Coca-Cola and Pepsi, on the other hand, did something completely wrong; their initial goal was to devour the domestic market entirely.
On the occasion of the 93rd anniversary.
The country and Coca-Cola signed a memorandum of understanding on cooperation in the joint development of beverages.
Eight factories were designated to cooperate with Coca-Cola and Pepsi.
In short, they're sharing their entire market and distribution channels with Coca-Cola and Pepsi.
Then Coca-Cola and PepsiCo built bottling plants, and at the same time, they had to produce 30% domestically branded soft drinks.
What appeared to be a gentleman's agreement in black and white was actually no match for the seasoned veterans who were adept at exploiting the rules, even though they were among the first to deal with foreign capital.
With a few clicks, Coca-Cola and Pepsi quickly gained control of the joint venture management company, either through a large stake or by increasing their share capital.
For example, the factories of Pepsi and Tianfu Cola.
In the first year, both parties agreed that Tianfu Cola's production should not be less than 50% of the total production.
Pepsi has complied with the agreement very well.
Starting in the second year, Pepsi began to sell Pepsi-Cola produced in other regions on a large scale through Tianfu Cola's distribution channels.
By the third year, Tianfu Cola's production had fallen to less than 25%.
It has been decreasing every year since then.
Until Tianfu Cola completely disappeared.
Why?
Pepsi has squeezed out Tianfu Cola's market share.
If you produce goods but can't sell them, who will bear the production costs?
Finally, in 2006, Tianfu Cola, along with its shares and brand, was sold directly to Pepsi.
The other companies were also subjected to similar tactics, either being bought out or sidelined.
Coca-Cola and Pepsi thus accomplished a bloodless takeover of each other's territory.
Later generations referred to this tragedy as: the flooding of the seven armies.
What is the Seven Armies?
Because the ownership of one of the old soda brands was not clearly defined, it was retained.
Now, Wu Changfeng seemed to understand what County Chief Guo meant.
I guess they saw that the other eight major soft drink factories had all been formed into joint ventures, and they wanted to do the same, wanting to cooperate with Coca-Cola.
If this goes on, Guofei Beverage Factory will be completely transformed!
Judging from County Chief Guo's situation, he must have contacted Coca-Cola and Pepsi, but they didn't think much of Guofei Beverage Factory.
Then County Chief Guo tried to sell the package to them, but they didn't want it.
Wu Changfeng was right about what County Chief Guo was doing.
He said, "I wanted to form a joint venture, but they wouldn't listen. I wanted to sell it to them, but they wouldn't budge. I was hoping you could help me out. Could you connect me with them and get a price so I can just sell it off?"
Wu Changfeng: ...
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