Although Baiwei Food Company's Baiwei fruit wine is only produced domestically, like other alcoholic products, there is no need to produce it domestically, and there is nothing wrong with producing it abroad.
The reason for this arrangement is that the profit margin of Baiwei Fruit Wine is really too high. If it is produced in other countries, such business secrets will be easily leaked.
Although this is the exclusive technology of Baiwei Food Company, it will inevitably cause dissatisfaction after the details are known to the outside world, which may have a certain impact on the international image of Baiwei Food Company.
As for technical leaks, you don’t need to worry too much. The most important thing is the secondary fermentation bacteria. This kind of bacteria can be produced domestically and then shipped abroad. It only needs to be restricted in reproduction before being shipped abroad.
There is no need to worry about being acquired by other competitors and used to reproduce again, just like their high-quality fruits, which have been degraded.
When the seeds of these fruits are used for planting again, the fruits that grow not only have low yields, but also are of very poor quality, making them unsuitable for large-scale planting at all.
In addition to Baiwei fruit wine, the profits of other alcoholic beverages are much more normal, especially beer products, which are very close to the people. Even if the price is higher than other beer brands, it is not much higher.
As for the types of liquor, although there are high and low grades, the highest end is not as exaggerated as the high-end brand of Baiwei fruit wine, which costs a few thousand yuan at most.
The price of the most high-end brand of Baiwei fruit wine is as high as 100,000 yuan. Only the rich can consume it at will, and it is basically out of reach of ordinary people.
Even for such high-end and expensive Baiwei fruit wine, their cost is not much different from the lowest-end Baiwei fruit wine, and the profit margin here is terrifyingly high.
Although the profits from the low-end products of Baiwei Fruit Wine are also very considerable, the huge profits still come from their mid-to-high-end products. Although the quantity may be smaller, the overall revenue is not inferior to that of the low-end products.
If these rich people find that the cost of the goods they spend sky-high prices on is almost the same as the goods used by ordinary people, they will inevitably have bad thoughts and affect the sales of high-end Baiwei fruit wine brands.
After all, no one wants to be regarded as a fool by others. Although in fact the high-end brand of Baiwei fruit wine tastes much better, in terms of cost, the service they enjoy is no different from ordinary people.
Although the quality of the products enjoyed by the rich is very important, it is not the decisive factor. The uniqueness and specialness of the products that can satisfy their status symbols are the main motivations for their willingness to spend money.
Compared with the complexity of the brand and marketing of Baiwei Cider, beer products are much simpler. Baiwei Food Company only prepares four brands of beer.
There is not much difference in the price of three of them, but the taste is different. They are used to meet consumers with different taste needs. The other one is a relatively high-end beer brand. Although the price is much higher than the other three brands, it is not too high. Outrageous.
The reason for this arrangement is mainly to meet the preferences of different groups of people and meet the needs of different people for their own positioning. Otherwise, the cost will be lower by using one brand. After all, a lot of publicity expenses can be saved.
It’s just that the management of Baiwei Food Company understands very well that if only one brand is launched, no matter how good the product quality and taste are, some people will be dissatisfied and will provide opportunities for other brands of beer.
In this case, it is better to adopt a multi-brand strategy with slightly different tastes, which will increase consumers' selectivity and cover a wider consumer group.
This is because time is still short. As time goes by, Baiwei Food Company may launch more brands of beer products to provide consumers with more choices.
This strategy is very reminiscent of Nokia's previous business methods, "technology is based on shell replacement." In fact, they launch many models of mobile phone products every year, and their functions are basically the same. The only difference is the appearance.
However, this strategy was very successful and satisfied the psychological needs of different consumers. The results are self-evident, leading Nokia to dominate the world in the traditional mobile phone era.
Therefore, this strategy is also widely used under Zhao Yi. Although it will lead to an increase in publicity expenses and reduce the profit margin of the product in disguise, it will have wider coverage, a larger consumer group, and more operating income.
For example, regarding smartphones mentioned earlier, Zhao Yi arranged for three companies to achieve full coverage of high-end, high-end and low-end smartphones based on their own technical strength and positioning, including all consumers.
This is still an area where Zhao Yi's companies are operating in a monopoly, and there are many areas where competition is very fierce. His industries are not exclusive operations.
In a fierce market environment, this self-diversified business strategy is even more important. First, it can satisfy more consumer groups, and second, it can serve the purpose of surrounding and annihilating competitors.
The capital strength of its industries is very strong, and it can operate multiple brands of the same product, and it can also operate well.
