On April 2, 2018, Hua Bin Fast-Moving Consumer Goods Group held the 'China Functional Beverage Innovation and Development Conference' at the Great Hall of the People. More than 200 representatives from industry associations, industry experts, government departments, Hua Bin Group, and partner enterprises attended and witnessed the conference, including Zhao Yali, Chairman of China Beverage Industry Association; Xu Huafeng, Vice Chairman and Secretary-General of China Health Care Association; Professor Duan Shenglin, Director of R&D Department of China National Research Institute of Food and Fermentation Industries; Zhang Zhijun, Deputy Director of Beijing Huairou District Food and Drug Administration; Zhou Yunjie, Chairman of ORG Technology Co., Ltd.; Roman Kupper, President of Döhler Group Asia Pacific; Yan Bin, Chairman of Hua Bin Group; and Lu Zhan, President of Hua Bin Fast-Moving Consumer Goods Group.

At the conference, Hua Bin Fast-Moving Consumer Goods Group, together with all sectors, released the 'Initiative to Jointly Promote Innovation and Development of China's Functional Beverage Industry', calling on relevant enterprises to respond to the 'Healthy China' strategy, consciously fulfill industry and social responsibilities, incorporate national health, industrial development, and innovation management into their long-term development plans, and fulfill their responsibilities in the new era; actively promote industry technical exchanges, share excellent innovation experiences, proactively improve product quality, actively explore diversified products, rely on labor, advocate labor, lead industry trends with honest labor, and promote the common prosperity of China's functional beverage industry.

China Beverage Industry Association Affirms Hua Bin's Contribution to the Industry

As a pioneer and leading enterprise in China's functional beverage sector, Hua Bin Group has been deeply involved in the functional beverage field for over 20 years. Its high-standard production process control, successful product marketing experience, and comprehensive supply and sales system have been widely recognized and praised by the industry, playing a pivotal role in promoting the development of this rapidly growing market segment.

Zhao Yali, Chairman of China Beverage Industry Association, fully affirmed the contributions of Hua Bin's FMCG segment and Chairman Yan Bin to China's functional beverage industry over the past 20 years. Zhao Yali said, 'Hua Bin Fast-Moving Consumer Goods Group is the founder of China Red Bull, making positive contributions to the development of China's functional beverages, recognized by the entire industry and respected by peers.' Over the past 20 years, China Red Bull products have accumulated a total output of over 8 million tons, cumulative sales of 145.3 billion yuan, and total taxes paid of 21 billion yuan, becoming an industry leader. Chairman Yan Bin is also known as the 'Father of China's Functional Beverages' in the industry.

Zhao Yali stated that after 30 years of development, China's beverage industry now has an annual production capacity of over 180 million tons, contributing to the national economy and cultural life. However, the per capita consumption of functional beverages in China still has significant room compared to developed countries, indicating huge development potential in this segment. Zhao Yali pointed out, 'The War Horse energy drink launched by Hua Bin Fast-Moving Consumer Goods Group will strive to become another excellent brand in functional beverages, adding brilliance to the category.'

At the conference, Professor Duan Shenglin, Director of R&D Department of China National Research Institute of Food and Fermentation Industries, delivered a report titled 'Research, Development, and Trends of Functional Foods'. He believed that the innovation and development of China's functional food industry is closely related to people's health, and 'without national health, there is no comprehensive well-off society'. He also believed that insisting on product innovation and quality assurance is the foundation for rapid enterprise development. 'Hua Bin's care for products over more than 20 years has achieved today's quality height.'

Hua Bin's partner Döhler Group enjoys a high reputation in the global natural ingredients field. At the conference, Roman Kupper, President of Döhler Group Asia Pacific, stated that China's functional beverage market has developed rapidly in recent years, with the number of brands increasing to 20 in 2016. However, Hua Bin Fast-Moving Consumer Goods Group still maintains a leading position in China's functional beverage industry and also holds a high position in other premium beverages.

War Horse Aims at Young People and 'Going Global'

Under its 'diversified innovation' strategy, Hua Bin Fast-Moving Consumer Goods Group launched its own brand War Horse energy vitamin drink, including 400ml PET bottled products (carbonated and non-carbonated). Around the Spring Festival this year, it also launched the 'Enhanced War Horse' – a 310ml red can product with nearly four times the coffee powder content compared to the bottled version, allowing consumers to face various work and life scenarios with more energy.

