Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 88 The Fox Borrows the Tiger's Power (Seeking monthly votes and recommendations to continue reading!)

Before entering the meeting room, he had already confirmed with Vincent Fang that the relevant patents for Jinba had been applied for.

It was this patent moat built in advance that gave him the absolute confidence to expose Jinba at this moment!
His gaze swept over Ling Peiyi beside him with remarkable ease.

Ling Peiyi immediately understood and took out several exquisite product brochures and a bottle of ice-blue sample from her bag, placing them on the table.

The bottle design is simple and streamlined, with a pure ice-blue color and the sharp and eye-catching "Jinba" characters, exuding a sense of power.

"Jingba?" Thompson's gaze was drawn to it, and he asked with some doubt.

“That’s right, Jinba.” Chen Bingwen picked up a sample bottle and introduced it confidently, “Instantly refreshing, long-lasting energizing, specially designed for people who need to combat fatigue and maintain high efficiency.”

It boasts a unique formula and remarkable efficacy, targeting consumers worldwide who need to replenish energy and combat fatigue.

He looked directly at Thompson:

"If Coca-Cola is willing to open up its channel resources in its core markets in North America and Europe, it can provide 'Jinba' with access qualifications and distribution support."
Therefore, Chenji is willing to grant a non-exclusive, regional licensing agreement for its diamond-shaped anti-slip bottle cap patent to Coca-Cola's global bottling plant system under highly competitive terms.

Between Pepsi and Coca-Cola, Chen Bingwen actually prefers Coca-Cola's franchised bottling plant model.

His preference for Coca-Cola's distribution model was not a spur-of-the-moment decision.

Behind this lies his profound understanding of Coca-Cola's franchised bottling plant system, which has been operating for more than half a century.

PepsiCo's channel model leans more towards a combination of direct sales and regional large distributors. The headquarters has stronger control over the terminal channels, the hierarchy is flatter, the decision-making chain is shorter, and the execution is more efficient.

But Coca-Cola's model is different.

It's like a giant, intricately woven net. Headquartered in Atlanta, it controls the core concentrate formula and brand value, while delegating all the capital-intensive, high-risk aspects—such as dilution, bottling, distribution, and localized marketing—to independent bottling plant partners around the world.

These bottling plants are the tentacles and roots of Coca-Cola's global reach!

They are familiar with the local market and its customs, understand the taste preferences of local consumers, and have access to the most down-to-earth distribution channels, from large supermarkets to corner stores, from upscale restaurants to roadside vendors!
They possess strong localization capabilities and flexibility, enabling them to respond quickly to market changes.

And this is precisely what Chen Bingwen values ​​most!
What is "Jinba"?
It's a brand new functional beverage!

It needs to quickly penetrate unfamiliar markets, accurately reach the target audience, and adapt to marketing strategies in different regions.

Coca-Cola's bottling plant system is a ready-made, deeply integrated localized distribution network!

If "Jinba" can get on this fast track, it will instantly gain unparalleled channel depth.

From the shelves of Walmart in North America to the freezers of a grocery store in a small town in Southeast Asia, you can find "Jinba".

Localized and precise operations.

Bottling plants are familiar with the local market and can quickly adjust their strategies to allow "Jinba" to integrate into the local consumption scene more quickly.

Strong cold chain and logistics support.

The bottling plant has a mature warehousing and distribution system to ensure the freshness and timely supply of "Jinba" products.

The potential for brands to leverage this trend.

Although it may initially be just a "bundled sale," the fact that it appears in Coca-Cola's channels is itself a strong brand endorsement.

In comparison, Pepsi's direct sales + large distributor model, while having strong execution capabilities, may be slightly inferior in terms of the depth of channel penetration and the flexibility of localized operations, especially in emerging markets such as Southeast Asia and Africa.

Moreover, the core of Coca-Cola's franchise model is asset-light expansion.

