Why are Haizhiyan drinks removed from the shelves?

In the first half of 2015, Haizhiyan experienced high-multiple growth, which enabled Uni-President's juice business to outperform the growth of the country's overall juices. Unexpectedly, just one year later, this star product had lost its glory and had to make periodic shipment adjustments.

According to the 2016 semi-annual report, Uni-President’s beverage business revenue in the first half of the year was 7.448 billion yuan, a decrease from the same period last year.

8.2%. Why does Uni-President continue to decline in its strong beverage business? Luo Zhixian, chairman of Uni-President Group, said that 2016 can be said to be a rainy summer. Uni-President Beverage fell 8% year-on-year. In addition, the sales of most beverage companies were also affected. Luo Zhixian said at an analyst meeting.

The Chinese beverage market will be very, very miserable in the second half of 2016. According to a research report from China Merchants Securities, "Uni-President's lower-than-expected profits were mainly affected by Haizhiyan's destocking. In October, beverage inventory dropped from more than 30 days to less than 20 days. Uni-President will continue to control beverage shipments in 2017 to ensure The channel is healthy. "Last year, in order to boost the annual performance, Haizhiyan severely suppressed the inventory, and the inventory was only cleared in the second quarter of this year." From the perspective of the unified industry, this means that it was overdrawn last year. Sales volume also led to poor performance in the first three quarters of this year, which is also the reason for the ups and downs of Uni-President's operations," industry expert Zhu Danpeng analyzed. Industry insiders said that in addition to the economic downturn and the sluggish FMCG industry, the beverage sector, which accounts for the largest share of revenue, has declined.

The short lifespan of beverage star items and the constant emergence of competing products are also problems facing Uni-President. Nowadays, Uni-President has changed from channel push to product pull, which still needs time to explore.