--- title: "Humiliation, Rebirth, and Rise: The Market Battle of Old-School Sodas" description: "In 2018, a Beijing native living in the US for seven years encountered Beibingyang soda in a Seattle Chinese restaurant, evoking childhood memories. This article explores the history of Chinese soda brands, their decline due to Coca-Cola and Pepsi's dominance, and their recent attempts at revival through nostalgia, innovation, and market expansion." author: "刺猬公社编辑部" publisher: "New Distribution" email: "zhaobo258@gmail.com" telephone: "+8615854817671" published: "2021-09-29" language: "en" canonical: "https://xinjignxiao.com/en/articles/humiliation-rebirth-and-rise-the-market-battle-of-old-school-sodas-f58cb181/" markdown: "https://xinjignxiao.com/en/articles/humiliation-rebirth-and-rise-the-market-battle-of-old-school-sodas-f58cb181.md" original_source: "https://mp.weixin.qq.com/s/sZVJQOXqEy4Ew3vlEuJBlg" translation: "https://xinjignxiao.com/zh/articles/%E5%B1%88%E8%BE%B1-%E9%87%8D%E7%94%9F%E4%B8%8E%E5%B4%9B%E8%B5%B7-%E8%80%81%E7%89%8C%E6%B1%BD%E6%B0%B4%E7%9A%84%E5%B8%82%E5%9C%BA%E4%BA%89%E5%A4%BA%E6%88%98-f58cb181.md" attribution: "New Distribution — https://xinjignxiao.com/en/articles/humiliation-rebirth-and-rise-the-market-battle-of-old-school-sodas-f58cb181/" usage_policy: "https://xinjignxiao.com/ai-policy.txt" --- # Humiliation, Rebirth, and Rise: The Market Battle of Old-School Sodas > In 2018, a Beijing native living in the US for seven years encountered Beibingyang soda in a Seattle Chinese restaurant, evoking childhood memories. This article explores the history of Chinese soda brands, their decline due to Coca-Cola and Pepsi's dominance, and their recent attempts at revival through nostalgia, innovation, and market expansion. Source: Hedgehog Commune (ID: ciweigongshe) In 2018, at a Chinese restaurant in Seattle, Ande, a Beijing native who had lived in the US for seven years, saw Beibingyang soda for the first time in America—a brand that was once a symbol of Beijing. Without hesitation, he ordered a bottle. As the bottle opener pried off the glass cap, carbon dioxide rushed out with a crisp, familiar "pop." That "pop" transported him back to his elementary school days over 20 years ago: after school, young Ande would run to the Fangjia Hutong bus stop, and while waiting for the 104 bus home, he often bought a bottle of Beibingyang for just over one yuan from the nearby shop. The owner would open the bottle, and Ande would tilt his head back, gulping it down in one go, then return the glass bottle. "After starting middle school, I hardly saw Beibingyang in China, so I was quite surprised to see it in a US restaurant later." This timeline aligns perfectly: In 1999, when Ande was in third grade, Beibingyang soda ceased production due to the impact of Coca-Cola and Pepsi. In 2007, as Ande prepared for the college entrance exam, Yiqing Food Group, which managed Beibingyang Food Company, regained the brand rights from its joint venture partner Pepsi. In 2011, while Ande was attending university in the south, Beibingyang returned to the Beijing market. Packaging of "Beibingyang" in the 20th century | Source: Interface News Beibingyang is not alone; many old soda brands have reappeared after years of suppression by foreign brands: Shenyang's Bawangsi soda made a comeback in 2003, Shandong's Laoshan Cola restarted in 2004, Tianjin's Shanhaiguan soda resumed production in 2014, Chongqing's Tianfu Cola returned in 2016, and Wuhan's Second Factory soda reappeared with a new look in 2017. These old sodas have ambitions beyond revival; news of their moves toward the capital market has followed: At the end of 2020, Beibingyang planned to go public via a backdoor listing through Dahaoxing Technology; in July 2021, Bingfeng submitted a prospectus to the Shenzhen Stock Exchange. So the question arises: **What exactly happened in China's soda market over the past two to three decades? How strong is the market vitality of these old sodas?** **"Two Colas Drowned Seven Armies"** "One city, one soda" summarizes the pattern of China's soda market in the 1980s. On the soda map of China at that time, the northeast had Harbin's Daba pear and Shenyang's Bawangsi; the north had Tianjin's Shanhaiguan and Beijing's Beibingyang; central China had Xi'an's Bingfeng and Luoyang's Haibi; the southwest had Chengdu's Emexue and Chongqing's Tianfu Cola; the east had Shandong's Laoshan Cola and Shanghai's Zhengguanghe; and the south had Guangzhou's Asian Sarsae. Each of these brands was a star in the dining scene. If we rewind to the 1980s, focus on the capital, and zoom in on No. 22 Anlelin Road in Dongcheng District, we would see the roadside crowded with vendors on tricycles or in cars coming to pick up Beibingyang soda. The long queues were endless, and those who couldn't get goods that day had to wait another night. The 24-hour production line still couldn't meet Beijingers' love for this orange-flavored soda in summer. **In that era of scarcity, the simple joy brought by old sodas carried a generation's longing for a better life.