--- title: "Wanglaoji Licensed Beverage Channel Chaos: Former General Distributor Nanyang Yibao Pursued for Debt" description: "A group of Wanglaoji Xingqun Xia Sangju beverage distributors from across the country traveled to Dengzhou to demand payment from Nanyang Yibao Biological Technology Co., Ltd. (Nanyang Yibao), which owes them money and goods. Many distributors have been seeking repayment for over six months without resolution, and production of Xia Sangju ceased in September last year, leaving some distributors without goods after signing contracts." author: "New Distribution" publisher: "New Distribution" email: "zhaobo258@gmail.com" telephone: "+8615854817671" published: "2016-07-17" language: "en" canonical: "https://xinjignxiao.com/en/articles/wanglaoji-licensed-beverage-channel-chaos-former-general-distributor-nan-4d8ffbcc/" markdown: "https://xinjignxiao.com/en/articles/wanglaoji-licensed-beverage-channel-chaos-former-general-distributor-nan-4d8ffbcc.md" original_source: "https://mp.weixin.qq.com/s/UrUjvmVBZzi0PSsD04hCMQ" translation: "https://xinjignxiao.com/zh/articles/%E7%8E%8B%E8%80%81%E5%90%89%E6%8E%88%E6%9D%83%E9%A5%AE%E6%96%99%E6%B8%A0%E9%81%93%E4%B9%B1%E8%B1%A1-%E5%89%8D%E6%80%BB%E7%BB%8F%E9%94%80%E5%95%86%E5%8D%97%E9%98%B3%E9%A2%90%E5%AE%9D%E8%A2%AB%E8%BF%BD%E5%80%BA-4d8ffbcc.md" attribution: "New Distribution — https://xinjignxiao.com/en/articles/wanglaoji-licensed-beverage-channel-chaos-former-general-distributor-nan-4d8ffbcc/" usage_policy: "https://xinjignxiao.com/ai-policy.txt" --- # Wanglaoji Licensed Beverage Channel Chaos: Former General Distributor Nanyang Yibao Pursued for Debt > A group of Wanglaoji Xingqun Xia Sangju beverage distributors from across the country traveled to Dengzhou to demand payment from Nanyang Yibao Biological Technology Co., Ltd. (Nanyang Yibao), which owes them money and goods. Many distributors have been seeking repayment for over six months without resolution, and production of Xia Sangju ceased in September last year, leaving some distributors without goods after signing contracts. A group of Wanglaoji Xingqun Xia Sangju distributors from across the country, due to being owed payment and goods by Nanyang Yibao Biological Technology Co., Ltd. (hereinafter referred to as "Nanyang Yibao", which mainly produces and sells Wanglaoji brand Xingqun Xia Sangju beverages), traveled a long distance to Dengzhou City to demand payment of owed wages from Nanyang Yibao. A reporter learned from multiple Nanyang Yibao distributors and agents that many distributors began demanding payment and goods as early as six months ago, but Nanyang Yibao has not resolved the issue. "Nanyang Yibao stopped producing Xingqun Xia Sangju in September last year, and a batch of distributors who signed contracts did not even receive goods. Many distributors chose to sell Xingqun Xia Sangju beverages mainly because of the 'Wanglaoji Honorary Product' label, and now they hope to seek an explanation from Guangzhou Pharmaceutical Group." Zhu Danpeng, a Chinese food industry commentator, analyzed that Xingqun Pharmaceutical had a problem with the entrusted party during the authorization process. From this incident, Xingqun Pharmaceutical also bears supervisory responsibility, but the primary responsible party is still the entrusted party, Nanyang Yibao. Despite the endorsement of the Wanglaoji brand, the failure to select a suitable entrusted party has also led to Xingqun Xia Sangju remaining inactive in the market. The reporter contacted a person from Wanglaoji's public relations department, who stated that Xingqun Xia Sangju beverages are handled by Xingqun Pharmaceutical, and both are part of Guangzhou Pharmaceutical Group but have no business overlap. Subsequently, the reporter contacted a relevant person in charge at Xingqun Pharmaceutical. Upon learning of the interview request, she said she had already noticed the matter, then hung up citing a meeting, and did not respond to a written interview request. "**Former General Distributor of Xia Sangju Pursued for Debt** Wanglaoji Xingqun Xia Sangju is a brand of Guangzhou (Xingqun) Pharmaceutical Co., Ltd., a member enterprise of "Guangzhou Pharmaceutical" controlled by Guangzhou Pharmaceutical Group, and is known as "Huangguan Wanglaoji". According to the reporter, Dengzhou Nanyang Yibao Company is a beverage production enterprise that mainly produces and sells Wanglaoji brand Xingqun Xia Sangju beverages. As early as February 26, 2016, a