The headquarters requires relatively little investment, thus diversifying the risks.

For Coca-Cola headquarters, this model means that introducing a new product like "Jinba" may face relatively little resistance in terms of decision-making, as headquarters is happy to see the bottling plant partners see profit potential.

This made it possible for "Jinba" to quickly expand its product distribution.

The Hong Kong Island headquarters is responsible for the production of Jinba concentrate, while dilution, filling, distribution, and localized marketing are all handled by the bottling plant.

It perfectly avoided the fatal risks of heavy asset expansion.

By leveraging this model, Chenji has transformed all its disadvantages—limited funds, weak distribution channels, and lack of local experience—into advantages.
Of course, this system also has its vulnerabilities; bottling plants may refuse to carry out orders from headquarters for their own interests.

But Chen Bingwen was not afraid!
Because he holds the patent for the bottle cap!

He could use patent licensing as a bargaining chip, demanding that Coca-Cola headquarters push its global bottling plant system to accept "Jinba" as well as adopt the bottle cap!

This is equivalent to using the "consistency" requirement of the patent to constrain the bottling plant system, providing a certain guarantee for the distribution and quality control of "Jinba"!
With patent barriers in place, he is confident in the quality and efficacy of "Jinba".

Now, he wants to use Coca-Cola's most prized bottling plant network as a springboard and accelerator for "Jimba" to conquer the world!

This move was risky!
But once it works, the benefits will be enormous!

Once the initial two to three years of market development are over, and after two or three years when Chenji's own sales system is fully established, this strategy of "borrowing a boat to go to sea" will transform into Chenji's own wings to fly!

This is the strategic collaboration he truly desires!
It's not a simple transaction, but a deep partnership; it's about leveraging the foundation of giants to cultivate your own towering tree.

He stared intently at Thompson, awaiting the reaction of the Coca-Cola Asia Pacific president.

Jinba!

North American and European channels!
Thompson's pupils suddenly contracted!
He finally understood Chen Bingwen's true intentions!

This young man has no intention of selling the patent!

He is using patents as leverage to access Coca-Cola's global distribution channels and pave the way for his own brand, "Jinba"!
Their ambitions are far greater than imagined!
“Mr. Chen,” Thompson said incredulously, “you want to use a license for a bottle cap patent in exchange for channel access in Coca-Cola’s core markets?”

This...this is probably beyond our expectations.

Chen Bingwen smiled slightly and said decisively:

“Mr. Thompson, this is not an exchange.”

This is strategic collaboration.

Coca-Cola gained key technologies to enhance user experience and strengthened the stability and competitiveness of its bottling plant system. Chan Kee gained valuable access to the world's largest consumer market, marking a significant step towards brand internationalization.

This is a true win-win situation.

His gaze swept over Thompson and his team:

"The bottle cap patent is a gift from Chenji to Coca-Cola."

The distribution channels represent Coca-Cola's investment in Chen Ji's future.

This investment will bring in a powerful ally, not just a simple patent supplier.

The conference room fell silent again.

Thompson fell into deep thought.

Chen Bingwen's conditions were bold and direct.

It touched upon the very foundation of Coca-Cola's business model: its control over core channels.

However, the "win-win" scenario depicted by Chen Bingwen is extremely tempting.

Especially the unknown variable of "Jinba".
If it is truly, as Chen Bingwen claims, a revolutionary functional beverage...
Therefore, it would be a powerful addition to Coca-Cola's product portfolio and might actually bring unexpected returns.

Risk and opportunity, like two ends of a scale, swung violently in Thompson's mind.

“Mr. Chen,” Thompson finally spoke, his tone grave, “your proposal is both extremely challenging and incredibly imaginative.”

This is beyond my decision-making authority.

I need to take your proposal, along with relevant information about 'Jinba,' back to headquarters for a detailed evaluation.

Chen Bingwen nodded, as expected:
"of course can.

