Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 87 The Trump Card (Seeking monthly votes and recommendations to continue reading!)

Just as Chenji was making intensive preparations for the launch of "Jinba" functional beverage, and the production line renovation at the Shatin plant was entering the final debugging stage.

An unexpected visitor disrupted the tranquility of Wai Yip Building in Kwun Tong.

"Mr. Chan, Mr. Thompson, President of Swire Coca-Cola Company, Hong Kong Island and Southeast Asia, is visiting and hopes to meet with you."

Ling Peiyi knocked on the door and came in, looking slightly surprised. "He brought the legal director and the technical director with him. Judging from their demeanor, they're not here with good intentions, or rather, they're determined to get what they want?"

Chen Bingwen put down the packaging design draft of "Jinba" in his hand and smiled.

Pepsi had barely left when Swire Cola showed up, indicating that the lucrative bottle cap patent issue has thoroughly stirred the nerves of these giants.

“Please invite them to sit in the conference room.” Chen Bingwen stood up and straightened his suit. “Also, call accountant Fang Wenshan and ask him to come over as well. Once he arrives, we’ll meet with the people from Swire Coca-Cola together.”

Twenty minutes later, Fang Wenshan arrived, and Chen Bingwen briefly explained the situation to him, and they exchanged opinions.

And Vincent Fang also brought him some good news.

Jinba's core formula and process patent and trademark registration applications have been submitted through the Paris Convention and PCT channels, and have entered the national phase in major markets such as the United States, Europe, Japan, and Southeast Asia!
"Great! Well done! With this, we have another strong card in our hand!"

When Chen Bingwen, Ling Peiyi, and Fang Wenshan entered the conference room, the three people from Swire Coca-Cola had been waiting for nearly half an hour.

However, the three of them showed no impatience whatsoever; on the contrary, they were quite enthusiastic.

Swire Coca-Cola's Hong Kong Island and Southeast Asia President, Thompson, is about fifty years old, with a tall and straight figure and sharp eyes.

Accompanying him were his right-hand men, Marketing Director Chen Shala and Legal Director Li William.

“Mr. Chen, it’s a pleasure to meet you.” Thompson stood up and extended his hand. His voice was deep and powerful, with a standard London accent. “I am John Thompson, President of Swire Coca-Cola Company, Hong Kong Island and Southeast Asia.”

These two are Sarah Chen, Marketing Director of Swire Coca-Cola, and William Lee, Legal Director.

"Mr. Thompson, it's an honor to meet you." Chen Bingwen shook hands with him and said politely, "I am Chen Bingwen."

He then pointed to Ling Peiyi and Fang Wenshan and introduced them to Thompson and the others: "These two are Ms. Ling Peiyi, the operations director of Chenji Food, and Fang Wenshan, an accountant from Dexin Accounting Firm."

Both parties sat down again.

Without any unnecessary pleasantries, Thompson got straight to the point:

"Mr. Chen, the purpose of our visit is to inquire about your company's patent package for diamond-shaped anti-slip bottle caps."

Following a thorough evaluation by Coca-Cola's Global Technology Center and Legal Team, we have confirmed that your bottle cap design is significantly innovative and commercially valuable in enhancing the opening experience of glass-bottled beverages.

In particular, it plays a role in improving consumer satisfaction, reducing usage risks, and enhancing brand affinity.

He paused, then raised his voice, and continued with a hint of smugness:
"Therefore, Coca-Cola has decided to acquire, in a single transaction, all global ownership, usage rights and all derivative rights of the diamond-shaped anti-slip bottle cap patents held by your company for US$450 million in cash."

$450!
This number exploded like a thunderclap in the quiet conference room!
Ling Peiyi's pupils contracted slightly, and she subconsciously looked at Chen Bingwen.

Fang Wenshan could not hide his shock.

$450!
Approximately HK$2250 million!
This is almost two to three times the current net assets of Chen Ji Foods!
A huge sum of money that can instantly make any startup financially free!
Ling Peiyi and Fang Wenshan both felt immense pressure.

Coca-Cola's attitude is very clear: If I like your product and think it's worth the price, I'll just throw money at it.

Simple, direct, and domineering.

This is the way giants operate.

They don't need much explanation or bargaining.

They think it's worth it, so they set a price.

They believed that no one could resist such a temptation.

At this moment, everyone's eyes were focused on Chen Bingwen.

Thompson took in everyone's reactions and smiled confidently.

For Coca-Cola headquarters, any patents and technologies that are beneficial to Coca-Cola's future development can simply be acquired by spending money.
This approach eliminates potential competitive threats and allows for complete control over key technologies through patent monopolies.

Moreover, $450 million is just a small amount of money for them, but it is an astronomical sum for Chen Ji.

"Mr. Chen, $450 million, cash payment."

Once this deal is completed, your company will receive a huge sum of money sufficient to support rapid growth for the next few years.

And we at Coca-Cola will completely eliminate a potential strategic risk.

This is a win-win proposal.

Thompson leaned back in his chair, placed his hands on the table with his arms crossed, and wore a faint smile.
"We believe that this offer fully reflects Coca-Cola's utmost respect for your company's innovative achievements."

We hope Mr. Chen will seize this once-in-a-lifetime opportunity.

There was silence in the conference room.

Hearing Thompson's words, Chen Bingwen's face remained completely expressionless.

But to say that I wasn't tempted would be a lie.

HK$2250 million!
For Chenji at this moment, this funding is like a timely rain after a long drought!
It can instantly solve most of the thorny funding problems, making Chen Ji's structure fuller instantly, and completing his initial expansion plan at least a year ahead of schedule.

