We are all reborn, who wants to be the richest man?

Chapter 614 Coke Jigsaw Puzzle
"This is the first meeting of the top management after our reorganization. I hope we can have harmonious meetings like today in the future."

As soon as he came up, Kang Xinbo gave the local people of Tianfu Cola a shot of prevention. Although his words were not harsh, the meaning was very clear.

Do it if you can, and follow instructions from now on. If you can't accept it, just pack up and leave.

It's not that Kang Xinbo is cold-blooded, but he has to do this.

When did Beibingyang, Jianlibao, and Watsons Beverages directly send a whole management team to cooperate with these factories?

Why is Tianfu Cola like this? Isn’t it because now is the critical period to seize the market? Kang Xinbo doesn’t have time to talk to them.

Coca-Cola is different from other drinks. It is the world's best-selling single-flavor soda and is of great significance to the group.

Tianfu Cola once scored 0.52 points higher than Coca-Cola in the global cola evaluation, so this is a brand that is worth imagining.

“There are only three things in this meeting today.

The first is to restart our various bottling plants across the country and have all of them operate at their maximum capacity."

"But who are we going to sell all this to?" As soon as Kang Xinbo finished speaking, he was questioned by the localists.

The person who spoke was Yang Gui, the deputy factory manager in charge of production and raw material procurement, who was in a high position of power.

Tianfu Cola can be said to have been hit hard but it never came alone. Not only did its product sales decline, it was asked to introduce foreign investment, and its factory director was suddenly and inexplicably fired.

Originally, Yang Gui thought that he could be converted to a regular employee smoothly, but the order for conversion did not come, and he could not even keep his existing rights.

The new production manager and purchasing manager were both brought in by Watsons. It was impossible for him to expect them to obey his orders completely. This was no different from being sidelined.

"Deputy Director Yang, that is not something you should worry about. It is the sales department that should worry about this."

Kang Xinbo did not give the other party a good look. He actually hoped that the other party would resign or transfer quickly to avoid becoming a stumbling block within the company.

"The second point is equipment upgrade. The two cola companies have been engaged in a tacit price war for so many years, and have eliminated many cola products by relying on price.

We can make a profit if we sell a bottle of Coke for three yuan now, but what about five years from now? Ten years from now?
So we have to save costs. More advanced equipment, cheaper raw materials and so on are what we need.

We also need to give more concessions to dealers and retailers. We have an operational advantage and we must make good use of it."

All domestic beverages nowadays are, without exception, equipment version 1.0. Because there is no way to use a machine to automatically mix water and syrup in a precise proportion, the syrup must be poured into each bottle first and then the water must be added.

However, many beverage products under Coca-Cola and Watsons have begun to use the concentrate production model, and the efficiency is not comparable at all.

Domestic beverages can be filled 2,000 bottles per hour, but two Cokes can already fill 8,000 bottles.

Domestic canning machines can only seal 130 cans of soda per minute, while imported ones can seal more than 1000 cans per minute.

We can fill four times more than you in an hour and block nearly ten times more than you in a minute. How can you compete on cost?
And this is just quantity, the quality is incomparable.

Because of the canning process, your soda may lose its carbonation in three to five days, but other people don’t have this problem.

So to put it nicely, this era is one of contention among a hundred schools of thought; to put it bluntly, it is just waiting to die, like a lamb standing still to be slaughtered.

"The third thing is product research and development. We must pay attention to both new products and raw materials."

"Develop other flavors of beverages?"

“We have some experience in this area, but what we need most now is to delve deeper into the cola category, such as zero-sugar and zero-fat sugar-free cola, and the research and development of high-end brands.

Sugar is one of the important costs in beverage products. We can use white sugar now, but what about in the future?

This is also a way for us to reduce costs. We must develop substitutes, that is, cheaper sugars.

For example, fructose corn syrup, which is very popular in Europe and the United States, is extracted from corn and has many characteristics such as low cost, high sweetness, easy fermentation and long shelf life.

