Chapter 1418 Cooperation
If you remember correctly, China Resources should have started entering the beer industry in the past two years. The first stop was Fengtian Brewery in the Northeast. So Fu Song turned around and asked, "Mr. Fang, where is the Northeast?"
Fang Jingcun's face suddenly looked bad and said, "We are slow to move. Not long ago, China Resources and Fengtian Brewery set up a line. Now the two sides are fighting fiercely. Compared with China Resources, our advantages are not obvious and the chance is not great, but I think we can fight!"
Fu Song did not argue with this. Fang Jingcun said that Vision Group has no obvious advantages over China Resources, which is obviously a compliment to Vision Group.
According to Fu Song's knowledge, China Resources Group's revenue exceeded US$5 billion last year, more than twice that of Vision Group.
Speaking of which, Vision Group and China Resources Group have many similarities, both are comprehensive groups that span multiple industries and fields, and their business scope basically covers people's daily necessities, food, housing and transportation.
However, China Resources' business scope is wider. In addition to daily necessities, local livestock products, non-staple foods, textiles, textile raw materials, machinery and equipment, land transportation, investment and development, there are also minerals, petrochemicals, sea transportation, etc. that Vision Group does not involve.
With the high overlap in business between the two companies, competition is naturally inevitable, especially in Xiangjiang, the 100-year-old Supermarket, Huikang Supermarket and Watsons, which are under Vision Retail, have overwhelmed China Resources Supermarket, boutiques and department stores under China Resources Retail.
China Resources Group's overall strength is indeed stronger than Vision Group, but it is just reversed in the retail field.
Baijia Supermarket and Watsons were originally retail brands under Li Huanggua and Huang Ji. Huikang was originally a retail brand of Milk International, a subsidiary of Jardine Mahjong. During the stock market crash in 1987, Fu Song Qiaoge snatched it. After reorganization, it was packaged and injected into Vision Group.
Before the stock market crash, Bajia and Huikang were the two giants ranked first and second in the retail industry in Xiangjiang. After the merger, they directly occupied about 60% of Xiangjiang's retail market share. After several years of development, Vision Retail now accounts for 70% of Xiangjiang's market share.
Although the retail business of the two companies is almost a big deal in Xiangjiang, in other fields, the two companies are not involved in the rivers and sometimes they can communicate with each other.
Moreover, in addition to Vision Group, United Real Estate, Yuantu Investment, United Bank and China Resources, which are the "Yuanzi" companies, have carried out multi-faceted cooperation in the fields of container terminals, real estate, financing, etc., so despite the competition, the relationship is generally good.
Fang Jingcun blamed himself: "Mr. Fu, this responsibility lies with me..."
Fu Song waved his hand and interrupted: "Multiple and acquisition strategy of first south and then north is my opinion. At that time, it was mainly considered that Hulunbuir Brewery could slow down. Since China Resources has entered the market, then forget it, what about Harbin Brewery?"
He was not afraid of competing with China Resources, but felt that there was no need to fight against China Resources for a Fengtian Brewery. The Fengtian Brewery was gone. Isn’t there still a Harbin Beer Factory?
Fang Jingcun immediately said: "After learning that China Resources and Fengtian Brewery were mixed together, I immediately sent someone to inspect the Harbin Brewery. The Harbin Brewery was originally the first brewery in the mainland and has always been the leader of the mainland beer industry. Until 1985, Harbin Brewery still ranked first in the country in terms of production.
However, since 1985, Harbin Berry began to decline, so he borrowed more than 100 million yuan to introduce a set of equipment with an annual output of 50,000 tons. However, in 1988, foreign installers failed to enter the factory to install and debug, causing the machine to be unable to be put into production.
It can be said that if there is no external capital to prolong life, the Harbin Brewery will definitely die! I tend to cooperate with the Harbin Brewery, but after the joint venture, I must carry out drastic reforms to the Harbin Brewery.”
Fu Song asked: "How much do you think it costs to hold Harbin Beer Factory?"
Fang Jingcun obviously had a long time ago, so he said without thinking: "The biggest difficulty of Harbin Beer Factory at present is the 100 million yuan loan owed to the bank. As long as the loan is paid back, you can throw away your burden and go into battle lightly.
The 50,000 tons equipment ordered before is intact and can be put into use after being unsealed and installed and debugged. In this way, the production of Harbin Berry Factory can reach 150,000 tons in almost years.
We have roughly calculated internally that it takes about 120 million to 150 million yuan to achieve holdings."
Fu Song nodded and said, "You can talk."
It can be discussed more than just talking about it. Not to mention spending 150 million, even if it spends 150 million, if it can control Harbin Beer Factory, Fu Song can wake up in a laugh in his dream!
Fang Jingcun said: "Now the merger and acquisition in the south is almost done. I will set out tomorrow, go to Tianjin first, and then to Harbin."