There are actually quite a few domestic beer brands now, but they are basically local brands, not very large in scale, and their operations are only passable. This is also due to the very good domestic economic development in recent years.
At this time, it was time for Baiwei Food Company to unify the domestic beer scene. The first step was to unify domestic breweries through acquisitions.
This is not to say that Baiwei Food Company has too much money and no place to spend it. On the one hand, this can reduce competitors. Although the individual is not large, if it cannot support the large number, it will still cause certain troubles to Baiwei Food Company.
The second aspect is to prevent local governments from issuing local protective policies. This practice is actually very common in this era, which will make it more difficult for Baiwei Food Company to enter the country.
The third aspect is to prevent the employees of these companies from losing their jobs, and these employees are all skilled workers. After simple training, they can start working, which reduces the costs of Baiwei Food Company.
Although the acquired beer companies, their technology and equipment are not favored by Baiwei Food Company, even if they are put back into operation, all these things will need to be replaced.
However, the land owned by these beer companies is still a very good asset for Baiwei Food Company, and these lands are basically located in urban areas, so their value is quite high.
The fourth aspect is to prevent the State-owned Assets Supervision and Administration Commission from setting up a large beer company with state-owned enterprises as the main body. This is not too easy for the State-owned Assets Supervision and Administration Commission. Anyway, these beer companies are state-owned enterprises, and their integration is more difficult than that of Baiwei Food Company. Much simpler.
Maybe it's because the scale of industries under Zhao Yi is getting bigger and bigger. In order to avoid unnecessary problems, the State-owned Assets Supervision and Administration Commission is very keen on setting up competing companies to compete with Zhao Yi's companies.
Although Zhao Yi is not particularly disgusted with this, after all, there is indeed a certain reason in it, such as the competitive and cooperative relationship between Sinograin and Tianji Agriculture and Animal Husbandry Company mentioned earlier.
But in the field of daily necessities like this, there is no need to do this. Will Zhao Yi let these companies sell at sky-high prices? If they really sell at sky-high prices, then there will definitely be more capital coming in. After all, it is profitable, even if It occupies less market, but also has good profit gains.
The most unsolvable competition is naturally the low-price strategy. Even if capital wants to come in, it may not be able to make money. In this case, capital will have to think twice before committing.
As a pioneer, relying on the advantages of scale and early cost recovery, you can still make a slight profit in the later period. However, in this case, it will be very hard to run your own business, just to make hard money.
Baiwei Food Company is not so mixed up. After all, they have capital and technical strength, and have many unique secrets. At most, they can make normal profits, not just hard-earned money.
It's just that even if Zhao Yiyou had this idea, others would not believe it, otherwise the State-owned Assets Supervision and Administration Commission would not have taken the lead in establishing China Daily Chemical Group to compete with P&G Daily Chemical Company.
The profit margin of beer itself is not very high. It basically relies on scale to create huge revenue. If the scale cannot keep up, it will be very difficult to operate.
Therefore, Baiwei Food Company acquired a well-known domestic beer company as quickly as possible, and the process was exceptionally smooth, with basically no resistance encountered.
Although Baiwei Food Company is a private enterprise, it is indeed the largest domestic and even international food giant. It is a happy event for these state-owned beer companies to be acquired by such a private enterprise.
Although there is no such thing as an iron rice bowl in the name of Baiwe Food Company, its size has reached the level of Baiwe Food Company. It is basically no different from the iron rice bowl. Of course, the premise is that they need to fulfill their duties, otherwise it is normal to be fired.
And in terms of management, Baiwei Food Company is much stricter than state-owned enterprises, but Baiwei Food Company also adheres to labor laws and regulations very much, and the working hours are only 8 hours a day.
If they cannot do their essential work within eight hours, it really means that these employees are not suitable to work in the company, or they still cannot do their essential work in other companies.
The main reason why the management of these companies support it is because the management salary of Baiwei Food Company is much higher than their current salary. If you have no political intention, entering Baiwei Food Company is the best choice.
Moreover, the business scope of Baiwei Food Company is very wide, and there are many demands for management positions. At the same time, Baiwei Food Company has many ranks and has a lot of room for promotion.
Beer companies like these are not large in size. It is very difficult to get promoted. It is even more difficult to enter other industries. As for entering politics, you still need opportunities and the help of noble people. Otherwise, even if you have great skills, it will be of no use.
Therefore, for most beer company managers, if they work for Baiwei Food Company honestly, they can not only get a relatively high salary, but also have good career prospects. The promotion assessment is fair and transparent, and there is no need to fight. relation.