Mr. Thompson, we look forward to Coca-Cola's response.

However, time waits for no one.

PepsiCo also seems quite interested in our new product.

He casually mentioned the name "Pepsi".

Thompson's eyes sharpened.

Pepsi!

Pepsi again!

The name of this competitor, like a curse, instantly put Thompson under immense pressure.

If Pepsi were to secure a partnership with Chen Ji first, it would benefit from both patent licensing and distribution channels for "Jinba" (a popular milk tea brand)...

That would be disastrous for Coca-Cola!

“I understand.” Thompson stood up, his expression serious. “Mr. Chen, we will get back to you as soon as possible.”

We hope we can find a cooperative path that benefits both sides.

After Thompson and his group left, only Chen's core team remained in the conference room.

Ling Peiyi breathed a sigh of relief, her face flushed with excitement: "Mr. Chen, $450 million! They actually offered that price!"
To my surprise, you rejected it outright and even proposed a plan to bundle it with Jinba's distribution channels!
This move was incredibly risky, but also incredibly brilliant!

Vincent Fang also exclaimed, "Mr. Chen, your analysis of the Coca-Cola bottling plant system, and that $0.8 billion figure, are absolutely spot on!"

Thompson's expression at that moment was absolutely priceless!
As he spoke, Fang Wenshan looked at Ling Peiyi and said, "Director Ling, 450 million US dollars may seem like an astronomical figure, but Coca-Cola wants a complete buyout, even depriving us of the right to use it ourselves."

This is tantamount to cutting off one's own arm, handing over the opportunity to tie one's future to someone else's chariot.

Chen Sheng's proposal to exchange patents for distribution channels is the real long-term solution.

"Only Pepsi's side"

He looked at Chen Bingwen, seemingly wanting to say something but then stopping himself.

PepsiCo Vice President Ross's stance remains undecided, and now his rejection of Coca-Cola's "sky-high" buyout offer has effectively pushed both giants to the opposite side, or at least to the side of observation.

Chen Bingwen sat in the main seat, his face showing no regret or tension, but rather the calmness of a chess player examining the game.

"$450 million is indeed tempting. But you must understand that Coca-Cola's willingness to pay this price precisely proves that our bottle cap patent is worth far more than that!"
They're not philanthropists, they're actuaries. They know the math better than anyone else.

He paused, his gaze sweeping over the two of them: "Exchanging patents for channels seems like we're at a disadvantage, using a patent to exchange for a qualification to enter the market."

But think about it, Coca-Cola's global network of franchised bottling plants is a network of capillaries that they built up over decades with countless resources!
Its value cannot be measured by a mere few million US dollars.
We use a bottle cap patent to unlock the golden key to entering the mainstream global market!

This is true high-risk, high-reward!

"As for Pepsi," Chen Bingwen smiled meaningfully, "Vice President Ross personally led a team to Hong Kong in secret, which shows that their desire for patents is no less than that of Coca-Cola."

Coca-Cola's refusal will only make them more anxious.

What we need to do now is not to worry, but to sit back and wait for the fish to bite.

As he spoke, he stood up and solemnly said, "The bottle cap patent is a stepping stone, a bargaining chip, but Jinba is a towering tree that we must plant, nurture, and harvest with our own hands!"

Coca-Cola's distribution channels are the fertile soil prepared for this tree!
To avoid any unforeseen complications, we'll give them a little extra motivation!
Rumors have been circulating that Chenji's diamond-shaped anti-slip bottle cap patent has attracted strong interest from several international giants, who are currently in intensive contact with the company.

Fang Wenshan's eyes lit up: "Mr. Chen, you mean...?"

“Yes, stir up the water.” Chen Bingwen laughed. “Only when the water is muddy enough will the fish panic and bite the hook more tightly.”

I'm going to make Coca-Cola and Pepsi uneasy, and I'll also spur other potential competitors to action!

(End of this chapter)