group of Nanyang Yibao employees from across the country came to Dengzhou Nanyang Yibao Company to demand unpaid wages, pulling up a banner reading "Dengzhou Nanyang Yibao owes debts and refuses to repay, heaven's justice is unforgiving!" to protest. This time, it is Nanyang Yibao distributors who are protesting. A distributor from Linyi, Shandong, told the reporter that Nanyang Yibao employees' wages have been paid, but distributors usually only contact sales representatives and are unclear about the specifics. In August last year, they signed a contract for 105,000 yuan in goods, but Nanyang Yibao only shipped 50,000 yuan worth of goods, and still owes redemption fees and additional expenses of 15,000 yuan. Since only one shipment was made and no more followed, they felt deceived. In his view, Nanyang Yibao is just stalling for time, and only began receiving them after seeing more and more distributors protesting. According to him, Zhang Yupeng's brother Zhang Dapeng appeared once, only perfunctorily saying that distributors should calculate the owed goods and fees clearly before handling. The reporter learned that currently more than 40 distributors have gathered at Dengzhou Nanyang Yibao to protest, with most owed amounts ranging from 50,000 to 100,000 yuan, and more distributors are arriving. A distributor from Hezhou, Guangxi, revealed that they are still owed 78,000 yuan in goods. Xingqun Xia Sangju sells well only because of the distributors' extensive channels; Nanyang Yibao did not carry out market promotion or ground activities, but instead took advantage of distributors' money. Without market support, relying solely on distributors, the Xingqun Xia Sangju brand cannot succeed. On January 5 this year, Guangzhou Wanglaoji Xingqun (Pharmaceutical) Co., Ltd. issued a statement: Since Nanyang Yibao Biological Technology Co., Ltd. failed to achieve the sales target for the Xingqun Xia Sangju plant beverage series products agreed with our company, the company decided to terminate the distribution cooperation relationship with Nanyang Yibao for the above products from January 1 and revoke the national general distributor authorization for the above products to Nanyang Yibao. However, the reporter found on Nanyang Yibao's official website that the product introduction still includes Xingqun Xia Sangju products. Zhu Danpeng stated that Wanglaoji's termination of Nanyang Yibao's general distribution authorization at the beginning of this year was also due to seeing the poor operational capability of this enterprise. This has nothing to do with Wanglaoji itself; the key is that Nanyang Yibao must bear primary responsibility. Zhang Dapeng once told the media that this year's economic situation is poor and financing is not easy. When asked why the cooperation ended, Zhang Dapeng said it was due to changes in the company's strategic development. A distributor told the reporter that on the evening of July 5, they met Zhang Yupeng, who promised to pay half in July and the rest in August, but they have doubts and believe he is still stalling. "**Market Inactivity** These distributors responded to the investment invitation of Henan Nanyang Yibao Biological Technology Co., Ltd. in 2015, paying for the distribution of "Xingqun Xia Sangju" beverages, mainly because of the "Wanglaoji Honorary Product" label. Currently, Guangzhou Pharmaceutical's herbal tea brands include Wanglaoji, Pan Gaoshou, Baiyunshan, Shangqingyin, and Xingqun Xia Sangju. The reporter learned that on July 18, 2013, Guangzhou Pharmaceutical Group Baiyunshan Health Products Co., Ltd. authorized Nanyang Yibao Biological Technology Co., Ltd. as the sole general operator for Wanglaoji Xia Sangju series products in mainland China. In fact, in 2009, Zhang Yupeng, together with the domestic dairy brand Taizinai Group, invested 50 million yuan to register and establish Nanyang Taizinai Dairy Products Co., Ltd. However, when production construction was completed, the bankruptcy of Taizinai left the Nanyang factory, which was ready for operation, in a difficult situation. He then acquired Taizinai's shares and renamed the company Nanyang Yibao Biological Technology Co., Ltd. in July 2010. According to the above distributors, Nanyang Yibao stopped producing Xingqun Xia Sangju in September last year. A batch of distributors signed contracts in September, meaning they never received goods. A distributor from Xinyi, Maoming, Guangzhou, reported that they signed a