** Production workshop of "Beibingyang" in the 1980s | Source: Interface News These old sodas mostly dominated their own regions, coexisting peacefully, without coveting the national market. However, the story changed once "foreign brands" entered the Chinese market. In 1979, three hours after the establishment of Sino-US diplomatic relations, Coca-Cola announced its entry into the Chinese market. Three weeks later, 3,000 cases of bottled Coca-Cola products were shipped from Hong Kong via Guangzhou to Beijing. Two years later, PepsiCo signed an agreement with the Chinese government to build a Pepsi bottling plant in Shenzhen, marking the beginning of its investment in China. The "Two Colas" were ambitious, trying to grab a share from these local enterprises. In 1983, Beijing Coca-Cola Company planned the first in-store promotion in China's contemporary market—buy one bottle of Coke and get a pair of chopsticks or a balloon. In 1986, to boost brand awareness, Coca-Cola spent 200,000 yuan to air an advertisement on CCTV, which was almost its entire annual profit in China at the time. However, their high prices made them luxury items in daily life: In the early 1980s, Beibingyang cost 0.15 yuan per bottle, while Coca-Cola sold for 0.45 yuan, a two-fold price difference that deterred ordinary consumers. Coupled with the "Two Colas" lacking distribution channels in China, the Chinese carbonated beverage market in the 1980s was still dominated by old sodas. But the good times didn't last. Starting in the 1990s, Coca-Cola and Pepsi became household names, severely impacting the market share of old sodas. **The real turning point came in 1994—a year destined to be written into the history of Chinese carbonated beverages.** That year, in a strategic retreat, under the arrangement of the China National Light Industry Council, China's seven major soda factories signed joint venture agreements with Coca-Cola and Pepsi: Bawangsi, Shanhaiguan, and Wuhan Second Factory partnered with Coca-Cola; Laoshan Cola, Asian Sarsae, Tianfu Cola, and Beibingyang partnered with Pepsi. Xing Huiming, Party Secretary of Beijing Yiqing Chemical Group, the parent company of Beibingyang, once said that at the time, everyone felt "the foreign moon is rounder than China's," so they wanted to learn management and technology from the West. **But what they didn't anticipate was that they would end up "losing their own things."** After the joint ventures, by holding higher equity stakes or continuously increasing capital, the "Two Colas" strengthened their control over the joint venture brands, intervening or even dominating their management and operations, squeezing the living space of domestic soda brands. Take Beibingyang as an example: Pepsi only allowed Beibingyang to produce purified water, and the original beverage production lines were required to produce Pepsi's 7 Up and Mirinda. The other six factories suffered similar fates. Today, Coca-Cola and Pepsi control over 90% of China's carbonated beverage market, leaving countless small brands struggling for survival in the remaining less than 10%, including those domestic sodas that have "redeemed themselves." **How Much Is Nostalgia Worth?** On January 6, 2016, after reclaiming its trademark through legal channels, Tianfu Cola held a brand revival ceremony in Chongqing. It was a ceremony filled with pathos: On both sides of the venue were 20-meter-long spray-painted boards with a gray background reminiscent of a massacre memorial, printed with over 20 black-and-white photos documenting Tianfu Cola's past glory and decline. The song "My Chinese Heart" played in the venue. Scene from Tianfu Cola's revival ceremony | Source: "Food Entrepreneur" **Unlike newly launched beverage brands, old sodas carry a sense of history and national identity—in one word, "nostalgia."** **But can nostalgia truly endow old sodas with boundless market energy?