For the local government, Baiwei Food Company is a giant company. Since it acquires a local beer company, it will naturally not be a small matter. More additional investment is inevitable.
This can not only provide the local government with additional fiscal revenue, but also bring more jobs. More importantly, it can also bring greater tax revenue in the future. There are only advantages and no disadvantages, so naturally there will be no be opposed to.
Moreover, Baiwei Food Company also has many businesses in the local area and has a very harmonious relationship with the local government and people. There is no need to obstruct these small things.
The processing bases and planting bases of Baiwei Food Company are basically spread all over the country. It is even a major taxpayer in many regions and is a pillar industry of the local area.
The most typical one is Hainan. Due to its special geographical location and unique climate conditions in the country, Baiwei Food Company has invested a large amount of fruit planting industry in Hainan. Basically, all domestic tropical fruits are grown in Hainan.
In conjunction, Baiwei Food Company has built a large number of local food processing companies, but these companies have invested more in Lingao County, where Zhou Jinjue is in charge. After all, they are their own people, so of course they need more support.
It can be said that currently in Hainan, the tropical fruit planting and processing industry is basically their pillar industry, bringing huge economic benefits to Hainan every year.
This is just an example. As long as there are areas with very good climate conditions in China, Baiwei Food Company will invest a lot in building fruit planting bases or processing bases.
Since the duration of the acquisition was very short, all the acquisitions were completed without giving the outside world much time to react. The remaining beer companies did not have much acquisition value.
Then they use the production plants of these acquired beer companies to quickly replace production equipment so that their beer products can be put on the market as soon as possible.
At the same time, they also purchased a large amount of land in a relatively remote place to build a new high-standard factory. After the construction of the new factory is completed, they will pull over the equipment here and use the land for other purposes.
In this way, the beer products of Baiwei Food Company were quickly put on the market in China. They only used the original factory building and the production scale was limited. It was still very difficult to meet all the domestic demand in a short time.
Especially after their beer was launched, it received enthusiastic support from consumers because the taste and nutritional value are much higher than previous beers.
The use of secondary fermentation bacteria in this kind of fermented food is simply magical. No matter how ordinary the raw materials are, after fermentation by secondary fermentation bacteria, both the taste and nutritional value will be improved by more than one level.
More importantly, using this method, the use of additives can be reduced, the process flow is not complicated, and the cost is not high, leaving a greater profit margin for the company.
Of course, if you want to have different flavors, you must use different processes. These are also the technical strengths of Baiwei Food Company.
No matter what, the existence of secondary fermentation bacteria makes Baiwei Food Company unbeatable in the alcohol market. It not only improves the quality of alcohol products, but also creates their unique taste, and this taste is very popular among consumers. welcome.
Beer has relatively low profits to begin with, so Baiwei Food Company has not done much publicity in this area at all, and has only distributed its products on a large scale through previous channels.
And in this era, there are relatively few large-scale advertisements for beer brands. Of course, this is also related to the fact that they have acquired a large number of beer companies. After all, there are no competitors, so there is no need to promote too much.
Anyway, besides buying their beer products, consumers basically have no other brands. Of course, this initially caused dissatisfaction among many consumers.
After all, these people have been drinking their favorite brands, but when they go to the store and find that all their favorite brands are out of stock, everyone will get upset.
It's just that many consumers reluctantly bought the beer brand of Baiwei Food Company under the persuasion of the sales staff. After taking it home and drinking it, they fell out of control and completely fell in love with this new beer brand.
Since the quality of the beer produced by Baiwei Food Company is indeed outstanding, their beer sales were particularly good this summer and even out of stock.
You must know that my country's beer consumption was not very large before, which is also the fundamental reason why other beer companies are not large in scale. If the market is very large, one or two giant companies will definitely be born.
Baiwei Food Company originally used the factory buildings of the original enterprise. Although the output has increased with the use of new equipment, it is still very limited.
And because of their excellent quality and good taste, the market has expanded several times compared to before. Before the new factory was put into use, it was natural for them to sell out.
Fortunately, they have anticipated this situation. In July this year, a large number of new factories began to be put into use, completely removing the constraints on production and having sufficient capacity to meet market demand.
Finally, according to statistics, Baiwei Food Company's brand beer has actually expanded the domestic beer market 10 times. It is not only popular in summer, but also in November, the domestic sales are still good.
But even so, as of December, their beer operating revenue was only about 50 billion yuan. Compared with their Baiwei fruit wine series, the gap is very obvious.