contract for 65,000 yuan in goods on September 16 last year, but have not received the goods to date. The above Guangxi Hezhou distributor told the reporter that in September last year, they discovered 2,000 cases of Xingqun Xia Sangju that had been diverted from Yulin, Guangxi to Hezhou. After failing to resolve the issue with Nanyang Yibao, they contacted Guangzhou Baiyunshan (Xingqun) Pharmaceutical Co., Ltd., but no one has handled the problem to date. This issue also caused thousands of cases of their 250ml Xingqun Xia Sangju to be unsellable. The shelf life is 18 months, and the products were produced in July 2015, but now many have deteriorated. A Nanyang Yibao investment promotion salesperson said, "The salary is low and not paid on time. If the investment promotion staff themselves are not guaranteed, will they promote with peace of mind? If sales staff are not guaranteed, will they guarantee the company's profits?" The reporter found only one seller on Taobao selling Xingqun Xia Sangju products, priced at 45 yuan for 310ml×24, while on e-commerce platforms such as Tmall, JD.com, and Yihaodian, Xingqun Xia Sangju is not available. The above Guangxi distributor once tried to contact Xingqun Pharmaceutical, but the response was "If you signed a contract with Nanyang Yibao, you can only go to Nanyang Yibao." In his view, although it was contracted out to Nanyang Yibao, overall it is still operated by Xingqun Pharmaceutical. Zhu Danpeng believes, "It is a pity that Xingqun Xia Sangju does not sell well. Xingqun Xia Sangju is a beverage with selling points, and the brand endorsement is Wanglaoji. Compared to regional beverage brands, it has brand influence. The key is that the contractor's channels and promotion are problematic. Wanglaoji chose the wrong partner." The reporter learned that Xingqun Pharmaceutical has found a new general distributor, the new entrusted party is Liaoning Jiyuming Industrial Co., Ltd., responsible for the national promotion and operation of Xingqun Xia Sangju. The above Guangxi distributor contacted the company and received a response that the Guangxi market is unmanaged. He believes that if they are doing brand operation, they should handle it, but they have not. Whether the new general distributor chosen by Wanglaoji Xingqun Xia Sangju will follow in Nanyang Yibao's footsteps remains unknown. Why doesn't Wanglaoji operate the brand itself, and instead repeatedly authorizes general distributors for Xingqun Xia Sangju? Zhu Danpeng analyzed that from the perspective of group diversification, it is a diversified authorization operation with Wanglaoji as the main focus and other beverages as supplements to expand scale effects. Strategically, this is not wrong, but the key is that the entrusted party was not well chosen, leading to the beverage remaining inactive in the market. In his view, when Wanglaoji strengthens its diversification pattern, it should strengthen the control of its diversification strategy. In recent years, Wanglaoji's diversification has not had many highlights, and its help to scale and brand stacking is limited. In the next few years, if Wanglaoji herbal tea tends to grow steadily or with good growth momentum, it needs to focus on diversification strategy to increase the company's core competitiveness. -END- The best FMCG distributor learning platform in China Focusing on providing professional, practical, and actionable tutorials for enterprises and distributors Committed to helping Chinese FMCG distributors grow rapidly **The most professional and practical knowledge base in the FMCG industry** Reply with the red number below to get the corresponding content Reply with number 1 to view the complete knowledge base | **001** Excellent article selection | **002** Distributor market operations | **003** Terminal visit management | **004** Sales supervisor skills | **005** Sales improvement techniques | **006** Channel expansion | **007** Managing distributors | **008** Distributor development | **009** Distributor internal operations management | **010** Team management | **011** Efficient distribution techniques | **012** Sales manager's eighteen skills | **013** KA operation methods and strategies | **014** First lesson for new salespeople | **015** Internet, brand | **016** Distributor B2B transformation | [Long press QR code to follow] --- ## Copyright and AI use This article is sourced from New Distribution. 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