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Image taken on 2008-10-06 21:46:55 by bernissimo.

In China, the fruit juice drink refers to the drunken straight drink, made of fresh or frozen fruits and vegetables, the production of fruit and vegetable liquid products, and added water, sugar and acidulates etc to the fruit juice, concentrated fruit juice and vegetable juice (In China, the fruit content in the fruit juice drink is no less than 10%, if lower, it belongs to the other category drink)


China is abundant in the fruit resources. The total fruits yields stand the first in the world, apple yields ranking the first, and orange, pear and peach yields also ranking the front in the world. Although with a large population in China, the consumption volumes are very low, less than 10 kg annual per-capita fruit juice consumption. In 2008, the yields of Chinese fruit juice drink were 11.8 million tons, increased by 9.26% of 2007 but cut down sharply in the growth speed. It was mainly affected by the international financial crisis. On the one hand, the export growth speed declined. On the other hand, the growth speed of domestic market tended towards stability. In 2008, the scales of Chinese fruit juice drink market were about 50 billion Yuan (7.14 billion USD), up by about 10% of 2007.


If calculated by the world’s average per-capita fruit juice drink consumption volumes, there still exists huge development space of the fruit juice drink in China. In recent years, Chinese fruit juice drink market showed the rapid growth trends. It is inseparable between the rapid growth in the fruit juice market and the awareness of consumers` health sense. Nowadays, when the consumers choose the drink, they not only buy the drink to quench their thirsty, but put more attentions on nutrition, health and safety.  For example, the previous popular carbonated drink in Chinese market is regarded as the unhealthy products by the consumers.  But the fruit juice drink is rich in vitamins, favorable to the body health, becoming more and more popular.  


The competitions among Chinese fruit juice drink enterprises are fiercer and fiercer. The major three competition groups are: first, the Taiwan-funded enterprises, such as Uni President ,Master Kong, success by the package creation and taste; second, the local famous enterprises, including China Huiyuan Juice Group Limited, Hangzhou Wahaha Group Co., Ltd.; third, the multiple enterprises, such as Coca Cola, and PEPSICO., Inc etc. At present, many famous brands exist in Chinese fruit juice drink market, such as Wahaha, Huiyuan, Nongfu Spring, Munite Maid and Tropicana etc.


By the end of 2008, more than 300 fruit juice drink enterprises were in China, most of which were medium and small enterprises. The annual revenues of 70 percent enterprises were less than 100 million Yuan (14.2 million USD). The mergers and acquisitions in Chinese fruit juice drink industry became one of the development trends. In Chinese fruit juice drink industry, many local and foreign funded potential enterprises tried to merge, going around the whole industry chains. Strengthening the control of the upstream raw material industry and the downstream channel control were all included in the development strategy plans of the fruit juice drink enterprises.  


In February of 2009, Chinese government approved the Adjustment and Revitalization of Light Industry, clearly putting forward the policy supports to the light industry, involved the fruit juice drink industry, such as the reorganization of food processing industry, the improvement of entry conditions, the supports of mergers and acquisitions and the promotion of industry concentration etc. 


On 3rd September, 2008, Coca Cola announced that they would merge China Huiyuan Juice Group Limited with 17.9 HKD (2.4 USD). If realized, 30 to 40 percent market shares of the sales revenues would be occupied by Coca Cola in Chinese fruit juice drink market, the largest giant of Chinese fruit juice drink market. On 18th March, 2009, Ministry of Commerce of the People’s Republic of China officially announced that the acquisition of China Huiyuan Juice Group Limited by Coca Cola was prohibited in accordance with Article 20 of the Antitrust Laws of the People’s Republic of China, which was the first unsuccessful merger and acquisition case since the implementation of Antitrust Laws of the People’s Republic of China on 1st August, 2008.  Ministry of Commerce of the People’s Republic of China measure made the mergers and acquisitions in Chinese fruit juice drink industry to use a new manner but not simply acquisition.


