---
title: "Chinese Soft Drinks Once Shelved by Foreign Acquirers Return with Nostalgia"
description: "Asia Soda, a 70-year-old Chinese beverage brand, has re-entered the market with a new energy drink, Asia Xiongfeng, joining a wave of nostalgic comebacks by domestic soda brands like Beijing's Arctic Ocean and Chongqing's Tianfu Cola. These brands, once acquired and shelved by foreign companies, are leveraging nostalgia and health trends to regain market share, but face challenges in attracting younger consumers."
author: "吴怡"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
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published: "2017-07-08"
language: "en"
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# Chinese Soft Drinks Once Shelved by Foreign Acquirers Return with Nostalgia

> Asia Soda, a 70-year-old Chinese beverage brand, has re-entered the market with a new energy drink, Asia Xiongfeng, joining a wave of nostalgic comebacks by domestic soda brands like Beijing's Arctic Ocean and Chongqing's Tianfu Cola. These brands, once acquired and shelved by foreign companies, are leveraging nostalgia and health trends to regain market share, but face challenges in attracting younger consumers.

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# In the functional beverage market, a "newcomer" has arrived. Asia Soda, over 70 years old, has launched its new product, Asia Xiongfeng. This once-faded beverage company has returned to the public eye. Along with Asia Soda's strong comeback, a host of other old brands are also making a resurgence.
In the past two years, domestic old soda brands have shown signs of recovery, including **Arctic Ocean in North China and Tianfu Cola in the Sichuan-Chongqing region.** These old brands were once popular domestic soda drinks in the 1980s, and they all experienced **being acquired and shelved by "foreign capital"** . After regaining control and "redeeming" themselves, they lost their former glory, went through ups and downs, and their brand influence waned.
Now, as **the "two colas" (Coca-Cola and Pepsi) are shrinking in the Chinese market** , beverage brands are iterating faster, and consumers are becoming harder to please. Domestic old sodas are seizing the opportunity to employ nostalgic marketing by playing the "emotional card." However, how to cultivate the next generation of consumers before exhausting nostalgic sentiment has become a challenge these old sodas must solve. This time, **Asia Soda has also returned to the corner of convenience stores** , but with different packaging and a different story to tell.
**A Fresh Look**
At a location in Yanzigang, Haizhu District, Guangzhou, a sign reads "Guangyin Creative Park," where the new Asia Soda marketing center is located.
He Wenfeng, Executive Director and CEO of Xiangxue Asia, told Times Weekly reporters that after the new joint venture was established last year, the marketing center was set up here.
At this time, **Asia Soda had already been renamed "Xiangxue Asia"** . In 2009, Xiangxue Pharmaceutical acquired Asia Soda, and after officially taking over, Xiangxue Asia was born and launched a new product, Jindian Sarsaparilla. However, the consumer base awakened by nostalgia is limited. After the acquisition, Xiangxue Asia improved but remained lukewarm, far from its peak.
Not willing to give up, Xiangxue Asia launched another offensive. Last September, Xiangxue Asia fully acquired Yingyuantang, and after the merger, Yingyuantang's founder, He Wenfeng, became Executive Director and CEO of Xiangxue Asia. For the Xiangxue Asia team, He Wenfeng is a familiar face.
From 2003 to 2014, He Wenfeng worked at PepsiCo China, serving as General Manager of Pepsi South China. Earlier, when Pepsi-Cola first entered the Chinese market, it acquired the Asia Soda factory to produce its drinks. Until 2002, when Pepsi transferred all its shares, the two teams had cooperated for over a decade. In 2015, He Wenfeng started his own business and founded the Yingyuantang brand.
**"We are the Pepsi team, and Asia Soda belonged to Pepsi International for a long time. So the teams are familiar with each other; many are former colleagues. We share the same philosophy and naturally came together, hoping to grow the business,"** He Wenfeng told Times Weekly.
