Zhu Xinli’s “farmer’s dream”.
A piece of information about the size of “tofu” not only makes “Huiyuan” enter the public view again, but also makes the industry and consumers feel gratified – although it has encountered financial difficulties and delisting storm, Huiyuan Group still has the confidence to “toss”.
Recently, JD logistics and Huiyuan Group announced an integrated supply chain logistics cooperation. It is reported that the two sides will include 10 core factories of Huiyuan Group into the business scope of JD logistics ecological warehouse through JD logistics national warehouse transportation and distribution resources, digital control and high-quality operation, and improve the efficiency of warehousing operations through advanced warehousing systems such as WMS.
In Huiyuan Group’s view, JD logistics’s integrated supply chain logistics system can provide the group with FMCG industry standard solutions under the integrated supply chain scenario at a lower cost and higher efficiency, meeting the two landing needs of Huiyuan’s “rapid quotation” and “agile online”.
For the original intention of reaching strategic cooperation with JD logistics, Huiyuan Group said that as a production and processing enterprise, the group’s past warehousing and logistics links mainly relied on self built warehouses with third-party transportation and distribution, which brought two problems. On the one hand, self owned warehouses rely on traditional manual operations, which can not fully release production capacity; On the other hand, factories distributed all over the country can not meet the business needs of fast delivery through emerging channels such as live e-commerce.
In a word, the national warehouse transportation and distribution resources, digital control and high-quality operation of JD logistics can further accelerate the distribution speed of Huiyuan and deliver products to consumers all over the country more efficiently. It is reported that since January of cooperation, the overall logistics cost of Huiyuan has decreased by 20%, and the digital promotion has achieved initial results.
This is the rare news about the operation of Huiyuan Group in the industry since the “delisting storm” last year.
It is worth noting that the news about Huiyuan Group at the last industrial chain level came from December last year. At that time, Huiyuan Group reached a strategic cooperation agreement with Jiashi County, Xinjiang, which will invest 1 billion yuan to configure imported production lines such as NFC fruit pulp and concentrated juice, and fully implement the processing and sales of products such as fresh plum fruit, dried fruit, fruit juice and fruit residue feed. After the completion of the project, the annual output value can reach 1 billion yuan.
It is reported that the project is divided into two phases: the first phase mainly achieves 100000 tons of fruit processing capacity, which will be completed and put into operation in August 2022; The second phase project will add 50000 tons of fruit processing capacity, as well as infrastructure and related equipment investment such as fruit juice filling, fresh fruit sorting, dry fruit drying and fruit residue treatment.
Combined with the news that Huiyuan Group opened another production line that can produce 15000 bottles of fruit juice every day last week, the layout of the group at the production end is still advancing in an orderly manner, even making you feel that it is an affiliated company that is still heavily indebted at present.
After successive losses, debts of 10 billion, asset freeze, collective resignation of senior executives and other crises, a generation of “juice king” fell to the altar. Overnight, Zhu Xinli, founder of Huiyuan Group, also became a “Laolai” carrying four consumption restrictions from the rich with a value of 3.5 billion on the Hurun 100 rich list.
However, delisting does not mean shutdown. Although listed companies are the “outcasts” of capital, Huiyuan is still the brand with the highest market share in the domestic medium and high concentration fruit juice market. Moreover, from the perspective of beverage products alone, fruit juice products are only one of the products of Huiyuan Group. Its bottled water, cocktails, ice sugar gourd juice and other products have already appeared in the market.
It is worth noting that Huiyuan Group continues to launch new beverage products even after delisting. Some time ago, Huiyuan launched sugar orange juice drinks, persimmon vinegar drinks, Jishi red Hawthorn compound juice and other drinks, and began to attract investment on a large scale; The NFC prune juice jointly launched by Huiyuan and a star also achieved a sales volume of 2.4 million bottles in 60 days, and sold a total of 26.3 million yuan within three months of listing. It is worth noting that the best-selling of NFC prune juice is also an important opportunity for Huiyuan’s 1 billion yuan investment project.
In addition, although the sales channels, brands and supply chain owned by Huiyuan have been reduced in scale, they are far from disappearing. There are many specific manifestations of these capabilities. For example, Huiyuan is still the OEM of Yuanqi forest sugar soda bubble water and JDB, while Haidilao, Xibei and Haolilai will also find Huiyuan to produce customized drinks, etc.
In short, although Huiyuan juice is no longer the past, it is far from disappearing into the market. Tossing is the best proof that an enterprise is still “alive”.
