CHONGQING (CQNEWS) -- “Tianfu Cola bankruptcy” has been trending in recent two days. Actually, 6 years ago, when the long-disappeared Tianfu Cola returned to the public, it also drew attention. Some people called it “childhood memory”, while others questioned that it consumed nostalgic feelings, because it was priced higher than other two brands.

Found as a soda water factory in 1936, and New Tianfu Cola in 2018, it had an annual growth rate of orders over 60% since then. As Jiang Lin, Chairman of Tianfu Cola (Chongqing) Beverage Co., Ltd., said in an interview that Tianfu Cola has experienced “two downs and three ups”.

“Bankruptcy crisis” is just a ripple. In the fierce market battle, it is unknown that where is the “time-honored” heading in the future…

Two downs and three ups: a domestic soda giant experienced trials and hardships for 40 years

Tianfu Cola can be traced back to Chongqing Meihua Soda Factory in 1936.

In 1983, China Tianfu Cola Group (Chongqing) was found, and rose to the top five years later. At its peak, its market share reached 75%. It has subcontracted factories in both north and south China, and also exported products to the United States, Russia and other places. That was the first “up” of Tianfu Cola.

Its first “down” occurred in the late 1980s to the 1990s when the domestic beverage slumped, and seven major beverage factories were acquired by foreign capital. In 1994, Tianfu “married” Pepsi, then the production of Tianfu Cola plummeted year by year, and finally disappeared.

It was not resigned to it, so it started to recover its brand from 2008, and finally took back the trade mark of Tianfu Cola in 2013.

In 2016, Tianfu Cola returned to the market after years of silence, and committed to reviving the national brand, which is the second “up” of Tianfu Cola. However, it failed to regain the peak of the market, and faced with numerous difficulties and challenges, which is the second “down” of Tianfu Cola.

In 2018, Tianfu Cola (Chongqing) Beverage Co., Ltd. was established and new investors were introduced. The brand, formula and management of the former Tianfu were inherited to new Tianfu.

“Our production line is still at full capacity in this season.” In Jiang Lin’s view, Tianfu Cola is on the way to the third “up”.

Does it consume nostalgic feelings? The lowest price was 4.5 yuan a bottle. After the comeback, it has been questioned.

Compared with the past, the development of Tianfu Cola has improved, but under the pressure of Coca-Cola and Pepsi, it is still difficult to be optimistic.

In 2016, when the long-dormant Tianfu Cola came back, attracting attention from national media. However, because of its price of 4 yuan a bottle, it was questioned that does it consume nostalgic feelings.

With no price advantage and little popularity among young people, Tianfu Cola’s market share was far from its glory days.

According to the analysis of consumer market, carbonated drinks are mainly consumed by the people at 16-25 years old, and these young people pursue fashion and trend. The challenge for Tianfu Cola is to capture the heart of the young people.

View: Old brands can be given new ideas, and produce good domestic goods + health care brand

Data shows that the cumulative output of carbonated drinks (soda water) in 2021 was 23.373 million tons, up 18.22% from last year. In the face of a very imaginative market, like Tianfu Cola, Arctic Ocean, Ice Peak and other “time-honored brands” have been reinvigorated, a series of Internet famous brands such as HEY TEA and NAYUKI are also rising.

Li Quan, Deputy Director of the Technical and Economic Research Center of Chongqing Comprehensive Economic Research Institute, said that domestic beverage companies like Tianfu Cola has to innovate their development models, and make domestic products and health care brand for the purpose of making brand influence. The old brand should be given new ideas so as to truly meet the needs of the common people. (Translated by Liu Hongyan, Fathom Language Limited)