Chapter 403 Entering the Food Trade Industry

Chapter 403 Entering the Food Trade Industry

Chapter 403 Entering the Food Trade Industry
The plastic storage box appeared quietly in the Hong Kong market, and even Changxing Media did not advertise it specifically.

This is also because this thing is not a consumable. If a family buys a few and there is no need to buy more, it will take many years to wait until the storage box breaks before buying another one. Therefore, there is no need to promote consumption. Consumers can just see the box for themselves and then buy it.

Of course, this is in Hong Kong. The market itself is so big, and Carrefour can basically cover half of the population in Hong Kong. If it goes to Japan or other overseas countries, advertising will still have to be run.

July came quickly. This summer was much better than last year. Although it was still very hot, there was at least some rain.

Especially with the rain in South China, there is more water resources in the eastern Guangdong Province next to Hong Kong, which makes it much more convenient to transport water to Hong Kong. Of course, this year can only be said to be better than last year. There is actually still not enough water in Hong Kong as a whole, but there is basically no big crisis. Many people will not have no water to use or even no water to drink, nor will many factories stop production.

On this day, Zheng Yuhua, Zhou Haoran and Wei Zetao came to Yang Wendong's office together.

Yang Wendong said with a smile: "Sit down, why are the three of you here together?"

Zheng Yuhua said, "Mr. Yang, Mr. Zhou and I came here mainly to discuss the water transportation matter with you."

"Okay, go ahead." Yang Wendong nodded and said, "In recent months, the Hong Kong government shouldn't need us to transport much water, right?"

Zheng Yuhua replied: "Yes, we have only rented 5 ships to transport water. The number was more than 30 ships in the same period last year. We have also begun to gradually give up this business internally."

"Just give up. The more money we make, the more it is built on the suffering of countless people." Yang Wendong said indifferently.

There are too many businesses in this world, and even speculating in real estate is morally acceptable; but for Yang Wendong, he does not want to continue this kind of business, even if he is considering the 300 million people in Hong Kong.

The word "severe drought" in history books means countless people died of thirst and starvation, which was a horrible sight; of course, there are not so many deaths in Hong Kong today because of this, but there are countless people who are living in misery.

In his previous life, Yang Wendong was born in the 80s. Although he had experienced many poor days, he had never encountered water shortage. However, after experiencing Hong Kong last year, he realized that this kind of pain is even worse than extreme poverty. If you are poor, the worst that can happen is that you eat worse, but without water, there is simply no substitute.

Zheng Yuhua continued: "Yes, at present, my Changxing Shipping has already used the ships that transported water last year for other businesses, and I am also going to send the several second-hand oil tankers to be scrapped after the Dongjiang waterway is repaired."

"Okay, that's no problem. We bought those second-hand tankers for transporting water. I wouldn't dare to use them to transport oil." Yang Wendong agreed.

It is very convenient to use large oil tankers to transport water, but using new ships is too expensive, so they found a few old ships that were to be dismantled and used them to transport water between the mainland and Hong Kong. If a leak really occurred, it would only be some fresh water, which would have no impact. At the same time, they could also train large oil tanker operators for their own fleet, killing two birds with one stone.

Now that its life span has come to an end, it is natural that it should be scrapped.

Once the Dongjiang water enters Hong Kong, Hong Kong will basically not have a shortage of water. This is also a good thing for me, because many industries that consume a lot of water can be invested in Hong Kong.

"Okay." Zheng Yuhua agreed.

At this time, Zhou Haoran also said: "Mr. Yang, my situation is similar. Since Hong Kong is no longer short of water, the purified water business that was so popular last year is not doing well now. So I plan to convert the purified water workshop into a new can production workshop, specializing in the production of Pepsi-Cola."

"Okay, although this kind of business is profitable, I don't want to do it." Yang Wendong asked again: "Is the cooperation with Pepsi-Cola not bad? Are you planning to build a second workshop?"

Zhou Haoran said: "Yes, the structure of cola is simpler than our herbal tea. Pepsi shipped cola powder from overseas, and we were responsible for the syrup and water. We just needed to combine them.
Although PepsiCo’s sales in Asia are lower than Coca-Cola’s, its sales are much higher than our herbal tea, and the existing production capacity is seriously insufficient.”

Yang Wendong smiled and said, "Okay, then buy it. Organize the entire plan and get the information. Once the headquarters confirms that there is no problem, I can sign it."