Fu Song wondered: "What are you doing in Tianjin? There are also breweries in Tianjin that want to sell?"
Fang Jingcun smiled bitterly and said, "Mr. Fu, you don't know if you don't look at it. I was shocked when I saw it. There are breweries in almost all cities in the mainland, and at the same time, there are breweries on the verge of bankruptcy in the city. You can choose whatever you want, which will make you dazzling!
Let’s talk about Tianjin. There are only two breweries, Tianjin Brewery and Bohai Brewery. These two factories are now in trouble. Bohai Brewery can basically be declared dead. Tianjin Brewery is not far from bankruptcy.”
Fu Song felt a pain in his heart. It was all about people's wealth and cream. Instead of falling into the hands of foreigners, it would be better to take advantage of himself.
“Is the merger and acquisition funds enough?”
Although he has prepared US$200 million and RMB500 million in mergers and acquisition funds for this year's beer business expansion, Fang Jingcun has made great efforts in the six major regions of Southwest, South China, Central China, North China, East China and Northwest for more than half a year, and has successively acquired more than 30 breweries, including Blue Sword Brewery, Jinling Brewery, Zhujiang Brewery and other major factories.
"Enough!" Fang Jingcun said confidently, "We are not paying the merger and acquisition money in one lump sum, and most breweries are small factories with an annual output of 30,000 tonnes. They can get it for 20,000 tonnes to death for 20,000 US dollars, and 10,000 tonnes."
After learning about the beer merger and acquisition, Fu Song asked He Shaohua about his cooperation with several Coke manufacturers.
Compared with beer, the market size of Coke is smaller, but not much smaller.
Chinese people have a special liking for carbonated beverages, and many people love the "spicy flavor".
Since most of the early sodas were put in glass bottles, due to the restrictions of transportation conditions, the sodas in the factory could only be sold locally. Therefore, like beer, there is a scene of "one city, one sturgeon".
In the past 1980s, more than half of the domestic beverage market was occupied by domestic soda, and the best among them was the most famous "eight major soda factories".
They are: Jingcheng Beibingyang Soda Factory, Jinmen Shanhaiguan Soda Factory, Shanghai Zhengguanghe Soda Factory, Hankou Beverage Factory No. 2, Yangcheng Asia Soda Factory, Fengtian Bawangsi Soda Factory, Shancheng Tianfu Cola Group Company and Laoshan Soda Company in Qindao.
In addition, there are emerging small brands such as West Lake Coke, Yellow River Coke, and Shaolin Coke.
Of course, now we need to add the very Coke from Vision Group.
More brands mean fierce competition and more importantly, the dispersion of power. Therefore, in recent years, under the joint attack of Coca-Cola and Pepsi, domestic Coke brands have retreated step by step.
However, with the back of the Vision Group, with its strong sales channels and advertising and marketing capabilities, Coke is the leader among domestic Coke brands, with a market share of more than 20%, and in many places it can even compete with Coca-Cola and Pepsi.
This year is on the eve of the resumption of customs. Some people think that once the market is opened, domestic beverages will be defeated. Instead of "sitting for death", it is better to "seek life in death."
Therefore, he came up with a way to use foreign capital to transform old enterprises, and designated eight major factories to cooperate with the two major Cokes in joint ventures, seeking a way to survive by retreating to advance.
Therefore, except for Laoshan Coke, which was just controlled by Vision Group at the beginning of this year, the other seven companies were involved in the rumors of a joint venture with "Two Les".
According to unreliable news, there are Tianfu Cola, Asian soda, and Arctic Ocean, and the Bawangsi, Shanhaiguan, and Zhengguanghe who are included in the Sect of Coca-Cola.
As we all know, these state-owned soda brands have not only not lived a happy new life, but have been rapidly marginalized and gradually disappeared in the market tide.
The National Coke "Patriotic War" that began in the 1980s ended the first phase of the confrontation. The Chinese team was wiped out and completely defeated. This is the so-called "two joys flood the seven armies".
Fu Song originally wanted to hide in the small building and walk the unification, sweeping the snow in front of the door, and not wanting to meddle in other people's business, but when he was in the United States, he was furious when he heard He Shaohua's report on this matter!
I have no objection to finding Coca-Cola and Pepsi joint venture, but I put it aside and act like I don’t exist, right?
I am considered half of foreign investment, okay?
If you can tolerate something else, you will definitely not be able to tolerate it!
This is a big deal? Is it good to have a good enemy?
It really inherited the fine traditions of our predecessors. I would rather be with friendly countries than with family slaves!
Therefore, he ordered He Shaohua to be a messing stick without hesitation, and it would be better to grab a few pieces of fat from it. It would be fine if he couldn't grab the messing around. Even if he couldn't stop it, he would be disgusting to death for some people!
As soon as he mentioned this, He Shaohua was full of anger and said indignantly: "Mr. Fu, the Light Trade Union's attitude is ambiguous, and I feel that they are more inclined to cooperate with foreign capital."
