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Although Master Kong is a household name, few know about its owners—the Wei brothers. "It's this taste," and it's this Wei.

The Four Brothers' Entrepreneurship

The founders of "Master Kong" are the four Wei brothers from Taiwan: Wei Ying-chou, Wei Ying-chiao, Wei Ying-chung, and Wei Ying-hsing. Their father, Wei Te-ho, started a small oil mill in a rural area of Changhua, Taiwan, in 1958, naming it "Ting Hsin." In 1978, it was renamed "Ting Hsin," which is the predecessor of today's Ting Hsin International Group. After Wei Te-ho passed away in 1978, the oil mill was taken over by the four brothers.

Testing the Mainland Market in 1988

Due to continuous struggles in Taiwan, the Wei brothers decided to invest in mainland China. In 1988, the youngest brother, Wei Ying-hsing, traveled to the mainland via Hong Kong. He knew no one and was unfamiliar with everything. He traveled across provinces, aiming to develop cooking oil since the family business was an oil mill.

Failure in Cooking Oil, Nearly Losing All Capital

Many may remember a CCTV advertisement in the late 1980s: "Use Tinghao Fragrant Oil, It Brings You Face." This was a refined cooking oil product "Tinghao Fragrant Oil" produced by the Wei brothers in the mainland. However, at that time, the consumption level in the mainland was low, and people weren't yet at the stage of "needing face." The Wei family's business did not do well, and by 1991, the NT$150 million (approximately RMB 33 million in the early 1990s) that Wei Ying-hsing brought had almost all been lost.

Instant Noodles on a Train Draws Attention

Just as he was about to return home, the founding product of the Master Kong food kingdom—instant noodles—appeared by a very coincidental chance. During a business trip, Wei Ying-hsing, unaccustomed to train food, brought Taiwan-made instant noodles to eat on the train. The aroma attracted onlookers, and people kept asking where they could buy such noodles. "The mainland is so big, with so many train passengers, the instant noodle market must be huge!" Even employees who joined Master Kong later enjoyed vividly describing Wei Ying-hsing's excitement at that time.

After market research, the Wei brothers found that there were already many instant noodle companies in the mainland, but there was a severe polarization: on one side were cheap noodles from domestic manufacturers, a few mao per bag but of poor quality; on the other side were imported noodles, good quality but at five or six yuan per bowl, unaffordable for people in the early 1990s. There was a vast gap in the mid-range market with moderate quality and price. In August 1992, the Wei brothers invested US$8 million to establish Tianjin Tingyi International Food Co., Ltd., producing instant noodles. They chose a chubby chef image for the brand, naming it Master Kong, meaning health plus professionalism.

With the "braised" flavor that suited Chinese preferences, a price of 1.98 yuan per pack, and a comprehensive advertising campaign, the Braised Beef Noodles quickly became a hit, with wholesalers even lining up at the company gate to stock up. "Seizing the opportunity first meant grabbing the 'first brand' image," summarized Li Jiaqun, a senior executive at Ting Hsin Group.

Big Director, Second Director, Third Director, Fourth Director

Within the group, the four Wei brothers are referred to as Big Director, Second Director, Third Director, and Fourth Director, and collectively as the "Four Chairmen" externally. Their specific division of labor: the eldest, Wei Ying-chou, is responsible for strategic decision-making and final approval; the second, Wei Ying-chiao, maintains shareholder relations; the third, Wei Ying-chung, oversees finance; and the fourth, Wei Ying-hsing, handles external relations and public affairs, including communication with government departments.

Big Director Wei Ying-chou: Strong and Authoritative

The eldest, Wei Ying-chou, is the soul of the family, with the most authority among the brothers, and most specific matters are decided by him. After Master Kong instant noodles gained traction, funding issues arose. Shareholders and even Wei Ying-chou's brothers thought they should first consolidate the Tianjin surrounding market and expand nationally only after funds caught up. However, Wei Ying-chou overruled objections, insisting on building the brand and capturing market share nationwide while rapidly expanding production lines. He simultaneously purchased equipment on credit in Taiwan, required distributors to pay in advance for goods, and urged his brothers to find money. Within three years, Master Kong completed the layout of seven major production bases nationwide, with an astonishing expansion speed. Until 1998, Master Kong dominated the Chinese instant noodle market.