"Okay." Zhou Haoran added, "There's one more thing. The person in charge from Dongsheng found me and said that they could also try to make a beverage production line. Because it involves cooperation with Pepsi, I didn't dare to make the decision."

"Dongsheng?" Yang Wendong asked curiously, "Do they have this ability?"

Dongsheng was his early partner. It was they who made the equipment for making post-it notes, and the same was true for the injection molding machines that came later.

However, the beverage production line is much more complicated and has requirements for the environment and materials. Although it is not high-end, it does have some technical content.

Zhou Haoran said: "I also went to the Dongsheng factory to learn about it. Their current scale is really not small. They have all kinds of equipment. They can make all kinds of transmission equipment in our beverage equipment without any problem.

But they were not sure about the stamping of the front end of the can and the filling of the beverage, so they wanted to give it a try. "

"I guess without orders, they are not willing to spend hundreds of thousands to build a set." Wei Zetao next to him analyzed: "Hong Kong's beverage filling market is not small, but the equipment is basically imported from overseas. No local beverage brand dares to bet on this."

"We can't gamble. There can't be any problems with the cooperation with Pepsi." Yang Wendong paused and said, "But it is necessary to produce equipment locally. If it succeeds, it will be of great significance to us because we need to focus on developing the beverage industry in Hong Kong.

In this way, we will continue to buy from Germany or Japan for our next production line, but we can give Dongsheng a chance to build a small production line to make glass beverages and produce our ginger drinks. If there are no problems, we can gradually give them more and larger orders. "

If we cooperate with Pepsi, the production of beverages in Hong Kong will be very high in the future, especially after the popularization of containers and the reduction of transportation costs, there will be more orders, and our own brand of beverages will also develop. In this case, if there is a local equipment supplier in Hong Kong, it will definitely be of great help; and there are still more than ten years before the reform, our own beverages will definitely occupy this market first, and a lot of equipment will be needed.
"Okay, then I will place an order for a small production line with Dongsheng." Zhou Haoran said with a smile.

"Well, beverages will be one of Watsons' main products in the future." Yang Wendong added, "But now it is difficult to expand overseas due to shipping costs and publicity factors. For the time being, we will rely on Pepsi. During this period, our herbal tea or ginger ale will focus on the Southeast Asian market."

It is not difficult to make beverages, and a small workshop can make it. However, if you want to expand it, the biggest difficulty is the investment in publicity. This requires a huge amount of advertising fees to be successful, no matter what beverage it is.

Now is not the time to fully develop the beverage industry. The funds are really limited. Although Changxing Group now has an annual turnover of several hundred million, this amount of money is nothing in Europe and the United States. It can only dominate in a small place like Hong Kong, or have a slight impact on Southeast Asia.

Only after Hong Kong real estate has skyrocketed several times, our physical and shipping industries have developed for a few more years, and we have seized some golden opportunities and expanded our financial resources several times or even ten times, will we have the foundation to enter various overseas industries. Otherwise, it is almost impossible to win in the already mature market field by relying on product strength.

"Okay." Zhou Haoran said with a smile: "The orders that Pepsi gave us are enough for us to build a medium-sized sugar factory. If beverages are difficult to develop abroad, then the sugar industry may be able to develop, or our snack industry."

Yang Wendong said: "Yes, the shipping cost of simple sugar or snacks is not very high, so you can give it a try and expand overseas. Even if the market is average, you can open up the channel first."

Zhou Haoran smiled and said, "I understand. I have talked to China Resources before. The mainland is also in great need of sugar. In 59, the total sugar production in the mainland was 110 million tons, but last year it was said to be only 30 tons. However, due to economic reasons, they dare not buy sugar on a large scale in the international market."

"Hundreds of thousands of tons of sugar, this is not a small amount." Yang Wendong thought for a moment and said, "You want to win this deal? I'm afraid it will be difficult, right?"

Sugar is not wheat or rice. Although it is also a necessity, the global total production capacity is limited and far less than the staple food among commodities.

Zhou Haoran said: "It is unlikely to take over all of it, but it is not a problem to take over part of it. Our factory capacity will be expanded a little bit, and demand will gradually increase in the future; the only risk is that if the sugar production capacity in the mainland increases further, we may over-invest."

"That's not the case. Southeast Asia's current economic development also requires a lot of sugar, so it's not impossible to sell it." Yang Wendong paused and asked, "Sugar is very special. It's not just food, it can also be used as military supplies. Do Western countries have any restrictions in this regard?"

