Volume 8 Final Chapter Chapter 1222 Inherited Industry
New York.
Adler Manor, basketball court, Nan Youqiong's index finger was spinning a basketball, his eyes fixed on the mobile screen not far away, and he was humming a song softly, "The tea brewed by my father has a taste called home, and the tea brewed by Lu Yu, I heard, wants both fame and fortune."
The mobile screen was divided into several windows, each of which displayed a senior executive of the Nan system. The important representatives of the strategy team, agricultural team, financial team, Shennong Nanliang, and Lu Yu Tea were all listening to Winterlin, the president of Shepherd Coffee under Lu Yu Tea, talking.
"Shepherd's work was a mistake. In the past, we only focused on the mid- to high-end coffee market, which gave Green Mountain Coffee room to grow and develop. In 1998, Stiller of Green Mountain Coffee made a decision to close all its retail coffee shops and turn the ship around to cooperate with wholesalers.
Stiller, who is well aware of the principle that channels are king, set his sights on ExxonMobil gas stations and Stop & Shop convenience stores, customers that were ignored by the big-name coffee manufacturers within the Shepherd.
In 2001, Green Mountain finally convinced ExxonMobil that its coffee entering its network would improve the quality of coffee in its convenience stores and bring them more customers, and it beat out 11 other coffee companies to sign a five-year contract.
ExxonMobil provided 1,600 convenience stores and guaranteed Green Mountain's dominance in the field within five years; in December 2003, Stop & Shop convenience stores put Green Mountain coffee in more than 300 of its stores.
Before entering these channels, Stiller did something in 1998 that would have a significant impact on the future: he invested in Keurig, a manufacturer of single-cup coffee machines and K-cups, and became its first partner.
Initially, Stiller's cooperation with Keurig was simply to produce K-cups of coffee in its own factory for sale in ExxonMobil gas stations and Stop & Shop convenience stores, and then pay Keurig royalties based on sales volume.
Last June, Green Mountain Coffee used two-thirds of the previous year's revenue, or $104.3 million, to acquire all of its former partners' shares and acquire its coffee machine and K-cup business. After the acquisition, Stiller locked in the single-cup coffee machine market and divided the business into two major parts: Green Mountain Coffee and Keurig coffee machines.
Green Mountain's coffee business and other coffee companies use a similar business model. Keurig coffee machines imitate Gillette's 'razor/razor blade' model, selling Keurig coffee machines at a loss into offices and making profits .
Now, Keurig has upgraded its business model by allowing other coffee, tea or hot cocoa producers to use K-cup packaging in Keurig coffee machines in exchange for paying Green Mountain royalties.
This move has enabled K-cups to include beverages other than coffee in their system. More and more beverage manufacturers are trying to get their products into the K-cup market. K-cups already have the potential to grow into Tetra Pak packaging.
"What is the standard of K-cup fees charged by Green Mountain?" Nan Youqiong asked.
Winterling responded, "$0.064 a cup."
"This year?"
"So far, the total is about 300 million."
"19.2 million US dollars, a good business." Nan Youqiong chewed and motioned Winterlin to continue.
Nan Yi originally set the basic strategy for Shepherd Coffee: to achieve a monopoly-level voice in the coffee industry in a relatively covert way.
The tone was set, and Shepherd Coffee also did the same. Since its establishment in 1988, Shepherd has not only been developing its own coffee plantations, but also its own brand SoulCoffee. At the same time, it has entrusted agricultural holdings to invest in a number of coffee brands. It can be said that Shepherd has invested in all the well-known coffee brands in the world.
In addition, Asia Milk Tea, which was separated from Yaqing Company, CoolTea milk tea chain brand which is the global expansion of Lu Yu Tea outside of China, and Samba Cocoa brand which is mainly developed in Brazil were also placed under the Shepherd's umbrella.
Compared with Lu Yu Tea Corporation, which has always focused on the tea market, the scale of the Shepherd subsidiary is a bit too large. This is related to the potential market. Coffee can be sold anywhere in the world, but the market for tea is very limited, and the consumption cannot be compared with coffee at all.
Lu Yu Tea Industry has a hand in the world's three major beverages: tea, coffee, and cocoa. Comparatively, it spends the most energy on coffee. Shepherd has a layout in every aspect of coffee, including planting, circulation, sales terminals, bulk futures, and research and development.
The history of coffee is very long, from the time when coffee was still classified as wine, called Islamic wine or Arabic wine, to the time when this wine became popular in Europe. Over the past ten centuries, a series of events, both large and small, have accumulated and made it popular around the world.
The most critical event was the Boston Tea Party, which completely integrated coffee into the dietary structure of a large number of Westerners. Coffee can be used to replace soup for all three meals a day, and people can drink more coffee than water. Coffee has become a necessity.