Fu Song snorted coldly: "The landed phoenix is not as good as a chicken. Don't pay attention to it. Just look for a beverage factory. Let's give them an extra choice.
Don’t be stingy, give the price high, I want to see if it’s a good word from some people, or money is good!”
This year, the Ministry of Light Industry was abolished and reorganized into the Light Industry Federation. An association did not know where the courage came from and dared to decide the life and death of so many beverage factories!
"Okay!" He Shaohua got Fu Song's Shangfang sword and was excited. He turned his eyes and looked at Fang Jingcun, and said with a smile: "Mr. Fang, you just said you were going to Tianjin soon? Why don't we be companions?"
Shanhaiguan soda factory belongs to Tianjin, and there are two breweries facing bankruptcy in Tianjin, so it is better to have a "trip sale".
Originally, "trip sales" is a trick that local governments often use when joint ventures, and I want to welcome the joint ventures warmly. I also bought one (good factory) and gave one (bad factory).
He Shaohua can also treat him with his own way. If you want to save two breweries in Tianjin, right? You can, and sell the Shanhaiguan soda factory to me.
"No problem!" Fang Jingcun understood He Shaohua's intention when he heard this and agreed readily.
The third one reported was Feng Baoguo.
Old Feng reported in a stable manner. Fu Songben thought there was nothing wrong with him, but in the end he spent solemn introduction to his competitor - Hope Group.
"Last year and this year, Hope Group built five feed processing plants in Shancheng, Mianyang, Henan Province, Shanghai Stock Exchange and Yunnan Province in one go.
At the beginning of this year, Hope Group invested 10 million yuan to jointly build a modern food processing plant with Xu's Canning Factory and Haofeng Trade in the United States. The two phases are planned to cover an area of 50 mu. It is expected to be completed and put into production in April and May next year, and the second phase covers an area of 150 mu.
Once this factory is put into production, I hope the group will, like us, completely open up the closed loop of the industrial chain from upstream feed production, midstream aquaculture industry, and downstream food processing.
From the series of measures taken by Hope Group in the past two years, it can be seen that its development ideas are very clear: based in Chengdu, going out of Sichuan Province, establishing subsidiaries in other provinces, and seeking development across the country.
So, Mr. Fu, I don’t think I can take my hope lightly. Although this company is small in scale, its ambitions are not small at all.
We entered Sichuan Province a little late, and we hope that the group will fight locally and occupy the right place and people. We only have a capital advantage, but this advantage is only relative. After all, our plate is too big to concentrate all our strength in Sichuan Province….”
Fu Song was shocked while listening. Last year, he made the decision to march towards Sichuan Province, intending to copy the Hope Group's nest. He thought he had taken the four brothers of the Liu family enough, but he did not expect to underestimate them.
According to his idea, I have hit you at the door of your house. If you brothers don’t stay at home and guard your family business quickly, they dare to go out and roam around. This is not taking me seriously.
If it were when he first started a business, he would have been yelling that "I will be indifferent to life and death, and if I don't agree, I will do it."
But now he has developed the ability to not show his emotions. Even if he is unhappy, he will not show it in public. Instead, he smiled and asked, "Mr. Feng, what are your plans?"
Feng Baoguo did not answer directly, but instead talked about another competitor: "Not long ago, Zhengda people came to me and planned to cooperate with us."
"Let's cooperate?" Fu Song was stunned for a moment, then narrowed his eyes, "Zhengda wants to join forces with us to return to the Sichuan Provincial Market."
Zhengda was the first foreign-invested enterprise to invest in the mainland after the reform and opening up. It obtained the No. 0001 foreign-invested enterprise approval letter in Shenzhen Town. Later, Zhengda obtained the "No. 001" foreign-invested enterprise business license in Zhuhai and Shantou.
Four years ago, when many foreign-invested enterprises left the mainland one after another or expressed doubts about the prospects of the mainland market, Zhengda continued to increase investment in China without hesitation.
Moreover, in terms of creating a corporate image, Zhengda is a master. In the same year when foreign capital withdraws from the mainland on a large scale, "Zhengda Variety Show" was broadcast, and Zhengda suddenly became half the sky.
It is precisely because of the consistent positive attitude and practical actions of Charoen Pokphand Group toward the Mainland that it has obtained some special "customs" in the process of its development in the Mainland.
For example, in some areas that were not open to the public at that time, such as retail, finance, etc., Zhengda also obtained a franchise and took the lead in entering.
As long as Zhengda opens his words, the four major domestic banks will immediately handle loan business for it, and there is basically no limit on the quota, which shows that Zhengda Group has been highly recognized by the mainland government.
Fu Song believes that Vision Group is doing well, but in terms of preferential treatment, Vision Group is far inferior to Chiangda Group.
Chapter completed!