Who would you think of when it comes to functional drinks?
Editor’s note: This article is from WeChat public account “investment sector” (ID :pedaily2012), author Yang Jiyun.
Recently, the CSRC disclosed that Dongpeng Beverage (Group) Co., Ltd., the parent company of Dongpeng Special Drink, has completed the first phase of supervision and supervision. Submit an IPO application in June this year. This means that the energy drink “Big Mac” is a step closer to the market.
“After being tired, drink Dongpeng special drink.” This advertisement has spread all over the streets. Founded in 1987, Dongpeng Beverage Group is a long-established beverage manufacturer in Shenzhen. After 30 years of development, it has become a leading domestic beverage company. In 2018, the overall size of Dongpeng Beverage broke through 5 billion yuan, which is legendary.
The functional beverage business is behind a river. Red Bull has been sitting firmly on the throne of “One Brother”, and Dongpeng Special Drink, which is ranked second in the year, is called “the second millennium.” In recent years, Red Bull has been caught in the trademark dispute. Dongpeng Special Drink seized the opportunity to rise rapidly and embarked on the road of IPO.
Behind Dongpeng Special Drink, there is Lin Muqin, the leader who pulled it back from the bankruptcy edge, and also the support of investors such as Jiahua Capital. Its capital market plan may open a new situation for the functional beverage market hit by coffee and new tea drinks.
Sell 5 billion in 1 year:A counter-attack story of a tidal businessman
Dongpeng Beverage Group was founded in 1987. It can be said that it is a state-owned and old-fashioned beverage manufacturer, but the well-known Dongpeng special drink was only available 10 years later.
In the 1980s and 1990s, the period of functional beverages followed suit. At that time, Red Bull, which entered the Chinese market in the early 1990s, was already popular, which made many people see the opportunity. Dongpeng Special Drink launched by Dongpeng Group is also one of the imitators. Dongpeng Special Drink was launched in 1997. Lehu, which is very similar to Red Bull Packaging, was introduced in 1998. Wahaha’s power is even later, only in 2012. roll out.
However, Red Bull has a great momentum, and most functional drinks can only live in its shadow.. The “turning over” of Dongpeng special drink has been going on for a long time, and it is even more inseparable from Lin Muqin, the chairman of Dongpeng Beverage.
Before taking over Dongpeng Beverage, Lin Muqin worked in a joint venture beverage company for 10 years, from the grassroots production line, production minister, technical development minister to sales minister, etc., causing him to “imagine every time with his eyes closed.” The status of a link and every post.”
In 2003, Dongpeng Beverage decided to transition from state-owned to privatization. With many years of experience, Lin Muqin bought the company’s brand and production equipment and led the beverage. From 2003 to 2010, the company’s output value was 15 million. The yuan was raised to 250 million yuan.
Functional beverages are a breakthrough in the market, and Lin Muqin always believes in this. At the end of 2009, he called for packaging differentiation and price differentiation, and launched the bottled Dongpeng special drink with dust cover, which was used up to now, and focused on the promotion in the Guangdong Province of the base camp, which opened the market.
In 2013, Dongpeng special drink invited Nicholas Tse as the brand spokesperson and began to attack the national market. In 2015, in order to seek differentiation, Dongpeng Special Drink launched a series of slogans such as “Young is awake to fight” and is mainly young. Subsequently, it has increased brand publicity and successively sponsored variety shows such as “Happy Comedy” and “Fast Forward”. Today, Dongpeng special drink market share has climbed all the way, in 2018 made a year to sell 5 billion.
In retrospect, Dongpeng beverage is correct and crucial at every step after the restructuring. The functional beverage market has been in full swing for many years, and there is a leading role such as Red Bull. The promotion and differentiation of young people are indispensable.
The only institutional investor, Canada Capital: “This is the brand most likely to become China Red Bull”
As a family-owned company, Dongpeng Beverage’s shareholding structure is relatively simple.
The information shows that the founder Lin Muqin holds 56.85% of the shares of Dongpeng Beverage, which is the actual controller of the company. In addition, Tianjin Junzheng Investment Management Partnership (Limited Partnership) holds 10% of the shares; Shenzhen Kunpeng Investment Development Partnership (Limited Partnership) holds 7.36% of the shares.