Persistence of Huiyuan Juice
Zhu Xinli’s “agricultural dream”
It is worth noting that on the day of announcing the cooperation, Huiyuan and Jingdong Logistics also jointly said that based on various business forms such as Huiyuan agricultural planting, in the future, the two sides will also explore cooperation in the field of digital agriculture such as rice, black fungus, seabuckthorn and jujube, and accelerate the expansion of national offline omni-channel business, including warehouse distribution business under the scenario of integrated supply chain logistics services such as factories, dealers, agents and supermarkets.
It is not difficult to see that while continuously renewing the life of Huiyuan juice through digitization, e-commerce and OEM, Zhu Xinli, a farmer, can finally continue to promote the agriculture he has always wanted to do.
In fact, Huiyuan juice is only the tip of the iceberg of Huiyuan Group. From the industrial and commercial data, Huiyuan Group is a large modern enterprise mainly engaged in fruit and vegetable juice and fruit and vegetable juice drinks, which integrates R & D, fruit raw material processing, filling production and sales. The group has three major sectors: Huiyuan agriculture, Huiyuan Juice and Huiyuan fruit industry. In addition to Huiyuan fruit juice, Huiyuan fruit industry is also a good job of Zhu Xinli, founder of Huiyuan; Zhu Xinli’s greater ambition is to open up the upstream and downstream industrial chain through Huiyuan agriculture, complete the industrial upgrading of agriculture and narrow the gap between urban and rural areas.
Many years ago, a large number of fruit trees were planted in Yimeng mountain area of Shandong Province in order to develop the economy. However, due to inconvenient transportation and poor information, the fruits were overstocked for a long time and a large number of high-quality apples rotted after a bumper harvest. At that time, Zhu Xinli found business opportunities. He processed and reprocessed the backlog of apples and then put them on the market; This is an opportunity for the birth of Huiyuan Juice, and it also planted a seed for Zhu Xinli’s agricultural dream.
It is worth noting that from the perspective of agriculture, the visible scale of ecological agriculture of Huiyuan Group is larger than that of nongnongshan spring in planting oranges. In Zhu Xinli’s plan, Huiyuan agriculture covers a wide range of categories such as fruits, vegetables and tea, geographically radiates more than half of the key areas of the country, and covers the whole chain of primary, secondary and tertiary industries in scale. In addition, to help more rural areas and farmers in China realize large-scale, scientific and technological and brand management, it is bound to need to build a whole agricultural industry chain, and face the problem of long recovery cycle.
In 2006, Huiyuan vigorously introduced Danone of France, Warburg Pincus fund of the United States, Development Bank of the Netherlands and Huili fund of Hong Kong. Even when planning to sell Huiyuan juice to Coca Cola, Zhu Xinli said that he would invest HK $17.92 billion raised in more upstream modern agriculture to help more rural and farmers in China realize large-scale, scientific and technological and brand management.
Supported by the agricultural dream, the layout of Huiyuan agriculture has also been promoted in an orderly manner. Since 2007, Huiyuan Group has carried out the planning and investment of agricultural projects in many places across the country. In 2011, Huiyuan started the layout of organic agriculture projects. In 2013, Zhu Xinli established Beijing Huiyuan Agriculture Co., Ltd., which together with Huiyuan fruit juice, Huiyuan fruit industry, Huiyuan investment and Huiyuan finance formed the five industrial sectors of Huiyuan Group.
However, although Coca Cola’s acquisition plan ran aground, Huiyuan’s plan to distribute upstream agriculture did not stop. This has also become the “scourge” of a series of troubles of Huiyuan Group. In recent years, with the rupture of the capital chain of listed companies, many subsidiaries (grandchildren) of Huiyuan agricultural company have been listed as dishonest enterprises or enforced by the court due to arrears and other problems.
Over the past few years, Huiyuan has continued to “squeeze toothpaste” to repay its debts, continued to expand from the fruit juice industry to the fruit industry, agriculture and other industries, and tenaciously established the framework of a comprehensive industrial group. According to the official data, up to now, Huiyuan has established more than 140 business entities across the country, linked more than 10 million mu of high-quality fruit, vegetable, tea and grain planting bases, more than 20 agricultural industrial parks, built a large-scale agricultural pattern across the East and West, running north and south, and formed a new agricultural system with mutual support of primary, secondary and tertiary industries.
Although it is difficult for Huiyuan juice to return to its peak again, Zhu Xinli is still insisting on the construction of the upstream of the juice industry chain and the agricultural field. Perhaps “big agriculture” is not a noble feeling, but Zhu Xinli insists on bringing “Huiyuan” from a FMCG Brand in the eyes of the public to the front of agricultural modernization. This persistence is worthy of respect.