Rebirth in Hong Kong: From Dessert Shop to Industrial Empire.

Chapter 258 The Li Family 4K (Seeking monthly tickets, recommendations, and subscriptions!)

"Tropical storm" and "Polar ice spring".

These two names are the initial results of Chen Bingwen's "guidance" to Zhou Zhiyuan's research direction, based on the characteristics of beverages that would be bestsellers twenty or thirty years from now, in the future.

It's less about giving guidance and more about pointing out the direction.

One is a rich, fruity, complex flavor, while the other is a refreshing, slightly minty option.

Zhou Zhiyuan's experimental report was very practical, listing several possible flavor combinations and taste test data, and also mentioning the technical difficulties.

For example, how to ensure that flavorings remain stable in functional beverage systems containing high levels of vitamins and taurine, without the taste being jarring.

Chen Bingwen knew that this was just the beginning; there was still a long way to go from laboratory samples to large-scale production and market acceptance.

But this step must be taken.

The success of Pulse proves the huge potential of the functional beverage market, but a single product and flavor cannot support a long-term brand. It is necessary to plan ahead and build a product matrix.

In terms of product portfolio, both Pepsi and Coca-Cola are targets that Chen Bingwen needs to learn from.

PepsiCo's strategy is relatively aggressive, tending towards diversification.

It is not content with just carbonated beverages; it has long built a vast matrix of snacks and non-carbonated beverages through acquisitions and self-construction.

Its strategy is to be a "comprehensive beverage and snack company," attracting young people with carbonated drinks, dominating the sports supplement market with Gatorade, entering the purified water market with Pure Water, and expanding the ready-to-drink tea market with Lipton tea.

The advantage of this broad-based approach is that it covers a wide range of people and has strong risk resistance; fluctuations in any particular market segment will not cause significant damage.

However, the disadvantages are that resources are scattered, management is complicated, and each product category may face fierce competition from expert rivals in that field.

Coca-Cola, on the other hand, has always revolved around the "Coca-Cola" brand, constantly evolving and developing its own unique identity.

They are relatively cautious about new product categories or flavors, preferring to extend their reach under their core brands or to acquire promising brands and integrate them into their extensive bottling and distribution network.

Its product portfolio is more like a core satellite system, with everything revolving around the core brand, emphasizing deep control and channel penetration.

The advantages of doing this are extremely high brand value and high operational efficiency.

The downside is that if the core brand image is damaged, or if consumers' health awareness changes and the carbonated beverage market shrinks, it will be significantly impacted.

For Chenji Foods at present, there are two paths, neither of which is absolutely right or wrong. Blindly imitating Pepsi's diversification is unrealistic, as the funds and management energy are insufficient.

However, it is not appropriate to completely copy Coca-Cola's deep focus, because "functional beverages" are an emerging category, and the brand accumulation is far less than that of traditional cola. More products are needed to validate the market and enrich the brand connotation.

Chen Bingwen had long been thinking about how to build Chen Ji Foods' product matrix.

He knew very well that Chenji Foods was able to carve out a niche in a market dominated by giants because of the emerging niche category of functional beverages.

This is the foundation of our livelihood, the source of all cash flow and brand recognition.

We must never divert our investment from our core business in order to expand our product line.

The key to consolidating the core foundation lies in technological barriers and brand sharpness.

Technological barriers require continuous investment in research and development, optimization of formulas, and ensuring that we always maintain a one-generation advantage over competitors in terms of energizing effect, taste, and stability.

We must fully support Zhou Zhiyuan's team in this regard.

Brand sharpness requires continuous use of extreme marketing events like the "Leap Forward Plan" to strengthen the brand image of professionalism and pushing limits, firmly establishing the perception in consumers' minds that "functional beverage = Pulse".

In this regard, Li Weiming's marketing efforts in North America cannot stop; in fact, he needs to increase investment.

The roles of "Tropical Storm" and "Polar Ice Spring" are similar to those of flanks outside the main battlefield, serving as market probes.

By conducting regional trial sales of these two products with very different flavors and concepts, we can explore the preferences of different markets and consumer groups at a low cost.

Which regions prefer fruity aromas?

Which groups of people are more likely to accept the coolness of mint?

These data are far more authentic and valuable than market research.

If successful, it can contribute to the product portfolio.

If we fail, the losses are manageable, and we can learn from the experience.