In June 2017, Jiahua Capital invested RMB 350 million to invest in Dongpeng Beverage and became the second largest shareholder of Dongpeng Beverage. At that time, Dongpeng Beverage had nearly 20 beverage production lines with an annual production capacity of 850,000 tons. Su Wenjun, a partner of Jiahua Capital, once re-opened: “In the functional beverage industry, what is the most likely to become the Chinese Red Bull brand? It is Dongpeng special drink. Dongpeng special drink is developing rapidly, and the growth rate is faster than many peer companies. It’s hard to get in this market right now.”
Canadu Capital is the sole institutional investor of Dongpeng Beverage. Prior to this, Jiahua Capital successfully invested in food companies such as Qiaqi Food, Jiajia Food, Laiyi, and Barbie Shantou. Leave a classic investment case. After investing in Dongpeng beverages, Jiahua Capital introduced the main executives of Dongpeng Special Drinks to the senior executives of Qiaqiaguazi. The two sides launched a comprehensive cooperation, and the channel outlets of Qiaqia were fully open to Dongpeng Special Drinks.
Not only that, Jiahua Capital also introduced Dongpeng special drink to the Iraqi share to help them enter the Shanghai market that they always want to enter. As a result, a number of companies that have been invested have started a so-called “chemical reaction” to carry out industrial synergies.
Catch young people! This is also an important topic for functional drinks
In the past few years, coffee and new-style teas are often the most eye-catching wave. In fact, in the past 30 years, bottled beverages have become the industry’s well-deserved boss.
In the past ten years or so, the domestic beverage market has changed dramatically, and traditional bottled beverages driven by channels face many challenges. Bottled milk tea, mineral water, juice drinks, NFC juices, tea drinks, dairy drinks, functional drinks… Every segment of bottled beverages has a lot of competitors.
Not only is there a new type of tea attack, but a small area of functional beverages is divided into people. Among them, Red Bull has to be mentioned. Yan Bin, Chairman of Red Bull China, once proudly said to the industry: “At the best time, Red Bull sells 6 billion cans a year and has 50 factories.”
However, the performance behind the beautiful performance often hides the consequences of uneven distribution of benefits. The Thai-Chinese Xu Shubiao founded Tiansi Medicine in Thailand in 1956, and later invented the functional beverage Red Bull. The Thai Red Bull was jointly owned by the Xu family and another Thai-Chinese Yan Bin. After entering the Chinese market, Yan Bin was indispensable. In 2012, Xu Shubiao passed away, and the contradiction between Xu and Yanbin gradually increased, which gradually led to the brand dispute between China Red Bull and Thai Red Bull.
The bloody hurricane in the functional beverage market began. Despite the troubles of “domestic affairs”, Red Bull’s performance is still the first in the domestic functional beverage market. However, Thai Tencel then teamed up with Chinese manufacturers to launch the “7 kinetic energy” of functional beverages.
The Dongpeng Special Drink, which is ranked second in the year, began to operate the capital market layout. The third-ranked Lehu was originally owned by the listed company Dali Group. In addition, the pulsating, water-moving, and Wahaha, Nongfu Spring The functional drinks that have been launched have been entrenched in the market, and they have been very busy for a while.
There is an analysis that the listing of Dongpeng Beverage will not change the current market competition, but will consolidate the market position of Dongpeng Special Drink, ranking third and fourth.The gap between brands.
No practitioners are willing to let go of this fat. According to the “2016-2020 China Functional Beverage Industry Market Survey and Investment Decision Report”, it is estimated that by 2020, the retail volume of functional beverages in China will reach 15.037 billion liters, and the retail sales will reach 163.528 billion yuan.
In the face of the 90s and 00s that have the habit of day and night living, the demand for functional beverages is growing. Young people have always been the “land of competition for consumer brands”. Functional beverages are even more so. The mastery of individualized and young consumers will determine the position and pattern of a company in the functional beverage market.
Linmugang also said in an interview: “After the 80s and 90s, it is growing into a mainstream force for market consumption. They are chasing quality products that meet new demands, higher quality, and more individuality. These trends are for the East. Peng is a good opportunity, Dongpeng special drink will continue to promote the rejuvenation strategy.”
However, the listing of beverage companies has always been “slow motion.” Accepting the listing counseling can only open a small head on behalf of the IPO. Dongpeng special drink has a long way to go from the final listing. A spokesperson for Dongpeng Beverage also said: “Listing counseling is more like a corporate internal practice, which is a standard action within the company.