After the listing, can the millennium tweener complete the counterattack?
Editor’s note: This article is from “Bullet Finance” under the “Entrepreneurial Frontline”, author Yin Taibai.
Red Bull is no shortage of chasers
After listing, Dongpeng special drink can catch up with Red Bull?
On October 9, the CSRC disclosed that Dongpeng Beverage has completed the first phase of listing supervision under the guidance of Huatai United Securities. This means that Dongpeng Beverage is one step closer to the A-share listing.
The industry believes that this is a prelude to Dongpeng special drink to launch a charge to Red Bull. It is true that catching up with Red Bull is not an easy task – Dongpeng special drink sales are only a quarter of Red Bull. But this did not hit the enthusiasm of Dongpeng special drink.
According to the official data released by Red Bull, Red Bull achieved sales of 20 billion yuan in the whole year of 2018. In the sub-category category of functional beverages, the market share accounted for 58%. In the same period, the sales of Dongpeng Special Drink reached 5 billion yuan, ranking second in the industry.
It is undeniable that in the field of functional beverages, Dongpeng special drink has already reached the nearest position to Red Bull.
Investors are also very optimistic about Dongpeng special drinks. In June 2017, Jiahua Capital, which had invested in Qiaqi Food, Small Cans, and Yiqi, invested 350 million yuan to become the second largest shareholder of Dongpeng Beverage. Song Xiangqian, chairman of Jiahua Capital, believes that Dongpeng special drink is most likely to become China’s Red Bull. He has expressed his affirmation of Dongpeng special drink more than once: Dongpeng special drink has developed rapidly, and the growth rate has exceeded many peer companies. This market is hard to come by.
As the catch-up target of Dongpeng special drink, Red Bull has been stuck in the trademark dispute and has been unable to get out.
Since August 2016, Red Bull’s Chinese trader, Huabin Group, and Red Bull’s founding company, TENCES, have launched more than 20 games around the ownership of the “Red Bull” brand. The two sides are ups and downs. Open diplomatic relations.
The market responded quickly to this battle, and Red Bull’s sales performance fell. In 2017, Red Bull’s sales in the Chinese market fell to 19.6 billion yuan, down 27.86% from 2016.
The Red Bull brand has also suffered a lot of damage. In 2015, Red Bull’s sales reachedBy 230.7 billion yuan, by 2018, sales have stopped at 20 billion yuan and have stalled.
In July 2019, the Huabin Group announced the half-year performance of Red Bull. According to the data, the sales of Red Bull and its new functional beverage brand Warhorse totaled 14.72 billion yuan, a year-on-year increase of 3.5%, of which Red Bull’s sales. It was 13.89 billion yuan, while the sales of war horses were unchanged from last year’s total, at 830 million yuan, an increase of 47% over the same period.
From the perspective of half-year results, Red Bull’s pressure on sales of 20 billion yuan is not big, but the competition is not small.
At present, the more mainstream functional beverage brands in the domestic market include Red Bull, Lehu, Dongpeng Special Drink, Magic Claw, Physical Energy, Karabao, Kaili, etc. The new functional beverages launched in 2018 are more than 20 kinds. .
Although Red Bull occupies half of the functional beverage market, it can still not catch up with Dongpeng special drink, not only the performance began to shrink, but also the market share dropped from 63% to 58%.
On the road to catch up with Red Bull, Lehu is also unwilling to lag behind. Although its sales are far lower than Red Bull and Dongpeng special drinks, the performance of Lehu has been steadily rising. According to the official data disclosed by Lehu (Lehu data from the Dali Annual Report), Lehu’s sales in 2016, 2017 and 2018 were 2.036 billion yuan, 2.675 billion yuan and 3.079 billion yuan respectively.
In contrast, in addition to distracting the issue of trademark disputes, Red Bull has to deal with the attack of a group of chasers, which in turn gives the Dongpeng a great opportunity to overtake the corner.
Followers’ ambitions
In all fairness, even if Dongpeng special drink chooses to speed up the listing on Red Bull’s diplomatic difficulties, and it has unlimited potential, it is not an easy task to catch up with Red Bull.
In fact, Dongpeng special drink has grown and developed. In addition to its own efforts, Red Bull has also played an extremely important role in boosting.
The Dongpeng Beverage Group, founded in 1987, was originally a state-owned and old-fashioned beverage manufacturer in Shenzhen. It started with the production of soy milk, water and herbal tea. It was not until 10 years later that Dongpeng special drinks were available to the group. The name is well known to the outside world. This change is inseparable from Lin Muqin, the chairman of Dongpeng Special Drink.
In 1995, Dongpeng Beverage Group was in full swing, and the “Dongpeng” Pai Gow Chenpi drink was in the limelight in the southern market. At this time, Lin Muqin gradually rose from the grassroots production line, production minister and technology development minister to the total sales. manager.
In the same year, the 73-year-old Red Bull founder Xu Shubiao got to know Yan Bin, who also lives in Thailand. That year, Yan Bin was only 41 years old, but the similar experience of making a living in a foreign country made Xu Shubiao and Yan Bin see each other as they were.
In the first two years of knowing Yan Bin, Xu Shubiao once thought about developing the Chinese market, but at the time