Under the influences of international financial crisis and the Antitrust Laws of the People’s Republic of China, the mergers and acquisition in Chinese fruit juice industry still went on because the large quantities of medium and small enterprises in Chinese fruit juice drink industry. The key points researched in this report are what manners to merge and what direction to go for these enterprises.


The author wrote this report by the investigation into Chinese fruit juice drink industry and the references to the experts’ suggestions.


More following information can be obtained in this report:

-Development Environments of Chinese Fruit Juice Drink Industry

– Present Development Situations of Chinese Fruit Juice Drink Industry

– Yield Capacity of Chinese Fruit Juice Drink Industry

– Merger and Acquisition Cases of Chinese Fruit Juice Drink Industry

– Success Elements of Mergers and Acquisitions in Chinese Fruit Juice Drink Industry

-Influences of International Financial Crisis on Merger and Acquisition Cases of Chinese Fruit Juice Drink Industry

– Major Enterprises and the Operations of Chinese Fruit Juice Drink Industry

– Development Trends of Chinese Fruit Juice Drink Industry

– Merger and Acquisition Trends of Chinese Fruit Juice Drink Industry

– Recommendations for the Mergers and Acquisitions of Chinese Fruit Juice Drink Industry


To get more details, please visit Research Report on the Mergers and Acquisitions of Chinese Fruit Juice Drink Industry, 2009

Alice is an industry analyst in this field for more than 5 years with depth insight in the recent market trends. Based on the database, Interviews and research methods from China Research and Intelligence, she analyzes the development and opportunities in this industry clearly.

Kool-Aid Lemonade Unsweetened Soft Drink Mix, 0.23-Ounce Envelopes

As an investment banking firm, we regularly dialogue with the top executives in the beverage industry. We have to chuckle when we reach a decision maker with a large beverage company and he says, “We have a corporate policy that we organically develop all of our own beverage concepts.” Does this guy read the industry publications? Did he miss the surge in beverage start-ups caused by the success of Red Bull, Hansens, Vitamin Water, and others? It seems like the major source of innovation in the beverage industry is coming from these new rule makers that defy the odds and launch successful new brands and even new categories.

This surge of innovative activity is fun. What energy. It reminds us of the old Internet days – lots of money, talent, ideas, hope, energy, and potential successful businesses. This is the innovation environment in the beverage industry and any large company that feels it can keep pace with this force through internal development efforts alone is headed down the path of extinction.

Almost everyone will agree that the new drivers of innovation in the beverage industry are entrepreneurial small companies that launch their products on a shoe string and defy the odds to reach a critical mass with very little outside funding. There is, however, a huge barrier in this market. The institutional buyers often make the cost of entry on to the shelves of their stores prohibitively expensive. This often prevents the expected innovation and commercial success that should naturally follow the effort and passion of these innovators.

These entrepreneurs respond to a market need and achieve encouraging initial success from the early adopters. They soon hit the wall and are not able to “cross the chasm” from a small group of early adaptors to general market distribution within the large retailers. There is little economic value created when promising concepts are in the control of an under funded start-up company and the brand never reaches broad acceptance.

Most of the blockbuster new products are the result of an entrepreneurial effort from an early stage company bootstrapping its growth in a very cost conscious lean environment. Think of some of the new developments from companies mentioned above. The big companies, with all their seeming advantages have a very high internal cost structure for new product introductions and the losses resulting from those failures are substantial. Don’t get me wrong, there were hundreds of failures from the start-ups as well. However, the failure for the edgy little start-up resulted in losses in the $1 – $5 million range. The same result from an industry giant was often in the $100 million to $250 million range.

For every Red Bull and Vitamin Water there are literally hundreds of companies that either flame out or never reach a critical mass beyond a loyal early adapter market. It seems like the mentality of these smaller business owners is, using the example of the popular TV show, Deal or No Deal, to hold out for the $1 million briefcase. What about that logical contestant that objectively weighs the facts and the odds and cashes out for $280,000?