** Zhao Zhe, a native Xi'aner working in Shanghai, has never bought Bingfeng in Shanghai—a soda that escaped the joint venture wave and holds over 80% market share in Xi'an. This is partly due to distribution issues, as Bingfeng's coverage in Shanghai retail stores is still low, but even when encountering it in Shaanxi restaurants in Shanghai, he has never bought it. "If I'm not eating roujiamo or liangpi, I wouldn't think of drinking Bingfeng. It just doesn't feel right. Maybe it's a taste memory formed from childhood eating habits. When dining at Shaanxi restaurants in Shanghai, I sometimes see Bingfeng, but it's too expensive—much pricier than drinking it at home. Plus, carbonated drinks are about the fizz; they're not irreplaceable, and there's not much difference compared to Coke." This is not an isolated case. Li Mengda, a Xi'aner working in Hangzhou, said, "For orange soda, I usually buy Fanta. Bingfeng is more expensive; if the taste is similar, why should I buy the pricier one?" Zhao Ying, another Xi'aner working in Beijing, expressed the same sentiment: "The shop near my company sells Bingfeng, but I rarely drink it. The same product is much more expensive in Beijing." **However, some do value the emotional attachment this small bottle carries.** Liu Xin grew up in Xi'an and has been drinking Bingfeng since age six. "In Shanghai, I basically buy Bingfeng whenever I see it. When I see it in supermarkets, I stock up. Drinking Bingfeng makes me feel like I'm going home. Its orange flavor is stronger, and it has fewer bubbles, so the taste is better. That's the most important reason I choose Bingfeng. The taste makes me like it, and nostalgia makes me prioritize Bingfeng among similar orange carbonated drinks, even if the price is slightly higher." **Pure nostalgia rarely convinces consumers to pay; attracting them requires real strength.** Ji Xiaolun, a Beijinger in Shanghai and a Beibingyang enthusiast, said, "Maybe there's a subtle brand affinity, but I like Beibingyang basically just because it tastes good." Consumers are "fickle," and the market is cruel. The nostalgia card cannot be a trump card for old sodas, nor even a green pass to the market. So "relying on age" is definitely not the right market strategy. From this perspective, old sodas are no different from emerging beverage brands. **The market breakthrough battle for old sodas is destined to be tough.** **The Breakout Battle** In a limited market space, squeezed between the traditional giants "Two Colas" and new-style beverages like Genki Forest, old sodas have to carve out their own path. In 2019, Li Ting first saw Hankou Second Factory soda at a convenience store in Shanghai and was immediately attracted by its colorful bottles. After drinking a lychee-flavored one, Hankou Second Factory became her favorite carbonated beverage brand. "I like trying new things. The bottles are great for photos, and it says it contains real juice, so even though it's carbonated, I don't feel as guilty drinking it." New "Hankou Second Factory" soda | Source: JD.com In 2017, after nearly 20 years of discontinuation, a group of young people saw the market opportunity and revived Hankou Second Factory soda by borrowing the brand. The young founders knew the secrets of breaking into the mainstream, infusing the brand with internet-famous genes from the start—healthy concepts, trendy packaging, and social marketing. Similar to Genki Forest's focus on "0 sugar, 0 fat," Hankou Second Factory emphasizes "extracting real fruit juice" and "no added sucrose," positioning itself as a "healthy 'happy water'." On the packaging, the glass bottle features a raised "二" (two) pattern, and the cap is printed with a "嗝" (burp) character. Beyond static designs, Hankou Second Factory has introduced interactive packaging elements, such as heat-sensitive stickers that reveal text and fortune slips that appear only after drinking. Even good wine needs a loud voice; Hankou Second Factory actively seeks traffic. It engages in brand collaborations, including with Yili Zhenxi ice cream, skincare brand Sancao Liangmu, ski platform Quhuaxue, and sportswear brand Skechers, leveraging brands from various fields to attract attention. In 2020, it launched the "Bottle Adventure" pop-up store national tour, where consumers could immerse themselves in a cyberpunk atmosphere within a giant bottle scene, deeply experiencing Hankou Second Factory's "trendy" brand image. Additionally, actively supporting music festivals and collaborating with KOLs like Li Jiaqi demonstrate its ambition to break out of its niche. Consumers may love a product but not be able to buy it; channel construction is the "final kick" for Hankou Second Factory to boost sales. Given its average price of 6-10 yuan, the team chose not to enter traditional supermarkets that prioritize cost-effectiveness, instead opting for premium supermarkets like Ole and Hema. FamilyMart convenience stores saw Hankou Second Factory's market potential and invited it to join, helping the brand quickly accumulate market awareness and reputation. In 2018, Hankou Second Factory's sales reached 90 million yuan. In 2019, offline sales alone exceeded 500 million yuan. In 2020, Hankou Second Factory announced two rounds of financing, with investors including Qingliu Capital, Hillhouse Ventures, Country Garden Ventures, and Shunwei Capital, totaling over 100 million yuan. **Unfortunately, not all old soda brands have such good fortune.