---
title: "Breaking | Huabin Red Bull Temporarily Halts Production! Is the Joint Venture Liquidation Entering the Countdown?"
description: "A 'historic moment' seems to have arrived as Red Bull production has been temporarily halted. If this 'temporary' period lasts long, it could reshape China's functional beverage market. Today, Huabin officially reiterated its '50-year' story, while Thailand's TCP Group responded accordingly."
author: "i 橘子"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2018-10-18"
language: "en"
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# Breaking | Huabin Red Bull Temporarily Halts Production! Is the Joint Venture Liquidation Entering the Countdown?

> A 'historic moment' seems to have arrived as Red Bull production has been temporarily halted. If this 'temporary' period lasts long, it could reshape China's functional beverage market. Today, Huabin officially reiterated its '50-year' story, while Thailand's TCP Group responded accordingly.

Click to read the original article for details.
**A 'historic moment' seems to have arrived: 'Red Bull has temporarily halted production.' If this 'temporary' period is prolonged, it could be enough to reshape the market landscape of China's functional beverages. But today, Huabin officially reiterated its '50-year' story, and Thailand's TCP Group naturally responded.**
**1**
**Temporary Production Halt**
Everything came without warning.
"Red Bull has halted production," said an insider.
At noon on the 16th, while our publication was still immersed in the 'excavator' mode of 'which functional beverage is the strongest,' this news from above shattered everything.
What? Our publication was stunned, then immediately asked, "Really? When? Why?"
The insider said the news came from a 'meeting minutes.' The core content was: "Currently, the factory has temporarily stopped producing Red Bull. In the face of insufficient supply, each region is required to control volume and maintain prices, ensure high-quality distribution, and shift focus to Battle and other new products..."
Oh my, just before the National Day holiday, regarding the expiration of the 'business term' of Red Bull Vitamin Beverage Co., Ltd. (hereinafter referred to as the Red Bull Joint Venture), Yan Bin, the head of Huabin Group, had just made tough remarks, claiming that Huabin still had 30 years of operating rights. After that, Thailand's TCP Group publicly stated that 'liquidation should be carried out immediately'; subsequently, Huabin Group even went so far as to bring in Thai Huabin International Group Co., Ltd. (hereinafter referred to as Thai Huabin) to respond that the other party's claim was not a 'board decision'...
At that time, this back-and-forth exchange made observers feel uneasy, as if the flames of war were about to ignite. However, after the National Day holiday, neither side showed a decisive follow-up, but instead quieted down.
Some industry analysts believe this is a 'protracted war,' and given the complex, intertwined shareholding relationships, it is hard to see a clear-cut solution.
However, reality has once again dealt us a heavy blow.
"I also want to know the reason," said the aforementioned insider. More importantly, there have been reports that 'dealers are being asked not to make payments.'
Our publication then verified with several sources close to Huabin Group, and the responses showed that production halt news has already emerged in three or four provinces.
Interestingly, in a province in the Yangtze River Delta where production halt news also emerged, the explanation given was, "The company says it's for equipment maintenance..." In a northeastern province, the news was, "Intensified Red Bull will be halted until the end of the year (blue cans), and existing intensified Red Bull inventory must be supplied to channels such as PetroChina and supermarkets; all other channels will be cut off." Guangdong market, among the provincial cities verified, was the only one without production halt news—"Haven't heard of it; the promotion during the National Day holiday was still very active, and the company just had a team-building event last week..."
On Huabin Group's official website, on the main page related to FMCG, the image of Battle takes the lead. In the brand ranking below, the order is Battle, VOSS, Red Bull, Vita Coco, and Capri-Sun.
Even more interesting is Huabin Group's official response. Regarding the production halt, Huabin stated: "The claim of a temporary halt is inaccurate; we have an annual major maintenance period."
So someone retorted, "Can all bases across the country undergo major maintenance at the same time?" Moreover, if they have had annual maintenance every year, why did news of a production halt only emerge this year?
Importantly, whether it's a temporary halt or a permanent one, the fact that 'production halt' has been written into the meeting minutes—doesn't that already indicate a problem?