Wei Ying-chou's aggressive expansion was a double-edged sword, both building Master Kong and bringing financial risks to the Wei family. In 1996, Master Kong Holdings went public, raising US$157 million, and a confident Wei Ying-chou began seeking suitable investment targets in Taiwan. In 1997, Chen Hsien-pao, a major speculator who had collected 50% of Wei Chuan Foods' shares, persuaded the Wei family to take over his holdings when Wei Chuan's stock was around NT$30.

The Quagmire of the Hostile Acquisition

However, a major speculator daring to accumulate shares early must have had a specific scheme. During the acquisition negotiations, Wei Chuan's stock price began to soar. Eventually, Ting Hsin acquired over 30% of Wei Chuan's shares at NT$58 per share, spending NT$10 billion, of which NT$3 billion came from bank loans. However, in November 1998, Wei Chuan's stock price suddenly plummeted, throwing the Wei family from the pinnacle of Master Kong's unrivaled business success into the cold valley of financial crisis.

The high-priced acquisition of Wei Chuan, coupled with the burden of previous expansions, severely weakened the Wei family, forcing them to seek external capital. In 1999, Ting Hsin sold Master Kong shares to Japan's Sanyo Foods, resulting in equal shareholding of 33.1889% each, providing Ting Hsin with US$140 million in life-saving funds. This is the background to the 2013 anti-Japanese sentiment when Master Kong was accused of having Japanese capital. Ting Hsin and Sanyo Foods maintained equal shareholding for years until December 2007, when Ting Hsin increased its stake by 190 million Master Kong shares, raising its shareholding to 36.5886%, slightly above Sanyo Foods.

Wei Ying-chou's Harsh Self-Reflection on Mistakes

Wei Ying-chou described the 1998 financial crisis as "unprecedented internal and external troubles." He never concealed his mistakes. Regarding this experience, he once reflected seriously with very harsh words: "This is man-made, not natural disaster," "inexperienced, success at a young age," "if we fall this time and banks come collecting debts, three generations of descendants won't be able to repay." It was also in 1998 that Ting Hsin's old rival, Uni-President, expanded its investment in mainland China, and from then on, the Chinese instant noodle market was no longer dominated solely by Master Kong but became a duopoly. Later, Wei Ying-chou handed over the chairmanship of Ting Hsin Group to his second brother, Wei Ying-chiao, while retaining only the chairmanship of Master Kong Holdings, partly as a form of self-reflection.

Second Director Wei Ying-chiao: Skilled in Communication and Networking

The second brother, Wei Ying-chiao, is the family's expert in external business. With strong business acumen and communication skills, he made outstanding contributions in finding funds and maintaining shareholder relations during the family's investment in the mainland. After accepting the chairmanship of Ting Hsin Group from his eldest brother, he also took on the role of spokesperson.

Selling Tesco, Cashing Out NT$5 Billion

In September 1998, Wei Ying-chiao founded the first Hymall store in Shanghai, an independent venture outside Master Kong's business. The first Hymall turned profitable in its first year, causing a stir in the industry. By 2003, Hymall's revenue had reached RMB 5 billion. In 2004, after the Chinese government lifted many restrictions on foreign investment, UK's TESCO sought to enter the Chinese market, and the Wei family's Hymall became their target. In 2004, TESCO bought 50% of Hymall for £140 million, and in December 2006, TESCO increased its stake to 90% for another £180 million. Through these two transactions, Ting Hsin cashed out a total of £320 million (approximately RMB 5 billion).