Coffee is a rigid demand and unlike food, it does not have too many constraints. Although the profit is not amazing, it is still substantial. Coffee can be said to be a very important industry for Shepherd, Lu Yu Tea, Shennong Nanliang, or Nan's. It can generate profits continuously, like a cow of cash and milk, and it is a cow of cash and milk that will exist as long as the earth's environment does not change drastically and people's dietary structure is not changed drastically.
Nan Yi has to consider his son and grandson. Nan Youqiong, as the second generation of the Nan family, also has to consider his son and grandson. The coffee industry has a good inheritance feature and can be passed down from generation to generation.
An industry to be passed down does not need to be fast, but it must be stable. Nan Youqiong did not take offense at what Winterlin called the "mistake". He knew very well that the shepherd had been moving steadily for the past twenty years.
"Green Mountain has applied for 32 patents in the United States and 69 patents worldwide for its innovative technologies in K-cups, packaging lines and coffee machines. Not long ago, we conducted a questionnaire survey, and more than 80% of Keurig coffee machine users said they would strongly recommend it to their friends, and more than 25% of users have given it as a gift.
Scarlett Fund, Pan American Investment, Fortune Magazine and other institutions unanimously recognized Green Mountain Coffee as the second fastest growing company in the world. "
"So?" Nan Youqiong fiddled with his fingers, and the basketball bounced a few times on the ground. "Besser, why have I never seen the names of Green Mountain Coffee and Keurig Company in previous reports?"
"Boss, the strategy team has not received any reports about these two companies," Bester replied.
"The finance team?"
"The financial team received investment review reports from two companies. Since the prices asked by both companies were too high, they failed the risk control."
Nan Youqiong spread his hands and said, "I want to see the minutes after the meeting."
"OK."
"Winterling, your thoughts."
"We invested in Green Mountain Coffee and learned from its model to develop a K-cup soy milk business in China and a K-cup cocoa business in Brazil," Winterling said neatly.
"It's a good idea. Soy milk in China and cocoa in Brazil both have huge demand markets. The K-cup model should be very easy to replicate in Brazil, but the situation in China is quite special. When doing market positioning, we must pay attention to the sweet and salty debate over soy milk, as well as the longer working hours of white-collar and blue-collar workers, and pay attention to researching how they solve breakfast problems."
"OK."
After the meeting, Nan Youqiong asked Mary, "Has PaPa's team been moved?"
Nan Youqiong had been scolded by Nan Yi several times for ignoring the time difference and calling him at inappropriate times. Now he had learned his lesson and would find out which time zone Nan Yi was in before calling him.
"France."
…
In order to show respect to Gong Xue, Nan Yi did not use the time management method and took time out to do other things. On the first day, he handled the registration of Xue Ji and stayed in Paris for one night. On the second day, he went to a headhunting company to place an order to find a suitable leader for Xue Ji - a Chinese living in France or a Chinese who has recently become a French citizen. Needless to say, Nan Yi has always been superstitious about academic qualifications and experience.
After finishing his business, it was already afternoon, and Nan Yi hurried to take a bus to Bordeaux.
Nan Yi only booked two bedrooms in a four-bedroom B&B located less than 50 meters away from the Burgundy Port in the old town of Bordeaux and did not pay for the entire rental. According to the terms of the B&B, the owner has the right to rent the other two bedrooms to other guests.
By doing this, Nan Yi just wanted to make the subsequent story based on logic. If he booked the homestay, there would be no way that the stranger Gong Xue would "happen" to live opposite him.
The B&B is on Osong Street. There is a narrow road from the main street to the entrance of the B&B. Cars cannot enter, so you can only walk.
There was a newsstand at the entrance of a narrow road. When Nan Yi passed by, he bought a few newspapers and picked up a magazine.
He could swear to God that it was absolutely smooth sailing.
In the Middle Ages, a kind of courtly love was popular. It was a form of love in which a knight devoted himself humbly to his mistress. These things happened in Aquitaine, Provence, Champagne, the Duchy of Burgundy and other places. Among them, the Duchy of Burgundy's sphere of influence included Bordeaux.
There is a saying that goes, if you have never known court love, it is useless to call yourself a stud.
After leaving the newsstand, Nan Yi walked very slowly. On the way, he quickly flipped through the entire magazine, and before walking into the door of the B&B, he threw the magazine into the trash can.
After walking into the building and climbing the stairs, Miao Xiaolan heard a voice in her headset. She listened for a while and said to Nan Yi, "A new guest just checked in. She is a woman and is also from China. Ms. Gong is not here. She went to the dock early in the morning and has not returned since."
Nan Yi nodded and continued walking up the stairs.
When he entered the B&B, he saw a woman sitting on the sofa in the living room. Due to the viewing angle, he could only see the back of her head. Based on the information he had obtained previously, he roughly judged that the other party was the new guest of the B&B today. Before he could go up to say hello, his phone rang.
…
