“Dear, are you tired? Let me massage your legs.” Feng Yu gave Li Na his best service after they returned from a walk.
Feng Yu’s phone suddenly rings. He walks over to his phone and saw it was Zhang Ruiqiang.
“Oh, why are you do free to call me? Don’t tell me that you need my help again?” Feng Yu laughed.
Feng Yu gestured to Li Na, indicating that he needs to take this call. She quietly left the room for the living room to watch TV.
“Can’t I call you without other purposes?” Zhang Ruiqiang replied unhappily.
“You can, but when have you call me if you don’t need me? Just think about the times you called. You only look for me when something bad has happened.”
“This time is different! Our Bing City Beer Festival is starting. It is organized by our Province, Bing City Government, and China Light Industry Council. The higher-ups have given their support, and this will be an international beer festival. We have also invited several international beer brands and companies to participate.” Zhang Ruiqiang replied proudly.
The first Bing City Beer Festival was held in 1988, and it is also an international beer exhibition. But at that time, Bing City is still an unknown city, and China is not so developed. They cannot get big international companies to participate, and even many domestic brands did not attend.
But as China becomes more developed and Bing City becomes more important, all Chinese brewery will surely participate. Some overseas beer brands will also be sending their representatives over.
Bing City had organized all the past beer festivals, and the Provincial Government is not worried. But it is different this time. Not only the Provincial Government is joining, but even the higher-ups are also involved. The higher-ups invite many international breweries and companies.
Feng Yu purposely threw a wet blanket. “Inviting is one thing, and whether if they are coming is another thing. Our Bing City Beer is only in the fifth position in China’s market. Are you sure the major international breweries and related companies will attend?”
“It is impossible for all of them to attend. But the top ten breweries in the world will be sending their representatives. Also, some of the world’s top beer ingredient suppliers and other related suppliers will be coming.”
Zhang Ruiqiang said in his heart. Do you think I have not considered all these? I don’t care whether if those small companies are coming or not. The top ten breweries are coming, and they are much bigger than those smaller companies combined.
Feng Yu sighed. “Have you thought about the reasons why they are attending?”
Zhang Ruiqiang is puzzled. “What other reasons do they have? This is only a beer festival and a trade meeting.”
“Yes. That’s why you all should pay more attention to it. They are attending because they will enter the Chinese market, and they need to understand our beer market and companies. This means our Bing City Beer and other Chinese beer companies are going to be attacked by these international top beer breweries!”
“Are you saying we are wrong to organize this beer festival and invite them?” Zhang Ruiqiang is annoyed.
“It’s not wrong, but you better discuss with our Chinese beer companies how to stop those overseas beer companies. They must also learn from those overseas brands’ experiences, technologies, taste, etc., to upgrade themselves. Before our beer brands enter the international market, we must protect our domestic markets first. If not, those overseas brands would have earned our money and market share before we can make any profits overseas.”
“This… I will discuss this with the higher-ups. But those beer companies might not listen to me.” Although Zhang Ruiqiang is the no. 2 Official in the Province and is holding a high rank, he doesn’t have powers over other breweries. Nobody likes another Government leader to interfere in their business.
“Do you still remember I had mention merging to increase competitiveness?” Feng Yu hinted.
Zhang Ruiqiang sits up. “Are you saying Bing City Beer should merge or acquire other breweries?”
“That’s right. I know Bing City Beer has already controlled Longjiang Province and has entered Shenyang. But what about the southern Province? You all only have a small factory there, right? You should have heard of China Resources Holdings, right? Look at their expansion speed. If you don’t expand, all the market will be taken away by them. I remember Bing City Beer Holdings doesn’t lack funds. After getting listed for two years, the share prices had increased by a lot, and you all are not affected by the financial crisis.”
Beidacang has not gone listed, but its subsidiary, Bing City Beer Holdings, has been listed and is doing well.
Although the shares are not those type that shoots up, it is increasing steadily. The Hong Kong Exchange has awarded them as the best listed company for two years.
“Bing City Beer did not lack money and had given out high dividends the last two years. This means we must quickly expand. Beidacang has made some money in the past two years and should have no problems acquiring two to three Provincial level beer companies easily.” Zhang Ruiqiang immediately decides.
“Two to three? It’s too little. There are only three large breweries in China which we cannot acquire. Qingdao, Beijing Beer, and China Resource Beer. These three breweries are bigger than us, and we need to spend a lot to acquire them. Also, the higher-ups might stop our acquisition. Other than these three breweries, we must find ways to acquire other breweries. Look at China Resources Holdings’ expansion speed and strategy. When China only has four domestic beer brands, it will be easier to control the beer prices, and you all can increase the prices for higher profits.”
“You also don’t need to worry much about those overseas beer brands. They might be much bigger, but their factories in China are small. Also, if you want to bring in new flavors, you can exchange shares with them. To merge with them. With our Chinese Beverage Alliance around, you don’t need to worry about exportation. The alliance has made arrangements with those overseas large-scale supermarket chains to sell our Bing City Beer.”
With such a good distribution channel, Bing City Beer’s sales will increase. But another issue has surfaced. The transportation cost. It is not worthwhile to ship the beers overseas from China. The best solution is to acquire a brewery overseas to produce Bing City Beer. Bing City Beer will have to spend another sum of money.
“Feng Yu, I need to think about what you just said. You are in Bing City, right? Come over to my place for a further discussion at night.”
Feng Yu: “…….” Damn! I had become a free advisor again.
China National Light Industry Council
