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Red Bull China stop the production temporarily, Dongpeng Drink welcoming its best developing opportunity and signed new caps auto-production facility with SWITEK 2018-10-18

Oct. 17, 2018, there was a good news from SWITEK sales department that two more sets of Dongpeng Drink bottle caps auto-production system signed by SWITEK South China company.

 

“Drink Red Bull when you’re tire or sleepy!”, it’s this message that brought Redbull, the world famous energy drinks from Thailand into the life of thousands of Chinese people. Also make it a big name of RMB50 billion market value from a wordless brand in 20 years. In China, the development of Red Bull is regarded a legend, it’s the creator and leader of energy drinks in China.

 

Introduced to China in November 25, 1995, it took Reignwood Group 8 years to make it a drink of RMB1 billion sales volume in China, and another 8 years from RMB1 billion to RMB10 billion, and only 2 years from RMB10 billion to 20 billion. It reached its peak at 2015 which the sales volume turned out to be a historical RMB23.07 billion. The hot sales of Red Bull in China promoted the development of the energy drinks market. Other energy drinks brand such as Dongpeng, Yue Tiger, Claws, Carabao came over night. Among them, Dongpeng, noticed with it’s approaching taste to Red Bull and “Ugly” looking, ranked the second after Red Bull with a sales volume of RMB 4 billion in 2017.

 

According to a report by CI Consulting, the energy drinks market achieved an annual 28.9% growing from 2010~2014 and expected to grow up to be a RMB70 billion market. It’s unbelievable that in such a golden age of developing T.C. Pharmaceutical Industries Co., Ltd. The owner of Red Bull brand global and Reignwood Group, the authorized producer and Red Bull brand owner in China, started a lawsuit about the ownership of Red Bull brand in the on coming 30 years. Its no doubt that the competitors of other energy drinks producer in China welcomed their best opportunity to expand their market share. The statics shows that Red Bull recorded a turn over of RMB 19 Billion in 2017, a 7% lower than in 2016 while Dongpeng drink, recorded a turn over of RMB4 Billion, a 30% growth over 2016.

 

The negative influence of the dispute also showed from the marketing of its competitor. DongPeng Drink, the second largest energy drink producer in China, remembered by consumers not only for its advertise which says “It’s better to work hard clear-headed when you’re young” but also for its cap. There’s a cup like cap on both the bottle of 250ml and 500ml which enabled the to be imbibed energy drink also drinkable in an elegant way. But, it’s this small cup which loved and hated by the supplier of DongPeng Drink. Love it, because it’s a business of billions of pieces of purchasing annually. Hated it, because the sorting and loading of the caps is a labor intensive work. To take the order means the risky of insufficient orders in the low season but could not hire enough workers for a just in time delivery in the peak season.

 

SWITEK DongPeng Drinks Caps automation system is an automation solution designed for the auto production of the caps for DongPeng Drink. It’ll finish the picking, sorting and box loading automatically with a daily production capacity up to 900 thousand pieces. By now SWITEK delivered 4 sets of the automation system with an annual production capacity up to 60 billion pieces. But on Oct. 17, 2018, when Red Bull China suspended the production, DongPeng drink South China branch signed two more sets of automation system. Its willingness to expand the market is showed clearly.  



 

Anyway, we sincerely hope that the dispute would be settled down peacefully because the achievement of Red Bull China today is the hard working result of thousands of ReignWood staffs in 20 years. Although the Red Bull will have the same taste by the other producer, but with War Horse Energy competing in the market, the environment would be much harsher. 

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