Click to read the original text for details. This afternoon (October 16), Red Bull officially issued another statement: "Special Statement on the 50-Year Cooperation Period of Red Bull China." The statement pointed out that in 1995, the two parties agreed on the principle of 50-year cooperation, with Mr. Yan Bin establishing Red Bull China (the predecessor of the company) in Shenzhen and resolving the issue of the health food approval certificate himself; Mr. Xu Shubiao, during the 50-year operating period of Red Bull China, would profit by selling raw materials such as flavors to Red Bull China, and ensure that within 50 years, only Red Bull China would have the right to produce and sell Red Bull beverages in China. In addition, the statement emphasized that "Mr. Yan Bin is the true and only founder of Red Bull China." Original text is as follows: In response to recent organized malicious false statements in domestic and international media that disrupt the production, sales, and operations of Red Bull China, entrusted by Mr. Yan Bin, the founder of Red Bull China, we hereby issue the following statement: In 1993, Mr. Xu Shubiao, founder of TCP Group (Thailand), opened a factory in Hainan, hoping to introduce Red Bull beverages to China. However, due to the inability to obtain a health food approval certificate, production never started, and he planned to abandon the business. At that time, Mr. Xu Shubiao met Mr. Yan Bin. In 1995, the two parties agreed on the principle of 50-year cooperation, with Mr. Yan Bin establishing Red Bull China (the predecessor of the company) in Shenzhen and resolving the issue of the health food approval certificate himself; Mr. Xu Shubiao, during the 50-year operating period of Red Bull China, would profit by selling raw materials such as flavors to Red Bull China, and ensure that within 50 years, only Red Bull China would have the right to produce and sell Red Bull beverages in China. In November 1995, Mr. Yan Bin introduced state capital and formally established Red Bull China. Mr. Yan Bin, on behalf of the Red Bull China being prepared, signed the "Agreement" (the "50-Year Agreement") with TCP Group, China National Food Industry Corporation, and Shenzhen Zhonghao (Group) Co., Ltd. According to the agreed cooperation principles, it was clearly stipulated that the operating period of Red Bull China would be 50 years, and within 50 years, only Red Bull China would have the right to produce and sell Red Bull beverages in China. TCP Group would not produce or sell Red Bull beverages in China itself or license others to do so. To adapt to the local market and take root in China, Mr. Yan Bin adjusted the Thai formula and fully demonstrated the functionality and safety of the new formula Red Bull beverage, enabling Red Bull China to successfully obtain the health food approval certificate, solving the problem that TCP Group had failed to solve, and clearing the obstacles for Red Bull beverages to enter the Chinese market. Red Bull beverages entered the Chinese market from scratch, with no brand advantage or market accumulation, and as a functional beverage, it was far less easily accepted by the market than conventional drinks. At the end of 1995, during the Spring Festival Gala, Huabin Group spent heavily to launch the advertising slogan "Red Bull Comes to China," officially presenting Red Bull beverages to Chinese consumers. Since then, Huabin Group has continued to invest heavily in advertising and promotion, creating classic slogans such as "Tired and sleepy? Drink Red Bull" and "Your energy is beyond your imagination," establishing and consolidating the classic image of Red Bull beverages in the minds of Chinese consumers. Mr. Yan Bin is the true and only founder of Red Bull China. Through Mr. Yan Bin's more than 20 years of management and huge investment in product formula, trademarks, production capacity, marketing channels, brand image, etc., the value of the Red Bull brand has jumped to over 50 billion RMB in 20 years, and Red Bull China has become a well-known Chinese enterprise. The funds used for the growth and development of Red Bull China over the past 20 years have all come from Mr. Yan Bin's personal investment and asset guarantees. When Red Bull China was established, it coincided with the promulgation and implementation of the "Catalogue for the Guidance of Foreign Investment Industries" in 1995. Due to the newly promulgated policy requirements, the business term could only be recorded as 20 years at the time of industrial and commercial registration. Later, Red Bull China moved to Beijing in 1998, and the term was still registered as 20 years. In 2002, the aforementioned foreign investment restrictions were lifted, and Red Bull China's business term could be directly registered as 50 years. The 50-Year Agreement is the foundation of commercial cooperation, the basic legal document with the highest priority, and the "constitution" of the cooperation between the two parties. During the years of cooperation, Mr. Xu Shubiao and Mr. Yan Bin always adhered to their commitments and obtained their respective profits