Li Chuntu, the founder of the former Prince Milk, who was expelled seven years ago, recently wanted to return the equity and trademark of Prince Milk.
In 2005, Prince Milk beat Loeb and Wahaha to win 70% of the fermented lactic acid bacteria market. After that, the founder Li Chuntu was arrested on suspicion of illegally absorbing deposits from the public, embezzling funds, and embezzlement of office, and was acquitted after 15 months of detention. After the failure of financing and bankruptcy and restructuring, Prince Milk spent 715 million yuan to acquire Prince Milk in 2011, and today, Prince Milk has basically disappeared in first- and second-tier cities.
However, according to the latest reports, Li Chuntu, the former chairman of the founder Prince Milk, put forward several requirements, such as restoring the equity, returning the trademark rights of the "Prince Milk" series to its affiliated company "Hongshenghuo", returning the "1815 line assets" to him personally, and lifting the personal unlimited joint and several liability guarantee made for Prince Milk.
"1815 line assets" refers to a piece of land in a three-dollar announcement in April this year. According to the announcement, the Zhuzhou Municipal Land Bureau will collect and store about 132,300 square meters (about 198 mu) of land in Jianjian Village, Quzhi Township, Lusong District, Zhuzhou City, with a purchase price of RMB 90 million.
According to the Beijing News, Zhai Yuhua, a lawyer representing Li Tuchun and director of Hunan Tiandiren Law Firm, said that in 2006, Li Tuchun divided the "1815 line assets" into non-dairy industries and did not enter the bankruptcy company, but the assets were sold to Sanyuan and Xinhualian along with Prince Milk.
At the same time, the lawyer also admitted that although there was relevant evidence of the "1815 line assets" that year, Until the bankruptcy and reorganization of Prince Milk, Li Tuchun still did not go through the formalities for changing the registration.
At present, there is no answer to how this controversy will be resolved. However, it is certain that today's prince milk is no longer the "standard king" who won the current standard board advertisement of the CCTV Nightly Weather Forecast Festival in 1998. To put it simply, do you remember the brand of Prince Milk?
After Sanyuan acquired Prince Milk, it supplemented the existing product line, and the business failed to achieve profitability. The loss of Sanyuan shares in 2013 reached 227 million yuan, of which Prince Milk lost 92.67 million yuan. The only turnaround in prince milk's business occurred in 2015, because the brand carried out other businesses, and the net profit was only 50,000 yuan.
Fast forward to the second year, Prince Milk lost more than 50 million yuan. Sanyuan wrote in the earnings report that the main reason for the loss was the increase in market brand investment, which increased sales expenses. However, you can't see ads for prince milk in first- and second-tier cities. In fact, due to its inability to support the sales costs of supermarkets, Prince Milk has withdrawn from first-tier cities such as Beijing and Shanghai since last year, and has sunk to three or four cities.
According to market research and consulting firm ac Nielsen retail monitoring data, since 2006, after experiencing a compound growth rate of up to 37.1%, the sales of the entire lactic acid bacteria beverage market in 2015 were 10.981 billion yuan. Before 2014, only third- and fourth-tier small brands (such as WeiQuan, Yolato, Chuangkang, etc.) participated in the market, and this year attracted large companies such as Guangming, Yili, Mengniu and Weiquan. As a local brand, Prince Milk has naturally been squeezed into third- and fourth-tier cities.
The prince milk that printed "Sunrise In the South of the United States, Prince Milk World" printed on every product packaging box has long lost its former popularity.