Wahaha Invests 15 Billion Yuan in Chinese Liquor, for Business Diversification

By CnAgri2013-11-20 10:53:06 Print

While the soft drinks sector, its core business sector, is running into a bottleneck, Wahaha enters the liquor sector for revenue growth, it is continuation of its diversification strategy.

Wahaha and Renhuai City, Guizhou Province signed a strategic investment agreement. Wahaha shall invest 15 billion yuan in the first phase for entering into Renhuai Chinese Liquor Business Park and for engaging in the consolidation of medium and small liquor producers in the city. Wahaha has paid visits to more than ten liquor producers including Guotqai, Datang, Huaizhuang, Junfeng, Guzhen, Yuanming and Wuzyou, however it has not confirmed with which company to cooperate.

Currently there is seriousness of lots of similar products of soft drinks, there is no big price difference and the whole sector is not capable in innovation. Since the core sector is facing a tough market, diversification is an important means for Wahaha to generate business growth. Apart from this, Wahaha is also engaged in the fields of retailing, milk powder, machinery, printing, children’s costume, electric machines and catering.

From “China Soft Drink Market Monthly Report”