according to the 50-Year Agreement. Therefore, when the policy restrictions were lifted in 2002, the company did not consider the need to immediately re-register the business term, and only planned to handle the extension registration procedures when the company's business term officially expired in 2018. In 2012, Mr. Xu Shubiao passed away. Since then, the 11 children of the Xu family have had serious disagreements over the cooperative relationship determined by the 50-Year Agreement signed by their father and authorized by their mother, and since then, TCP Group has committed a series of serious breaches of contract. Mr. Yan Bin and Red Bull China have always upheld their commitments and acted in good faith, hoping to communicate with the second-generation heirs of TCP Group. TCP Group has come to China to "pick peaches," grabbing benefits, disregarding history, disregarding the agreement, disregarding the brand image, disregarding the interests of tens of thousands of employees, and disregarding the interests of millions of cooperative distributors. Mr. Yan Bin deeply regrets and is saddened by this! Mr. Yan Bin and Red Bull China believe in judicial fairness and justice for the people. To protect the business and employees' livelihoods, and to protect honest labor and honest management, Mr. Yan Bin and Red Bull China have hired a professional legal team composed of several well-known domestic law firms. Based on the 50-Year Agreement of November 10, 1995, and the provision in Article 19 of Chapter 7 of the Joint Venture Contract of December 21, 1995, which states that "the trademark of the joint venture company's products is part of the joint venture company's assets," they will defend the company's reputation and rights! Hereby declared! Red Bull Vitamin Beverage Co., Ltd. October 16, 2018 TCP Group is not to be outdone. TCP Group issued a joint statement at 22:30 on the evening of the 16th in the name of Red Bull Vitamin (Thailand) Beverage Co., Ltd. and Inter Biopharmaceutical Holdings Co., Ltd., in response to the afternoon statement by Huabin Company. Original text is as follows: October 16, 2018 - In response to the latest statement issued by Red Bull Vitamin Beverage Co., Ltd. on October 16 on behalf of Mr. Yan Bin, our company, Red Bull Vitamin Beverage (Thailand) Co., Ltd. (Thai Red Bull) and Inter Biopharmaceutical Holdings 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 the so-called "50-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. that were approved by the approval authority, the joint venture term of Red Bull Vitamin Beverage Co., Ltd. is 20 years and has already expired.
- As shareholders of Red Bull Vitamin Beverage Co., Ltd., we have never agreed under any circumstances to extend the joint venture term of the company. Any claims contrary to the above facts are without legal or factual basis.
- The legal actions we have taken are in response to various illegal acts by Mr. Yan Bin and his affiliated companies, including but not limited to: Mr. Yan Bin, for his own personal interests, violated his fiduciary duties as the former chairman of the joint venture company, established multiple companies outside the joint venture system to produce and sell Red Bull products, essentially engaging in business competing with the joint venture. These factories and sales companies outside the joint venture system openly produce and sell Red Bull products without legal authorization and illegally use the Red Bull trademark. Since the establishment of Red Bull Vitamin Beverage Co., Ltd., we have consistently given it strong support, including providing funds, technical support, flavors and fragrances, and trademark licenses. However, despite the continued profitability of Red Bull Vitamin Beverage Co., Ltd., as shareholders, we have never received any dividends from Red Bull Vitamin Beverage Co., Ltd. throughout the entire joint venture term. Instead, under the control of Mr. Yan Bin, the company 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.
- TCP Group is the undisputed owner of the "Red Bull" trademark and related intellectual property in China and globally. Any claims to the contrary are without legal and factual basis. Mr. Yan Bin has attempted to use the name of Red Bull Vitamin Beverage Co., Ltd. to take ownership of the "Red Bull" trademark and related intellectual property through legal proceedings, but all such attempts have failed due to lack of legal and factual support.
- We have always acted with the utmost sincerity and patience, spending years negotiating with Mr. Yan Bin, trying to reach a fair and friendly solution to long-standing issues while ensuring that all shareholders of Red Bull China Vitamin Beverage Co., Ltd. are not adversely affected. However, during the process, Mr. Yan Bin's repeated illegal acts have deeply disappointed us.
- Mr. Yan Bin's selfish behavior, pursuing his own interests at the expense of 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 excellent 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 adopt 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.
Hereby declared!