This model combines Coca-Cola's deep focus on core brands and its extensive channel development with PepsiCo's approach of covering different market segments with multiple brands.

However, a more cautious approach is more suitable for Chenji Foods' market positioning and resource situation.

After Li Ming left, Chen Bingwen picked up another report from his desk.

This is a report on the situation following Morris's contact with Rediffusion Television's British parent company, Rediffusion.

The report confirms that RTV is currently in deep trouble.

Due to strategic adjustments, the UK parent company, Rediffusion, is eager to sell these "non-core assets."

The TV station's programming is aging, its ratings are being completely suppressed by TVB, GG's revenue continues to decline, and the morale of the production team is low.

On the other hand, it possesses the earliest television broadcasting license on Hong Kong Island, with complete network coverage, and its production foundation remains intact. It also has some promising producers and projects, such as the local drama "The Land of Love" mentioned in the report, which is currently in preparation.

"Estimated value: HK$100 million to HK$150 million —"

Chen Bingwen's gaze fell upon this number.

For him, who had just made a profit of over 1.2 billion in the gold market, this amount of money was not unbearable.

However, he needs to consider the ongoing investment and the long-term costs of competing with the behemoth that is TVB.

"Acquiring a TV station is not just about buying assets; it's about buying a platform that needs continuous financial support and a powerful competitor."

Chen Bingwen knew very well what was going on.

TVB is now helmed by the Li Siu-ho family, with Run Run Shaw in charge of day-to-day operations. Coupled with numerous film and television stars, it can be said to be a gathering of stars and a wealth of talent.

Facing the challenge head-on is by no means easy.

However, Redeemer also has its value.

It possesses the earliest television broadcasting license on Hong Kong Island, with complete network coverage, and its production foundation and film library resources are still intact.

Moreover, the report mentioned that several producers had good project scripts, such as "The Land of Love," which had potential. He had a vague recollection that it was a series that later achieved good ratings.

On the other hand, the strategic value of holding a controlling stake in a television station is enormous.

This means that Sugarheart Capital now has a powerful, direct-to-the-public publicity channel, which is crucial for promoting products, building brand image, and even guiding public opinion at certain critical moments in the future.

In an era when information dissemination still relies primarily on television and newspapers, the power of the media should not be underestimated.

With that thought in mind, he no longer hesitated and dialed Morris's number directly.

"Morris, there's no need to probe any further," Chen Bingwen instructed succinctly. "Go directly to Lih's Voice to express our acquisition intentions."

Tell them that Sugar Capital is interested in acquiring its controlling stake in RTV (Rediffusion Television), and we can engage in exclusive negotiations.

"Understood, Mr. Chen. I'll take care of it right away."

Morris understood perfectly; this direct approach was often the quickest way to figure out the opponent's hand.

Things went even more smoothly than expected.

As the report states, Rediffusion's UK parent company has suffered setbacks in overseas investments in recent years, resulting in tight cash flow, and is eager to divest non-core assets to recoup its losses.

This Asian television station, which has been consistently losing money and has an uncertain future, has long been a burden they are eager to get rid of.

Upon receiving a formal and direct acquisition offer from Sugar Heart Capital, the company responded almost eagerly, stating that it could immediately send an authorized representative to Hong Kong for negotiations.

With one party sincerely wanting to buy and the other eager to sell, the foundation for negotiations was exceptionally solid.

A week later, in a conference room at the Mandarin Oriental Hotel, the two teams began substantive negotiations.

At the negotiating table, the main point of contention between the two sides was valuation.

Rediffusion Television's representatives attempted to emphasize the value of the television station's license, coverage network, and film library assets.

Meanwhile, Sugar Capital firmly grasped the facts of its consecutive years of losses, declining viewership share, and low employee morale, and lowered its asking price.

Ultimately, faced with the real financial pressure and Chen Bingwen's demonstrated ability to make payments with ample cash, Lih's appeal quickly surrendered.

After less than ten days of intensive negotiations and two rounds of key consultations, the two sides reached a preliminary agreement.

Sugar Capital acquired a 61% stake in RTV held by RTV for HK$1.1 million, achieving absolute control.

The signing ceremony was very low-key, and neither party invited the media.

After Chen Bingwen and representatives of Rediffusion Television signed the contract, the owner of Rediffusion Television became Sugar Capital.