**2**
**'Inability' to Extend**
"This confirms what the media previously disclosed," said a source.
In his view, the expiration of the Red Bull Joint Venture's 'business term' on September 30, as mentioned earlier, disrupted Huabin Group's rhythm. More importantly, Yan Bin's earlier claim to 'submit an extension application' together with other shareholders has likely 'cooled off.'
While our publication was verifying from multiple sources, Huabin Group issued an official statement, once again emphasizing the 'fifty-year cooperation period.'
The statement, while 'recalling the past' and 'telling stories,' did not mention the progress of Huabin Group's earlier plan to jointly submit an extension application with other shareholders. Moreover, in the statement, Yan Bin was portrayed as the weaker party.
When asked whether the production halt was due to the failure of Huabin's 'extension' attempt, or even the lack of support from other shareholders, Huabin's response was, "We haven't received any other information yet."
In fact, according to Article 13 of the 'Law of the People's Republic of China on Sino-Foreign Equity Joint Ventures,' regarding 'joint ventures with an agreed term, if the parties agree to extend the term, an application must be submitted to the examination and approval authority six months before the term expires.' Additionally, it is reported that the Red Bull Joint Venture's 'Joint Venture Contract' Article 39 and the Articles of Association Article 61 stipulate that to extend the joint venture term, all shareholders must form a written unanimous opinion...
"Currently, the operating term of Red Bull Vitamin Beverage Co., Ltd. has expired, and the shareholders Thai Red Bull and Inter-Biopharm Holding Co., Ltd., as well as their appointed directors, have never agreed to an extension. No other shareholder or director may unilaterally extend the company's operating term without the consent of all shareholders and directors. Therefore, Mr. Yan Bin's so-called extension application, submitted without the approval of all shareholders, is illegal," TCP Group officially responded regarding the 'extension.'
TCP Group also emphasized that the current situation is that the joint venture's business term as registered with the industry and commerce authorities has expired, not that TCP requested an early termination.
In other words, business continues, the market is still there, the game goes on—they just don't want to play with Yan Bin anymore.
Importantly, if the extension could have been applied for six months earlier, what was Huabin Group doing then? Or had Huabin Group and other shareholders already been at odds half a year ago, leading to this awkward situation of issuing one statement after another?
"Huabin has no choice now, I guess," said the aforementioned source. He also revealed that in Huabin's statement, the claim that Yan Bin is the founder of Red Bull is inaccurate. Before Red Bull entered China, the brand already existed. In what sense is he a founder?
Supporting evidence is that public information shows that before the Red Bull Joint Venture was established, TCP Group had already registered and held the 'Red Bull' trademark in Thailand and multiple countries and regions, including China. In other words, Yan Bin is just one of Red Bull's many global partners, now 'outdated' (TCP Group no longer recognizes him), not the founder of Red Bull in China.
"The key is that Yan Bin's lack of respect and trust for partners, and his blatant disregard for the interests of all parties, are the fundamental reasons why TCP Group can no longer cooperate with him," said a source close to TCP Group.
Moreover, to some extent, Yan Bin is also disliked by his own people.
"Yan Bin's entire professional manager team has turned against him, yet he still thinks he is the boss and king of the past, still holding on. We believe that in this battle, Yan Bin will not have a smooth ride," said the aforementioned source.
**In his view, some outcomes are foreseeable. Currently, the overall trend of the FMCG industry is not good, and it is getting worse. The industry faces a collision between old thinking and new markets, and the old 'high-and-mighty' approach of former giants and leaders is no longer effective. 'If they still can't see the current market changes, then facing shocks or reshuffling is only a matter of time.'**
▌**Statement from Thai Red Bull**
In response to Mr. Yan Bin's latest statement issued on behalf of Red Bull Vitamin Beverage Co., Ltd. on October 16, our company, Red Bull Vitamin Beverage (Thailand) Co., Ltd. (Thai Red Bull) and Inter-Biopharm Holding Co., Ltd., as shareholders holding a total of 95% of the shares of Red Bull Vitamin Beverage Co., Ltd., hereby clarify to the public:
We have never signed any so-called 'fifty-year agreement' with Red Bull Vitamin Beverage Co., Ltd. or its related parties. According to the contract and articles of association of Red Bull Vitamin Beverage Co., Ltd., which were approved by the examination and approval authority, the joint venture term is twenty years and has already expired.
