A huge loss of 4.2 billion! The domestic beverage giant has fallen, and now the founder has lost contact and dumped the mess on his son

Tian Oh honey grapefruit tea, which was once popular all over the country, must have many people still remember that this drink was so popular that almost everyone had a bottle of it with the brainwashing advertising words and the blessings of celebrities such as Fan Bingbing and Li Xiaolu.

The Tianwow Group behind it has also made a lot of money, with an annual income of up to 5 billion, but today's Tianwow is no longer what it was back then.

The founder, Lin Jianhua, mysteriously "lost contact", leaving behind a debt-ridden mess, and his 25-year-old son was ordered to take over the stormy business empire.

So, why did a business empire that once earned 5 billion a year suddenly fail?

From popularity to suspension

Do you still remember the brainwashing advertising slogan "What to drink for health and beauty"? The magical melody can still echo in my ears when I think about it now.

This advertising slogan resounded in the streets and alleys back then, from TV to radio, from bus stop signs to supermarket shelves, almost everywhere.

The overwhelming advertising campaign, coupled with the endorsements of Li Xiaolu and Fan Bingbing, who were hot stars at the time, quickly became popular all over the country.

Especially in summer, the chilled honey grapefruit tea, sweet and sour, cool and thirst-quenching, is simply a must-have artifact in summer.

In 2013, taking advantage of this hot momentum, Tenwow International successfully landed on the Hong Kong Stock Exchange, and the scenery was infinite for a while.

The market value has soared, and sales have reached an astonishing 5 billion, which is quite a powerful number in the beverage industry, enough to wrestle with those old beverage giants.

Who would have thought that in a few years, this once-dominant "beverage empire" would fall so quickly?

The success of Tianwow is of course inseparable from precise marketing strategies and star effects, but in addition to honey grapefruit tea, can you still think of other products of Tianwo? It's hard, I'm afraid.

This is the biggest problem of Tianwo, is the product structure too simple, except for the popular honey grapefruit tea, other products are almost unknown, and failed to form a second growth curve.

This strategy of over-reliance on a single product has caused brands to gradually lose their advantage in the market competition, and consumers' tastes will change, and they cannot drink this kind of beverage all the time.

When other brands launched new products to seize market share, Tianwow still stuck to the honey grapefruit tea, and was finally ruthlessly abandoned by the market.

The data also confirms this, and after the brand's performance peaked in 2015, it began to decline all the way.

In May 2018, just when everyone was about to forget about it, a sudden announcement brought it back into the public eye: the company's shares were suspended.

Before the suspension, Tenwow's performance had been declining continuously, and its stock price had also fallen all the way, while rumors about the related party transactions between Tenwow and its affiliated company Nanpu Food, as well as possible financial problems, were also circulating in the market.

The crisis of 2.1 billion deficits

As for the chairman of this group, many people may not know much, his name is Lin Jianhua.

This ordinary teenager who came out of Putian, with his keen business sense and extraordinary courage, broke out of the world in the fiercely competitive Shanghai Tang.

Before founding Tenwow, he first established a company called Nanpu Foods, which mainly represents internationally renowned brands such as Nestle and Lay's California, which has helped him accumulate rich market experience and network resources.

Acting for international brands requires not only keen market insight, but also strong negotiation ability and resource integration ability.

He clearly possesses these qualities, and he has successfully introduced these international brands to the domestic market and made himself stand out in the industry.

After that, he founded Tenwow Foods and launched his own brand, Honey Yuzu Tea, which quickly occupied the market and made Lin Jianhua a leader in the beverage industry.

Nanpu and Tenwow are like two business empires built by him, which are related to each other and support each other, and Nanpu is the largest distributor of Tenwow and is responsible for the sales and channel development of Tenwow products.

Tenwow relied on Nanpu's channels to expand rapidly and quickly occupy the market, which was very effective at the time, helping Tenwow achieve explosive growth in a short period of time.

However, this close correlation is also a double-edged sword, laying a hidden danger for future crises, and the risk of related party transactions may detonate at any time.

In May 2018, the decline of Tianwow has been revealed, but Lin Jianhua suddenly "lost contact", and some people suspected that he ran away with money, but later learned that he was investigated.

With the deepening of the investigation, Tenwow International's financial problems also surfaced, with a huge deficit of up to 2.1 billion, which caused an uproar in the outside world.

Where did the money go, according to the announcement, Tenwow had paid a huge advance payment to its affiliated company, that is, Nanpu Food, but did not receive the corresponding goods.

Among them, a discerning person can see at a glance that there is also a huge loan that has been used to support another company in which Lin Jianhua holds a stake.

These unusual related-party transactions revealed the confusion and potential violations of the brand's internal management, and more seriously, after Lin Jianhua's "disappearance", the company was leaderless, and the management also fell into great turmoil.

A number of senior executives left one after another, the company's operations fell into chaos, and the once orderly "empire" suddenly became a mess.

Creditors also began to lose confidence in the sky, and asked for liquidation, worried that their money would be lost, and the once glorious beverage empire seemed to be about to "collapse" overnight.

Will the second generation be able to clean up the mess?

The company is definitely not in a mess, 25-year-old Lynch appeared, and after his father was investigated, he was ordered to take over as chairman of the board of directors of Tenwow International.

After graduating from the Department of Mathematics at University College London, this young "rich second generation" joined the family business Tenwow.

Although he has the aura of "returnee" and high education, to be honest, he is only a fledgling novice in the mall.

At the age of 25, he suddenly had to take over a debt-ridden and problematic company, which was indeed a lot of pressure, and what was in front of him was not an easy errand, but a real mess.

Huge debts, stock suspensions, increasingly competitive markets, and aging brands are all serious problems that can be a headache for seasoned entrepreneurs.

What's more, he is just a young man who has just entered the shopping mall, whether he can turn the tide and lead the sky out of the predicament, to be honest, the outside world is not optimistic.

To add insult to injury, at the critical moment when the company was facing life and death, his wife posted a mansion worth hundreds of millions on social media, showing off her luxurious life.

This time public opinion exploded, the company is about to go bankrupt, and the family members are still showing off their wealth in a high-profile manner, is this appropriate?

This has added another fire to the stormy company, worsening the already precarious corporate image, further declining public trust, and partners have begun to wait and see, questioning the future of the company.

epilogue

From "healthy and beautiful" to debt-ridden, the rise and fall of Tenwow Group is embarrassing, and Lin Jianhua's "loss of contact" has left his son not only with huge debts, but also with a company full of holes and huge pressure.

The popularity of honey grapefruit tea relies on star effect and overwhelming advertising, but ignores product innovation and long-term development.

The single product structure eventually led to the loss of the brand in the fierce market competition, and the suspicion of related party transactions and the mystery of the 2.1 billion deficit made it more and more difficult for this former beverage empire.

Key sources of information:

The original article was published in the Daily Economic News on January 20, 2020 about the once sold 5 billion a year, Fan Bingbing and Zhou Dongyu have drunk it, oh the god grapefruit tea is going to be "cold"? reports

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