The king of a generation of juices fell! At its peak, it earned 2.7 billion yuan a year, and now the debt-laden founder has also left
Recommendation: When it comes to the most well-known juice drink brand in China, who will come to mind first?
Perhaps many people are more impressed by the current fruit juice market popular farmer orchard, but in fact, as early as the nongfu spring to play the farmer orchard, China once had a well-known "King of Chinese juice", Coca-Cola has several times the market price to try to buy it unsuccessfully, it is Huiyuan juice.
Unfortunately, the king of juice that subverts the industry can no longer be carried, and it has now fallen to the altar of god, which is heavily indebted.
On the evening of 13 January, Huiyuan Juice issued an announcement that the Exchange announced that it would cancel the listing status of Huiyuan Juice in accordance with Rule 6.01A of the Listing Rules from 9:00 a.m. on 18 January 2021.
So, how did Huiyuan Juice go from the peak to the decline? Among them, we have to mention a key person - Zhu Xinli.
Zhu Xinli is a native of Yiyuan, Shandong, the founder of Shandong Huiyuan Juice, and a very famous farmer entrepreneur.
In the late 1980s, "to get rich, plant fruit trees" once became the development path of Yimeng Mountain. However, due to the backwardness of transportation, information and other technologies, local fruit farmers have not harvested well.
In the 1990s, Zhu Xinli, who held an iron rice bowl, chose to resign from public office and took over a money-losing fruit canning factory in Yiyuan County, Shandong Province, which was later renamed Shandong Zibo Huiyuan Food and Beverage Co., Ltd.
After Zhu Xinli took over the canning factory, he developed a concentrated juice, but at that time, consumers in the market did not have the habit of drinking concentrated juice. In order to open up the market, Zhu Xinli had to take products everywhere to participate in the exhibition, hoping that some dealers could see his products.
Later, Zhu Xinli met a Swiss buyer who "knew the goods" at a food exhibition in Germany, and suddenly put down an order of 5 million US dollars for him, that is, since then, Huiyuan juice has been exported to more than 30 countries and regions around the world.
Zhu Xinli also took advantage of the victory in China, smashing 70 million to win the "golden 5 seconds" advertising rights of CCTV, and did not expect that Huiyuan would soon achieve popularity throughout the country.
In 2007, Huiyuan achieved revenue of 2.7 billion yuan and net profit of more than 600 million, but unfortunately this is also its last peak moment.
In 2008, Coca-Cola proposed to make an offer to acquire all the issued shares (66%) of Huiyuan Juice, bidding about US$2.4 billion, three times higher than the stock price at that time, and was called a "sky-high acquisition" by the capital market.
During this period, because Coca-Cola believed that there was a serious overlap in the sales channels between the two sides, Huiyuan completely cut off the sales team in various places in order to cooperate with its acquisition.
However, in the end, the transaction was stopped by the Ministry of Commerce in accordance with the Anti-Monopoly Law. After that, Huiyuan juice sales declined all the way, and the operation changed from profit to liability.
In May 2019, Zhu Xinli was listed by the court as a dishonest executor, and on December 11, 2019, Zhu Xinli's assets of 4.1 billion yuan were frozen. On February 12, 2020, Zhu Xinli resigned from all positions in Huiyuan Company.
So, what is the real reason why Huiyuan juice fell?
In fact, the failure to be acquired cannot be the reason for the collapse of a generation of juice kings.
Industry analysts believe that Huiyuan juice fell to the point of bankruptcy today, more caused by its poor management and nepotism. In addition, in the face of many up-and-coming domestic juice brands and various juice marketing innovations, Huiyuan Juice is powerless, which is really regrettable.
I don't know what everyone thinks about this?