1. As shareholders of Red Bull Vitamin Beverage Co., Ltd., we have never agreed to extend the company's joint venture term under any circumstances. Any claims contrary to the above facts are without legal or factual basis.
2. Our legal actions are all in response to the various illegal acts of Mr. Yan Bin and his affiliated companies, including but not limited to:
- Mr. Yan Bin, for his personal interests, violated his fiduciary duties as the former chairman of the joint venture by establishing multiple companies outside the Red Bull Vitamin Beverage Co., Ltd. system to produce and sell Red Bull products, effectively engaging in business competing with the joint venture. These factories and sales companies outside the joint venture system have blatantly produced and sold Red Bull products without legal authorization and illegally used the Red Bull trademark.
- Since the establishment of Red Bull Vitamin Beverage Co., Ltd., we have consistently provided strong support, including funding, technical support, flavors and fragrances, and trademark licenses. However, despite the joint venture's continued profitability, we, as shareholders, have never received any dividends from Red Bull Vitamin Beverage Co., Ltd. throughout the entire joint venture term. Instead, under Mr. Yan Bin's control, the joint venture illegally paid huge profits that should have been distributed to us to Hong Kong Huabin Company, which is controlled by Mr. Yan Bin and is not a shareholder of the joint venture.
3. TCP Group is the undisputed owner of the 'Red Bull' trademark and related intellectual property rights in China and globally. Any claims to the contrary are without legal or factual basis. Mr. Yan Bin has attempted to use the name of Red Bull Vitamin Beverage Co., Ltd. to legally claim the 'Red Bull' trademark and related intellectual property rights, but all such attempts have failed due to lack of legal and factual support.
4. We have previously acted with the utmost sincerity and patience, spending years negotiating with Mr. Yan Bin to reach a fair and friendly solution to long-standing issues, while ensuring that all shareholders of Red Bull China Vitamin Beverage Co., Ltd. would not be adversely affected. However, during the process, Mr. Yan Bin's repeated illegal acts have deeply disappointed us.
5. Mr. Yan Bin's selfish and self-serving behavior, which disregards others, not only infringes on the rights of his partners and Chinese consumers but also damages China's hard-won reputation for being open, friendly, welcoming, and protecting the legitimate rights and interests of global business partners.
According to the laws of the People's Republic of China, Red Bull Vitamin Beverage Co., Ltd. should be liquidated immediately and cease all business activities unrelated to liquidation. During the transition period, to ensure the long-term development of 'Red Bull' in China, we have decided to engage new partners and operating models to provide high-quality, legal Red Bull products to Chinese consumers and avoid negative impacts on all sectors of society and Red Bull employees. We will continue to contribute to China's economic development in new ways and properly arrange for the employees of Red Bull Vitamin Beverage Co., Ltd. (Information above from: Red Bull Vitamin Beverage (Thailand) Co., Ltd. and Inter-Biopharm Holding Co., Ltd.)
Source: FMCG (ID: fbc180)
**2018 China FMCG City Distribution Logistics Conference** At that time, New Distribution will invite industry experts, FMCG warehousing and distribution specialists, and dealers who have transformed to unified warehousing and distribution platforms to discuss and answer questions around the theme of 'New Distribution, New City Distribution,' focusing on future trends in FMCG city distribution logistics and practical cases of dealer transformation to unified warehousing and distribution. We hope to bring you different inspiration and thinking! The specific agenda is as follows:
**List of Participating Companies**
In no particular order
Hunan Zonglan Diandan Network Technology Co., Ltd.
Jingbang (Wuhan) International Freight Forwarding Co., Ltd.
Mengniu Dairy
Qinghai Hanxiang E-commerce Co., Ltd.
Unilever Service (Hefei) Co., Ltd. Shanghai Branch
Huicong
Hunan Xuan'ang Food Co., Ltd.
Guangzhou Tongdaoren Information Technology Co., Ltd.