After seeing off the other party's representatives, Chen Bingwen said to Morris beside him and Vincent Fang, who had also come to attend the ceremony, "We've secured the media platform, but the next challenge is figuring out how to make it realize its full value."

Looking at the copy of the agreement in his hand, Fang Wenshan said, "1.1 million to buy the controlling stake is a reasonable price."

But the major investment will likely come from subsequent developments, particularly in program production and signal coverage upgrades.

"Money is not a problem at all," Chen Bingwen said with a smile. "The profits from the gold market are enough to support the initial investment."

The key is the direction and the talent.

Morris, you will temporarily serve as the General Manager of RTV, responsible for managing the transition period.

The immediate priority is to stabilize the team, especially the production and technical staff, and to assure them that the new investors will allocate resources to support good programs.

"Understood." Morris nodded in response. "I will assemble a new management team as soon as possible and begin developing a new program strategy and budget."

For Chen Bingwen, the acquisition of RTV was a key step in his strategic layout of the media sector.

This will provide his future business empire with a direct channel to reach every household.

The real challenge now is figuring out how to clean up this mess and how to compete with TVB.

Despite both parties' best efforts to keep the acquisition of RTV a secret, the news still came to light.

The top business and media circles on Hong Kong Island are only so big. It's hard to completely hide the scale of equity transactions and due diligence from those who are interested.

The news first circulated among a small group of financial journalists and investment bankers.

"I heard that Chen Bingwen, the guy who makes beverages, acquired Rediffusion?"

"Really? He just won over Hutchison Whampoa, and now he's eyeing the TV station? Isn't this young man's ambition a bit too much?"

"I heard he made nearly ten figures in Hong Kong dollars in the London financial market, and now he's got money to burn."

"The mess that ATV is in can't be cleaned up with money alone. Will TVB just sit idly by?"

Various speculations and discussions quietly spread.

That afternoon, in the office of TVB Chairman Li Xiaohe, General Manager Run Run Shaw was reporting to him.

Nearly seventy years old, Li Xiaohe sat behind a large mahogany desk. Although he looked a little tired, his eyes were still sharp.

Run Run Shaw sat opposite him.

"Lisheng, there are some rumors circulating that someone has acquired the shares of Rediffusion Television held by Rediffusion Voice. It is said to be Chen Bingwen of Sugar Heart Capital."

"That's what Run Run Shaw said."

Li Xiaohe gave a soft "hmm" and chuckled, "Chen Bingwen? Is that the young man who acquired Qingzhou Yingni and Hutchison Whampoa? He's been making quite a splash lately."

"What, are the beverage and real estate businesses not enough for him? Now he wants to get into television?"

"I heard that he has made a lot of money in overseas financial markets and has plenty of funds."

If he really takes over RTV, given his financial strength and business acumen, the television industry will likely not be as peaceful as it is now.

Shaw analyzed.

Having dominated the market for so many years, the sudden emergence of a well-funded competitor that doesn't play by the rules is a cause for concern.

Li Xiaohe pondered for a moment, then a dismissive smile appeared on his face: "Sixth Brother, there's no need to worry."

ATV's mess is too deep to be salvaged; it can't be turned around by simply throwing money at making one or two good dramas.

Program production, talent development, audience habits—which of these doesn't require time to accumulate?

Our wireless foundation, built over many years, is not so easily shaken.

Let him do his thing first; we'll wait and see.

He paused, then added, "Of course, we can't slack off on the production of the show."

The message has been sent out: the scripts and actors for the big-budget productions scheduled for release this year need to be polished again to ensure quality.

Do not give the opponent any opportunity to exploit.

"I understand," Shaw nodded.

He also agreed with Li Xiaohe's judgment. The internal problems of ATV were deeply entrenched, and there was the formidable obstacle of TVB outside. It would be difficult for anyone to handle.

But for some reason, thinking of Chen Bingwen's ruthlessness and precise methods in acquiring Hutchison Whampoa and Qingzhou Yingni, he always felt that this young man could not be judged by common sense, and he had a vague and inexplicable premonition in his heart.

"Also," Li Xiaohe said, as if remembering something, "how are the preparations for the Lunar New Year program preview and GG sponsorship?"

"We need to scale up the business to show our clients our confidence and capabilities."

"Preparations are already underway, and it will certainly be a resounding success," Shaw replied.

While TVB executives were secretly on guard and trying to appear nonchalant, a different undercurrent was brewing within RTV.

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