The financial pressure will disappear, and he can focus wholeheartedly on cultivating the existing market and polishing the "Chen Ji" brand to an even brighter shine.

This money could even be used to invest in Wharf Holdings and reap substantial profits.

However, reason told him that Coca-Cola's willingness to spend $450 million, which they considered "small change," proved that the bottle cap was worth far more than that!
The money of the giants is never easy to obtain, let alone save!
What they value is the complete eradication of any potential threats, nipping any future competitive barriers based on this patent in the bud! What they want is monopolistic control!
If accepted, Chen Ji's innovative bottle cap patent will immediately become a boon to Coca-Cola, and Chen Ji will even lose the right to use it on its own products.

Without the trump card of bottle cap patent, what core competitiveness does the newly born "Jinba" have when facing giants like Coca-Cola and Pepsi with amazing channel coverage?

Based solely on taste and efficacy?

Being surrounded by Coca-Cola's ironclad defenses is like a child trying to wield a sword!
Coca-Cola's 450 million was an exchange of the gold mine in front of them for the opportunity for Chen Bingwen to personally dig out another gold mine in the future!

He could almost picture it: once the contract was signed, Coca-Cola's technical team would quickly apply the diamond-shaped anti-slip bottle cap to its global product line, and the media would flood the country with publicity, attributing the innovation entirely to Coca-Cola.

His name, Chen Ji, will only exist in a dusty, insignificant patent transaction filing document.

What is this so-called win-win situation?

Coca-Cola wins a strategic high ground now and in the future, while Chen Ji only wins a small sum of money that is insignificant to the giant in the short term.

This kind of victory is a victory that will ruin the future!
It's slow suicide that wins!

With this in mind, Chen Bingwen's resolve wavered completely.

He looked up, met Thompson's gaze again, picked up the teacup in front of him, gently blew away the foam, and took a sip.

Move calmly and leisurely.

Then, he put down his teacup, looked at Thompson, and smiled meaningfully:

“Mr. Thompson, $450 million is indeed an impressive figure.”

He paused and changed the subject:
"However, you seem to have overlooked a crucial issue."

Thompson frowned almost imperceptibly: "Oh? Mr. Chen, please go ahead."

Chen Bingwen leaned forward slightly, his gaze fixed directly on Thompson:
"The taste, quality, packaging, and opening experience of each bottle of Coca-Cola directly affect consumers' overall impression of the Coca-Cola brand."

If a bottling plant in a certain region loses consumers due to a poor opening experience, it will not only affect the plant's sales, but also the reputation of Coca-Cola's global brand.

Conversely, if a competitor adopts my patent first and gains an advantage in the opening experience, Coca-Cola's bottling plants in that region will face enormous competitive pressure, potentially even jeopardizing the stability of the entire franchise system.

He paused for a moment, then continued, "I've made a rough estimate, and taking Coca-Cola as an example, its global annual sales exceed 300 billion bottles."

Of these, glass bottles account for at least 15%, or 45 billion bottles.

Using diamond-shaped non-slip bottle caps improves the opening experience of each beverage, leading to increased consumer satisfaction, higher repurchase rates, and enhanced brand reputation.

Conservative estimates suggest this could bring at least $0.8 billion in additional annual profit to Coca-Cola's global system.

0.8 billion US dollars!
That's about HKD 4 million!
And it happens every year!
Chen Bingwen's voice echoed clearly in the conference room:
"Mr. Thompson, you want to buy out a patent package that can generate $450 million in profit for Coca-Cola every year for $0.8 million?"
Do you think this is a good deal?

Thompson's confident smile froze instantly!

The blonde woman and Asian man behind him also looked incredulous!
300 billion bottles and $0.8 billion!
This is core data from Coca-Cola's internal assessment report!

How could Chen Bingwen possibly know?

Thompson's expression changed immediately, and he stared directly at Chen Bingwen.

“Mr. Chen,” Thompson’s voice lowered, tinged with coldness, “what is the basis for your estimate of $0.8 billion?”
The market is complex, with many variables, and any prediction carries an element of uncertainty.

Chen Bingwen smiled calmly, leaned back in his chair, and remained composed.
"in accordance with?
The basis for this argument is the fragility of Coca-Cola's bottling plant system and the decisive impact of user experience on brand loyalty.

The basis for this claim is that competitors like Pepsi are eyeing Coca-Cola and could use this patent at any time to launch a fatal blow against Coca-Cola in certain markets.

The rationale is that once a gap in user experience is established, trying to close it will cost ten or even a hundred times more than the initial $0.8 million!

His gaze swept over Thompson and his team, and he smiled:
"Mr. Thompson, $450 million, is not a buyout of the patent."

Rather, it's about Coca-Cola's strategic security in the glass-bottled beverage market over the next decade.

This price is not a sign of respect for Chen Ji, but rather an underestimation of Coca-Cola's own value.

Thompson remained silent.

His hand, which was under the table, clenched unconsciously.

This young man's understanding of Coca-Cola's business model, the value of patents, and his market insights is astonishing.

$450?
It's definitely not good enough.

Thompson took a deep breath and slowly asked:
"Mr. Chen, your insights are very profound."

So, what kind of collaboration do you think would truly showcase the value of this patent?

This is exactly what Chen Bingwen was waiting for.

He leaned forward slightly, throwing out his real trump card:

"Patent licensing is negotiable."

Exclusive buyouts are out of the question.

We welcome all partners who share our values ​​and are willing to abide by our rules.

Including Coca-Cola.

He paused, his gaze sharp:
"As for the method of cooperation..."
Chen Ji is about to launch a brand new energy drink called "Jinba".

(End of this chapter)