Since He Wenfeng took office, Xiangxue Asia has launched many new products. Last September, **Xiangxue Asia successively launched soy milk and ready-to-drink enzyme products** , and recently launched a plant-based energy drink, "Asia Xiongfeng." With this, Xiangxue Asia has completed the layout of three major sectors: plant-based soda, plant-based protein drinks, and plant-based energy drinks.
"Our development direction is to build on the existing consumer base, rely on Guangdong as a foundation, expand to larger regions, and hope to go nationwide to become a comprehensive beverage company," He Wenfeng revealed. The company will invest heavily in expanding the team, increasing channels, and capital operations, and plans to add a non-carbonated production line in the Central China region next year.
**Leveraging the Health Trend**
In He Wenfeng's office, several boxes of drinks are placed, including some mineral water. **"We plan to launch weakly alkaline mineral water within this year. These are samples sent by other companies, and we are currently testing them."**
This is another new attempt by Xiangxue Asia. In He Wenfeng's view, how to revitalize this local old brand is the real way out. He emphasized two points throughout the interview: product diversification and brand rejuvenation.
"This is a diversified era. Brands need to find their positioning, and occupying consumers' minds is particularly important. In fact, 'old' has no absolute value judgment. The key is how you activate the brand."
In recent years, some familiar figures for the post-70s and post-80s generations have quietly returned to dining tables and convenience stores, including Beijing's Arctic Ocean, Guangzhou's Asia Soda, and Chongqing's Tianfu Cola.
In the era of the planned economy, they were popular everywhere; in the early days of reform and opening up, they embraced foreign investment and learned the cruelty of the market; and now, as the market matures, the game between foreign and local forces is shaking the industry landscape, and they have seized the opportunity to return.
**Pushing a regional brand nationwide has become their common vision** , and the catering channel is an effective way for these old brands to return to the market.
"There is a consumption phenomenon where local specialty drinks flow nationwide with local specialty cuisine. **For example, Bingfeng Soda is sold through Shaanxi-style noodle shops and restaurants across the country.** Leveraging familiar consumer groups is advantageous. Asia Soda can use the Cantonese cuisine catering channel," Ma Lei, an observer in the beverage industry, analyzed for Times Weekly. "No matter what method, find people who know you."
It is understood that Xiangxue Asia will enter the national market. Currently, the layout in East China and Central China has been initiated, with some products using the catering channel.
"**These two markets have the largest beverage volume. On one hand, the weather is hot, so the drinking cycle is longer; on the other hand, consumption capacity is stronger. Some places are close to Guangdong, making it easier for Asia's brand influence to extend. We are expanding step by step,"** He Wenfeng pointed out.
However, the nostalgic card is starting to lose its effect. The consumption capacity of post-70s and post-80s for beverages is gradually weakening, and Xiangxue Asia faces the challenge of educating a new generation of consumers.
In the view of strategic positioning expert Xu Xiongjun, the lack of a flagship product has become a shackle restricting Xiangxue Asia's expansion. "Any brand succeeds with one drink first. Xiangxue Asia does not have its own strong single product to make consumers remember it, and it has not yet successfully occupied consumers' minds."
"Times are changing, and consumers are changing. For the company to grow in the future, it must continue to meet consumer needs. The post-90s and post-00s have more diverse needs; they will try more things and pursue more personalized products," He Wenfeng analyzed the current situation. Backed by Xiangxue Pharmaceutical, Xiangxue Asia has found its trump card—big health.
"Currently, plant-based protein and functional drinks are maintaining high growth. The Xiangxue Group mainly focuses on traditional Chinese medicine research and development. We have great advantages in raw material acquisition and R&D, so we hope to develop in the direction of health drinks."
Xu Xiongjun also pointed out to Times Weekly that Xiangxue Asia, relying on the foundation of a pharmaceutical company, can tap into the treasure trove of traditional Chinese medicine over thousands of years and package it around the concept of health and wellness. This is a good development direction.
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