"Tahitian Noni and Ehrig, although they are in the Same Chinese market, feel inexplicably complementary: one has a license without a market, and the other has a market without a license."
Author: Insight Cat
This article is about 2500 words and is recommended for 5 minutes
From June 16, 2021 to June 20, 2021, Nori Tahiti held the 2021 Annual Performance Service Provider Seminar in Lijiang, which was attended by more than 100 dealers. After the meeting, the participants of the conference issued a heavy news: the direct sales business of Nori Tahiti and Arrowich in China may merge. Interestingly, this is not the first time a similar merger has been reported.
Pin Cat contacted the relevant person in charge of Noni in Tahiti, who denied the merger and stressed that "the United States (headquarters) also understands China's national conditions." ”
<h1 class="pgc-h-arrow-right" data-track="9" >01 Ehrlich's Journey to China</h1>
Ehrig was founded in early 2011 and is headquartered in Utah, USA. The development of Ehrig is closely related to another U.S.-based direct selling company, Eusana. In fact, Ehrig is fissioned from Eusana, whether it is the founding management team and dealers of the Founders Club members, almost 100% from Eusana. Since its inception, Arrowich has been recognized as one of the most disruptive and fastest-growing companies in the industry. The company has received more than 200 awards for its business excellence and is recognized as one of the fastest growing private companies in the United States.
In August 2014, Allish established Allish (China) Company and R&D Center in Tianjin, China.
In 2015, in consultation with the China Women's Development Foundation, we carried out public welfare cooperation and jointly launched the "Family Health Development Fund". At the same time, Thereforesy has a compound annual growth rate of more than 17% from 2015 to 2019.
However, the Chinese direct sales license that Aresei most hopes for has not been able to get it down. And they've been working on it for 10 years.
From the beginning of its establishment, Allish has taken China as the main market, according to the description of a backbone distributor of Arrowich, "On July 1, the product will soon be listed in Hong Kong and the United States, and the mainland will be used as a key market, the license has been implemented, attached to a domestic company, first take the import model, everyone has a legal identity, and then apply for a license." ”
In December 2013, Ehrig Hong Kong acquired Tianzhiyuan Biotechnology (Tianjin) Co., Ltd. In March and April 2014, the Hong Kong branch of Arrowhead injected capital into it twice, and the company was renamed Arrowhead (China) Commodity Co., Ltd. From the perspective of these actions, Arrowich is committed to building a domestic production base to meet the requirements for production bases in the application for direct sales licenses.
In 2016, Ericssie began to apply for a medal in Tianjin in a low-key manner. However, with the impact of the Quanjian incident, the Ministry of Commerce has stopped the review and issuance of all direct selling licenses. The hopes of a direct sales license are increasingly slim.
On July 20, 2020, New Century Corporation (formerly New Century Beverage Company) announced an acquisition agreement with Arrowich, and Fred Cooper, founder and CEO of Arrowich, will join the Board of Directors of New Century Corporation (see the article "Ambitions of direct selling giants in China: Tahiti's Brand, Arrowhead's Soldier").
Considering that another subsidiary of New Century Company, that is, Tahitian Noni, has obtained a direct sales license as early as 2014, there are also industry insiders speculating that in addition to Ai Ruixi's hope to integrate funds, channels and other resources, Tahitian Noni's direct sales license may also be an important consideration.
<h1 class="pgc-h-arrow-right" data-track="92" >02 Tahiti's Chinese history</h1>
Compared to Ehrig, Tahitian Noni's direct sales in China is very smooth. Tahitian Noni was founded very early, in 1996 in Utah, USA.
In April 2003, Tahitian noni juice was awarded a new food certificate by the European Union and officially entered the EU market.
In 2005, Tahitian Noni established Tahiti Noni Beverage (China) Co., Ltd. in Guangzhou. In the following years of development, Tahitian Noni has been quite high-profile, not only setting up a concept store in the CBD area of Beijing, but also inviting Lang Ping, a famous Chinese volleyball player and coach, as its image spokesperson, which can be described as a sensation.
