In the past two days, COFCO and Jiaduobao shook hands and made peace, and the 1.5 billion yuan was also paid. This article is from the WeChat official account:Quick order (ID: fbc180) author: Liuya Dan, the original title: “behind the debt market, dealers JDB to lose” last drop of blood “,” head Figure from: vision China

1. Continued relationship with COFCO

Yesterday, Jiaduobao Group announced on its official account that Jeduobao has paid off the 1.5 billion yuan arrears to COFCO Packaging for repurchasing equity in the concentrate plant. On the afternoon of November 30, JDB renewed its strategic cooperation agreement with COFCO Packaging at the headquarters of COFCO Fulinmen.

After more than two years, COFCO and Jiaduobao, who had been involved in arbitration, shook hands again. The story of these two people is not inferior to the story of Jiaduobao and Wang Laoji.

According to the strategic cooperation agreement signed by the two parties, JDB China promises that JDB Group will regard COFCO Packaging as its preferred supplier of packaging products, and the purchase amount will account for 70%~80 of JDB’s total purchases. %. When JDB Group uses two-piece cans, PET or other new cans of beverage packaging products, it will be supplied by COFCO Packaging under the same conditions.

In the eyes of the outside world, Jiaduobao’s reconciliation with COFCO this time is inseparable from the joining of COFCO veteran Wang Jinchang. On January 1st last year, Wang Jinchang, who was once COFCO Packaging’s executive director and chairman of the board of directors, “airborne” Jiaduobao as the chairman of the group.

“It has a lot to do. Mr. Wang (Wang Jinchang) is very good in public relations; another point is: COFCO and Jiaduobao have been The relationship is very good, but Wang Qiang(Former President of Jiaduobao) After leaving, the newly appointed leader Li Chunlin has not met with COFCO before. Therefore, there will be a period of time when the other party expresses distrust. The cans are broken, but the Spring Festival that year was still supplied normally.” An industry insider familiar with JDB told FMCG.

Actually, JDB Group and COFCO Packaging have a history of cooperation for nearly 20 years. As early as October 2006, JDB signed a cooperation agreement with COFCO in Hong Kong. In October 2017, COFCO Packaging injected capital into Qingyuan Jiaduobao Herbal and became its second largest shareholder. At that time, Jiaduobao was struggling with the Guangzhou Pharmaceutical Group. The addition of COFCO was regarded by the outside world as Jiaduobao had embraced the thighs of the central enterprises.

Unexpectedly, afterwards, Jiaduobao encountered continuous factory layoffs, production suspensions, lawsuits, etc., which caused Jiaduobao to “break its promise” and failed to inject the core of “valuation of RMB 3 billion” into Qingyuan Jiaduobao Herbal according to the capital increase agreement. Assets-Jiaduobao trademark.

The honeymoon period between Jiaduobao and COFCO is less than half a year, and the relationship between the two parties has reached a deadlock. First, COFCO Packaging suspended the supply of cans to Jiaduobao, which led to the shutdown of the Jiaduobao plant, which affected its performance.

In March 2018, Li Chunlin was appointed to the post of President of Jiaduobao. Subsequently, Wang Jinchang, the former chairman of COFCO Packaging, was hired as chairman of Jiaduobao. The crisis between the two parties was turned into an opportunity. Six days after Wang Jinchang took office, COFCO Packaging and Jiaduobao signed a tank supply cooperation agreement to resume cooperation. Both parties stated that they will jointly advance the listing process.

However, the dispute between Jiaduobao and COFCO Packaging has not ended. Because the Jiaduobao brand is injected into Qingyuan Company, it is very inconvenient to go public. By April 28 this year, the two parties reached a repurchase agreement. Jiaduobao repurchased 30.58% of the shares of Qingyuan Jiaduobao Herb held by COFCO Packaging Investment, of which the share repurchase price was about 1.5 billion yuan, plus 238 million yuan in dividends, which were paid in seven installments, and the deadline was until the end of 2021.

II. The listing is in progress

“JDB Group is planning to go public as a whole. This strategic cooperation will help JDB Group go public as a whole and build it into an internationally renowned brand.” On November 30, COFCO Packaging announced in addition to The biggest highlight of JDB’s strategic cooperation agreement is the listing of JDB mentioned in the announcement.

Li Chunlin also responded positively to the listing news yesterday: “As of yesterday, Jiaduobao has successfully repurchased COFCO PackagingWith a 30.58% stake in Jiaduobao Concentrate Juice, Chongqing has signed a new strategic cooperation agreement, clearing the biggest obstacle to listing! “

Previously, on November 9th, JDB’s official website announced that JDB’s investment and listing work is proceeding in an orderly manner. Wu Bo, a member of the management committee of CICC and vice president of CICC Wealth, went to JDB Study and exchange.