Many people are not aware of the great role of sugar. In fact, it is a simple energy aggregate. Once combined with a certain fertilizer, it can become "bang~";
And if in times of war, in emergencies, it can also be used as a commodity to urgently replenish the soldiers' body energy, and can even be used to disinfect wounds. Of course, this is only limited to special circumstances.

Zhou Haoran replied: “That’s not the case. Western restrictions are mainly on weapons and high-tech equipment. Only some countries in Cuba have strong trade restrictions;
However, Cuba itself is a sugar-producing country, and it is said that it also cooperates with the mainland to sell sugar to the mainland. There is no problem for us to do this business. The mainland does not dare to buy sugar on a large scale, mainly because the demand is too high. Once the news is released, international capitalists can double or even several times the price. "

"Well, that's fine. It's good if there are no restrictions." Yang Wendong said, "Let's do it step by step, from small to large. In addition, just in case, we will add a middleman between us and China Resources to avoid unnecessary disputes."

Although I want to help some ordinary people in the mainland, the most important thing is to protect myself, because only when I am safe can I have greater ability to invest in the country and ultimately achieve a win-win situation.

"Okay." Zhou Haoran agreed and said, "The initial transactions will not be very large. According to my plan, it will take at least 3 to 5 years before we can have a small scale. Even if we want to do big transactions in the early stage, we don't have the ability to do so."

Yang Wendong smiled and said, "Okay, let's trade step by step. If your sugar production scale becomes larger in the future, I can consider investing in sugarcane plantations in Southeast Asia or South America."

Zhou Haoran said happily: "Okay, Mr. Yang, I will do my best."

At this time, Wei Zetao said: "Mr. Yang, investing in sugarcane plantations in Southeast Asia is a bit risky. As far as I know, Jardine Matheson and Swire have made such investments, but both lost money. There is a lot of water involved."

"I know. I will do it step by step, starting small and then big. If I fail in the early stage, I won't lose much, so I can retreat in time." Yang Wendong said: "And that's a matter for the future, let's talk about it later."

The biggest risk of investing overseas is the various uncontrollable factors. In the past, many people grew up in the mainland and saw that many foreign companies could make money by investing in China, but this is also unique to the mainland. In fact, many countries like to cheat foreign capital, such as India. Southeast Asia may be slightly better, but the government does not cheat does not mean that local financial groups will not cheat, so everything needs to be done with caution.
Only when you are bigger, find the right local partners and form a bond of interests, and have certain political resources behind you, can you go abroad to invest. Otherwise, it is better to buy stocks in Europe and the United States. At least Europe and the United States will not ruin their reputation for a few stocks, unless they buy stocks of high-tech companies.
"That's just my worry." Wei Zetao said, "Mr. Yang, it's my job now. The drought in Hong Kong has basically eased, and the same is true in the mainland.
China Resources has also contacted me. The mainland's demand for imported grain will also decline, but for Changxing Trading, the grain trade in recent years has also allowed us to build some foundation in Southeast Asia. It would be a pity to give it up."

"So you want to specialize in grain trade again?" Yang Wendong asked.

Wei Zetao replied: "Yes, but without the purchase volume from the mainland, our premium power in Europe and the United States is not as strong."

Yang Wendong said: "It doesn't matter. Business is like this, just like a factory. Just find ways to increase your sales. This is difficult, but there is no easy business. Now that you have this foundation, it would be a pity to give up. So you should work hard to manage it.

We also have our own snack trade. If the snack trade grows, we can still control costs with the snack trade as a foundation.”

When the group develops to a certain scale, many industries will gradually emerge. The most important thing for a strong consortium to do is to strive to choose a good direction and then develop.

For example, Changxing Industry will seriously expand its upstream and downstream industrial chains from the aspects of plastics and paper. These two products are the rigid needs of society in the next hundred years. No matter how technology develops, they are rigid needs. After controlling the upstream and downstream industrial chains, it will be possible to guarantee the market and profits.

The same goes for the food industry. No matter how technology develops, people still need to eat, and staple food is a necessity. Unless controlled hydrogen fusion is achieved one day, humans can produce starch with carbon dioxide in factories. However, it is estimated that this may not be achieved by 2064, and I will not live to see that time.

Wei Zetao said: "I think so too, especially since we have our own ship, which is a great advantage. Ms. Zheng's old ship can also be used for transportation. As long as the ship is not broken, there will be no problem with our own business."

"Okay, you guys negotiate among yourselves." Yang Wendong said, "Now our group's industries are gradually being integrated, and this is our biggest advantage."

PS: Please give me a monthly ticket
(End of this chapter)