Red Bull Vitamin Beverage (Thailand) Co., Ltd. Inter Biopharmaceutical Holdings Co., Ltd. October 16, 2018 The second season of the "Red Bull" battle has officially begun! It is understood that 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 RMB, total taxes paid of 21 billion RMB, and over 12,000 employees, making it a leader in the industry. Chairman Mr. Yan Bin is also known in the industry as the "Father of China's Functional Beverages." Since 2016, regarding the trademark and asset issues of Red Bull China, the Thai Xu family and Yan Bin have started a long litigation tug-of-war. Regarding the cooperation between the two parties, an insider revealed that TCP Group has long been eyeing the scale of the Chinese Red Bull market. At the end of 2014, based on trust and gratitude towards the Thai Xu family and for future long-term cooperation, Yan Bin, without any guard, transferred all series of trademarks and packaging patents registered by Red Bull China during years of anti-counterfeiting and rights protection to TCP Group. Now the Xu family claims to adopt a new business model and support a new cooperation team. The Xu family sent people to wholly own a beverage company in Hong Kong that has production qualifications in China, which is the predecessor of Red Bull Anaji, Guangzhou Yao Energy, and is preparing to take over the Chinese market. The insider said that no one wants to see Chinese workers suffer because of the fight between the two major shareholders, the Chinese and Thai sides. This is clearly not the original intention of Mr. Xu Shubiao, the founder of the Red Bull brand. It is reported that before his death, Xu Shubiao had reached an oral agreement with Yan Bin that if Yan Bin could build up China Red Bull, it would belong to him, and Xu only wanted Red Bull to do well. The situation is becoming complex. Amid the confrontation between the two, a group of "mantises" are accumulating strength and encroaching on China's functional beverage market: brands such as Dongpeng Special Drink, Lehu, Heika,卡拉宝, Monster, and Mizone "Blazing Energy" are gaining momentum; giants in the domestic food and beverage industry such as Danone and Wahaha are also laying out plans; Austrian Red Bull quietly entered the Chinese market in 2014, waiting for an opportunity. The Red Bull trademark dispute is somewhat similar to the "red can dispute" between JDB and Wanglaoji. JDB's current situation can also be seen as a warning to Red Bull - in early September, JDB exposed production halts, shortages, and layoffs, related to the price war fought over market share in the past few years. Can Red Bull survive this dispute? As a spectator, what do you think? On October 23-24, the 2018 China FMCG City Distribution Logistics Conference, hosted by New Distribution, will be held in Changsha. Industry bigwigs have sent their blessings for the conference. Click the video to watch; more details below. 2018 China FMCG City Distribution Logistics Conference - New Distribution will invite industry experts, FMCG warehousing and distribution specialists, and distributors who have transformed to unified warehousing and distribution platforms to discuss and answer questions about the future development trends of FMCG city distribution logistics and practical cases of distributor transformation to unified warehousing and distribution, hoping to bring you different inspiration and thinking! The specific meeting topics are 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 Wine Industry 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 Muchen 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 Dezhu Supply Chain Management Co., Ltd. Shaoyang Tongdeli Trading (Xiangbang Logistics) Huanfu Tongda Express City Distribution Beijing Xinjingxiang Food Co., Ltd. Wuhan Huizhong Tianhong Wine Industry 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 Jiuzhi Trading Co., Ltd. Guizhou Meiguo Guoguo Network Technology Co., Ltd. Hubei Anjie Logistics Co., Ltd. Hubei Kuaixiao Hulian Technology Development Co., Ltd. ...... Distributor Transformation Representatives (Proposed) In no particular order Jiangsu Huashang City Distribution Network Co., Ltd. Chairman, Rong Jun Hubei Yijiaren Logistics Co., Ltd. Chairman, Wang Bo Sichuan Chengdu Xingrenxing Trading Co., Ltd. General Manager, Jiang Shuming Shandong Yunbang Warehousing and Logistics Co., Ltd. Chairman, Liu Jichen Chongqing Lingyu Consumer Goods Supply Chain Management Co., Ltd. Chairman, Tu Mingyu Guangzhou Zhongshan Wanrong Marketing Co., Ltd. Chairman, Yang Su Sichuan Bajie Supply Chain Management Co., Ltd. Chairman, Yuan Xia Hubei Pengdun Meiyitian Supply Chain Management Co., Ltd. Co-founder, Li Qiangyun Henan Xuchang Jiulegou E-commerce Co., Ltd. Chairman, Zhang Jianyong Hebei Changyi Logistics Co., Ltd. Founder, Ma Haichao Hebei (Chengde) Wulian Yuncang Co., Ltd. General Manager, Meng Yucun Xinjiang Urumqi Su'an Jinchi Logistics Co., Ltd. Chairman, Zhang Xun Jilin Sanxing Lian'gou Chairman, Zhang Hailing Hebei Dunjie Supply Chain Management Co., Ltd. Founder, Qiang Huitao Hunan Damei Supply Chain Management Co., Ltd. General Manager, Liao Lei ...... -END-