets or alleys, as long as there is a place to sell drinks, the counter is full of Bingfeng. As a Xi’an person, I’ve been drinking a big drink since I was a child. If I haven’t drunk Bingfeng in Xi’an, I’m sorry to say you’re from Xi’an!
 
But no one thought that the establishment of this well-known local brand in Xi’an was entirely an accident.
 
In 1948, a businessman doing business in Xinjiang bought a soda import equipment in Tianjin and wanted to take it to Xinjiang to make cars. However, when he passed by Xi’an, it was snowed heavily and the road was blocked by snow, so the equipment was blocked in Xi’an.
 
In such a coincidence, the businessman decided to build the factory in Xi’an, named northwest soda factory. Until the end of the 1950s, Xi’an ushered in a rare heavy snow, the accumulation of snowflakes looks like an ice peak, so the “soda” produced by the factory was named “ice peak”.
 
The ice peak of that period was generally allocated to many state-owned units and restaurants, so its popularity was not wide. It was not until the late 1970s that the iceberg gradually came into the sight of the people.
 
According to the memories of Xi’an people at that time, the earliest ice peak was only sold in the most foreign food stores in Xi’an, which was very “high-end and high-grade”.
 
In addition to the appearance, the price of Bingfeng was also very expensive at that time. In the era when popsicles were only sold for 4 cents, Bingfeng sold for 5 yuan a bottle. Therefore, people who could afford to drink ice peak in those days always belched a lot to tell the people around them that they had drunk ice peak.
 
With people’s increasingly rich and affluent living conditions, in the 1980s, almost every household could drink Bingfeng soda, and Bingfeng became the favorite of young people at that time. In the hot summer, young people wear bell bottoms and drink a bottle of iceberg at the door of a small shop, not to mention how cool it is.
 
In 1984, the sales volume of Bingfeng exceeded 10 million bottles. In order to buy a lot of public places including Bingfeng cinema, there are long lines outside, and the scene is very spectacular. In order to supply goods to the market in time, the manufacturer has to work shifts to maintain four production lines running 24 hours a day. But even so, the ice peak was still in short supply.
 
However, as mentioned above, in the 1990s, with foreign manufacturers stepping into the Chinese market one after another, the domestic brand market including Bingfeng was severely squeezed by Coca Cola, Jianlibao, xuefeili, jinmeile and other brands.
 
Surrounded by many brands, Bingfeng’s annual sales volume has also been seriously damaged, falling to less than 10 million bottles. At this time, Coca Cola threw an olive branch to Bingfeng and put forward the request of joint venture.
 
However, compared with the other seven of the eight local brands, Bingfeng did the most forceful thing in this matter and resolutely refused the invitation of Coca Cola.
 
Of course, Bingfeng’s refusal completely angered Coca Cola. So Coca Cola made a lot of hype in marketing, such as reducing price, increasing capacity, launching Sprite, launching pop can packaging… In a word, Coca Cola used all kinds of moves, with only one purpose, that is, trying to kill Bingfeng.
 
However, the stable iceberg is not affected at all. Although it has been greatly affected, it finally “boils down” Coca Cola.
 
After two years of fierce competition, Coca Cola found that it had lost all its money, but it still couldn’t catch up with Bingfeng. It was a loss making business, so it decided to give up the Xi’an market.
 
As a result, Bingfeng has become a local brand that survived the “flooded seven armies” war.
 
With Coca Cola’s defeat in Xi’an, other foreign brands of soft drinks also left Xi’an one after another because of “acclimatization”, Bingfeng once again won back all its lost markets with its own strength.
 

 
Although Bingfeng finally defeated Coca Cola and won back the Xi’an market, in the 21st century, due to more choices of soda brands, Bingfeng, which has been relying on the single product strategy, also began to stagnate.
 
What we need to know is that emotion is never the reason for consumers to spend money to buy. With the growth of those people, if Bingfeng remains unchanged, it will only be eliminated by the market.
 
Fortunately, Bingfeng began to find out the problem in 2012. It was the first time that Bingfeng launched the innovation of pop can packaging. In the following years, Bingfeng launched several drinks with other flavors.
 
But even so, the market of Bingfeng is still limited in Xi’an, and even a lot of goods sent to other places are digested by Xi’an people. Therefore, the regional limitation has become the biggest problem of Bingfeng, and also the root of hindering its further development.
 
In recent years, with the popularity of Huili, baiqueling and many other old domestic products, Bingfeng found a new way to break through the regional restrictions, trying to use e-commerce to expand Bingfeng from the regional market to the national market.
 
In 2017, the flagship store of Bingfeng tmall went online, completing the first step of the national development of the brand and achieving good results. But surprisingly, in the tmall flagship store in Bingfeng, what is most popular with post-90s buyers outside the province is not the classic bottled orange flavored soda, but the new canned sour plum soup in the past two years.
 
It can be seen that if it is not for this wave of e-commerce attempts, Bingfeng will never know who the market audience is and what the products users like.
 
Therefore, in order to reshape the brand image, Bingfeng has made a lot of efforts in recent years, and began to try various marketing models in the form of cultural creation, cross-border and other forms that young people are interested in.
 
According to public data, from 2017 to 2019, the operating revenue of Bingfeng beverage was 251 million yuan, 283 million yuan and 302 million yuan respectively; the operating profit was 76.34 million yuan, 89.69 million yuan and 92.08 million yuan respectively; the net profit was 57.31 million yuan, 67.52 million yuan and 81.44 million yuan respectively.
 
The impact on the listing also means that Bingfeng will firmly walk out of the local restrictions and go to the national market.
 
In recent years, the consumption upgrading in recent years has driven the industrial upgrading. The food and beverage industry is increasingly showing a diversified development trend. The entry of new and old players has also made the market competition more intense.
 
But for the old players like Bingfeng, if they want to get a share in this fierce market, in addition to maintaining their own brand advantages, they also need to activate the vitality and innovation of the brand, so that the old trees can sprout, and then they can get more favor in the market.
Author: Jiang Dongwen; source: Jiang Dongwen channel (ID: zscy006), reprint authorized. Joining the community: Cherry (wechat: 15240428449); business cooperation: Amy (wechat: 13701559246). high quality original, the strongest innovative concept of the year | hidden weapon of beer | top ten shortlisted list of Pepsi nutrition incubator | drinking from the west to the North has changed from a stem to a reality? |Category insight: tofu | the password for the success of substitute food brand | looking at the new healthy food track from the perspective of three nutrients | a week’s hot news of 2021 food and beverage annual business hot spot selection column | innovation interview – lingting | new Xiu brand | trend insight | packaging outpost food people are “watching”

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