Although Baiwei Cider is incomparable to beer in terms of sales volume, the price of beer is relatively cheaper and more accessible to the people. The profit margin is only 15%, with a profit of 7.5 billion yuan.
To be honest, Baiwei Food Company is very satisfied with such results. Generally speaking, the profit margin of beer is less than 10%. They can achieve a profit margin of 15%, which is already a great achievement.
Of course, this is also related to the fact that they are the only one company. They have saved a lot of other costs and there is no obvious price competition. In addition, they are more advanced in management, so they can achieve this point.
If the competitive environment is fierce, the profit margin is likely to be only about 10%. After all, a lot of advertising expenses and channel competition expenses will be invested.
If the market develops to this extent, although demand will rise in the future, it will not be as big as this year. According to the analysis given by Shangtong Trading Company, the scale of the domestic beer market will not exceed 100 billion yuan.
Moreover, it will take several years of hard work to reach a scale of 100 billion yuan. Later, it will mainly rely on the increase in population size to increase market capacity.
However, these are only the domestic markets. There are also vast foreign markets waiting for Baiwei Food Company to explore and conquer. The consumption of beer abroad is more popular than at home, and the market size is much larger than that at home.
For foreign markets, Baiwei Food Co., Ltd. has started a two-legged walking model. One is to carry out acquisitions of international beer giants, hoping that through acquisitions, their products can quickly enter the international market.
On the other hand, they use their own beer brands to capture the international market and use the sales channels of Shangtong Trading Company to achieve the purpose of forcing competitors.
If it is just a simple acquisition, it will definitely not be so smooth. After all, the company is well run, why should it be sold to Baiwei Food Company? If the price is too high, Baiwei Food Company is not willing to take advantage of it.
Therefore, Baiwei Food Company adopts a strategy of promoting peace through fighting. When the other party feels that the market is seriously threatened and has no good solution, subsequent acquisition negotiations will be much smoother.
After all, you are watching your market being eroded, and there is no easy way to solve the problem. In order to reduce losses, you can only sell your business to avoid dragging yourself to death.
This strategy used by Baiwei Food Company in the beverage market has forced Coca-Cola and PepsiCo to sell themselves to reduce losses.
Since this strategy can make the two giant beverage companies succumb, there is no reason why it has no effect on other beer giants. As long as Baiwei Food Company ensures that its products are good enough, coupled with its capital advantage, it will be absolutely unfavorable.
Moreover, for foreign markets, Baiwei Food Company does not simply allow local people to adapt to its products, but will launch targeted beer products based on local tastes.
If you want to open up in the international market as soon as possible, you cannot be blindly confident and think that if your products are very good, consumers will pay for them.
You must adapt to local conditions and make your products better fit the consumption habits of local people. This will make it easier to open up the local market. In the past, many international companies came to our country and suffered from arrogance. This mistake will definitely not happen to Zhao Yi. of enterprises.
This year, in addition to expanding the domestic beer consumption market, Baiwei Food Company has invested most of its R&D energy in studying beer consumption habits in other parts of the world and developed many targeted products.
At the same time, in the second half of the year, we also began to build beer production plants around the world to provide beer products nearby. After all, beer profit margins are not high, long-distance transportation costs are too high, and with import taxes, etc., there is not much competitiveness in terms of terminal prices.
After these preparations are completed, it will be time for Baiwei Food Company to enter the international market in a big way. At that time, the international beer market will set off another bloody storm, but I don't know how many companies will not fall down.
As for the liquor market, Baiwei Food Company currently does not have that much energy to take into account. It is likely that they will have to wait until they establish their leadership position in the beer field before they start to consider the liquor market.
Moreover, they will not adopt this aggressive approach in the liquor market. Even if they acquire some well-known liquor brands later, they will retain their independent operations.
Baiwei Food Co., Ltd. mainly operates its own liquor brand, and it also adopts a gradual cannibalization plan, and will not pursue it as fiercely as it does now.
The main reason for this is that the liquor industry is more fragmented and there are no particularly large giants. It is very difficult to catch up in a short period of time, and there is not much pertinence, and the effect is not obvious.
In this case, it is better to just acquire some relatively well-known brands, let them operate independently, and then use their own brands to slowly squeeze out the market, using a quiet and moisturizing method.
It is not necessary to occupy the entire liquor market, it only needs to occupy a certain proportion. This is not because Baiwei Food Company has suddenly become benevolent, but because of the liquor industry, they have to adopt this strategy. (End of chapter)