Zhao Honglei, General Manager of War Horse (Beijing) Beverage Co., Ltd., stated that the War Horse brand is committed to leading the new era's young consumer trends, with the brand vision of encouraging young people to 'move forward bravely, dare to try challenges, unleash maximum potential, and discover a stronger self', in line with the trend of younger consumption.

Zhu Danpeng, a Chinese food industry analyst, said: 'Hua Bin is the 'originator' of functional beverage operations in China, making indelible contributions to the development and growth of China's functional beverages. With the transformation of consumption thinking and behavior in the new era, China's functional beverages have entered a stage of rapid growth. With the explosion of the functional beverage category, disorderly competition has also occurred, and China Red Bull's single product faces challenges. As Hua Bin's first self-owned beverage brand, War Horse energy drink has ample innovation flexibility, which can both meet the rigid demands of the new era and provide a strong defense against other products eroding market share.'

At the same time, Hua Bin Fast-Moving Consumer Goods Group for the first time proposed the 'going global' strategy for War Horse. From the beginning of its launch, it formulated the strategic principle of 'trademark first', registering a total of 41 related protective trademarks for War Horse, and making early arrangements in countries related to the 'Belt and Road' initiative and developed countries. Zhao Honglei stated that War Horse will leverage Hua Bin Fast-Moving Consumer Goods Group's successful experience in cooperating with international FMCG brands, as well as Hua Bin Group's successful practices in the 'Belt and Road', 'green finance', and East-West economic and cultural exchanges, to support Chinese brand building and strive to become new energy for Chinese functional beverage brands on the international stage.

At the conference, War Horse (Beijing) Beverage Co., Ltd. signed a strategic cooperation agreement with Anta Sports Products Group Co., Ltd., opening a new situation of strong alliance and joint progress for the War Horse brand. Both parties stated that for a national brand to grow into an international brand, it should first establish a foothold in the domestic young people's market and seek opportunities to 'go global'. Regarding cooperation, whether in extreme sports or national large-scale mass sports organizations, sports marketing is a shining business card in the rapid growth of Hua Bin Fast-Moving Consumer Goods Group.

Q1 Sales Exceed 7.8 Billion Yuan, Hua Bin's Success Hard to Replicate

Lu Zhan, President of Hua Bin Fast-Moving Consumer Goods Group, revealed at the conference that the group's multi-brand operation and market service system have taken shape and shown results. In the first quarter of 2018, total sales of all items of Hua Bin Fast-Moving Consumer Goods Group exceeded 7.8 billion yuan, exceeding the quarterly target, achieving a good start and laying a solid foundation for the annual task.

Lu Zhan said that Hua Bin's functional beverage segment is both a participant and a beneficiary of reform and opening up. The establishment and development of the enterprise cannot be separated from the decades of hard work and concerted efforts of Hua Bin Group and its partners.

Lu Zhan said, 'A nine-story platform starts from the accumulation of earth. Over more than 20 years of Hua Bin's evolution, the brand value of China Red Bull has grown rapidly from 550 million yuan in 1996 to over 50 billion yuan today. Through the efforts of several generations of Hua Bin people and partners, the Hua Bin 'big family' culture has been formed, carrying the aspirations, hopes, and happiness of Hua Bin people. Through honest labor, we have turned our dreams into reality, forming our unique competitive advantage in the market. The results are hard-won and difficult to replicate. We must embrace innovation and change, but also clearly oppose commercial speculation.'

Hua Bin Group attached great importance to this conference. Chairman Yan Bin led the heads and senior executives of various Hua Bin Group segments to attend. In his speech at the conference, Yan Bin expressed gratitude to industry leaders, industry experts, government departments, partners, and distributors for their support over the past 20 years. He said, 'In the 1980s, I went to Thailand to develop. More than 20 years of overseas experience gave me a special deep affection for the motherland. When I returned to China in the late 1990s, I hoped to repay the country through industry with my overseas gains and achievements. I am honored to be a participant, witness, and beneficiary of the 40 years of reform and opening up.' He stated that in the opening year of the new era, he hopes to create a truly internationally influential national functional beverage brand, truly entering the international market with Chinese characteristics, Chinese quality, and Chinese brands.

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