Qingdao 888 Trading Co., Ltd.
Uni-President Enterprises (China) Investment Co., Ltd.
Hunan Province Zhongxiang Gongpei Logistics Co., Ltd.
Shenglong Ingredients
COSCO Shipping Logistics Warehousing and Distribution Co., Ltd.
Guangxi Yongpai Liquor Co., Ltd.
Shangqiu Kangrong Trading Co., Ltd.
Jinan Dingzhong Economic and Trade Co., Ltd.
Liaoning Bimai Agricultural Technology Co., Ltd.
Kunming Xiongjia Trading Co., Ltd.
Shaanxi Houheng Trading Co., Ltd.
Guangzhou Dingwo Enterprise Information Consulting Co., Ltd.
Shaodong Jiajiale Commercial Firm
Boda Trading
Industrial Bank Changsha Branch
Wuhan Muchén Convenience Store Chain Co., Ltd.
Fujian Fuxing Yuncang Logistics Co., Ltd.
Guizhou Yilimi E-commerce Co., Ltd.
Jiangxi Xiao Laoer E-commerce Co., Ltd.
Jinshan Koufu
Shanxi Taihang Yuanjing Supply Chain Management Co., Ltd.
Shanxi Dezhun Supply Chain Management Co., Ltd.
Shaoyang Tongdeli Trading (Xiangbang Logistics)
Huanfu
Tongda Express City Distribution
Beijing Xinjingxiang Food Co., Ltd.
Wuhan Huizhong Tianhong Liquor Co., Ltd.
Changsha Paide Biotechnology Co., Ltd.
Chao'an Tuqiang
Guizhou Yihe Bopin Supply Chain Management Co., Ltd.
Jiangxi Kang'en Industrial Development Co., Ltd.
Xiangtan County Yisuhe Town Yuhua Paper Store
Luoyang Yuanlang Trading Co., Ltd.
Tongchuan Yaozhou District Huayuan Supermarket Co., Ltd.
Hunan Yongfu Jiujiu Trading Co., Ltd.
Zhejiang Chengchengtong Logistics Co., Ltd.
Chongqing Kaiguo Materials Trading Co., Ltd.
Beijing Xianmaixianmai Data Technology Co., Ltd.
Hanchuan Qixing Trading Co., Ltd.
Tongxin Jiuzhiru Trading Co., Ltd.
Guizhou Meili Guoguo Network Technology Co., Ltd.
Hubei Anjie Logistics Co., Ltd.
Hubei Kuaixiao Hulian Technology Development Co., Ltd.
......
**Representatives of Dealer Transformation (Proposed)**
In no particular order
Rong Jun, Chairman of Jiangsu Huashang City Distribution Network Co., Ltd.
Wang Bo, Chairman of Hubei Yijiaren Logistics Co., Ltd.
Jiang Shuming, General Manager of Chengdu Xingrenxing Trading Co., Ltd., Sichuan
Liu Jichen, Chairman of Shandong Yunbang Warehousing and Logistics Co., Ltd.
Tu Mingyu, Chairman of Chongqing Lingyu Consumer Goods Supply Chain Management Co., Ltd.
Yang Su, Chairman of Guangzhou Zhongshan Wanrong Marketing Co., Ltd.
Yuan Xia, Chairman of Sichuan Bajie Supply Chain Management Co., Ltd.
Li Qiangyun, Co-founder of Hubei Pengdun Meiyitian Supply Chain Management Co., Ltd.
Zhang Jianyong, Chairman of Xuchang Jiulegou E-commerce Co., Ltd., Henan
Ma Haichao, Founder of Hebei Changyi Logistics Co., Ltd.
Meng Yucun, General Manager of Hebei (Chengde) Wulian Yuncang Co., Ltd.
Zhang Xun, Chairman of Urumqi Su'an Jinchi Logistics Co., Ltd., Xinjiang
Zhang Hailing, Chairman of Jilin Sansheng Lianguo
Qiang Huitao, Founder of Hebei Dunjie Supply Chain Management Co., Ltd.
Liao Lei, General Manager of Hunan Damei Supply Chain Management Co., Ltd.
......
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