Acquiring the World's Tallest Building

After exiting Hymall, Wei Ying-chiao ventured into real estate. When the 2008 financial crisis hit, the Wei family, having suffered in the 1997 Asian financial crisis, strongly advocated "cash is king." Thus, when economic recovery began to show signs in 2009, the Wei family, flush with cash, started looking for cheap properties. In June 2009, the Wei family registered a private company, "Ting Chi Development," dedicated to real estate, with Wei Ying-chiao as chairman. In July of that year, Ting Hsin acquired 19.55% of Taipei 101 for NT$3.735 billion, becoming the largest shareholder of what was then the world's tallest building. They later increased their stake twice to 37%.

Third Director Wei Ying-chung: Low-Key and Philanthropic

The third brother, Wei Ying-chung, is the most low-key and skilled in financial management. Beyond business, he is passionate about charity. As early as 1986, he actively participated in activities of Tzu Chi, a well-known charity organization in Taiwan. In Tzu Chi, fellow members call him "Brother Wei." Regarding the relationship between helping others and business, Wei Ying-chung believes: "The difference between an entrepreneur and an ordinary merchant lies not in scale but in the value perspective on management. I simply want to help people and share that joy with more people."

Turning Wei Chuan Around to Profitability

Wei Ying-chung is the chairman of Wei Chuan Foods. Under the Wei family's leadership, Wei Chuan gradually turned from loss to profit. 2008 was the year of the financial crisis and also the 10th anniversary of Ting Hsin's acquisition of Wei Chuan's assets. That year, Wei Chuan's revenue reached NT$11.5 billion, up 6% from the previous year; net profit was NT$527 million, an increase of NT$76 million. Wei Chuan not only grew against the trend during the financial crisis but also achieved record-high performance.

Wei Ying-hsing: The "Pioneer"

The fourth brother, Wei Ying-hsing, describes himself as the more "mischievous" one among the four, enjoying innovative work. From testing investments in the mainland, finding inspiration for the instant noodle business, to seeking investment targets in Taiwan, he has always been the "pioneer." Wei Ying-hsing has a wide network of friends and is entrusted with maintaining external relations, especially with the government.

Expansion of Dicos

Wei Ying-hsing oversees Ting Hsin's convenience store and chain business groups, including Dicos and FamilyMart. Ting Hsin acquired Dicos in 1996. Initially, due to hasty expansion and blind store openings, one-third of Dicos' regional branches were loss-making by 1998. After 1999, Dicos adjusted its strategy, deciding to avoid direct competition with KFC and McDonald's, focusing on second- and third-tier cities while opening up franchising. This gradually stabilized the business, and to date, Dicos has 2,200 stores in the mainland, surpassing McDonald's and second only to KFC.

Division of Labor Without Separation

Although the four brothers have their respective business segments, they have not "split the family" while dividing work. All revenue from their respective segments is pooled into the family fund, and the four couples then draw their equal share. Regarding "division of labor without separation," the fourth director, Wei Ying-hsing, explains: "The eldest brother leads selflessly, and the other three brothers closely unite around the 'Party Central Committee' with the eldest brother at its core... We can't let one have no work; we divide work and industries, but the core is not to split. At the same time, no matter what work we do, we try to contribute the money earned to the family fund, called the 'small people's commune.'"

Successors

Wei Ying-chou: Help Them Up and Accompany Them a While

Among the next generation of the Wei brothers, due to age, the three sons of the eldest, Wei Ying-chou, were the first to be given the responsibility of taking over the business. The three sons—Wei Hung-ming, Wei Hung-fan, and Wei Hung-cheng—except for the second son, Wei Hung-fan, who chose to start his own business, the other two entered Master Kong Holdings to learn. Wei Ying-chou's principle for successors is: "Help them up and accompany them a while." He plans to first elevate his sons to vice chairman positions while he remains chairman to "supervise," then transition over a few years, fully handing over the reins at age 65. Additionally, following the Wei family's consistent principle, Wei Ying-chou requires that daughters-in-law not be involved in the family business operations.

Image caption: Li Chunhui