And CICC is known as the “investment bank aristocrat”. CICC also served as the lead co-sponsor for the listing of Nongfu Spring. In addition, one of the joint sponsors and lead underwriters of Ant Group, whose listing is suspended, is also CICC. However, whether JDB will be favored by CICC remains unclear.

In fact, as early as 2018, JDB President Li Chunlin once stated to the public that in the future JDB’s strategic goal is to start a second business, increase revenue and reduce expenditure, integrate advantageous resources, and achieve the company’s successful listing within three years. Locked in 2021.

In 2019, JDB and Wong Lo Kat gave up the price war and returned to the correct path of pursuing profit. JDB’s situation has also improved.

Industry analysts believe that JDB’s eagerness to go public is to solve the funding problem. After all, due to multiple losses, compensation, price wars and other factors, Jiaduobao has already lost money and needs fresh blood.

According to JDB, during the meeting with CICC, JDB Chairman Wang Jinchang said: “JDB has a marketing team with very strong execution ability, which is good at integrating resources and developing markets; Loyal partners and perfect sales network. In the first half of this year, under the influence of the epidemic, in the face of the fierce market competition environment, it still achieved good operating results throughout the year.”

Jadobao’s product lines are mainly Jiaduobao herbal tea and Kunlun Mountain mineral water.In recent years, the herbal tea market has lost its beauty. Although the mineral water market is stable, it has not seized the opportunity for rapid growth.

According to the data of the Prospective Industry Research Institute, when the herbal tea market expanded the fastest, the growth rate was 16.7%, but it has fallen to single digits since 2015, and the growth rate is only 9.7%. The market has discussed herbal tea in recent years. Also very cold.

“The categories of herbal tea are declining. It seems that everyone did not continue to tell the story well, so they could only cultivate on this one-third of acre of land. For a while, herbal tea was not properly promoted and did not practice the previous marketing ideas , One thing is dominated by sales.” The aforementioned industry insiders familiar with JDB believes.

At the same time, these years of alternative drinkingProducts have also appeared in large numbers, and beverages including coffee, plant beverages, dairy products, high-end drinking water and other categories have maintained rapid growth.

However, Xu Xiongjun, a strategic positioning expert, believes: “Although the market has been cold in recent years, the possibility of JDB’s listing is still very high, especially after JDB’s re-opening of the red pot, its performance has improved rapidly. After the listing, many measures have been taken to streamline troops, streamline administration, increase revenue and reduce expenditure, and strategically return to the slogan of’fear of getting angry, drink Jiaduobao’, and the effect is good. And if you cooperate with COFCO again, you will also join forces. Because tin cans are the biggest cost of herbal tea raw materials.”

3. Dealers “invest in shares”

In the past few years, it has been rumored that Jiaduobao’s capital chain is tight. In 2019, Jiaduobao claims to have made a profit, which is only 1 billion. Where did the 1.5 billion repurchase money come from?

There are public reports that most of the cost of this acquisition comes from dealers’ “money”-Jiaduobao has launched a targeted fundraising for outstanding dealers. The threshold for equity participation is 20 million yuan. The dealer’s share capital injection is the return An important source of purchases.

It’s just that FMCG wrote about this matter before, and Jiaduobao was talking about all-member stock ownership a few years ago.

“The dealers in Luoyang invested 40 million. The dealers just injected capital to get the shares. If Jiaduobao fails to go on the market, they will get interest, which is 6% higher than the bank interest. His bottom Regional managers, there will also be options in the future. The employees of the company will have options all the way to the office. The incentive of options is that you will be assigned some options after you complete the company’s performance evaluation.” Industry insiders said.

It means that Jiaduobao and dealers are deeply bound. Everyone is a boat, and cooperation will be closer in the future. In addition, JDB’s performance in the past two years has been good, and profits have begun to increase, and dealers also agree with JDB’s concepts.

However, the highlight of this matter is that under the impact of the epidemic and difficult shipments, distributors are still willing to pay for shares. At least it shows that the relationship between Jiaduobao and distributors is quite good, and both parties have trust. . Just like FMCG said: “20 million, I can eat cabbage for a lifetime!”

“Jaduobao is actually quite good about credibility. It’s just that the lawsuit with Wang Lao Kedah has dragged down the past few years. Jiaduobao has allowed their dealers to make money and their loyalty is still very high. For a while, add The salaries of Duobao’s salespersons are also advanced by the distributors.” Another person in the herbal tea industry revealed.

This also reflects from the side that a series of measures taken by Li Chunlin after being ordered in danger in 2018 have achieved certain results.

In any case, news that is good for listing is good news. It is also hoped that dealers and employees will “brothers work hand in hand” when they gain more shareholding, so that the listing will come sooner.

This article is from WeChat official account: Fast Dissipation (ID: fbc180) , author: Liuya Dan