On December 4, 2014, Nori Tahiti obtained a direct sales license issued by the Ministry of Commerce of the People's Republic of China and settled in Chongqing. But good luck seems to end there.
In 2015, Nori Tahiti failed to grab advantageous resources in the fierce market competition (a total of 19 direct sales licenses were issued in 2015), which led to the lack of late market operation. Since Tahitian Noni has not adjusted and upgraded its products, culture, models and management methods in a timely manner for the Chinese market, it has been tepid in the Chinese market since then. According to the 2020 DSN Top 100 Direct Selling Companies List, Tahiti Noni's annual revenue in 2019 was $200 million, ranking 40th, after Ehrlich.
In December 2018, Tahitian Noni was acquired by New Century Corporation.
<h1 class="pgc-h-arrow-right" data-track="93" >03 Halfway out of the new century dad</h1>
New Century Company is also an aircraft carrier-level enterprise with direct sales genes. Although he is not well-known in China, he is an important partner of internationally renowned brands such as Nestlé, Evian and Illy.
New Century Corporation is principally engaged in the development, manufacture and marketing of the health product portfolio. Its products mainly include health drinks and health care products, and are sold through direct sales and social marketing, and have business in the United States, Japan, China and other countries.
New Century Corporation, formerly known as an American brewing company, was established on April 26, 2010 in Washington State.
On April 1, 2015, the company acquired the Búcha Live Kombucha kombucha brand.
On October 1, 2015, the company sold its brewery and artisanal brewing business and changed its name to Búcha.
On June 30, 2016, the Company acquired the combined assets of New Age Beverages, New Age Properties, Aspen Pure and Xing Beverage (collectively, New Age). The new New Century Company manufactures and sells a wide range of teas, waters and other healthy functional beverages. Immediately after the acquisition, the company moved its operational headquarters to Denver, Colorado.
On February 17, 2017, the Company issued 4285714 ordinary shares at an issue price of $3.50 per share. In addition, the Company's underwriters exercised an over-allotment option to purchase 642857 additional ordinary shares. Before deducting underwriting discounts and commissions and other estimated offering fees payable by the Company, the Company's total revenue was approximately $17.25 million.
On March 31, 2017, the Company completed the acquisition of the consolidated assets of Maverick Brands, including Coco Libre, a well-known brand in its coconut water category.
In December 2018, New Century acquired Noni Tahiti.
In July 2020, New Century acquired five companies, Namet, LIMU, Mavie, Zennoa and Shannen.
In April 2021, according to the data released by the US direct selling news website (DSN), New Century Company's revenue in 2020 was 480 million US dollars, ranking 29th in the world as a direct selling company.
What New Century is best at is enriching the business matrix through mergers and acquisitions and optimizing the business structure to promote business growth. Since the acquisition of the Coco Libre business, New Century has significantly optimized its operations team and controlled operating expenses, resulting in total savings of more than $3.6 million, which has transformed the business from a loss-making business into a profitable business. In the third quarter that followed, New Century optimized its product line, reducing cost of sales by more than 30 percent. Its operational management and business optimization capabilities can be seen.
More importantly, New Century attaches great importance to the Chinese market.
In March 2020, Tahiti Noni and New Century Company merged their brands, and its Tahiti Noni global parent company was renamed "Noni by NewAge", which marked a deeper integration of Tahiti Noni by New Century Company, which was not without Chinese direct sales licenses. In July, the acquisition of Irish, with China as its core business, was even more obvious.
<h1 class="pgc-h-arrow-right" data-track="94" >04 combined conjecture</h1>
Tahitian Noni and Areich feel inexplicably complementary: one is licensed without a market, and the other is without a market. This has to make people speculate, as a new century company that is good at integration and optimization, in what way it will be adjusted.