As half-year financial reports for 2016 are released, beverage industry players are sharing their results, with mixed fortunes. This year's beverage market is predominantly 'bearish,' with performance not optimistic. Against the backdrop of overall FMCG performance decline, combined with half-year report data from major companies, industry players and experts generally predict that the beverage industry will struggle to emerge from the downturn this year. According to the National Bureau of Statistics, China's soft drink production in May 2016 was 14.41 million tons, a year-on-year decrease of 9.20%, marking a rare negative growth. In this environment, how to break the deadlock is the key. Which beverage companies saw negative growth? The list of beverage companies with negative growth in half-year reports is quite extensive. Let's take a look at the ranking of negative-growth companies: Coca-Cola First and foremost is international beverage giant Coca-Cola, which reported a 4.57% decline in revenue in its first-half 2016 financial report, with the Chinese market being a major drag on revenue growth. Uni-President Domestic beverage giant Uni-President reported beverage business revenue of 7.448 billion yuan in the first half, a year-on-year decline of 8.2%. V V Food & Beverage V V Food & Beverage's total revenue in the first quarter of this year fell by over 10%, while net profit plummeted by nearly 50%. Hainan Yedao Hainan Yedao expects a loss of 45 million yuan in the first half of this year, with declining beverage revenue cited as one of the main reasons. PepsiCo PepsiCo's operations in China have been taken over by Master Kong, which entered the carbonated beverage market through this agreement. However, data shows that the decline in the first quarter was as high as 6.9%. What are the reasons for negative growth among beverage companies? The decline of multiple soft drink giants indicates an overall industry downturn. The reasons, whether objective or subjective, are mainly attributed to the following points:

  1. The overall FMCG industry is weak, and the overall consumption environment is poor. 2. China's macro economy has not recovered in the first half of 2016. 3. The emergence of small and medium-sized brands in the beverage industry has diluted market profits, impacting major brands. 4. Excessive rainfall in the second quarter of 2016 and generally lower summer temperatures led to a lackluster peak season. 5. Consumption upgrading and increased health awareness among consumers have reduced purchase rates for high-sugar, high-energy beverages, especially carbonated drinks. How do giants plan to break the deadlock? The six reasons analyzed above are generally common phenomena in the industry. Of course, declining performance is also related to the products themselves—whether product positioning is precise, whether new product launch timing is accurate, and whether marketing activities are effective are all contributing factors to poor performance. The first half has ended, and the second half has begun. Before we know it, it will be time for annual reports. Finding the right path and turning losses into profits is the most important thing. So, have the major giants taken new actions after their financial reports? Uni-President: Focusing on fruit-flavored tea drinks and coffee As one of the industry giants, Uni-President has always been proactive in launching new products. To cope with market changes, Uni-President's plan for the mainland beverage market in the second half is divided into three parts: First, stabilize the market with existing products like Uni-President Ice Black Tea and Uni-President Green Tea, maintaining the mainstream market at the 3.0 yuan price point. For the consumption upgrade market above 5.0 yuan, focus on Xiao Ming Tong Xue, while also positioning Tialatu Western-style fruit-flavored tea in first-tier cities to expand the 'attack surface.' Second, in autumn 2016, they will launch a Chinese-style fruit and herbal beverage targeting the functional beverage market, and will continue to focus on Hai Yan brand building and consumer promotion activities. Third, Landuo drip-filter coffee is planned to debut on e-commerce platforms in the second half of this year. Wahaha: Entering the yogurt industry, advocating 'no additives' Wahaha insists on a healthy product route because consumers are increasingly concerned about beverage ingredients. They firmly believe that a long-term health-oriented approach will yield good results. Wahaha has proposed the slogan of 'three no additives.' Cheese is the gold of milk, and pure yogurt is relatively healthier and more reliable, meeting current health needs. To gradually enter the yogurt industry, Wahaha mainly focused on cultivating bacteria-based products in the first half, and will continue to promote this product in the second half. High-end water will follow an environmental and customized route. Source: Food Economy (ID: shijj21) At the request of our distributor friends, the fourth B-end e-commerce inspection tour of this public platform will be held from August 15-18, visiting Qianmi Network and Alibaba Retail Link in Nanjing and Hangzhou. Distributors interested in transformation can join us for on-site inspections: Activity schedule: Time: August 15-18

August 15-18

Nanjing·Hangzhou 15th: Check in at designated hotel in Nanjing; 16th: On-site inspection of Qianmi Network, then high-speed rail to Hangzhou in the afternoon; 17th: Participate in the 'FMCG Distributor B2B Transformation Exchange Summit'; 18th: On-site inspection of Alibaba Retail Link in Hangzhou; Distributors interested in transformation are welcome to join us to learn and conduct on-site inspections: Organization format ************1. Company visit

  1. Actual market case visit
  2. On-site explanation
  3. One-on-one communication************ Participating distributors only need to pay a registration fee of 200 yuan Other expenses are self-covered Note: This inspection is limited to distributors only Distributors interested can register by long-pressing the QR code below. When adding, please note: 'Fourth Registration'. Non-participants, please do not disturb Group photos from previous inspections: Group photo of the 3rd B-end e-commerce inspection, from top to bottom: Yunbao Shangmeng, Weijie City Distribution, Wanshang Yizhan. Group photo of the 2nd B-end e-commerce inspection, from top to bottom: Jinhuobao, Caiba, Yishang. Group photo of the 1st B-end e-commerce inspection, from top to bottom: Piduoduo, Beiquan, Yishang. -END- The best FMCG distributor learning platform in China Dedicated to providing professional, practical, and actionable tutorials for enterprises and distributors Committed to helping Chinese FMCG distributors grow rapidly The most professional and practical knowledge base in the FMCG industry Reply with the red number below to get corresponding content Reply with number 1 to view the complete knowledge base | 001 Excellent article selection | 002 Distributor market operations | 003 Terminal visit management | 004 Sales supervisor skills | 005 Sales improvement techniques | 006 Channel expansion | 007 Managing distributors | 008 Distributor development | 009 Distributor internal operations management | 010 Team management | 011 Efficient distribution techniques | 012 Sales manager's skills | 013 KA operation methods and strategies | 014 First lesson for new salespeople | 015 Internet, brands | 016 Distributor B2B transformation | [Long press QR code to follow]