Fructose corn syrup is actually harmful to the human body. Long-term use will cause endocrine disorders and easy weight gain. But if you don't reduce costs, you can't compete with the two colas in terms of price. But later, no matter what health issues you talk about, it's useless. Consumers' wallets are honest, and the cheapest coke will always sell the best.

This is true for Coke and other beverages as well.

Therefore, as early as the late 80s, Luo Nianzhong gave instructions during a meeting with Watsons that mid- and low-end beverages must do everything possible to reduce costs rather than rely on price increases to maintain profits.

However, there is indeed a certain difference in the taste of drinks with high fructose corn syrup and those with white sugar, so in recent years many of Watsons' drinks have two or three versions.

The original beverages reduce the cost of raw materials and do not increase the price, while those that do not reduce the cost of raw materials are transformed into another brand.

For example, Arctic Ocean Enjoyment, Arctic Ocean Pure Enjoyment and Arctic Ocean Zero.

The former is a version with more fruit pulp and fewer additives, Chunxiang is the old formula of the white sugar version, and Zero Degree is sugar-free.

"Everyone, although our current business is not so optimistic, it is not a big problem. I hope we can work together to develop and expand Tianfu Cola."

In Watsons' view, Tianfu Cola's current difficulties are not problems. What is needed is just cost savings. In this respect, Tianfu Cola has an advantage over the other two colas.

Why do the two Coca-Cola companies spend huge amounts of money to negotiate acquisitions and joint ventures with numerous soda factories instead of relying on their own strength to crush the other party?

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You know, a strong dragon cannot defeat a local snake. Although these domestic beverages are not as good as the two Cokes in terms of equipment, process management, etc., the sales channels of each of them are like capillaries, covering every corner of their respective provinces.

Sales channels are so important in this era that it can be said that whoever controls the channels controls the world.

No matter how rich you are, what's the point of advertising on TV? Consumers can only choose domestic beverages when they go to stores and malls to buy them.

You can enter the malls in the city and expand into small shops, but what about the suburbs? What about the towns? What about the small shops in the corners?
This is just one city, what if it is a province? What about the whole country?
Arctic Ocean has been building sales channels across the country for ten years, but even Arctic Ocean does not dare to say that it has made its products available in all the convenience stores in the country.

The two Cokes have the money to be as good as the Arctic Ocean, but the time cost is not something they can accept.

The simplest way is to form a joint venture, but even so, it will take at least three years to establish sales channels across the country.

Tianfu Cola has an advantage in this regard. It already has considerable sales channels across the country, and now with the support of Watsons, it can be said that it has taken off directly.

This is also the reason why Watsons does not compete with the two Cokes to compete with other soda brands, because it does not need the channels at all.

What Watsons wants now is to expand its product categories. Coke is Watsons’ weak link, so it acquired Tianfu Cola.

As for other fruit-flavored drinks such as Dabaili, Beibingyang and Jianlibao have developed corresponding flavors in recent years and occupied the market.

After the meeting, on the way back to the hotel, Song Chen, the new president of Tianfu Cola Company appointed by Watsons, was a little confused.

"President Kang Xinbo, why don't you tell the other party all about Tianfu Cola's difficulties."

Tianfu Cola has channels, but it is already at a disadvantage in the competition with the two Colas.

The two Cokes have been operating in large coastal cities and other cities for a long time, which is something Tianfu Cola cannot compare to.

Although Tianfu Cola is popular all over the country, that was a few years ago. Now the market share has long been occupied by other competitors.

At this time, Tianfu Cola is a follower in the cola field in big cities. If it cannot take over these big cities, no matter how good the surrounding development is, it will be useless because there is no central point.

These are all issues that need to be addressed, but Consinbo didn't mention them just now.

“Those people can’t help with these problems and can only cause more trouble. If they had an effective solution, Tianfu Cola wouldn’t have ended up like this.

These people are just our new owners who are doing face-saving work for the sake of appearance. Sooner or later, they will be marginalized. So does it matter if we don’t talk to them about many problems? "

Song Chen thought about it and realized it was true. He nodded to show that he understood and knew how to treat these people in the future.

(End of this chapter)