** In 2016 and 2017, the years following Tianfu Cola's revival, its losses were 13.87 million yuan and 16.95 million yuan, respectively. According to Bingfeng's prospectus disclosed in July 2021, its total revenue in 2020 was 320 million yuan, with over 80% coming from Shaanxi Province. In the prospectus, Bingfeng frankly states: "If the company cannot effectively develop new markets outside Shaanxi and broaden its product market areas, it will have a certain impact on the company's future growth." **Too many walls stand between these old sodas and consumers:** **First, the regional wall that is hard to break—how to step out of the home base and reach a broader market?** **Second, the competitive wall built by leading brands—what can old sodas use to compete with giants and new market darlings?** **Third, the wall in consumers' minds—if the nostalgia card doesn't work, how can they win consumer acceptance?** To break through these three walls, old sodas have already made efforts. Take Beibingyang and Bingfeng, both seeking listings, as examples: In terms of sales networks, Beibingyang built a factory in Chongqing to capture the southwest market and actively expanded nationwide through distributors; Bingfeng has focused on online channels, with e-commerce sales rising from less than 2% in 2018 to 6% in 2020. In products, both Beibingyang and Bingfeng are actively developing new flavors, such as Beibingyang's passion fruit flavor and alcoholic soda, and Bingfeng's lychee and white peach flavors. In marketing, both have engaged in brand collaborations and increased presence in influencer live-streaming rooms. However, these attempts are far from ensuring the old sodas thrive, and creating a second "Hankou Second Factory" is not easy. **Telling brand stories well, refreshing brand images, seeking dual breakthroughs in product and channel, and capturing consumer minds in newer ways may be the growth engines that old soda brands need to continuously build.** The concept of "guochao" (national trend) is gaining momentum. According to Baidu's 2021 Guochao Pride Search Big Data, from 2011 to 2020, search interest in "guochao" increased by 528%, with nearly half of those interested being post-90s. Countless guochao products have emerged: Li-Ning's "Wudao" themed sportswear, Palace Museum cosmetics, Warrior's guochao hand-painted canvas shoes... **Behind this lies, on one hand, the unremitting efforts of domestic brands to improve product and marketing capabilities, and on the other, the cultural confidence of young consumers—why must the Western moon be rounder than China's?** But this by no means implies that simply labeling a brand as "guochao" will lead to success, nor does it mean using nostalgia to coerce consumers. Especially for brands like old sodas that have a guochao foundation, they should delve deeper into the profound cultural and consumer implications behind "guochao." In Bingfeng's prospectus, it plans to raise 670 million yuan, with 420 million yuan allocated for "marketing service network upgrade and brand building projects." Advertising semiotician Judith Williamson once said that people are identified by what they consume. So, for young people, what do they need to be identified by through "guochao" products? This is probably a question Bingfeng needs to ponder carefully when spending that money. **"Once a glorious history, about to unfold a new chapter."** This phrase, printed at Tianfu Cola's revival ceremony five years ago, still applies today, as the story of resurgence has just begun. (At the request of interviewees, Ande, Zhao Zhe, Li Mengda, Zhao Ying, Liu Xin, Ji Xiaolun, and Li Ting are pseudonyms.) **Are you "watching" me?** --- ## Copyright and AI use This article is sourced from New Distribution. Search, quotation, summarization, and model training are permitted, but every use must credit New Distribution and retain the canonical source URL. Contact: zhaobo258@gmail.com · +86 158 5481 7671