As we contemplated the dynamics of this market, we were drawn to a merger and acquisition model that is used in the networking technology market by Cisco Systems. We believe that model could also be applied to great advantage in the new era beverage industry. The giant networking company, is a serial acquirer of companies. They do a tremendous amount of R&D and organic product development. They recognize, however, that they cannot possibly capture all the new developments in this rapidly changing field through internal development alone.

Cisco seeks out investments in promising, small, technology companies and this approach has been a key element in their market dominance. They bring what we refer to as smart equity to the high tech entrepreneur. They purchase a minority stake in the early stage company with a call option on acquiring the remainder at a later date with an agreed-upon valuation multiple. This structure is a brilliantly elegant method to dramatically enhance the risk reward profile of new product introduction. Here is why:

For the Entrepreneur:

1. The involvement of the large beverage industry investor – resources, market presence, brand, distribution capability is a self fulfilling prophecy to your product’s success. The halo of the big secure company helps you cross the chasm to the conservative majority institutional customer.

2. For the same level of dilution that an entrepreneur would get from a VC, angel investor or private equity group, the entrepreneur gets the performance leverage of “smart equity.” See #1.

3. The entrepreneur gets to grow his business with Large Beverage Company Investor’s support at a far more rapid pace than he could alone. He is more likely to establish the critical mass needed for market leadership within his industry’s brief window of opportunity.

4. He gets an exit strategy with an established valuation metric while the buyer/investor helps him make his exit much more lucrative.

5. As an old Wharton professor used to ask, “What would you rather have, all of a grape or part of a watermelon?” That sums it up pretty well. The involvement of Large Beverage Industry Investor gives the product a much better probability of growing significantly. The entrepreneur will own a meaningful portion of a far bigger asset.

For the Large Beverage Industry Investor:

1. Create access to a large funnel of developing technology and products.

2. Creates a very nimble, market sensitive, product development or R&D arm.

3. Minor resource allocation to the autonomous operator during his “skunk works” market proving development stage.

4. Diversify their product development portfolio – because this approach provides for a relatively small investment in a greater number of opportunities fueled by the entrepreneurial spirit, they greatly improve the probability of creating a winner.

5. By investing early and getting an equity position in a small company and favorable valuation metrics on the call option, they pay a fraction of the market price to what they would have to pay if they acquired the company once the product had proven successful.

This hybrid merger and acquisition model is a collaborative effort drawing on both Investment Banking experience combined with 25 years of beverage industry experience. Both the small entrepreneurial firm looking for the “smart equity” investment with the appropriate growth partner or the large industry player looking to enhance their new product strategy can benefit from this creative approach. This model has successfully served the technology industry through periods of outstanding growth and market value creation. Many of the same dynamics are present in the beverage industry and these same transaction structures can be similarly employed to create value.

Dave Kauppi is an investment banker and President of MidMarket Capital. We help business owners with all aspects of Mergers and Acquisitions.

I’m interested on making wines but i dont know how can I produce both Grape wine and fruit wines.

One more thing , how mangosteen wine is produced, How they get the juice out of mangosteen while it had lots of seeds?

Image taken on 2007-07-19 14:07:23 by the8rgrl.

I’m having a wedding reception and offering free beer and one free mixed drink or shot. After the one drink I’m going to charge $2-3 a drink. I wouldn’t ask people to go in their pockets but all my family is drinkers and I can’t afford them. Anyway I’m trying to think of drinks that don’t require too many different ingredients. Just basics like vodka, gin, or some brandy’s. I don’t know. Anyone have any suggestions?

Clip of the Cocktail movie – Music – Run for the shelter of your love

A funny re-edit of the popular song ‘Drink’ by TC and Jakes. This is meant as a JOKE and in no way a criticism of TC or Jakes work. We as artists respect what they do and we wanted to make a parody of the track. No profit what so ever will be made from this track.

Amazing wine glass music by Jamey Turner.