Coca Cola offers 2.5 billion to buy Hui Yuan, good or bad?

Coca Cola offers 2.5 billion to buy Hui Yuan, good or bad?
Sep 4, 2008 04:03
BBQQ Points: Join Date: Feb 7, 2007 Status: offline	In order to expand its orperations in Chinese market, the Coca Cola, world's largest beverage company is going to spend 2.5 billion dollars to buy Hui Yuan juice Group. Hui Yuan seems to be satisfied with the bid. After the news broke out, Hui Yuan's shares have surged 164 percent, from 4.14 Hong Kong dollars to 10.94. However, Coca Cola needs to get approved by Chinese regulator. To Coca Cola and Hui Yuan juice group, it is reciprocal. However, many Chinese people are dissatisfied with Coca Cola's aquisition. A online survey shows that about 80 perent netizens oppose Coca Cola to buy Hui Yuan. Hui Yuan is probably the largest beverage company in China. If it disappears, that will be a blow to Chinese beverage industry. To them, a national brand will disappear again. "During last Spring Festival, Hui Yuan promotes its juice with an advertisement---To celebrate the Spring Festival, Hui Yuan is a necessity. Maybe, they need to change its ads this year to celebrate the Christmas Day." A report says.

Sep 4, 2008 04:03

BBQQ
Points:
Join Date: Feb 7, 2007
Status: offline

In order to expand its orperations in Chinese market, the Coca Cola, world's largest beverage company is going to spend 2.5 billion dollars to buy Hui Yuan juice Group. Hui Yuan seems to be satisfied with the bid. After the news broke out, Hui Yuan's shares have surged 164 percent, from 4.14 Hong Kong dollars to 10.94. However, Coca Cola needs to get approved by Chinese regulator.

To Coca Cola and Hui Yuan juice group, it is reciprocal. However, many Chinese people are dissatisfied with Coca Cola's aquisition. A online survey shows that about 80 perent netizens oppose Coca Cola to buy Hui Yuan. Hui Yuan is probably the largest beverage company in China. If it disappears, that will be a blow to Chinese beverage industry. To them, a national brand will disappear again.

"During last Spring Festival, Hui Yuan promotes its juice with an advertisement---To celebrate the Spring Festival, Hui Yuan is a necessity. Maybe, they need to change its ads this year to celebrate the Christmas Day." A report says.

Sep 4, 2008 09:42

GARYKINKADE
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Join Date: Jan 8, 2008
Status: Offline

Large international beverage companies should not be allowed to have control of a market in any country, whether China or elsewhere.
Reasons: They consume large quantities of water in making their products.
They will eventually attempt to control water supplies (which in our country is considered a
public resource). Mexico, Central and South America had many issues on this.
They will push for the consumption of bottled water as opposed to tap water...and by
way...at a much higher cost to the consumer....was proved to be no more pure than tap
water.
And of course, less competition will mean higher prices for their products.

Sep 4, 2008 19:10	#2
MARRIE Points: Join Date: Jan 7, 2008 Status: Offline	Good news. HuiYuan has a short cut to foreign market and will benefit from international level managment skill sets in production, distribution, pricing, marketing, quality control and int'l standards/regulations. And Cocacola has more market shares in China with hugh consumption potential.

Sep 4, 2008 21:48

JIMMYB
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Join Date: Feb 7, 2007
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"HuiYuan has a short cut to foreign market and will benefit from international level managment skill sets in production, distribution, pricing, marketing, quality control and int'l standards/regulations."

And finally Hui Yuan will disappear forever. After Loreal bought Xiaohushi, a Chinese famous comestics brand, Xiaohushi has disappeared. Maybe, we will find that there is no Chinese brands because they are all bought by foreign companies.

Sep 6, 2008 17:24	#4
MARRIE Points: Join Date: Jan 7, 2008 Status: Offline	After acquisition, HuiYuan's products will be found on the shelf of western supermarket and CocaCola has paved way to further penetrating and widening chinese market. Business seeks profits and growth. This does not equal the sense that Korea wants to claim Chinese Med. as Korean cultural legacy.

Sep 10, 2008 04:28	#5
YVONNE Points: Join Date: Nov 29, 2004 Status: Offline	Will Coke fufill its promise to keep Hui Yuan brand? I don't want to see another example of Xiaohushi. Maybe, oneday we will find that there is no Chinese brands because they are all bought or aquired by foreign countries.

Sep 10, 2008 18:36	#6
CANADAGUY Points: Join Date: Oct 1, 2007 Status: Offline	It's a bad move. Coca Cola's 'bread and butter' product is Coke. A takeover will mean more Coke on the shelves and in vending machines throughout China. That means more carbonated crap will be ingested by the Chinese population.

Sep 15, 2008 03:00	#7
GUEST07999	Coke buying its' competitor is another form of monopoly and this is a serious issue. Just like Intel and AMD dominating the CPU market. We need more than 2, where is VIA

Aug 23, 2010 12:18	#8
GUESTGOURMET...	Wow,so niceeee!! Thanks for sharing!

Aug 30, 2010 08:13	#9
DALLYHAPPY Points: Join Date: Aug 9, 2010 Status: Offline	For enterprises, profits mean everything. But as a national enterprise and brand, Huiyuan has developed from nothing to something. This process is full of ups and downs. For its own sake, aquisition may turn to be benefitial for expansion and further development. For Coca Cola, the bid can be more giant and powerful in China's market.

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